Supermarket chain Kroger Co. (KR) is heading into the end of 2025 under a cloud of investor skepticism. The grocery company has been squeezed by fierce competition from other e-commerce giant’s like Walmart (WMT) cautious consumer spending, and ongoing struggles to make e-commerce truly profitable. And with the collapse of its highly anticipated Albertsons (ACI) merger, management has been forced into damage-control mode. It announced plans to shutter about 60 underperforming stores and cut roughly 1,000 corporate jobs, a move that has weighed heavily on the stock.
But just when sentiment looked stuck in the freezer aisle, Kroger delivered a potentially powerful catalyst. On Dec. 23, the company approved a $2 billion expansion of its share-repurchase program, lifting total remaining buyback capacity to about $2.9 billion. That’s a clear signal that management believes the stock is undervalued and sees strong cash-generation ahead, even as the broader retail environment remains challenging.
