Kroger’s Bulk Blind Spot: Why Overpricing and Outdated Thinking Are Driving Shoppers Away

 

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has plenty of opinions, this article is one of them!  When 62% of U.S. households are one or two people, selling 10 pounds of pork chops is a business model built for yesterday. Fast food and modern grocers are eating Kroger’s lunch—literally.

For decades, Kroger stood tall as America’s grocery gold standard—trusted, reliable, and efficient. But in 2025, that same legacy scale is starting to look more like an anchor. Consumers are paying more, getting less, and noticing every price tag.

Let’s be clear: Kroger has a price problem, a portion problem, and a people problem.

 

1. The Price Problem: When “Loyalty” Costs You More

Recent basket comparisons show Kroger’s prices averaging 8–15% higher than Walmart, Aldi, and even Costco on everyday items—even after loyalty discounts (DataWeave, Q2 2025). That’s not just perception; it’s quantifiable.

In an era of stubborn food inflation, loyalty programs that don’t actually save money are alienating shoppers. What once felt like a reward now feels like a gimmick.

“When a ‘loyalty discount’ costs more than the competition’s shelf price, you don’t have a loyalty program—you have a leakage problem.”
— Steven Johnson, The Grocerant Guru®

Compounding the issue, Kroger’s high-profile share buybacks, dividend increases, and the still-controversial Albertsons merger have made headlines—not for creating customer value, but for enriching shareholders. The optics reinforce what consumers already suspect: they’re paying more so investors can profit.

 

2. The Portion Problem: Bulk in a Nation of Singles

Here’s a demographic reality: 62% of U.S. households now consist of one or two people (U.S. Census Bureau, 2024). That’s not a trend—it’s the new normal.

Yet Kroger’s meat and produce departments still look like they’re built for families of five. Shoppers see three-pound packs of hamburger, gallon-sized sauces, and 10-pound slabs of pork chops. For millions of Americans living alone or as couples, that’s not value—it’s waste.

Chains like H-E-B, Trader Joe’s, and Publix are thriving because they’ve recalibrated for smaller households—offering right-sized proteins, meal-for-one kits, and fresh ready-to-eat options.

“Selling family-sized portions to single households is like trying to stream VHS—wrong format, wrong decade.”
— Steven Johnson, The Grocerant Guru®

This isn’t nostalgia; it’s negligence. When 60+% of households don’t fit the “family pack” model, continuing to merchandise like it’s 1985 is a recipe for attrition.

 

3. Fast Food Is Winning the Grocery Fight

Kroger’s biggest competitor isn’t just Walmart anymore—it’s Wendy’s, 7-Eleven, and Wawa. Why? Because QSRs and c-stores are now serving meals that are cheaper, faster, and portion-perfect.

According to Technomic (2025), Americans visit QSRs 5.6 times per week, up 11% over three years. Meanwhile, grocery trip frequency has fallen 6% year-over-year (IRI 2025). Consumers aren’t cooking bulk—they’re eating ready-to-eat.

It’s no wonder prepared foods and grab-and-go sales in grocery are up 7.8% year-over-year, while traditional grocery baskets are flat (Circana, 2025). Shoppers are shifting dollars toward convenience.

Kroger’s deli and prepared meal sections, once category leaders, are now stale by comparison. While Whole Foods, Hy-Vee, and Publix GreenWise units innovate with fresh bowls and chef-inspired menus, Kroger’s offerings remain utilitarian.

“If grocery doesn’t feed time-pressed consumers fresh, fast, and portioned meals, fast food will—every single day.”
— Steven Johnson, The Grocerant Guru®

 

4. Five Reasons Consumers Are Migrating Away from Kroger

1.       Overpricing & Price Fatigue
Consumers know they’re paying more. In the age of price transparency apps, that’s lethal.

2.       Pack Size Mismatch
62% of households = one or two people. Kroger is still selling for a nuclear family that no longer exists.

3.       Convenience Gap
Walmart+ and Target Drive Up are faster, simpler, and cheaper than Kroger’s pickup options.

4.       Labor & Trust Issues
Store closures, worker disputes, and merger backlash erode the brand’s community connection.

5.       Failure to Evolve
Competitors like Aldi, Trader Joe’s, and Costco constantly reinvent. Kroger keeps re-tagging bulk displays.

 

5. Data Points That Tell the Story

·       62% of U.S. households: one or two residents (U.S. Census, 2024)

·       Prepared foods up 7.8% YoY (Circana, 2025)

·       Grocery trip frequency down 6% (IRI, 2025)

·       73% of consumers switched grocery brands due to cost in the last 12 months (IRI, 2025)

·       Fast-food visits up 11% since 2022 (Technomic, 2025)

These numbers are Kroger’s scoreboard—and they’re losing ground.

 

6. The Path Forward: From Bulk to Bite-Size

Kroger can still win, but not by doubling down on outdated strategies. Here’s what must change:

• Repack for Relevance.
Shift toward smaller SKUs and meal-for-one packaging. Offer “Fresh for One” bundles in proteins, sides, and fresh meals.

• Win Back Trust Through Transparent Pricing.
Scrap confusing loyalty math. Guarantee best prices on a basket of essentials—publicly.

• Become a Meal Destination.
Invest in high-quality, chef-crafted prepared foods. Think: “Dinner for Two” meal deals that rival fast-casual dining.

• Reinvest in People and Purpose.
Better pay, stronger local sourcing, and visible community impact rebuild the emotional bridge that price alone cannot.

“If Kroger wants to stop the consumer exodus, it needs to stop selling yesterday’s quantities and start selling today’s convenience.”
— Steven Johnson, The Grocerant Guru®

 

Think About This

Kroger’s size is still a competitive weapon—but only if wielded wisely. Scale should mean agility and accessibility, not complacency. America’s eating habits have shifted, and the competition—from Aldi to Chick-fil-A—is capturing those shifts faster.

Kroger must rediscover what it once understood: consumers lead, and retailers follow—or fail. The modern shopper isn’t stocking up; they’re snacking smart, portioning fresh, and shopping by the meal, not the month.

Until Kroger adapts, it’s not just losing customers—it’s losing cultural relevance.

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information.