Kroger Forecasts Sales Slump as Inflation Drains Consumer Spending

Kroger predicts sales will dip in the second half of 2023 due to continued inflation and economic challenges for consumers.
The company reported a $180 million quarterly loss, largely due to a $1.4 billion opioid settlement charge.
Inflation ticked higher in July to 8.5% annually, remaining elevated despite Fed interest rate hikes.
Consumers have started reducing spending at grocery and retail stores due to high prices.
Households may deplete excess pandemic savings this quarter and are increasingly relying on credit cards, with debt topping $1 trillion in June.

foxbusiness.com

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8/23/2023

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Posted 9/8/2023, 8:37:47 PM

Kroger Forecasts Sales Slump as Inflation Drains Consumer Spending

Kroger predicts sales will dip in the second half of 2023 due to continued inflation and economic challenges for consumers.
The company reported a $180 million quarterly loss, largely due to a $1.4 billion opioid settlement charge.
Inflation ticked higher in July to 8.5% annually, remaining elevated despite Fed interest rate hikes.
Consumers have started reducing spending at grocery and retail stores due to high prices.
Households may deplete excess pandemic savings this quarter and are increasingly relying on credit cards, with debt topping $1 trillion in June.

foxbusiness.com

Relevant topic timeline:

8/23/2023

Kohl’s Q2 profits plunge 60%

Kohl's Q2 net sales decline 4.8% due to lower consumer spending, with the retailer focusing on delivering value to stay competitive, but facing challenges with its pricing strategy and market share.

8/24/2023

Nordstrom's results reflect cautious consumer spending, echoing department store sector blues

Nordstrom reports a decline in sales and profits in its fiscal second quarter, reflecting cautious spending by shoppers.

9/8/2023

Kroger Sales Drop as Grocery Inflation Slows

9/8/2023

Kroger to Sell 26 Texas Stores to C&S for $1.9B If Albertsons Merger Approved

10/4/2023

Euro Zone Retail Sales Plunge in August as High Inflation Dents Consumer Spending

Euro zone retail sales in August saw a larger-than-expected decline, indicating weaker consumer demand amid high inflation.