Kroger cuts annual sales forecast on choppy grocery demand

Food prices are now moderating, with grocery inflation continuing to trend lower throughout the quarter as fresh food products go into deflation mode while packaged food items hit the ceiling on price hikes. That has started to limit some of the revenue benefits enjoyed by food retailers over the past year, while consumers become increasingly thrifty and pick cheaper alternatives even in groceries. Competition has also heated up in the grocery space with retailers looking to rein in prices and offer more low-cost food items to attract inflation-hit consumers.