Kroger is planning a long-term $5 billion investment in its operations in a bid to lower prices and improve its in-store experience.

The plans come after a stagnant fiscal second quarter, in which the supermarket giant only lifted net sales by 0.2 per cent year-on-year. Shortly after telling investors of this result, Kroger said it was planning to cut 3000 jobs from its corporate team.

CEO Greg Foran argues that Kroger has a “clear opportunity” to grow. “We are making value more visible and focusing resources closer to the customer, where we see the highest returns,” he added.

“With our customers at the center, we are simplifying and modernizing our business to deliver a great customer experience and provide long-term value to our shareholders.”

By 2029, Kroger is targeting 3 per cent comparable sales growth. CFO David Kennerley said this will come from a focus on its grocery business.

“Our financial framework reflects our renewed focus on the core grocery business and provides a clearer line of sight from operating performance to shareholder value,” he added.

“We remain focused on delivering customer value in a fully self-funded way, prioritizing high-return investments and disciplined cost savings so we can expand margins over time while continuing to invest in growth.”