Kroger CEO: Rising Grocery Prices Not Supermarket's Fault

Executive Blames Credit Card Fees, Fuel Costs

In a recent interview, Kroger CEO Rodney McMullen argued that rising grocery prices are not the fault of supermarkets. He pointed to factors such as credit card swipe fees and fuel costs as the primary drivers of inflation.

Credit Card Swipe Fees

According to McMullen, credit card swipe fees have increased significantly in recent years. These fees, which are charged to businesses by credit card companies, are passed on to consumers in the form of higher prices.

For example, a study by the National Retail Federation found that credit card swipe fees cost U.S. retailers an estimated $138 billion in 2022. This cost is ultimately passed on to consumers in the form of higher prices.

Fuel Costs

Fuel costs have also played a significant role in rising grocery prices. The cost of transporting goods from farms to warehouses to stores has increased substantially in recent months.

For example, the average price of a gallon of diesel fuel has increased by more than 50% since last year. This increase has made it more expensive for supermarkets to transport goods, which has led to higher prices for consumers.

In addition to these factors, McMullen also cited supply chain disruptions and labor shortages as contributing to rising grocery prices. He emphasized that supermarkets are working to minimize these impacts and keep prices as low as possible.

"We're doing everything we can to keep prices low for our customers," McMullen said. "But we're facing a number of challenges that are beyond our control.

Despite the rising costs, Kroger reported a 4.3% increase in sales in the first quarter of 2023. The company attributed this growth to its strong e-commerce business and its focus on value-priced products.