Intense competition among grocers is forcing Kroger, the parent company of King Soopers, to slash prices on popular items like milk and eggs — staples that help sway where shoppers go.
The stock of the largest U.S. grocery-store chain took its biggest one-day loss since 1999 Thursday after it reported its second straight quarter of declining sales at established locations after more than seven years of uninterrupted growth. It also cut its annual profit outlook.
The pressure comes amid a price fight among grocers. German discounter Aldi has been aggressively expanding, while its European rival Lidl opened its first 10 stores in the U.S. on Thursday with specials for 39-cent croissants and 79-cent chocolate bars. The two chains have taken market share in the United Kingdom, and are looking to repeat that success in the U.S. with their no-frills stores that focus on affordable house-brand products. Grocery giant Walmart also has been working on lowering prices.
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