Eating in has become the new going out as inflation bites budgets. KrogerKR

has upped its full-year sales outlook after a quarter fueled by rising demand for fresh foods, pharmacy, and e-commerce. Wall Street took notice as shares jumped up to 3.4% yesterday, but the real story is what the grocer is doing next.

• KR
  beat expectations with a 3.4% gain in comparable sales (excluding fuel) and $1.04 adjusted EPS — with notable performance in e-commerce, as sales rose 16% from last year.
• Gross margin improved to 22.5% from 22.1% last year — a shocking twist amid its emphasis on promotions, low prices, and overall tariff exposure.

Behind the numbers: Despite the strong quarter, Kroger is reshaping itself. The grocer will cut about 1K corporate roles and close 60 stores by 2026, with interim CEO Ron Sargent redirecting savings into price cuts, new store openings, and more front-line jobs. Coming off a nixed $25B AlbertsonsACI

merger and facing fierce delivery rivals like AmazonAMZN

and WalmartWMT

, Kroger is betting a leaner, value-focused playbook will keep those full carts rolling.