The Kroger Co. hosted a virtual 2021 Investor Day Wednesday to provide an update on the company's strategic initiatives and plans to deliver strong and sustainable total shareholder return of 8% – 11%.
"Kroger continues to deliver for customers through our seamless ecosystem and relentless focus on freshness, value and convenience," said Rodney McMullen, Kroger's chairman and CEO. "Building upon the foundation established by our Restock Kroger transformation, and leveraging key learnings from operating during the pandemic, our strategy of Leading With Fresh and Accelerating With Digital is designed to convert our industry's near-term tailwinds into long-term competitive advantages.
"Today, Kroger is uniquely positioned because of the strength of our assets and our competitive moats cultivated over several years of disciplined investment and focused execution. Our go-forward strategy builds on these strengths to drive share growth, increase profitability across digital, and deliver strong and sustainable total shareholder returns. Our talented and energized team is already delivering on our objectives, and we look forward to continuing to position Kroger to win in a post-COVID world."
At today's Investor Day event, Kroger's leadership team will discuss the three core elements of its strategy:
Kroger's leadership team will outline key growth opportunities that will drive the financial model forward including a clear path to deliver total shareholder return between 8% - 11%, through net earnings growth of 3% - 5% and strong and growing free cash flow to invest in growth initiatives and return cash to shareholders.
"Kroger is delivering on its value creation model, and over the period of 2019 to 2021, we expect to significantly exceed our total shareholder return target," said Gary Millerchip, Kroger's CFO. "The strength of our execution, combined with our strategic plans to continue to lead in fresh, accelerate digital, and grow alternative profit streams will enable us to achieve our 2021 guidance and deliver profitable growth beyond 2021."