Kroger is getting ready to lower prices on thousands of products as it tries to win back shoppers who have become more careful with their grocery spending.
The move comes as rising fuel costs, inflation, and broader economic uncertainty continue to squeeze household budgets and reshape where Americans buy essentials, according to Reuters.
Kroger plans to lower prices on thousands of items as Greg Foran, who became CEO in February, looks to gain ground on major rivals including Walmart, Costco, and Aldi.
Foran said the company will pay for the reductions by tightening sourcing practices, streamlining operations, and expanding other cost-cutting efforts. The cuts are not expected to happen all at once. Reuters reported that Kroger plans to test the lower prices, then gradually expand them.
Retailers across the grocery sector have reported that consumers are growing more cautious. Reuters noted that in March, Kroger forecast 2026 identical sales growth of 1-2% excluding fuel and adjusted earnings per share of $5.10-5.30.
Kroger competitor Walmart maintained its annual sales and profit outlook Thursday as higher fuel costs continue to push value-conscious consumers toward less expensive groceries and essentials.
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Discount grocery services are also gaining traction as consumers look for any way to save on food and household goods.
Kroger says it is reinvesting internal savings into lower prices and better customer service instead of simply absorbing those savings at the corporate level.
That includes sourcing goods more efficiently, importing merchandise directly, and leaning more heavily on technology to improve how stores and supply chains operate. The company plans to test the strategy before expanding it.
"The reality is, the basket has to come down," Foran said. "And not everyone's basket is the same."
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