Grocery chain Kroger’s (KR) shares closed lower on Thursday despite plans by its new CEO, Greg Foran, to implement aggressive price cuts to compete with rivals Amazon (AMZN), Walmart (WMT), and Costco (COST).
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200% short exposure to AMZN with AMZOForan, who was appointed as chief executive in February, revealed the plans to Bloomberg on Thursday in his first media appearance since taking on the leadership reins at the grocery retailer. He noted that such cuts will be conducted in phases after testing.
CEO Greg Foran to Bank on Cheap Pricing
The new CEO is an industry veteran who boasts of over four decades of experience across five countries. He led Kroger rival Walmart’s (WMT) U.S. division — the company’s largest — for six years until 2019.
Foran’s plans come as Kroger’s identical sales — or revenue from its stores that have been opened for at least a year — have been cooling in recent quarters. However, the Cincinnati, Ohio-based retailer has expanded its e-commerce business into a roughly $16 billion division.
Kroger Faces Competition amid E-Commerce Growth
During Kroger’s fourth quarter that ended on January 31, the retailer delivered the seventh consecutive quarter of double-digit growth and profitability in its e-commerce business. However, competitive pressure remains.
Kroger recently forecast identical sales for fiscal 2026 to come in between 1% and 2% higher. The estimate at the midpoint disappointed Wall Street’s projection for earnings from this section.
Foran’s price cut could help further boost sales, even as analysts continue to flag rivals, particularly Costco, as offering the lowest prices among U.S. retailers.
Is Kroger a Good Stock to Buy?
On Wall Street, analysts continue to consider Kroger’s shares as a Moderate Buy based on their consensus rating. This breaks down into four Buys and five Holds issued over the past three months.
However, the average KR price target of $76.13 suggests roughly 14% upside in the months ahead.
