Walmart rival and America’s largest supermarket chain in trouble over ‘Uber-like price hikes’ as CEO confronts

Walmart competitor Kroger is being investigated for using electronic labels in its stores across America.

U.S. Senators Elizabeth Warren and Bob Casey announced that they are investigating the chain to determine whether it is currently applying price markups.

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Kroger is the largest supermarket operator in the United States with nearly 3,000 stores nationwide and 400,000 employees.

Numerous other companies use “surge pricing,” including airlines, hotels and, most notably, the car-sharing service Uber.

A price increase is a price increase in which a company increases or decreases the price of a product or service depending on demand.

The practice of raising food prices can be controversial considering that these are essential goods.

However, Kroger is not the only chain raising prices.

Its competitor Walmart has announced that it will introduce electronic shelf labels in its stores starting in June.

There is no information as to whether investigations are also being carried out against them.

Warren and Casey wrote a letter to Kroger CEO Rodney McMullen expressing concern that the digital shelf labels could be used to rip off customers and gouge prices during peak periods.

Price gouging occurs when a company sells essential goods or services at a higher than usual price, usually during a state of emergency or disaster.

Kroger began testing electronic shelf labels in 2018 and has since expanded the practice to over 500 stores across America.

According to the Cincinnati Enquirer, the senators asked the chain for information about its use of the technology and the reasoning behind it.

“These digital price tags could enable Kroger and other grocery chains to transition to dynamic pricing,” Warren and Casey wrote in the letter.

“Prices for basic household goods can skyrocket depending on the time of day, weather or other temporary events.

“Stores can pace their price increases to maximize profits at a time when the amount Americans spend on food is at a 30-year high,” the letter said.

Warren and Casey continued to express concern that grocery prices would become “like airline tickets” with the introduction of the new electronic shelf labels.

Kroger’s Refund Policy

Kroger customers can return items with or without a receipt.

All Kroger Co. family stores allow returns for items purchased at any location within 30 days of purchase.

Returns with receipts:

• Customers can use digital or paper receipts to get a refund
• The refund will be made using the same payment method used to make the purchase, either by card or in cash.

Returns without receipt:

• Customers who wish to return more than $10 will receive a gift card for the value of the goods
• Customers who have spent less than $10 will receive cash

However, Kroger has said it wants to lure customers with lower prices to one of its 2,750 stores in 35 states.

“Kroger’s business model is to lower prices over time so more customers shop with us,” a spokesman told the Cincinnati Enquirer.

“Everything we do is designed to support this strategy, and customers are shopping at Kroger more today than ever before because we fight inflation and offer great value.

“Any test of electronic shelf labels is aimed at reducing prices for customers where it matters most. To say otherwise is not true.”

However, Senators Warren and Casey are demanding answers and expect Kroger to respond by August 20.

“It is outrageous that grocery giants like Kroger continue to implement price spikes and other profiteering schemes while families continue to struggle to afford food,” the senators wrote in their letter to McMullen.

The US Sun has asked Kroger for comment.

Walmart believes the new shelf labels will make a positive difference and provide customers with “an even better shopping experience.”

The retail giant said this saves employees a lot of time when changing labels, as it previously took two days to replace all the labels.

KROGER MAKES A MISTAKE

Meanwhile, Kroger recently had to issue an apology after the company accidentally overcharged a customer at checkout.

The grocery store chain accidentally charged sales tax on groceries at some stores in Cincinnati, Ohio.

In Ohio, all food not consumed on-site, including food purchased at a grocery store, is exempt from sales tax.

However, some customers noticed that the chain charged a surcharge on their receipt, Fox affiliate WXIX reported.

“We encountered an issue today where customers were incorrectly charged sales tax on certain groceries at checkout,” a Kroger spokesperson said.

“We have resolved the issue and apologize for any inconvenience caused to our customers.

“Customer Service or Kroger Customer Service at 1-800-576-4377 is available to assist customers who have been mistakenly charged for these products.”