Kroger, the U.S. grocery chain, said its e-commerce operation made money for the first time in Q1 fiscal 2026, with digital sales up 19% YoY, led by delivery. Its retail media business grew more than 20%, and orders delivered in under an hour accounted for about half of e-commerce growth. Overall sales rose about 2% to $46.1B, but identical sales excluding fuel climbed just 1%, down from 3.2% a year earlier, dented by about 130 basis points from changes in federal prescription-drug payments and a shift to generics. New CEO Greg Foran, who previously led Walmart’s U.S. business, said about 60% of Kroger’s stores need to improve and that the chain has grown its footprint too slowly against rivals. Kroger reaffirmed its full-year guidance for identical sales of 1% to 2%.
