About 61% of Americans report feeling stressed about paying for groceries, according to a recent LendingTree survey.
Kroger, the nation’s second-largest grocery retailer, is betting big on aggressive cost-cutting measures to bring prices down and win back budget-conscious shoppers.
What are the moves and motivations behind Kroger’s plans?
Kroger’s push to make groceries more affordable
Kroger’s interim CEO, Ronald Sargent, has made it clear the company is feeling the squeeze. During a recent earnings call, he acknowledged that consumers are “managing their budgets carefully,” making more frequent but smaller shopping trips, and pulling back on discretionary purchases.
Middle-income shoppers are hunting for value, while lower-income households are tightening their belts even more aggressively.
In response, Kroger has already lowered prices on more than 1,000 items during the third quarter alone, with plans to ramp up promotions through the holidays. The grocery giant is funding them through some pretty significant operational changes.
The trade-offs behind lower prices
Kroger announced plans to cut nearly 1,000 corporate jobs back in August.
The company is also closing three automated fulfillment centers that didn’t meet expectations, with shutdowns scheduled by the end of January 2026. Perhaps most notably, Kroger unveiled plans to shutter roughly 60 underperforming stores nationwide over the next 18 months.
On the positive side, Sargent has promised that savings from these cuts will help keep bakeries, delis, and other in-store services open longer. The company is also expanding store hours, improving checkout speeds, and boosting in-stock levels.
Orders delivered within two hours or less have grown by more than 30% thanks to expanded partnerships with Instacart, DoorDash and Uber Eats.
A downside is that if your local Kroger is among the 60 stores slated for closure, you might find yourself driving farther for groceries. And while corporate layoffs might not directly affect your checkout experience, leaner operations sometimes mean fewer staff on the floor when you need help.
Why shoppers are changing their habits
The shift in consumer behavior isn’t just affecting Kroger.
Nearly 88% of Americans have adjusted their grocery shopping habits in response to higher costs, according to LendingTree. About 44% are buying more generic brands, 38% are sticking strictly to their shopping lists, and 29% are paying closer attention to prices before tossing items in their carts.
Consumer sentiment dropped almost 5% from October to November, according to University of Michigan data.
“Consumers remain frustrated about the persistence of high prices and weakening incomes,” noted Surveys of Consumers Director Joanne Hsu.
5 ways to stretch your budget
Regardless of what is happening in Kroger’s corporate offices, you can take control of your own grocery spending. Here’s how to make the most of your shopping trips:
- Use loyalty programs. Kroger’s loyalty program offers personalized digital coupons and fuel points that add up fast. Download the app, clip those coupons before you shop, and don’t leave money on the table.
- Compare unit prices, not sticker prices. That larger package isn’t always the better deal. Check the price per ounce or per unit on shelf tags to make true apples-to-apples comparisons between sizes and brands.
- Time your purchases around sales cycles. Most grocery stores run on predictable promotion schedules. Stock up on pantry staples when they hit their lowest prices rather than buying at full price when you run out.
- Embrace store brands. Many store brands are manufactured by the same companies making name-brand products, just with different labels.
- Make a list and stick to it. It sounds simple, but planning your meals for the week and buying only what you need cuts down on impulse purchases and food waste.
Whether you shop at Kroger, Costco, Walmart, or your local independent grocer, the key takeaway is that retailers are paying attention to your budget concerns. Competition for your grocery dollars is fierce right now, and that’s actually good news for consumers willing to shop strategically.
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