According to the new research studies shows that Kroger might get affected in sales as per the new trending. While the new industry learning shows that customers are still eating at home at much higher rates than in the past, a trend that analysts say will affect Kroger.
Now, the research shows that the consumers spent knowingly more on dining at home than restaurants early in the pandemic. But even though cafeterias have recuperated some of that ground, the eating-at-home trend is still stronger than it was before the pandemic. According to FMI – the new US Food Industry Association’s grocery shopper.
The official statement stated that “The retail sector has given up some of its previous gains and is still capturing 12% more spending per month than it did before the pandemic,” the study authors said in the report, which includes data through March. That translates to $100 billion in unexpected spending in the grocery sector over the course of a year, the report said.
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In addition, average weekly spending on groceries per household remains significantly up from $121 in February 2020, just before the pandemic. It rose to $161 in early April 2020, but remained significantly higher at $142 in February 2021, according to FMI. The trade group study found that 58% of shoppers eat more at home and 49% prepare their own meals more than they did before the pandemic.
The trend is good news for downtown Kroger the largest operator of traditional supermarkets in the country. But the key, analysts tell me, is how long this trend continues and what Kroger and others are doing to maintain the additional business they’ve brought in since the pandemic began.
“Kroger has multiple initiatives in place to help improve margins and reduce costs that could offset some of the pressure, but the scale and sustainability of food share gains in the local market will be key,” Moore said. I think the market will be watching closely whether the promotional (price) environment rebounds over the coming months as players in the industry try to play defensive and sustain the gains caused by the Covid virus,” he said.