Kroger's in-store customer traffic fell 0.22% in July from the prior month, the fourth-sharpest decline among 16 grocery retailers tracked by Jefferies, extending a three-month slide of 0.66 percentage points. CEO Gregory Foran said on the company's first-quarter earnings call that operating costs have been growing faster than sales and that the chain must improve how it operates behind the stores. GlobalData Managing Director Neil Saunders called Kroger a bland, middle-market grocer that doesn't win on price, experience, private label, or e-commerce, while Foran said the chain does not need to be the lowest-priced retailer but must be more competitive and consistent. Saunders and RTM Nexus CEO Dominick Miserandino both noted that Foran, a former Walmart executive, brings needed energy but that rebuilding traffic will take time.
Kroger CompanyKroger's in-store traffic fell and CEO admits operational issues, indicating weak customer demand.
GlobalData PLC
Jefferies Financial Group Inc