Kroger Says Higher Groceries Cost Isn't Its Fault
CEO: Credit card swipe fees, fuel costs are to blame
Kroger's CEO Rodney McMullen said that the rising cost of groceries isn't the fault of the supermarket chain. Instead, he blamed it on factors such as credit card swipe fees and fuel costs.
Speaking at a conference in New York, McMullen said that Kroger is "doing everything we can" to keep prices down, but that it is facing "significant cost pressures" from its suppliers.
He said that credit card swipe fees, which are charged to retailers every time a customer uses a credit card, have increased significantly in recent years. He also said that fuel costs have risen sharply, which has made it more expensive to transport goods to Kroger's stores.
McMullen said that Kroger is working with its suppliers to reduce costs, but that it is "not going to be easy." He said that the company is also looking at ways to reduce its own costs, such as by investing in technology and automation.
Despite the challenges, McMullen said that Kroger is "confident" that it can continue to provide customers with affordable groceries. He said that the company is committed to "investing in our business and our people" in order to keep prices down.
Kroger's comments come as inflation has been rising in the United States. The latest figures from the Bureau of Labor Statistics show that the Consumer Price Index for All Urban Consumers rose by 8.5% over the past year.
The rising cost of food has been a major concern for many Americans. A recent survey by the American Farm Bureau Federation found that the average American family will spend $1,341 more on groceries this year than they did last year.
Kroger's is the largest supermarket chain in the United States. It operates over 2,700 stores in 35 states. The company employs over 450,000 people.
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