Grocery retailers face traffic declines and supply chain disruptions

Kroger is experiencing a decline in foot traffic, with a 0.22% drop reported in July. This marks the fourth-largest decline among 16 retailers studied by Jefferies. The grocer’s traffic has decreased by 0.66% over the last three months, though the company previously reported higher total sales driven by digital operations and retail media growth.

Separately, a cyclospora outbreak linked to iceberg lettuce is causing significant disruptions in the produce supply chain. H-E-B suppliers are facing severe consequences; Revol Greens is considering closing its Temple facility, potentially impacting 116 jobs, while 80 Acres Farms has announced plans to cut 166 jobs and close its San Antonio facility.

Taylor Farms de Mexico has been central to the outbreak investigation. While the FDA has not produced a positive test, it has advised the public against consuming iceberg lettuce grown or processed by the company in Mexico. Walmart has already removed specific Taylor Farms iceberg lettuce products from shelves across 15 states.