Kroger reported strong private label growth in its second quarter of 2026, with its own brands outpacing national brands as shoppers prioritize value across every department. CEO Greg Foran pointed to robust interest in anything that answers consumers' questions about cost savings. The trend held even as the grocer trimmed its full-year identical-store sales growth outlook to below 1%.
The shift toward private label is accelerating across the grocery industry, not just at Kroger. With food-at-home inflation up 2.2% year over year and diesel costs putting upward pressure on transportation, shoppers are making deliberate trade-offs — cutting premium attributes while holding onto essentials like fresh produce. Grocery Gauge data shows store visits are essentially flat year over year, meaning volume is not growing even as spending stays elevated.
For produce suppliers and category managers, this environment puts pressure on branded premium positioning. Watch whether the private label push extends more aggressively into fresh departments and whether Kroger's $5 off $20 produce promotion — announced this week — moves the needle on category volume.