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Snacks / Monday, March 04, 2024

Aisle anxiety… Grocery giant Kroger reports Thursday as the share of Americans’ income spent on food has climbed to 11%+ — a three-decade high. Supermarket prices are up 25% from prepandemic. In Q3, Kroger’s sales dipped but profit rose. Discount grocers like Walmart and Costco (which, FYI, both report this week) have benefited as consumers seek bargains. Kroger owns budget-friendly chains like Ralphs and Food 4 Less. One thing it may not add to its cart: Albertsons. Last week the FTC sued to block the $25B grocery mega-merger.

Early-2000s mall icons… Victoria’s Secret and Abercrombie & Fitch report this week. Both retailers have overhauled their brands to be more inclusive (think: more plus-size models, fewer shirtless men). VS’s revamp isn’t going as well as A&F’s: VS logged a $71M loss for Q3 as sales fell. Now the lingerie legend is adding more swim and activewear to win market share from Gen Z faves like Fenty x Savage and Skims. Denim go-to A&F has thrived, forecasting record Q4 sales for its women's biz as its logoless fits become twentysomethings’ staples (RIP, moose hoodies).

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