Kroger completed the sale of its e‑commerce health‑and‑wellness retailer Vitacost.com, Inc. to iHerb Holdings, LLC, with the transaction closing on January 8 2026. The parties did not disclose the purchase price, but the deal reflects Kroger’s ongoing strategy to shed non‑core assets and concentrate capital on its grocery, pharmacy and omnichannel businesses.
The divestiture aligns with Kroger’s broader portfolio optimization plan, which has included closing unprofitable stores and reducing corporate positions. By removing Vitacost, the retailer can reallocate resources to high‑return growth areas such as e‑commerce enhancements and retail‑media initiatives. Kroger’s guidance for 2025 was stated to be unaffected by the sale, indicating the transaction’s modest size relative to the company’s $150 billion‑plus annual revenue.
iHerb’s acquisition expands its U.S. market presence in the rapidly growing health‑and‑wellness e‑commerce sector. The company will integrate Vitacost’s brand, intellectual property and inventory into its existing platform, broadening its product catalog and strengthening its competitive position against other online supplement retailers.
Employees of Vitacost will transition to iHerb ownership, with no immediate layoffs reported. Operations are expected to be merged into iHerb’s existing fulfillment and customer‑service infrastructure, preserving the Vitacost brand while leveraging iHerb’s logistics network.
The sale underscores a broader trend of consolidation in the health‑and‑wellness e‑commerce market, driven by rising consumer demand for natural products and personalized health solutions. For Kroger, the transaction is a step toward a leaner, more focused business model, while for iHerb it represents a strategic expansion that positions the company for continued growth in a high‑margin niche.
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