The pandemic era of greedflation in the grocery section is finally ending.
Consumers are fed up and showing it after two years of absorbing spiraling prices as retailers and food suppliers passed on the costs — and then some — of supply chain disruptions and rising commodities.
Kroger Co.’s earnings on Thursday were a sign of what’s to come. The company missed Wall Street’s estimate for revenue and beat on earning per share by the smallest margin since the beginning of the pandemic. Its stock sank. Increased promotions, inflation-squeezed consumers and economic uncertainty all featured during a call with analysts. But it’s hard to escape the fact that rival Walmart Inc. outperformed expectations on both metrics and made an unusual, early upgrade to its annual profit forecast just last month. So, what gives?
