Over the past few months, Kroger has seen a slight decrease in consumer demand amid the current economic uncertainty and increased competition.
During the third quarter of this year, Kroger saw its same-store sales (excluding fuel) increase 2.6% year-over-year, according to its latest earnings report.
However, recent data from market research company Numerator shared with TheStreet revealed that Kroger captured 8.5% of the grocery market share during the quarter, down slightly from 8.8% during the same period in 2024.
According to Numerator, Walmart is the number one grocery retailer by dollar share, while Kroger is second. Costco follows Kroger; However, enthusiasm among consumers is growing as Warehouse Club managed to increase its market share to 8.2% during the quarter compared to 8% during the third quarter of last year.
As Kroger battles for consumer dollars amid growing competition, it posted a $1.3 billion loss in the third quarter after its general, operating and administrative expenses jumped 44%.
Kroger is facing increasing competition as it tries to attract price-conscious customers. Jennifer G. Lang/Shutterstock
In an earnings call on Dec. 4, Kroger interim CEO Ronald Sargent warned that consumer sentiment has declined in recent months due to inflation, a sluggish job market and other factors, so shoppers are continuing to pull back their spending, especially when it comes to discretionary purchases.
“I think customers are managing their budgets carefully,” said Sgt. “And they’re taking more trips. They’re taking shorter trips. The idea of stocking up is going down a little bit. And we’re seeing an economy where higher-income-premium shoppers, they continue to spend, while lower-income customers are pulling back more aggressively.”
He said middle-income consumers are increasingly looking for value, and flagged that sales slowed in the second half of the third quarter due to a pause in SNAP benefits, which quickly resumed after the government shutdown ended last month.
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“Going forward, I think the consumer is going to be cautious,” said Sargent. “I think there will be more focus on food items and less on discretionary categories.”
In November, consumer sentiment fell sharply as concerns about the economy grew, especially during the government shutdown that lasted from October 1 to November 12.
In November, consumer sentiment Rejected by about 5% since October.
In particular, sentiment about current personal finances and purchasing conditions for durable goods is decreased by10% .
Also, year-ahead inflation expectations (which measure how much consumers expect prices to rise) decreased from 4.6% in October 4.5% In November. Source: University of Michigan
“After the federal shutdown ended, sentiment picked up slightly from its mid-month reading,” Joanne Xu, director of consumer surveys at the University of Michigan, said in a statement. “However, consumers are frustrated by the persistence of high prices and weak incomes.”
Amid declining consumer sentiment, Kroger has doubled down on attracting customers by expanding store hours and improving checkout speed, service, and in-stock levels.
“These investments are delivering tangible results, including significant year-over-year reductions in wait times for our customers,” said Sargent.
Kroger also expanded its relationships with third-party delivery providers Instacart, DoorDash, and Uber Eats to improve grocery delivery speeds.
“Orders shipped in two hours or less increased more than 30%, reflecting increased immediate demand,” Kroger Chief Financial Officer David Kennerly said on the earnings call.
The grocery chain also cut prices on more than 1,000 items in the third quarter and plans to continue promotions around the holidays to help boost sales.
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However, to keep prices low in stores, Kroger has relied on several bold cost-cutting efforts. For example, in August, Kroger announced plans to cut about 1,000 corporate jobs to “simplify” its organization.
It also announced the closure of three automated fulfillment centers that did not meet operational and financial expectations, which will close at the end of January 2026.
In addition, Kroger unveiled plans in June to close about 60 underperforming stores in the United States over the next 18 months.
During a recent interview with the Wall Street Journal, Sargent said savings from these cost-cutting decisions not only help lower prices at stores, but also help keep bakeries, delis and other store services open longer.
“It would be a good example of taking money out of one part of the business and putting it closer to the customer,” Sargent said in an interview.
Kroger’s increased focus on making its prices more affordable for customers in stores comes as more Americans are changing the way they shop because of concerns about rising grocery prices, according to a recent survey by LendingTree.
approx 61% Americans cite the stress of paying for groceries.
Also, 88% is Adjust your grocery shopping habits Because they face high costs.
in particular, 44% They are buying more generic brands, he said. 38% Stick to their shopping lists, and 29% Paying close attention to prices. Source: LendingTree
“It’s understandable to feel powerless in the face of sky-high prices and interest rates, but there are some things you can do to make a difference,” Matt Schulz, LendingTree’s chief consumer finance analyst, said in the survey. “Shopping around pays dividends. Using a rewards credit card can put money back in your pocket and help stretch your budget.”
“Using a 0% APR credit card or low-interest personal loan to consolidate debt and get lower interest rates can free up money that can be put toward other goals,” Schulz said. “You can supercharge your emergency fund with a high-yield savings account.”
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This story was originally published by TheStreet on December 7, 2025, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
