Kroger Under Pressure as Shoppers Become More Price-Sensitive

Kroger reduced its 2026 identical sales growth forecast to 0.2%-0.8% from 1%-2%. Q2 2026 sales rose to $34.62bn, with identical sales up 0.2%. Operating profit increased to $971m, and EPS grew to $1.05. The company cited higher fuel sales and costs but maintained other full-year targets. CEO Greg Foran highlighted progress in customer value and cost management.

Kroger reported Q2 2026 sales of $34.6B, up from $33.9B last year. Digital sales rose 20%, and pharmacy profits increased due to generic medicine sales. Operating profit grew to $971M, while adjusted FIFO operating profit dropped to $1.07B. The company expects full-year core sales growth of 0.2-0.8% and maintains its FIFO operating profit outlook at $5.0-5.2B.

Kroger reported a $12 billion loss in consumer packaged goods spending over the past year, according to a Numerator report. The company has lost customers to rivals like Amazon, Walmart, and Costco, with lower-income households reducing spending by 5.2%. Kroger's private-label brands saw growth, with sales up 14% in Q2 2026. The company cut its full-year sales outlook, now expecting identical sales growth of 0.2% to 0.8%, down from 1% to 2%.

Kroger lost over $12 billion in consumer spending to Amazon, Walmart, and Costco in the past year, according to Numerator. Spending at Kroger stores fell by $715 million, with 9 million fewer trips. Lower-income households decreased by 700,000, while higher-income households increased by 1 million. Private-label products saw growth, with a $420 million increase in fresh foods. Kroger's Q2 identical sales rose 0.2%, and it lowered its full-year outlook to 0.2%-0.8% growth.

Kroger reported Q2 2026 adjusted earnings of $1.09 per share, beating estimates, but sales missed expectations. E-commerce sales rose 20%, while identical sales without fuel grew 0.2%. The company cut its sales outlook but maintained profit guidance. Shares have fallen 10.2% over the past year.

Kroger lowered its full-year identical-sales outlook due to reduced produce demand from a cyclospora outbreak and challenging macroeconomic conditions. Q2 net earnings rose to $641M, with sales up to $34.6B. Same-store sales (excluding fuel) grew 0.2%. The company maintained earnings guidance but reduced its sales forecast, citing lingering impacts from the outbreak. E-commerce sales grew 20%, and Kroger added 600 new natural and organic items.