Kroger CEO Greg Foran says the chain is seeing weekly grocery stock-ups disappear in favor of smaller, promotion-driven trips as household budgets grow increasingly strained. During Kroger's first-quarter fiscal year 2026 earnings call, Foran told investors that customers are under pressure from high gas prices and reduced SNAP benefits, leading them to shop with real intent and make targeted visits focused on promotions and immediate needs. He noted the company is getting too many promotional trips and not enough of the full basket. The trend aligns with broader industry research, including an Alvarez & Marsal report finding that 13% of grocery shoppers are making more trips each week to take advantage of sales, and an Ibotta report showing 62% of shoppers have adopted defensive behaviors like hunting for deals or switching retailers. Kroger has struggled to appeal to price-conscious shoppers, with GlobalData Managing Director Neil Saunders saying the grocer doesn't win on price, experience, private label, or ecommerce, but Foran plans to strengthen Kroger's price position and make it simpler.
Kroger CompanyCustomers shifting to smaller, promotion-driven trips and strained budgets reduce basket size and sales.