Kroger recorded strong private label sales growth during its latest financial quarter as stressed shoppers continued to place a premium on saving money, the grocery chain’s chief executive said on Friday.
The company’s own brands outpaced national brands during the second quarter of fiscal 2026, with private label penetration up during the period by about half of a percentage point, CEO Greg Foran said during an earnings call.
Kroger saw robust demand for “anything that is answering a customer’s question around value,” Foran said, adding that customers are “pretty disciplined about what they buy.”
Foran pointed to the company’s Private Selection line, which Kroger expanded earlier this year with fresh and frozen meal choices, as an example of how its store brands are resonating with shoppers. Private Selection sales were up by more than 14% during the second quarter, led by ready-to-heat and ready-to-eat meals, he said.
Along with private label products, shoppers also showed strong interest in health-focused and organic products during the quarter, according to Foran. Kroger added over 600 natural and organic items to its assortment during the quarter, he said.
Data from Numerator backs up Foran’s points. Kroger’s private label sales in the produce, meat, seafood, deli and prepared foods and in-store bakery categories were up by about $420 million over the 12-month period that ended July 31, according to the data analysis firm.
Kroger is seeing success with its private label sales as it strives to demonstrate to shoppers that it sees affordability as a top priority.
In a reflection of that, Foran said during the call that the grocer is closely scrutinizing suppliers that want to charge more for goods, adding that he believes Kroger’s “job is to be the customer's agent.”
“If price increases are justified and make sense, then I’m happy that as a team of merchants, we sit down and we work through those,” Foran said. “What we don't want to get in is a situation where people can just turn up and put prices up and not have full justification for that sort of increase.”
Foran stressed during the earnings call that he does not want to depend on inflation to help drive Kroger’s top-line sales growth, which has been under pressure. Kroger’s identical store sales were up by just a fraction of a percentage point during the second quarter, as factors such as shopper concerns about produce safety stemming from the cyclospora outbreak held back the grocer’s performance.
“I’m not in the game of using inflation as a way of generating extra sales. I’m in a game of generating great comp sales … because we represent terrific value to the customer, and they trust that Kroger is their representative in creating great value,” said Foran.
