Walmart posts strong quarter, Kroger cuts

Walmart said on May 21 that first-quarter sales and operating income rose, extending gains in groceries and general merchandise as faster delivery and low prices drew shoppers across income groups. On the same day, Bloomberg reported that Kroger is preparing its biggest price cuts in years under new Chief Executive Greg Foran as the grocer tries to win back market share from Walmart and Costco. Together, the updates showed the pressure building in U.S. food retail around price, speed and scale. They also put Foran, a former Walmart U.S. chief, in direct competition with his old employer. ### How strong was Walmart’s quarter? Walmart said first-quarter fiscal 2027 total revenue rose 7.3%, or 5.9% in constant currency, while operating income increased 5.0%, according to the company’s earnings release. The retailer said Walmart U.S. comparable sales rose 4.1% excluding fuel, and Sam’s Club U.S. comparable sales rose 3.9% excluding fuel. Global eCommerce sales climbed 26%, Walmart said, helped by demand for fast delivery and store-based fulfillment. More than 36% of store-fulfilled delivery orders in the quarter arrived in under three hours, and store-fulfilled delivery has more than doubled over the past two years, the company said. ### Who is Walmart winning with those gains? (corporate.walmart.com) Walmart said market-share gains were driven by both grocery and general merchandise and were led by upper-income households. The company also said customers and members were choosing Walmart for “value and convenience,” language that tied its traffic gains to both pricing and fulfillment. (corporate.walmart.com) The company kept its fiscal 2027 outlook in place while issuing second-quarter guidance, according to its May 21 materials on the investor site. Walmart said growth in advertising, membership and marketplace businesses continued to improve its sales mix. ### What exactly is Kroger planning to do on price? Bloomberg reported on May 21 that Kroger is laying the groundwork for lower prices across product categories, with management planning to test cuts and then phase them in. (corporate.walmart.com) Bloomberg said Foran described the initiative in his first interview since taking the top job in February. (stock.walmart.com) Bloomberg also reported that the cuts are intended to help Kroger regain market share from Walmart and Costco. The report said Foran, who previously ran Walmart U.S., is looking at big price reductions as part of a broader effort to improve Kroger’s competitiveness. ### Where is Kroger supposed to find the money? (bloomberg.com) Kroger said on March 5 that it had completed an eCommerce strategic review expected to deliver $400 million in eCommerce operating profit improvement in 2026. In the same release, Foran said he was focused on “delivering more value to customers,” improving stores and online operations, and “driving cost savings and productivity to fund our growth.” (bloomberg.com) Bloomberg reported that Kroger plans to fund lower prices through direct imports and technology-led savings. That fits with the company’s public emphasis on productivity and cost reductions since Foran took over. ### Why is Greg Foran central to this fight? Kroger appointed Greg Foran chief executive effective February 9, succeeding Ron Sargent, who had served as interim CEO since March 2025. (ir.kroger.com) Kroger said Foran previously led Walmart U.S. for six years, overseeing more than 4,600 stores and one million associates and delivering positive comparable sales growth for 20 consecutive quarters. (bloomberg.com) That background gives Kroger a chief executive with direct experience running the company it is now trying to outmaneuver on price and convenience. Kroger said Foran joined after an external search aimed at finding a retail leader with large-scale operating experience. ### What comes next for both companies? (ir.kroger.com) Walmart said in its May 21 earnings release that second-quarter net sales are expected to increase 3.5% to 4.5% in constant currency, while full-year fiscal 2027 guidance remains unchanged. Kroger has not yet announced a separate new pricing program publicly on its investor site, but Bloomberg reported management is preparing tests before phasing in broader cuts. (corporate.walmart.com) (ir.kroger.com)