What’s happening:
Kroger has raised its annual core sales forecast, citing strong demand for its lower‑priced essentials. The chain now expects identical (like‑for‑like) sales growth of 2.7% to 3.4% for the full year, up from its earlier projection of 2.25% to 3.25%. Reuters+1 The company also reported that certain categories — fresh food, pharmacy, and eCommerce — are leading gains. Reuters
Simultaneously, Kroger is reconfiguring its store network. It announced that it will close around 60 underperforming stores over the next 18 months, while opening roughly 30 new stores with modernised layouts and expanded product ranges, including more localised offerings. The Sun
Implications & questions:
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Demand for value is clearly driving consumer behaviour. Can Kroger maintain margins while trimming underperforming stores and investing in new formats?
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The store closures may hurt rural or underserved communities. What will the social and economic impact be?
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Will the renovated stores provide enough differentiation (product range, layout, experience) to attract customers amid fierce competition from discount grocers and online rivals?