The news: Kroger CEO Greg Foran is preparing the company’s largest price cuts in years as it looks to fend off intensifying competition from Walmart, Costco, Amazon, Aldi, and Trader Joe’s, per Bloomberg. Foran plans to fund the cuts through direct importing and technology-driven cost reductions.

Why is this happening? Consumers feel stretched, with roughly three-quarters saying their incomes are lagging inflation, per a recent CBS News poll. April government data showed purchasing power eroding as inflation outpaced wage growth.

Rising gas prices add to the strain. The national average is expected to hit $4.48 per gallon by Memorial Day, up sharply from a year ago, and could average $4.80 this summer if the Strait of Hormuz remains closed, per GasBuddy.

That pressure has led 61% of consumers to change their grocery shopping habits, creating an opening for retailers that compete on value.

The context: Kroger had already begun responding, cutting prices on roughly 3,500 items last fall and expanding its private label lineup, which grew faster than national brands last year. But competition is intensifying.

• Walmart is cutting prices on roughly 7,200 items, up more than 20% YoY, as it looks to gain share.
• Amazon’s $150 billion grocery business continues to grow rapidly, thanks in part to its addition of perishable groceries to same-day delivery last year.
• Meanwhile, Aldi is aggressively expanding, with plans to open more than 180 stores this year.

Those mounting challenges help explain why traditional supermarkets lost 40 basis points of share in the trailing 12 months ended February 2026, per Consumer Edge data.

Implications for retailers: Kroger can’t afford to cede ground on value. But competing on price alone is difficult against a player like Walmart, which is willing to sacrifice margin to gain share. Its massive retail media business further strengthens that position by helping subsidize lower prices, creating a flywheel that traditional grocers struggle to match.

One way Kroger can counter that advantage is by leaning into its data. With roughly 95% of sales tied to loyalty accounts, it can deliver more targeted promotions and personalized value at scale. Its Kroger Precision Marketing unit, which integrates retail media, insights, and loyalty, also provides a growing—albeit much smaller than Walmart’s—revenue stream that can help offset deeper price cuts.

To stay competitive, Kroger will need a kitchen-sink approach to value, combining price cuts, private label, and personalized promotions. If it can execute, it has a path to defend share and deepen engagement with increasingly selective shoppers.