Dec 4 (Reuters) – Kroger missed Wall Street estimates for third-quarter sales on Thursday as price-sensitive shoppers and economic uncertainty weighed on demand for its groceries and fresh produce.
Its shares fell 3% in premarket trading as the supermarket chain operator comes under pressure from low-income shoppers pulling back spending and trading down amid cuts to food-stamp benefits.
Supplemental Nutrition Assistance Program, or SNAP benefits briefly lapsed for the first time ever on November 1 during the federal shutdown, squeezing household budgets.
Meanwhile, its larger rivals such as Walmart have been able to keep prices low and push private-label brands.
Kroger’s quarterly identical sales excluding fuel rose 2.6%, compared with analysts’ estimates of 2.91%.
The retailer expects 2025 identical sales excluding fuel to grow in the range of 2.8% to 3%, the midpoint of which is below its September forecast of a 2.7% to 3.4% rise.
(Reporting by Savyata Mishra in Bengaluru; Editing by Arun Koyyur)
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