May 21 (Reuters) - Kroger is preparing to cut prices on thousands of items as new CEO Greg Foran pushes to regain market share from rivals including Walmart, Costco and Aldi.
After taking the helm at the U.S. supermarket chain in February, Foran is focusing on plowing savings from tighter sourcing, simpler operations and cost cuts into lower prices and better service.
• Foran said he plans to test price reductions before rolling them out more broadly and then phase them in over time.
• "The reality
is, the basket has to come down. And not everyone’s basket is the same," he said, adding the cuts would span “thousands of products”.
• Shares of the company were down about 2% in morning trading.
• Foran said Kroger plans to fund the price cuts in part by reducing costs, including by importing merchandise directly and using technology more effectively, before reinvesting the savings into lower shelf prices.
• Retailers are contending with cautious consumer behavior as shoppers remain worried about rising fuel prices, persistent inflation and broader economic uncertainty.
• The grocer in March forecast muted annual sales and profit, with a projection of 1% to 2% growth in 2026 identical sales, excluding fuel and adjusted profit per share of between $5.10 and $5.30.
• Bigger rival Walmart stuck to its conservative annual sales and profit targets on Thursday as rising fuel costs drive value‑seeking shoppers to its low-priced groceries and essentials.
(Reporting by Savyata Mishra and Sanskriti Shekhar in Bengaluru)
