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By Tom Whitfield

Grocery & CPG

Kroger Tells Suppliers: Bring a Better Deal or Risk Losing Shelf Space

Kroger is telling suppliers to come in with a better deal or risk being dropped, putting the customer over price in its vendor negotiations, Supermarket News reports.

Kroger Tells Suppliers: Bring a Better Deal or Risk Losing Shelf Space
PhotoKroger Tells Suppliers: Bring a Better Deal or Risk Losing Shelf Spaceanthonyturducken / Openverse

At a glance

  • Kroger is telling suppliers to come in with a better deal or they might be gone.
  • The retailer's stance puts the customer over price.
  • The report appears in Supermarket News' contributed "10 Items or Less" column.

Kroger is putting its customer over price — and it is telling suppliers exactly what that means.

The retailer's message to its vendor partners is blunt, as reported by Supermarket News in its "10 Items or Less" column: come in with a better deal, or you might be gone.

The stance positions Kroger firmly on the side of the shopper in ongoing negotiations with manufacturers. Rather than absorbing supplier cost increases or passing them along at the shelf, the company is drawing a line with the vendors themselves.

The column, a forum for contributed pieces from industry thought leaders, retailers, wholesalers and manufacturers, frames the move as a deliberate prioritization: customer first, price second. The views expressed are those of the authors, but the signal to the supplier community is unmistakable.

For suppliers, the implication is direct. Products that cannot justify their cost to Kroger's merchandising team face potential removal from the assortment. In an era when retailers hold growing leverage over shelf-space decisions, that threat carries weight.

For shoppers, the strategy could mean sustained pressure on everyday prices, as Kroger uses its scale to extract better terms and push savings through to the register.

The development is one to watch as other grocers weigh whether to take a similarly hard line in supplier talks — and as vendors decide which retailer relationships they can afford to defend.

Source: Supermarket News

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Tom Whitfield

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Staff writer covering industry trends and analytics at Target Marketing.

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