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Kroger Co. plans to spend $5 billion to offer more competitive value to customers, as the nation’s largest grocer seeks to gain market share and attract more households.

The company aims to lower prices of everyday staples while simplifying discounts, executives said Tuesday during its investor day in New York. This push will be funded by a range of cost-cutting efforts such as sourcing products directly and buying goods more effectively.

The Cincinnati-based retailer, which operates Fred Meyer, Ralphs and 19 other supermarket chains, is implementing wide-ranging changes under new Chief Executive Officer Greg Foran. It’s taking on the largest price cuts in years, while eliminating thousands of corporate jobs and improving store services. At the same time, Kroger is confronting persistent inflation concerns and intensifying competition from rivals.

“Value is where we start. That means sharper everyday prices and simpler promotions,” Foran said at the event, adding that early customer reaction has been positive.

While Kroger won’t abandon discounts, it will be more selective in its offerings and reduce complicated deals such as buy two, get three, executives said. It’s expanding areas such as prepared meals and private labels that resonate with shoppers, while pulling back on apparel and general merchandise.

To save costs, the company is working to source items like grapes directly from growers and looking to do so across other categories. Kroger is also consolidating how it purchases products, such as buying shopping carts from fewer suppliers. The retailer said it’s opening a new office in India to outsource various jobs.

Kroger shares were little changed in New York trading Tuesday.

The retailer enjoyed strong growth during the pandemic when families were stuck inside and cooked more at home. Following that boom, it sought to combine with its rival Albertsons Cos., but that deal was blocked on regulatory grounds. Since then, it’s dealt with executive exits.

Foran, a former Walmart Inc. executive credited for turning around the retailer’s US business in the mid to late 2010s, has said items across various categories would need to get cheaper at Kroger because every family shops for groceries differently. In recent months, Walmart has doubled down on discounts as consumers remain price-sensitive. Costco Wholesale Corp. has also lowered prices of staples like beef and eggs.

Last month, Kroger cut its annual sales guidance partly due to federal negotiations that have led to lower drug prices.