4 minute read
Kroger ($138 billion in annual sales) announced its April '22 results this morning providing insight on consumers and takeaways for national CPG brands.
TL;DR: While upper income consumers have maintained shopping behaviors, Kroger's results illustrate growing pressure on the low-to-mid-income consumer as the grocer is seeing more trade-down behavior, shoppers buying smaller baskets, and greater adoption of its fuel perks. Kroger raised its revenue and profit guidance for the balance of the year as it believes it will be able to offer the right mix of value-to-quality, preventing channel shifts to value and dollar channels. The digital business (down 6% Y/Y) received less commentary this time around, although Kroger's management team is pleased with growth coming from its Ocado-powered markets and sees no need to have physical stores in certain markets.
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