CINCINNATI — Kroger posted sales gains in the third quarter and raised its outlook for the year. Identical-store sales (excluding fuel) increased 3.1% compared to the prior-year quarter, and were up 14% on a two-year stacked basis. The two-year stack for digital sales increased 103%. Total company sales were $31.9 billion in the third quarter, up 7.2% versus the same period last year. Excluding fuel, sales increased 2.9%.

Chairman and chief executive officer Rodney McMullen said the results show that Kroger’s initiatives are on target.

“Kroger’s strategy to lead with fresh and accelerate with digital continues to connect with our customers,” he said. “Our agility, and the commitment from our amazing associates, is allowing us to navigate current labor and supply chain conditions and provide the freshest food at affordable prices across our store and digital ecosystem. Our focus on execution, combined with our continued discipline in balancing investments in our associates and customers with exceptional cost management, and growth in our alternative profit business allowed us to exceed internal expectations and deliver strong sales and earnings growth.”

Kroger noted some big “leading with fresh” achievements in the quarter. Home Chef became the newest billion-dollar brand in the retailer’s Our Brands portfolio, which also saw the launch of 216 new items during the quarter. Kroger also expanded the launch of its End-to-End Fresh program to more than 50 additional stores, and announced plans, with Kipster Farms of The Netherlands, to bring the world’s first carbon-neutral, cage-free eggs to retail shelves under the Simple Truth brand name.

The retailer also noted some accomplishments in the quarter related to the “accelerating with digital” part of its strategy. They include launching Kroger Delivery Now nationwide with Instacart to provide 30-minute delivery, enabled by a first-of-its-kind virtual convenience store shopping experience, and introducing a membership program called Boost by Kroger Plus that provides customers free delivery and additional fuel points on purchases.

Kroger also shared plans for five new customer fulfillment centers powered by the Ocado Group with expansions in California and Florida and entrance for the first time into the Northeast region. (It has since announced another, in North Carolina.) Kroger also announced a collaboration with Bed Bath & Beyond and buybuy Baby on a national e-commerce experience via Kroger.com and a small-scale physical store pilot to expand home and baby product offerings.