Global Research Marketing: Kroger planning price cuts to compete; unwrapping industry implications

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Global Research Marketing: Kroger planning price cuts to compete; unwrapping industry implications

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Global Research Marketing

Kroger planning price cuts to compete;

unwrapping industry implications

Kroger’s new CEO looks to narrow the competitive gap 22 May 2026

In an interview with Bloomberg News, Kroger’s new CEO, Greg Foran, indicated that it’s Equity

the food retailers emphasizing value--Walmart, Costco and Trader Joe’s--that are Global

outperforming. Using an auto racing analogy he suggested that his objective is to Thomas (T.J.) Thornton

“make up the gap on the first-group cars and then ideally pass them.” Foran suggested Head of Research Marketing

that the food basket needs to come down and across thousands of products. He also BofAS+1 646 855 2449

discussed trimming expenses and putting that savings toward price cutting. The KR thomas.thornton2@bofa.com

news came the same morning that Walmart reported in-line 1Q but highlighted a 250bp Fundamental Equity Research

profit headwind from higher fuel and logistics. On Wednesday, it was reported Pepsi ChristopherResearch AnalystNardone

plans to raise prices on single-serve chips. This confluence led to questions about BofAS

christopher.nardone@bofa.com

competition, inflation, price gaps and here, we briefly address a few of them.

Peter T. Galbo, CFA

KR has already been narrowing price gaps ResearchBofAS Analyst

peter.galbo@bofa.com

Robby Ohmes’ most recent pricing study (April, Las Vegas), showed KR's price gap vs.

WMT on a total food basket basis (60 items) has decreased from 14% in 2025 to 10% in RobertResearchF.AnalystOhmes, CFA

2026. The largest price gaps vs. WMT appear to be in Meat (25%), Dairy (14%), and BofAS

robert.ohmes@bofa.com

Produce (7%).