Key Takeaways:
- New CEO Greg Foran plans sweeping Kroger price cuts to compete with Walmart.
- Kroger will source items directly and double store openings to boost growth.
- Walmart countered by slashing prices on 7,200 products to maintain market leadership.
The Kroger Co. plans sweeping Kroger price cuts across thousands of products as new CEO Greg Foran seeks to regain market share from rivals including Walmart Inc., the company’s biggest competitor in U.S. grocery retail.
Foran, who became CEO in February, said Kroger is preparing to test lower prices across multiple product categories before expanding the strategy companywide. In an interview with Bloomberg News, he said the retailer aims to become more competitive as consumers increasingly prioritize affordability.
Kroger targets lower prices across stores
Kroger, the largest grocery operator in the United States with nearly $150 billion in annual revenue, owns 21 chains including Fred Meyer and City Market. The company is trying to recover from a failed merger attempt with Albertsons Cos. and the departure of longtime CEO Rodney McMullen.
“The reality is, the basket has to come down,” Foran said. “It needs to be across thousands of products.”
Foran said Kroger price cuts will reduce costs partly by importing merchandise directly and using technology more efficiently. Savings will then be redirected toward price reductions. He did not disclose how much Kroger plans to invest in the effort.
The retailer also plans to improve store service, speed checkout times and expand store openings. Kroger expects to open 70 to 80 stores next year, roughly double the number scheduled for 2026.
Walmart defends its lead in value shopping
Kroger faces growing pressure from discount-focused retailers such as Costco Wholesale Corp., Aldi, Trader Joe’s and Amazon.com Inc..
Walmart said this week it lowered prices on about 7,200 products, more than 20% higher than a year earlier. Company executives said the strategy continues to attract shoppers across income groups.
“This is a competitive market and has been for all the years that I’ve been in retail,” Walmart CEO John Furner told analysts during a company call. “Everyone is looking for value and has been for a really long time.”
Retailers are also navigating economic uncertainty tied to inflation, higher fuel costs and shifting consumer habits. Executives said rising gas prices and tighter government benefits are making shoppers more cautious.
Foran said customers remain concerned about household expenses, though grocery demand has not weakened significantly despite ongoing Kroger price cuts efforts.
Former walmart executive reshapes kroger strategy
Before joining Kroger, Foran spent five years leading Air New Zealand and previously oversaw Walmart’s U.S. operations. During his tenure there, Walmart reported three consecutive years of quarterly same-store sales growth.
At Kroger, Foran is emphasizing what the company internally calls the “five Fs”: fresh, fast, affordable, friendly and for you. The approach combines lower prices with faster service, stronger e-commerce operations and more personalized shopping experiences through expanded Kroger price cuts initiatives.
“Our objective is to execute what we think is a very clear, sensible plan,” Foran said. “We want to be America’s best grocer.”
Kroger is also evaluating future acquisitions and expansion opportunities, particularly in the Northeast and high-growth states including Texas, North Carolina, South Carolina and Florida.
The company said expanding store locations will also strengthen its e-commerce network as consumers increasingly demand faster grocery delivery and pickup options.
