Grocery overlap analysis

Research evidence excerpt

Grocery overlap analysis

Equity Research

23 June 2026 | 2:01AM CDT

AMERICAS RETAIL: SUPERMARKETS

Investor sentiment on the grocery sector remains low as the competitive Leah Jordan, CFA

+1(713)658-2691 | leah.jordan@gs.com

environment heats up across the industry. With the planned increase in price Goldman Sachs & Co. LLC

investments by KR, we provide a store overlap analysis across the food retail Kate McShane, CFA

landscape along with price and value perception from HundredX survey data. +1(212)902-6740kate.mcshane@gs.com|

Goldman Sachs & Co. LLC

Emily Ghosh

+1(713)658-2632 | emily.ghosh@gs.com

Goldman Sachs & Co. LLCKey takeaways

Eli Thompson

+1(713)904-8289 |

eli.thompson@gs.com

Dan Duggan, Ph.D.

+1(212)902-4726 | dan.duggan@gs.com

Sreenya ChitluriInvestor sentiment on the grocery sector remains low as price investments continue +1(332)245-7761 |

to tick up across the industry, with most food retailers highlighting a continued focus sreenya.chitluri@gs.comGoldman Sachs India SPL

on providing incremental value to consumers during 1Q results (Exhibit 1). As a part

of this backdrop, KR’s new CEO is taking a more proactive approach on its pricing

strategy, with its planned step-up in price investments likely to be gradual over time

as it adjusts its promotional cadence and intensity in order to reduce frequency and

complexity. As a result, KR’s gap for regular priced items should narrow vs value

peers, noting we have observed some moderation recently in our monthly grocery

pricing study (Exhibit 2, Exhibit 3), with funding support likely from productivity (e.g.,

improving ecomm profitability, retail media growth, leveraging its scale and

technology) along with vendor participation.

As incremental investments by KR are still on the come, the main investor question