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Kroger managing inflation with select price increases

Kroger has experienced higher product cost inflation across most of its categories, including grocery and meat

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By Lucas Manfredi


Kroger executives warned Thursday that the supermarket has had to pass some of its higher product costs onto customers in the form of price hikes. The company noted it has experienced higher product cost inflation across most of its categories, including grocery and meat.

“We are being disciplined in managing these increases. Our teams are doing an excellent job working to minimize the effects on our customers and our financial model by using our data and working closely with our suppliers,” Kroger CFO Gary Millerchip told analysts on the company’s earnings call. “We are passing along higher costs to the customer where it makes sense to do so. In some key areas, we are choosing not to pass through cost increases and continuing to invest in value for the customer.”

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