‘We’ll see how long this lasts’: Gee, Ursula skeptical of Kroger’s biggest price cuts in years

The new CEO of Kroger recently announced it’s getting ready to implement its biggest round of price cuts in years as the company looks to recoup customers from other major grocery chains.

CEO Greg Foran said Kroger wants to cut prices, make shopping faster, open more stores, and make shopping inside Kroger a much more pleasant experience overall.

Gee Scott and Ursula Reutin, co-hosts of “The Gee and Ursula Show” on KIRO Newsradio, believed that while the change is in good spirit, customer loyalty is a driving factor, and they will continue to find any store where the prices are lowest.

“I appreciate you, Kroger. Thank you for coming in and doing this. Let’s see how long this lasts,” Gee said. “It sounds good, right? But we all know when politicians run during elections, they have all these promises. ‘I’m not buying Starbucks, and neither should you.’ Sometimes you say things, and we’ll see what happens. The thing is, when Kroger is talking about competing with these folks, leave Costco out of this.

“The reason why you have to leave Costco out is because you’re not competing against price with Costco, you’re competing against loyalty,” he continued. “Costco memberships could go up $25, and watch how Costco members won’t say a word. Costco members are loyal to them the same way folks are loyal to elected officials, no matter what they do.”

Can Kroger turn a quick ‘fling’ into a loyal consumer base?

Gee said shoppers aren’t “married” to Kroger, they see it as a fling, and questioned whether the company can turn bargain hunters into loyal customers.

“Kroger, you might drop your prices, and people will go there, but they’re not going to get married to you,” Gee said. “They’re looking at you, Kroger, like a Friday night. Just a little fling. I’m gonna go in, get the prices, but as soon as the other grocery store drops their prices, I’m going to go there. If I’m Kroger, how can you get the loyalty out of the people?”

“Have the best prices and the best quality,” Ursula responded. “That’s exactly how you get loyal customers, and then also be in the neighborhoods where people shop. Be convenient. I love Trader Joe’s, but I don’t go there enough because it’s not that convenient for me. I have to fight to get a spot in the little U-District parking lot. It always feels crowded, but when I do go, I enjoy it. That’s how I choose.”

Foran assumed the role of CEO for Kroger in February after serving as the president and CEO of Walmart U.S. for nearly a decade. Ursula believes that Foran will bring some of his experience from Walmart to his new position and find a strategic way to lower prices, akin to Walmart.

“[Foran] knows how Walmart operates, and he’s going to try to bring some more Walmart-like prices and strategies to Kroger,” Ursula said. “I’m wondering if now Safeway and Albertsons follow suit. I’m looking at this as a positive after grocery prices have been jacked up constantly. We are always being told that the margins are so thin that they can’t reduce prices. Well, if Kroger can do it, I think that’s a good thing.”

Watch the full discussion in the video above.

Listen to Gee and Ursula on “The Gee and Ursula Show” weekday mornings from 9 am to 12 pm on KIRO Newsradio.