CEO Greg Foran is making good on his promise to drive a hard bargain with suppliers, signaling a renewed focus on low prices. Kroger-owned Harris Teeter still listed Red Bull products on its site, suggesting the nationwide pullback is uneven or still in progress.
Cost Control Strategy
According to The Cincinnati Enquirer, Kroger removed Red Bull products from its supermarkets across the country at the end of August but declined to explain the move. While the reason for the strained relationship remains unclear, Foran’s background offers insight. He spent years as a top executive at Walmart, a company famous for its focus on keeping costs low. When he took over as CEO of Kroger earlier this year, he declared that holding down prices would be a top priority.
Foran reiterated that point during the company’s latest earnings call last week. He told analysts that Kroger intended to set a high bar for vendors seeking to raise prices. This aggressive stance puts pressure on suppliers to maintain low costs. Foran needs to reinvigorate the company’s connections with shoppers, and removing a premium-priced item from the shelves sends a clear message about the chain’s priorities.
Competitor Activity
Elsewhere in the industry, Sprouts Farmers Market’s fleet has reached 500 locations with the opening of a Spring, Texas, store on Sept. 12. The grocer continued its momentum by opening two more stores in Mesa, Arizona, and Carson, California, on Friday. David McGlinchey, the grocer’s chief development officer, shared on LinkedIn that “opening one store takes extraordinary teamwork. Opening 500 requires years of vision, commitment, collaboration, and execution across thousands of people who share a common goal.”
The Midwest grocer Hy-Vee has announced a monthly Senior Wellness Day on the third Wednesday of every month. The inaugural event took place this week. During these events, Hy-Vee’s health and wellness experts will provide information on health topics, such as vaccinations, staying healthy during flu season, and enrolling in health insurance. Attendees age 60 or older can receive perks like a $5 Balanced Plate breakfast, free coffee, and 10% off vitamins.
