Dive Brief:
- Kroger this week created a chief data and AI officer role to lead advanced AI efforts across company operations, according to a company spokesperson. The company elevated Milen Mahadevan, president and CEO of retail data science company and Kroger subsidiary 84.51˚, to the position. Mahadevan will report to Yael Cosset, EVP and chief digital and technology officer at Kroger.
- Mahadevan’s appointment emphasizes the priority Kroger is placing on AI and will “ensure we have dedicated leadership to accelerate this work,” former interim CEO and Chairman Ronald Sargent said during the company’s earnings call Thursday. The grocer appointed former Walmart executive Greg Foran as Sargent’s successor on Feb 9.
- The grocer plans to expand its AI capabilities, including adding agentic shopping, across its digital environments, Sargent said during the Q4 2025 earnings call for the period ending Jan. 31. “We see AI as a meaningful opportunity to both improve the customer experience and drive productivity across our business,” he told investors.
Dive Insight:
Grocers and retailers are tying their AI investments to bolstering productivity and improving customer experience.
In its $2 billion spending plan announced earlier this week, Target shared its goal to accelerate technology investments, including AI, “to further boost productivity and create additional fuel for our business,” CFO Jim Lee said during the company’s Q4 2025 earnings call. Meanwhile, Albertsons is partnering with Google, OpenAI and Databricks to facilitate its technology transformation.
In his new role as Kroger’s chief data and AI officer, Mahadevan will focus on developing agentic capabilities for the grocer and work closely with business leaders to add advanced AI to business processes, according to a company spokesperson.
Mahadevan will continue to lead strategy and vision at 84.51˚ while also overseeing Kroger’s data and AI platform and customer technology teams. The grocer plans to consolidate all data and AI teams under Mahadevan’s leadership, according to the spokesperson.
Kroger’s capital investments in 2026 will support technology and AI, “where we are investing aggressively,” said CFO David Kennerley during the earnings call.
“This year, we’re introducing agentic AI shopping for our customers, which will help them discover items, build baskets, plan meals and stay within budgets, all in a personalized way,” Kennerley added.
The grocer is also investing in supply chain modernization and automation, as well as store remodels.
“That means evaluating new concepts, making sure every element of the store is relevant, productive and aligned with how customers want to shop today,” he said.
Company sales totaled $34.7 billion in the fourth quarter compared with $34.3 billion for the same period last year, marking a sales increase of 2.1% excluding fuel, according to its earnings report. The grocer’s total sales for fiscal 2025 reached $147.6 billion compared with $147.1 billion in the previous fiscal year.
