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After years of store closures and stagnation, Kroger is reversing course with plans for a major expansion in the Houston area, signaling a new strategy to reclaim market share in the competitive Texas grocery market. The move follows a period of financial strain and a major operational restructuring for the grocery giant.
If you build it: The company's new strategy is two-pronged: building several new stores while also pushing forward with its modernization plan. Texas Division President Rudy DiPietro told the Houston Business Journal the company is scouting locations that "already have rooftops in place and are ready for new stores," suggesting a focus on high-growth suburbs.
Pressure makes pivots: The move comes as Kroger grapples with financial headwinds, including a reported operating loss of over $1.5 billion in the third quarter. The expansion push also follows a 2025 operational overhaul that merged its Houston and Dallas divisions into a single Texas unit to increase efficiency as it fights to win back customers.
An uphill battle: Kroger's renewed focus on Houston draws a new battle line in H-E-B's backyard, but success isn't guaranteed. Winning back shoppers from the dominant and deeply entrenched local favorite will require more than just new buildings; it will demand a compelling answer to a competitor that has consistently outmaneuvered them on their home turf.
While Kroger fights for ground in Texas, it's also facing a multi-front war as rivals like Publix expand into its home market near Cincinnati. The Houston move has industry watchers buzzing, with some speculating it could be the start of a broader revitalization strategy for other Kroger-owned brands across the country.
