Sales growth at Kroger Co. slowed during the latest quarter despite people eating mostly at home, illustrating mounting competition among food sellers to reach consumers during the coronavirus pandemic.
While much higher than a year ago, the 10.9% increase in sales excluding fuel at stores open at least 15 months that Kroger reported for its quarter on Thursday marked a slowdown from earlier in the pandemic. The nation’s biggest supermarket operator posted 14.6% growth in same-store sales during the prior quarter.
Shares fell nearly 4% to $31.07 in premarket trading, though the quarterly sales figure and profit of $631 million both beat expectations.
Other food sellers have also indicated recently that big sales gains are slowing. Walmart Inc. said in November that its comparable sales rose 6.4% in their latest quarter compared with 9.3% the quarter prior. Costco Wholesale Corp. on Wednesday reported a 14.6% increase in comparable sales for November.
Kroger and other supermarkets have generated strong sales this year to people staying and cooking at home. Initially hit by shortages of some goods in the spring, many supermarkets say overall supply has caught up to demand.
