In Kroger’s Q3 earnings release on November 30th, the company signaled a continued conservatism in consumer shopping habits, leading to identical store sales declining by 0.6%. Additionally, Kroger updated its full year guidance, lowering estimates of same-store sales growth between 0.6 and 1%. This is down from previous guidance of 1-2% growth.
These results point to a continued challenge in the decline in Very Price Sensitive (VPS) consumers who are shifting down market to retailers such as Walmart. Kroger has signaled they are making significant investments in pricing and promotion on key items in Q4 to reverse this trend.
The company continued its growth in digital, as they celebrated the 6-year anniversary of Kroger Precision Marketing. Digitally engaged households grew by 13%, and total digital sales grew by 11%.
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