LITTLE ROCK, Ark. (KTHV) - Shoppers may get some good news on their receipts the next time they buy groceries.
Kroger has announced price reductions on thousands of items.
It is the latest attempt by a company to get ahead of the transition underway in the grocery industry.
“We have focused on essential items, that our customers buy more frequently,” said Ashley Kirby, a local training coordinator for Kroger. “Making sure that they’re seeing those savings in their essential items.”
Kroger has begun cutting prices on more 3,000 items in approximately 100 stores in its Delta region, which includes Arkansas, Tennessee, Mississippi, Missouri and Kentucky. Kirby estimated that that works out to about 10 percent of everything shoppers will find in a typical store. “There’s never been one this large,” Kirby said of the price-reduction plan. “It’s a multi-million-dollar investment for Kroger in this area. They have put a lot of thought, and a lot of planning and definitely, obviously, a lot of monies into this program.”
With signs covering the doors, posted as soon as customers grab a shopping cart, and down every aisle, the company wants shoppers to notice the savings. The discounts appear to range from a few cents to a few dollars per item. According to data from the Federal Reserve, grocery prices have risen steadily since 2010, and are nearly twice as expensive as they were in 2000.
“This is a long-term program,” Kirby said. “Prices will vary from week to week just based on competitive pricing.” This marks another attempt by Kroger to retain customers during an era of disruption for the grocery industry. Many Kroger locations now offer ClickList service, which allows customers to pick up groceries they ordered online. “It’s done very well for our stores,” Kirby stated. “Getting lots of great feedback from it.”
Walmart offers a similar service at some of its stores in central Arkansas. But Kirby mentioned that grocery stores also must compete with companies that sell pre-made foods, as well as firms like Blue Apron and Hello Fresh that ship boxes of groceries to customers’ homes. “Our days are fast, and so we want to make sure that we’re providing that convenience to our customers, as well,” she said.
The competition in the grocery industry also includes dollar stores, which have opened at a rapid pace the last few years, and potentially Amazon, which is testing grocery delivery in some cities and acquired Whole Foods in 2017. “The competitive landscape for Kroger is constantly changing,” Kirby said. “You think about online retailers we’re competing with. Boxed, prepared meals that are sent directly to your home; we’re competing in that market.”
Kirby added that with the pricing strategy changing, they definitely want to highlight the value it’s bringing to buyers.