Kroger, which has over 2,700 supermarket locations nationwide, recently spotted a concerning shift in how its customers shop in its stores. 

While Kroger revealed in its latest earnings report that its identical sales (excluding fuel) increased by 2.6% year over year during the third quarter of 2025, it lost grocery market share during the quarter. 

According to recent data from market research company Numerator, shared with TheStreet, Kroger captured only 8.5% of U.S. grocery spend during the quarter, representing a slight decrease from the 8.8% it held during the same time period in 2024.

During an earnings call last month, Kroger Interim CEO Ronald Sargent said shoppers continue to decrease their spending as they remain concerned about inflation, the slowing job market and other economic factors.

“Customers are managing their budgets carefully,” said Sargent. “And they’re making more trips. They’re making smaller trips. The idea of stocking up is declining a bit. And we’re seeing this economy where high-income premium shoppers, they continue to spend, while lower-income customers are pulling back more aggressively.” 

It is no surprise that Kroger continues to see a more cautious consumer, as grocery prices have increased by 29% since February 2020, according to recent data from the Bureau of Labor Statistics, analyzed by NPR.

A recent survey from Swiftly found that more consumers are hunting for deals and discounts as they struggle to pay for groceries. 

How Americans are shopping for groceries as prices rise:

  • Approximately 68% of consumers said they still struggle to afford groceries.
  • Additionally, 65% stated that rising food prices would directly change how they shop.
  • Also, 71% use coupons to manage costs, 55% shop based on discounts and promotions, and nearly 7 in 10 rely on loyalty cards to save money.
    Source: Swiftly

“Affordability is a big challenge,” said Swiftly Chief Technology Officer Sean Turner in a statement to USA Today. “Shoppers are struggling with inflation. Just to get the same amount of food or calories, they’re having to actually spend more … to get the same basket.”

Kroger is noticing customers pulling back their spending.

Jennifer G. Lang / Shutterstock

Kroger launches two big discounts for some customers

To help mitigate the impact of rising grocery prices, Kroger has introduced its Verified Savings Program for customers who are enrolled in government assistance programs, including SNAP, WIC and Medicaid, according to a recent press release. 

Kroger’s Verified Savings Program offers these customers a 20% discount on fruits and vegetables in its stores. To receive the discount, customers need to sign up for the program online using SheerID and create a Kroger digital account. 

After customers sign up for the program, their verification is good for five months. When that time period concludes, customers will need to reconfirm eligibility to remain enrolled. 

In addition to 20% off fruits and vegetables, the program also offers customers half-off annual and monthly Boost by Kroger Plus memberships. 

Related: Kroger CEO has a harsh solution to rising prices in stores

These memberships grant shoppers benefits such as unlimited free delivery on online orders of $35 or more, extra fuel points during fuel promotions, complimentary access to Disney streaming platforms and exclusive member offers throughout the year.

“Making fresh food more affordable and equipping more customers with free grocery delivery is an incredible step in expanding food access,” said Carlo Baldan, Kroger group vice president of fresh merchandising, in the press release.

“With the launch of the Verified Savings program, we are thrilled to make fruits and vegetables more affordable and eliminate one more barrier to food security in our mission to end hunger,” he said.

The move from Kroger comes during a time when it is attracting a large number of shoppers who have SNAP benefits, which provide food assistance to low-income consumers with monthly funds via an EBT card to purchase groceries.

According to recent data from Numerator, Kroger is the second top retailer in the U.S. that attracts SNAP shoppers. Over the past year, 48.4% of SNAP recipients purchased groceries from Kroger. Typically, SNAP shoppers spend more on groceries than those who aren’t recipients of the program.

How SNAP recipients spend money on groceries vs. Non-SNAP shoppers:

  • SNAP shoppers spend an average of $832 on groceries monthly, 19% higher than what non-SNAP shoppers spend.
  • They shop at an average of 6.5 retailers each month for groceries, compared to 6.1 for non-SNAP shoppers.
  • On average, SNAP recipients spend $20.84 per grocery trip, 12% less than non-SNAP shoppers.
    Source: Numerator

The launch of Kroger’s Verified Savings Program also comes after Sargent said during the earnings call last month that the company saw its sales decrease during the latter half of the third quarter due to the pause on SNAP benefits, which was resumed after the government shutdown concluded on Nov. 12. 

“The pause in SNAP benefit distributions created some headwinds at the end of the quarter,” said Sargent. “I think consumers are becoming more selective. They’re buying more on promotion. They’re reducing the discretionary purchases.”

Kroger is making bold changes to lower prices and lure customers

Kroger has recently been doubling down on lowering prices in its stores as tariffs and inflation add stress to consumer wallets. For example, the grocery chain lowered prices on over 1,000 items during the third quarter of 2025 and ramped up holiday promotions last month. 

To continue lowering prices, Kroger is relying on several bold cost-cutting efforts, including layoffs and closures of underperforming stores and fulfillment centers. 

More Retail:

  • Marshalls makes bold change to return policy ahead of holidays
  • Walmart quietly shrinks generous offer for holiday shoppers
  • BJ’s Wholesale announces free offer for customers amid struggles

During a recent interview with The Wall Street Journal, Sargent said that the savings from these cost-cutting moves will not only help make groceries more affordable for customers, but they will also keep delis, bakeries and other store services open longer.

“That would be a good example of taking money out of one part of the business and putting it closer to the customer,” said Sargent in the interview.

Kroger has also been focused on attracting more customers by expanding store hours and strengthening its relationships with third-party delivery providers, including Instacart, DoorDash and Uber Eats, to increase the speed of grocery deliveries.

The grocery chain has been improving checkout speeds, in-stock levels and overall customer service. 

Amid these changes, a recent data analysis report from Placer.ai revealed that foot traffic in Kroger stores increased by 1.8% year-over-year during the third quarter of 2025, while short customer visits (under 10 minutes) rose by 5%, indicating a rise in demand for curbside and in-store pickup. 

“Foot traffic patterns highlight Kroger’s growing strength in balancing digital convenience with in-store engagement,” said Placer.ai Content Manager Lila Margalit in the report. “And as the company refines its fulfillment model, its ability to efficiently serve customers across channels may prove to be a key competitive edge as Q4 (the fourth quarter) wears on.”

Related: Lowe’s announces free offer for customers amid struggles