In This Article:
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter.
The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
Consumer Reports, The Guardian and the Food & Environment Reporting Network released on Wednesday an investigation claiming Kroger has a “price tag problem” that leads to overcharging shoppers on sale items.
“Kroger stores in multiple states, the investigation has revealed, show a pattern of overcharging customers by frequently listing expired sale prices on the shelves and then ringing up the regular prices at checkout,” The Guardian story says. The investigation is based, in part, on the three news outlets tapping “secret shoppers” across more than a dozen states as well as union grocery workers in Colorado to document pricing discrepancies with purchases.
Kroger told the news outlets that the price tag errors represented “a few dozen examples across several years out of billions of customer transactions annually.”
“While any error is unacceptable, the characterization of widespread pricing concerns is patently false,” the grocer said in a statement, noting that it is “committed to affordable and accurate pricing” and conducts price checks regularly that review “millions of items weekly to ensure our shelf prices are accurate.”
The report adds to Kroger’s chaos this year, from the sudden exit of top executive Rodney McMullen after an ethics investigation to the grocer’s legal battles with Albertsons and C&S Wholesale Grocers over their failed merger attempt.
The explosive report also comes at a time when grocers are facing ongoing scrutiny from government officials, watchdog groups and consumers (as well as Grocery Dive) over their pricing practices as shoppers continue to worry about how much they spend on groceries. A lawsuit filed earlier this year accuses Publix of overcharging shoppers for certain on-sale foods sold by weight, such as cheeses and deli items.
The increased scrutiny on grocers’ prices and sales serves as a reminder to supermarkets to button up their strategies and technologies so they avoid pricing errors.
In case you missed it
Wholesale clubs outpace Walmart in store visit growth
Price-sensitive shoppers are buying in bulk these days.
In the first quarter of this year, wholesale clubs outpaced superstore retailers in-store visit growth, according to Placer.ai. Costco saw visits rise 6.1% during Q1, while BJ’s Wholesale Club saw visits increase 4% and Sam’s Club enjoyed a 2.7% bump in traffic. Visits to Walmart, meanwhile, declined 2.4% while store visits to Target declined 4.1%.