topped Wall Street estimates for quarterly same-store sales and profit on Thursday, benefiting from customers thronging its outlets for lower-priced groceries as sticky inflation stretches household budgets.
As food prices start to ease faster than restaurant menu prices, American consumers on a tight budget are cooking more of their meals at home rather than going out to dine, helping lift sales at grocery stores. Kroger has been offering promotions and lowering grocery prices in a bid to attract more consumers, while also investing in its online business and adding products to its private-label portfolio to boost sales.
“Q1 is expected to mark the low point of the year, meaning the top– and bottom-line should see stronger growth as this year progresses,” said CFRA Research’s Arun Sundaram.