TL;DR: Kroger cut its sales outlook and held its profit target following 2Q26 results. Management signaled pushback on supplier price increases, Our Brands widened its lead over national brands, and Kroger Precision Marketing is earning more from every visit. eCommerce again supplied all of the growth. Brands should plan digital-first, prepare for tougher cost conversations, and budget for a bigger media ask.
6 minute read
Kroger reported its second quarter results this morning, lowering its full-year identical sales outlook while reaffirming its profit and earnings guidance. Sales disappointed, while profit did not.
For brands, three points stand out:
- Kroger's growth is coming entirely from eCommerce, and the store channel shrank again based on our analysis, keeping the digital shelf at the center of any Kroger plan. Greg Foran, CEO, stated, "eCommerce is where most of the growth in our industry will come from over the next several years."
- Kroger is protecting profit through cost savings, and management made clear that supplier price increases will need to be fully justified.
- Our Brands widened its lead over national brands while KPM posted its best profit growth since 2021, raising the cost of holding share at Kroger.
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