Cincinnati-based Kroger Co., the largest and leading traditional grocer in the nation, has realized a big fall in its revenue in the second quarter amid increased tax rates, a recent report has proposed.

Though, untiring efforts were put in by staff at the grocer, the company still failed to earn good profit. The report finds that like any other supermarket, Kroger also had pay sky-high due to increased commodity costs to fill its shelves with good stock.

But, despite bringing a wide assortment of store-brand items to be sold, it was unable to halt its profits from dipping. This is an add-on when Kroger is already struggling to compete with big-box retailers and specialty grocers as well as drug stores.

It has been told by the company that merchandise costs, including warehouse, advertising and transportation expenses, have risen by 4.3% over the period. Thus, a key sales figure, which also no doubt increased with the help of its loyalty program, was less in comparison to the costs.

Now, says the company’s president and chief operating officer Rodney McMullen, they are offering customers discounts on the basis of purchases made by them in the past. Also, it is being said that attempts are being made to enhance the shopping experience of customers further.