Kroger to Slow Store Growth for 2017
- by Melissa De Leon Chavez
CINCINNATI, OH – Coming off a year filled with strategic moves for growth, a new SEC filing by Kroger shows the retailer mapping out more moderation for 2017.
In a Form 10-K filed with the SEC earlier this week, the company noted a plan of 30 stores less than ventures in 2016.
“We expect capital investments, excluding mergers, acquisitions and purchases of leased facilities, to be $3.2 to $3.5 billion,” the retailer noted in the report. “These capital investments include approximately 55 major projects covering new stores, expansions and relocations; 175 major remodels; and other investments including digital, technology, minor remodels, and upgrades to logistics, merchandising systems and infrastructure to support our Customer 1st business strategy.”
The retailer explained that as it invests further into logistics network systems, digital and technological initiatives, and other enhancements to its existing stores, investment in stores will be reduced.
The report also noted that it expects to grow its total square footage approximately 1.8% before mergers, acquisitions, and operational closings this year. By the end of 2016, Kroger saw a 3.4% increase over 2015 excluding mergers, acquisitions, and operational closings.
In 2016, Kroger expanded in a number of markets and added upwards of 14,000 jobs, as well as popping up repeatedly as a candidate to acquire major names like Rite Aid, Whole Foods, and The Fresh Market.