Kroger (NYSE: KR) has a nagging issue that’s hurting its operating results. Prices didn’t budge on groceries last quarter, marking the lowest inflation level in six years for the supermarket chain.
That pricing pressure was the main factor behind a huge growth slowdown: Comparable-store sales rose by just 2% in Q1, versus 4% in the prior quarter and over 5% in each of the last five quarters.