Kroger's $12 Billion CPG Exodus: Shoppers Flock to Amazon, Walmart, and Costco
New data reveals Kroger lost over $12 billion in consumer packaged goods spending to Amazon, Walmart, and Costco in the past year. Despite CEO Greg Foran's price cuts on thousands of items and loyalty program revamp, customer visits increased only 0.5% year-over-year.
Kroger’s $12 billion CPG loss stems from a sharp divide in its customer base. While the chain added over one million high-income households, it shed 700,000 lower-income ones, who made 30 million fewer trips. Spending on household essentials like laundry and cleaning supplies fell by $97 million, and health and beauty products dropped $178 million, though fresh private-label foods gained $420 million.
CEO Greg Foran attributes the squeeze to reduced SNAP benefits, higher fuel prices, and softer consumer confidence. He notes shoppers are “buying more on need” and remain disciplined, visiting stores but trimming baskets. Despite price cuts and loyalty revamps, visits rose just 0.5% year-over-year, underscoring that value alone hasn’t reversed the exodus to Amazon, Walmart, and Costco.
This shift could signal a lasting realignment in grocery retail, where scale and omnichannel convenience increasingly trump loyalty programs. Lower-income households, already strained by benefit cuts and fuel costs, may face reduced access to affordable staples if Kroger’s response falters. Meanwhile, competitors like Amazon and Walmart could consolidate dominance, potentially narrowing consumer choice and pressuring regional grocers. The long-term effect may be a more polarized market, with price-sensitive shoppers concentrated among a few giants.