The Kroger Co. (NYSE: KR) stock took a tumble Thursday, falling 2.6% through 11:35 a.m.
ET after Bloomberg reported that new CEO Greg Foran plans to implement “big price cuts” to better compete with rivals both public — Walmart (NYSE: WMT), Costco Wholesale (Nasdaq: COST), and Amazon.com (Nasdaq: AMZN) — and private — Trader Joe’s and Aldi
In a shocking revelation, Foran pointed out that shoppers appear to prefer stores with lower prices rather than more expensive ones! Details, please Meeting the consumer where she’s at, therefore, Bloomberg reports that Kroger will cut prices “across product categories,” with “thousands” of products dropping in price. The CEO is also hoping to encourage his store employees to work faster and be friendlier, reports the news agency.
Rounding out the array of changes, he says Kroger will accelerate new store openings, doubling the 2026 rate to add 70 to 80 new stores in 2027. What does this mean for Kroger stock? Although the changes sound mundane, there’s nothing in any of the above that should frighten Kroger investors today… except for the fact that lower prices imply less revenue and less profit as well.