Introduction
Kroger, one of the largest grocery store chains in the United States, is raising prices on select grocery items, according to its Chief Financial Officer, Mike Schlotman. This news comes as a surprise to many shoppers, as Kroger has long been known for its competitive prices. In this article, we’ll take a look at why Kroger is raising prices, what items are affected, and what shoppers can do to save money. We’ll also provide some tips on how to make the most of your grocery budget.
Kroger Is Raising Prices on Select Grocery Items, CFO Says
Kroger, the nation’s largest grocery chain, is raising prices on select items in its stores, according to its chief financial officer. The move comes as the company faces rising costs due to the coronavirus pandemic.
Kroger CFO Gary Millerchip said in a statement that the company is “experiencing higher costs in certain areas, including labor, transportation, and product costs.” He added that the company is “taking steps to offset these costs, including raising prices on select items.”
The company did not specify which items would be affected by the price increases, but Millerchip said that the company is “working to ensure that our customers continue to have access to affordable, quality products.”
The news comes as the grocery industry is facing a number of challenges due to the pandemic. Many stores have had to limit the number of customers in their stores, and some have had to close temporarily due to outbreaks of the virus.
At the same time, grocery stores have seen an increase in demand for certain items, such as canned goods and cleaning supplies. This has led to shortages of some items, and higher prices for others.
Kroger is not the only grocery chain to raise prices in recent months. Walmart, Target, and Aldi have all announced price increases on select items.
It remains to be seen how customers will respond to the price increases. Many shoppers are already feeling the pinch of the pandemic, and any additional costs could be a burden.
However, Kroger is hoping that its customers will understand the need for the price increases and continue to shop at its stores.
Ongoing supply chain issues aren’t only creating grocery shortages and shipping delays. The economy took a big hit during the pandemic, and subsequent inflation caused the Consumer Price Index to rise more than 6% year over year this fall. Grocery stores have been feeling the heat for a few months, and some of the higher costs are now being handed off to customers at America’s largest grocery chain.
Chief Financial Officer Gary Millerchip said Kroger was carefully managing inflation on an earnings call with investors on Dec. 2 and “passing along higher cost to the customer where it makes sense to do so.”
Related: Supply of These 2 Grocery Items Is Dwindling, Reports Say
Though Millerchip didn’t specify which items would be more expensive, he noted that specific items would not be subject to cost increases.
“In some key areas, we are choosing not to pass through cost increases and continuing to invest in value for the customer,” he said. “We are investing where it matters most, using our proprietary data to be strategic in our pricing and personalization with the objective of winning long-term customer loyalty.”
Kroger did see profits go up recently, though not as a result of rising prices. Thanksgiving boosted ready-to-eat food purchases, Kroger CEO Rodney McMullen said on the call.
“Customers are demonstrating more back-to-normal behaviors and at the same time are eating more food at home because it’s more affordable, convenient, and healthier than other options, plus you can do it as a family,” he added. “This was evidenced by our Thanksgiving holiday shopping behavior. Customers engaged in larger celebrations with friends and family compared to last year. We also saw them continuing to cook at home, leading up to and during the holiday, and select more premium products to elevate the food experience.”
All this to say, don’t be surprised if you see higher price tags on certain items as you shop this holiday season. Though it remains unclear how long the ongoing supply chain issues will impact grocery prices, President Joe Biden recently met with leaders from Kroger, Walmart, and other top retailers to address food shortages head-on.
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