Kroger is adopting a straightforward strategy as it looks toward growing its share of the grocery market, adding new focus to its fresh food offerings and bolstering its digital footprint across all of its operational areas, CEO Rodney McMullen said. "[O]ur strategy of leading with fresh and accelerating with digital is designed to convert our industry's near-term tailwinds into long-term competitive advantages," he said.

By the end of 2023, Kroger CEO Rodney McMullen says, the grocer will have doubled its digital sales and made its online operations more profitable. McMullen, speaking at a virtual investor event, said Kroger also will focus on growing its fresh food categories, expanding its Kroger Precision Marketing advertising business and emphasizing efficiency through its partnership with Ocado.

A significant investment in e-commerce infrastructure three years ago, along with its ongoing partnership with tech giant Ocado, have given Kroger the agility to adapt to pandemic-fueled demand and shifts in shopping behavior, Kroger CEO Rodney McMullen said. In this Q&A, McMullen discusses learning tough lessons from the outbreak and looks ahead to a grocery landscape that includes new ways to engage with in-person and digital customers.

Kroger's automated distribution warehouses will take two to three years to become profitable, says Kroger CEO Rodney McMullen. The company plans to open 20 facilities with Ocado in the coming years.

Kroger is looking to quickly implement the warehouse technology from its partnership with Britain's Ocado to help with distribution and online order fulfillment, CEO Rodney McMullen said. "What we're really trying to do is make sure we have an overall infrastructure for digital that can support whether it's 5% of share or 30% of share," McMullen said.