Inflation and a slowing economy are making U.S. shoppers, even so-called higher-income consumers, look for more ways to save money, and that’s what helped grocery chain Kroger Co. beat fourth-fiscal-quarter profit expectations and provide a full-year outlook that was well above Wall Street forecasts. “The gap between food-at-home and food-away-from-home spending grew in the fourth quarter, as more customers gravitated toward affordable meal solutions that restaurants simply can’t provide,” said Kroger Chief Executive Rodney McMullen on a post-earnings-report conference call, according to a FactSet transcript. “Our research shows that cooking at home is three to four times less expensive than dining out.”
The company said it had been focusing on improving its pricing relative to key competitors well before inflation starting climbing, and even before the start of the COVID-19 pandemic. Kroger said it has done so by “investment in pricing,” in each of the past 20 years, and by cutting costs by $1 billion for the past six years. Part of that investment in pricing comes from the personalization of coupons, which customers are using more and more. “As customers looked for more ways to save, digital coupon engagement hit an all-time high durin …