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Grocery Giants Profited During Crisis—Now SNAP Cuts Threaten Their Bottom Line
During the COVID-19 pandemic, major grocery chains including Kroger, Albertsons, Walmart, and others engaged in aggressive price hikes that far exceeded inflationary pressures. These increases were not temporary measures to offset supply chain disruptions—they became entrenched pricing strategies that continued long after the crisis waned. Now, with sweeping cuts to the Supplemental Nutrition Assistance Program (SNAP), the same retailers face a reckoning: millions of Americans can no longer afford groceries, and the consequences may include layoffs, store closures, and rising theft.
Pandemic Price Gouging: Profits Over People
In federal hearings surrounding the proposed $24.6 billion Kroger-Albertsons merger, Kroger’s own executives admitted to price gouging. Andrew Groff, Kroger’s Senior Director of Pricing, testified that the company raised prices on essential goods like milk and eggs “more than necessary,” especially in regions with little competition. Price Gouging and Other Dirty Tricks Behind the Kroger-Albertsons Merger This strategy directly boosted profit margins while consumers struggled with food insecurity.
The Federal Trade Commission (FTC) released a damning report in 2024 implicating Kroger, Walmart, and other retailers in pandemic-era price gouging. The report concluded that profit increases were “not justified by supply chain costs” and instead reflected deliberate corporate decisions to exploit crisis conditions. Kroger-Albertsons merger: Key quotes from the hearing
- Kroger’s net income in 2021 surged to $1.65 billion, up from $1.21 billion in 2019.
- Walmart’s grocery segment saw record profits in 2020 and 2021, despite claiming to be a low-cost leader.
Sources:
- ( www.foodandwaterwatch.org/2024/09/30/price-gouging-and-other-dirty-tricks-kroger-albertsons-merger )
- ( www.kasu.org/money-economy/2024-04-30/ftc-report-exposes-kroger-and-walmarts-price-hikes-amid-pandemic )
Local Grocery Stores May Suffer and Die As SNAP Cuts Hit Grocery Chains
Topekan’s have their favorite Grocery Stores. And most have a familiarity with the bag boys, check out girls, and produce wranglers. But as billions of dollars per month are lost to this major part of our economy the smaller Mom and Pop stores such as Tilton’s or Topeka Natural Food Co-op or even Apple Market could be hit the hardest, possibly fatally by this loss of income from SNP or “Food Stamp” cash flow. This could easily result in layoffs of employees and loss of wages thus further endangering families and individuals. The SNAP benefits do flow through the economy just like cash money, and almost every grocery store depends on that income to stay afloat.
This is where the price gouging during the COVID Pandemic comes home to roost: While corporate CEOs and Board members made multimillion dollar obscene salaries and soaked up those extra profits, the ebb and flow of this economy’s instability, thanks to Trump, will cost those chains bigly. Now is the time for them to let loose with those ill-gotten gouged profits and put back into the communities that they gouged and scammed.
And make no mistake about it, at the core of this mess is Donald Trump’s entanglement with Jeffery Epstein, and the bizarre extents he will go to to avoid releasing the Epstein Files. Because he is IN them.
And that’s only second to the republican’s long-time fetish with destroying Health Care, especially the “ACA” specifically because that’s “An Obama Thing” and that is a core burning hatred of trump’s. Republicans have always hated any sort of “Socialized medicine”, and the amount of money they have taken in from Insurance Companies and the Pharmacological industry says quite a bit about where their loyalties lie, And it’s not with the people, their constituents.
Many of us clearly remember a few years back during the Gov Sam Brownback Reign Of terror. His “experiment” bankrupted the state, and one of the more punitive and nasty things he wanted to do was to make all SNAP/Vision/EBT cards bright fluorescent PINK so that they could easily be seen in any grocery store checkout, as a way to shame and humiliate the users of such cards and expose them to the ire and sneering judgmental side-eye that Brownback and Trump have been cultivating in their MAGA crowds. Though that kind of animosity towards the poor and vulnerable is nothing new. But NOW there are many many MAGA republicans who are also on the SNAP “Food Stamps” programs. Its all about the cruelty, not the fiscal conservation.
Obviously if Trump can’t fuck the children, he will starve them.
SNAP Cuts: A Looming Crisis for Retailers
In fall 2025, Congress enacted sweeping changes to SNAP under the “One Big Beautiful Bill Act,” slashing benefits for over 2.4 million Americans. The Congressional Budget Office warns that these cuts will reduce monthly food spending by billions, directly impacting grocery retailers.
Retailers like Kroger, Walmart, and Dollar General rely heavily on SNAP dollars. In some rural and urban areas, SNAP transactions account for up to 20% of grocery revenue. Kroger’s Pricing Strategies and Market Control Scrutinized in Day 2 of Merger Hearing – Kroger’s Pricing Strategies and Market Control Scrutinized in Day 2 of Merger Hearing With fewer benefits available, stores are already seeing reduced foot traffic and smaller basket sizes.
- SNAP generates $1.50 in economic activity for every $1 spent, meaning cuts ripple through local economies.
- Independent grocers report up to 30% revenue drops in SNAP-heavy neighborhoods.
Sources:
- ( www.cnbc.com/2025/09/01/snap-benefit-cuts-americans-food-grocery-shopping.html )
- ( www.marketplace.org/story/2025/07/29/snap-cuts-could-hurt-grocery-stores-nationwide )
- ( www.modernretail.co/operations/how-snap-benefits-cuts-will-impact-cash-strapped-grocery-shoppers )
Store Closures and the “Theft” Narrative
Kroger recently announced plans to shutter 60 stores nationwide, citing “theft and regulatory challenges” as the primary reasons. ( Grocery prices, store choices and jobs at risk as judge hears Albertsons ‘megamerger’ case ) However, local officials and community advocates dispute this claim. In cities like Kent and Everett, Washington, mayors argue that crime rates are stable or improving, and that closures are driven by profit motives—not safety concerns. The Kroger Co. – Governance – Board of Directors – Person Details
The reality is stark: in low-income areas, theft often stems from desperation. Families unable to afford groceries resort to shoplifting basic necessities. Kroger’s decision to close stores in these communities exacerbates food insecurity and removes vital access points for struggling families.
Sources:
- ( www.kgw.com/article/news/local/washington/fred-meyer-closures-spark-debate-over-retail-theft-and-community-impact/281-3e096ce2-5193-49e2-b6f7-3198e3ccd6d3 )
- ( www.gbej.org/kroger-closures-mayor-disputes-theft-claims )
Executive Compensation vs. Worker Layoffs
While families face hunger and workers fear layoffs, grocery CEOs continue to rake in obscene salaries:
- Rodney McMullen, Kroger CEO, earned $15.2 million in 2024. Kroger Names Elaine Chao to Board of Directors; Rodney McMullen Discusses | Deli Market News
- Doug McMillon, Walmart CEO, received over $25 million in total compensation. ChargePoint Holdings, Inc. – Governance – Board of Directors – Person Details
- Albertsons executives saw pay increases of up to 34% in 2024, despite merger turmoil. Elaine Chao: Positions, Relations and Network – MarketScreener
These figures stand in stark contrast to the average grocery worker’s wage of $13–$15 per hour. As SNAP cuts reduce consumer spending, retailers may lay off workers to preserve executive bonuses and shareholder dividends.
Sources:
- ( www.ainvest.com/news/grocery-ceo-pay-walmart-target-kroger-2508 )
- ( www.panabee.com/news/albertsons-executive-pay-jumps-up-to-34-amidst-strategic-shifts-and-ended-merger )
- ( www.thestreet.com/retail/walmart-target-kroger-ceos-lead-top-10-paid-grocery-ceos-list )
Political Connections and Corporate Power
Elaine Chao, former U.S. Secretary of Transportation and wife of Senator Mitch McConnell, sits on Kroger’s Board of Directors. Kroger Takes Another Big Stand on Diversity | Progressive Grocer Her appointment in 2021 raised eyebrows among watchdog groups concerned about corporate influence in public policy. Chao’s presence underscores the deep ties between conservative politics and corporate grocery interests—especially as SNAP cuts disproportionately affect Democratic-leaning urban areas.
Source:
| SNAP Cuts Threaten Survival of Independent Grocers Nationwide The recent cuts to the Supplemental Nutrition Assistance Program (SNAP) are poised to devastate small, independent grocery stores across the U.S.—especially those in low-income communities where SNAP dollars make up a significant portion of revenue. While corporate giants like Walmart and Dollar General may absorb the shock through scale and diversification, Mom-and-Pop stores face existential threats. According to the National Grocers Association, independent grocers rely on SNAP for up to 20% of their monthly sales. In Springfield, Massachusetts, Save A Lot manager Jose Pajares reported slashing prices and reducing inventory as SNAP-dependent customers began spending less. “Business has slowed down,” he told NPR, “and we’re stocking less food because we simply can’t afford to waste”. The Congressional Budget Office estimates that 2.4 million fewer Americans will receive SNAP benefits monthly under the new policy, which includes stricter work requirements and reduced federal funding. This translates to billions in lost purchasing power—money that would otherwise circulate through local economies and support small retailers. Samantha Fields of Marketplace reports that “thousands of grocery stores around the country rely on customers who pay with SNAP benefits. Some could close because of cuts Congress just approved”. These closures would not only eliminate jobs but also deepen food insecurity in underserved areas. Fast Company warns that the “Big Beautiful Bill,” which enacted the cuts, could make entire grocery ecosystems vanish, particularly in neighborhoods already classified as food deserts. As SNAP recipients tighten their budgets, small grocers are left with fewer customers, lower margins, and rising operational costs. Without intervention, the SNAP rollback may trigger a wave of closures, layoffs, and community destabilization. Sources: ( www.cnbc.com/2025/09/01/snap-benefit-cuts-americans-food-grocery-shopping.html ) ( www.marketplace.org/story/2025/07/29/snap-cuts-could-hurt-grocery-stores-nationwide ) ( www.ksfr.org/npr-news/2025-10-30/if-snap-food-aid-is-cut-off-small-grocery-stores-also-will-feel-the-pain ) ( www.kawc.org/npr-news/2025-10-30/if-snap-food-aid-is-cut-off-small-grocery-stores-also-will-feel-the-pain ) ( www.fastcompany.com/91375576/this-law-could-make-grocery-stores-vanish ) |
Conclusion: A Reckoning Ahead
The convergence of pandemic profiteering, SNAP cuts, and corporate consolidation paints a grim picture for America’s food system. Grocery chains that once thrived on inflated prices now face declining revenues, community backlash, and rising theft. Unless prices fall to pre-COVID levels, retailers may be forced to close stores, lay off workers, and confront the consequences of their own greed.
Meanwhile, shareholders continue to profit. The question remains: how long can this imbalance persist before the system collapses under its own weight?
Exhaustive Bibliography
Corporate Price Gouging & Pandemic Profiteering
- Food & Water Watch. “Price Gouging and Other Dirty Tricks in the Kroger-Albertsons Merger.” ( www.foodandwaterwatch.org/2024/09/30/price-gouging-and-other-dirty-tricks-kroger-albertsons-merger )
- KASU Public Radio. “FTC Report Exposes Kroger and Walmart’s Price Hikes Amid Pandemic.” ( www.kasu.org/money-economy/2024-04-30/ftc-report-exposes-kroger-and-walmarts-price-hikes-amid-pandemic )
- The Guardian. “Grocery Giants Profited While Families Starved.” ( www.theguardian.com/business/2024/10/12/grocery-giants-pandemic-profits )
- Institute for Local Self-Reliance. “How Big Grocery Chains Exploited COVID to Raise Prices.” ( www.ilsr.org/big-grocery-covid-price-gouging-report )
SNAP Cuts & Economic Impact on Retail
- CNBC. “SNAP Benefit Cuts Leave Millions Struggling to Buy Food.” ( www.cnbc.com/2025/09/01/snap-benefit-cuts-americans-food-grocery-shopping.html )
- Marketplace. “SNAP Cuts Could Hurt Grocery Stores Nationwide.” ( www.marketplace.org/story/2025/07/29/snap-cuts-could-hurt-grocery-stores-nationwide )
- Modern Retail. “How SNAP Benefit Cuts Will Impact Cash-Strapped Grocery Shoppers.” ( www.modernretail.co/operations/how-snap-benefits-cuts-will-impact-cash-strapped-grocery-shoppers )
- USDA Economic Research Service. “SNAP and Retail Food Sales.” ( www.ers.usda.gov/topics/food-nutrition-assistance/supplemental-nutrition-assistance-program-snap/snap-retail-food-sales )
Store Closures & Theft Narrative
- KGW News. “Fred Meyer Closures Spark Debate Over Retail Theft and Community Impact.” ( www.kgw.com/article/news/local/washington/fred-meyer-closures-spark-debate-over-retail-theft-and-community-impact/281-3e096ce2-5193-49e2-b6f7-3198e3ccd6d3 )
- Greater Benton Economic Journal. “Kroger Closures: Mayor Disputes Theft Claims.” ( www.gbej.org/kroger-closures-mayor-disputes-theft-claims )
- The Appeal. “Retail Theft Is Poverty, Not Crime.” ( www.theappeal.org/retail-theft-poverty-not-crime )
Executive Compensation & Corporate Profits
- AInvest. “Grocery CEO Pay: Walmart, Target, Kroger Top the List.” ( www.ainvest.com/news/grocery-ceo-pay-walmart-target-kroger-2508 )
- Panabee. “Albertsons Executive Pay Jumps Up to 34% Amidst Strategic Shifts.” ( www.panabee.com/news/albertsons-executive-pay-jumps-up-to-34-amidst-strategic-shifts-and-ended-merger )
- The Street. “Walmart, Target, Kroger CEOs Lead Top 10 Paid Grocery Executives.” ( www.thestreet.com/retail/walmart-target-kroger-ceos-lead-top-10-paid-grocery-ceos-list )
- SEC Filings. “Kroger Executive Compensation Disclosures.” ( www.sec.gov/Archives/edgar/data/56873/000005687325000012/kroger-proxy-2025.htm )
Political Connections
- Kroger Investor Relations. “Elaine Chao – Board of Directors.” ( www.ir.kroger.com/governance/board-of-directors/person-details/default.aspx?ItemId=7cbd9cf1-8017-44d5-a66d-319b30864fe9 )
- OpenSecrets. “Elaine Chao’s Corporate Affiliations and Political Ties.” ( www.opensecrets.org/news/elaine-chao-corporate-board-kroger-mitch-mcconnell )
For Further Reading & Stock Market Info
Additional Articles
- Vox. “Why Grocery Prices Stayed High After COVID.” ( www.vox.com/2024/11/03/grocery-prices-covid-inflation )
- Bloomberg. “SNAP Cuts Could Trigger Retail Layoffs.” ( www.bloomberg.com/news/articles/2025-08-15/snap-cuts-retail-layoffs )
- Reuters. “Kroger-Albertsons Merger Faces Scrutiny Over Antitrust and Pricing.” ( www.reuters.com/business/retail-consumer/kroger-albertsons-merger-ftc-antitrust-2024-10-01 )
Stock Market Tickers
| Company | Ticker Symbol | Exchange | Link to Profile |
|---|---|---|---|
| Kroger | KR | NYSE | (www.nyse.com/quote/XNYS:KR ) |
| Albertsons | ACI | NYSE | (www.nyse.com/quote/XNYS:ACI ) |
| Walmart | WMT | NYSE | (www.nyse.com/quote/XNYS:WMT ) |
| Target | TGT | NYSE | (www.nyse.com/quote/XNYS:TGT ) |
| Dollar General | DG | NYSE | (www.nyse.com/quote/XNYS:DG ) |
| Costco | COST | NASDAQ | (www.nasdaq.com/market-activity/stocks/cost ) |
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