Let me begin by making it clear that Greg Foran is doing the job he was hired to do: lead.
According to sources from Kroger who provided me with ALL of the following information and numbers, Kroger is implementing a strategy to outsource entire departments to a Global Capability Center (GCC) located in India. It’s referred to as the KCC — Kroger Capability Center. A Kroger corporate employee costs about $125K fully loaded. The same job, done in India, costs about $37,500. That’s a 70% savings per role. Kroger is targeting $500M in annual savings. To achieve the savings goal, 5,700 jobs would technically have to be eliminated. Kroger has not made any public comments related to layoffs. In addition, savings can be achieved through a variety of ways and not only layoffs.
NOTE: THE NUMBER OF TERMINATIONS HASN’T BEEN FINALIZED. THE NUMBER COULD BE HIGHER OR LOWER.
Kroger has publicly stated that the GCC will achieve “modest benefits” in 2026, and “more significant results” in 2027-28.
Here is some background on this topic:
✅ A Kroger executive pitched the idea of a GCC internally in 2019. It got shelved during the Albertsons merger as pursuing mass layoffs during an FTC antitrust review would have been reckless. When the merger collapsed in December 2024, Kroger hired CFO David Kennerley specifically because he had GCC experience.
✅ Yael Cosset, Kroger’s technology chief since 2015, is now responsible for the KCC.
✅ Kroger’s board approved stock buybacks during McMullen’s tenure as CEO. That’s capital that could have funded a GCC transformation years earlier.
What’s next: Kroger just agreed to buy Giant Eagle for $1.65B, closing in 2027 right when the KCC is supposed to start delivering real savings. I believe Kroger should start requiring every banner it owns, current and future, to route work through the KCC.
A word of caution: Kroger must maintain rigorous oversight of the KCCs operations in India, and audit the performance and value of the KCC on a quarterly basis. Kroger must demand that the KCC execute at the highest possible level. If this isn’t done, the KCC strategy will fail.
I sincerely wish everyone at Kroger the best.
Read The Bill Comes Due: Inside Kroger’s Global Capability Center Strategy
Read more on LinkedIn at https://www.linkedin.com/posts/brittainladd_retail-strategy-leadership-activity-7485655870144425985-hoPt