Grocery News: Kroger Prices Going Down?

So last week, Kroger put out a press release with a pledge that they will invest and focus on lowering prices after the merger with Albertsons. So, let’s break down what the promise actually means for customers.

Kroger’s Promise

Kroger basically pointed out that they have done similar pricing decreases after acquiring the stores of Harris Teeter and Roundy’s. So, after those stores were purchased, they lowered the prices in the stores to align closer to regular Kroger prices.

It is important to note, that these prices were gradually lowered over a 3-year period after the sale was completed. So, there won’t be a huge price change right away.

If you are an Albertsons customer…

Now before you get too excited, keep in mind that typically Albertson owned stores are more expensive for most items compared to Kroger owned stores.

So, after the merge takes place, if you shop at a previously Albertsons owned store, you may see some prices go down! (You may also see lots of improvements made to existing stores.)

I anticipate that it will be a gradual decrease over the next few years, similar to the way they have done this plan in the past. No huge difference right away.

You may notice that once your store becomes part of Kroger that you will probably see lots of better weekly sales and even more loss leaders.

This will be Kroger’s way of trying to retain current customers and to attract new customers.

If you are a Kroger customer…

Unfortunately, if you typically shop at Kroger owned stores, you may not notice any pricing changes at all. This is because Kroger will lower Albertson prices to be closer to existing Kroger prices.

But there is one bright side, in that you may see new products in Kroger owned stores!

Private Label/ Store Brand Items

If you shop Albertson owned stores, your favorite Signature Select and Lucerne brand items will probably disappear.

This is because Kroger already has its own private labels, and they will probably remove any duplicate products in the Albertson private label.

Albertsons stores should see lots of new and lower cost items like spices. Albertsons does have some spice blends available but not a huge selection. Kroger does already have a pretty large selection of spices and spice blends.

You may see some new items at Kroger owned stores though! If Albertsons has a private label product that Kroger does not currently have, more than likely they will start offering it in all stores.

This change in product offering is simply a way to lower overall production costs, Kroger won’t want to pay for multiple private labels offering the same products.

Food for Thought

This is definitely a potentially good thing if you shop at Albertsons owned stores. I’ve noticed that these stores are typically in high cost of living areas, so any help in grocery prices would be nice.

Just don’t expect huge price decreases right away. Some items like produce may not see any price decreases at all.

More than likely the biggest price decreases will be seen in the store brand/private label foods that are most found in the center of the store. These are pantry items and items that don’t require refrigeration.

Both stores, do produce dairy products and frozen foods under private labels, so you may see a little decrease there.