Kroger's Connected Store Strategy Signals a New Era for Physical AI in Retail

At Kroger's 2026 Investor Day, the company shared a their plan to win with the customer by driving profitable digital growth and modernizing how its stores operate.

Robotics was mentioned throughout, and Tally appeared on several slides. Chief Store Operations Officer Mark Ibbotson said Kroger has around 900 robots live today and will have more than 2,100.

"This is disruptive technology," he said. "It will change the way we shop."

What Kroger shared about the connected store

Kroger's Connected Store operating model includes robotics, RFID, digital shelf labels and AI. As Mark explained, "Robotics, RFID, and our digital shelf labels give us the signal. AI helps us prioritize what matters. Associates get clear actions."

Kroger identified robots' current uses as out of stocks, promotional display, top stock detection and truck completion verification. "We will add more uses from here," Mark said. Kroger tied the model directly to excellence across on-shelf availability, shrink and waste, customer experience, retail media, e-commerce and store productivity.

Kroger also extended the signal beyond its own walls. Mark described sharing computer vision data with supplier partners: "That puts Kroger's and our suppliers on the same signal with the same objective, improve on-shelf availability and sell more product."

Congratulations to Kroger's leadership and the store teams bringing the Connected Store vision to life.

View Mark's full Connected Stores segment here.