Kroger raised its annual identical sales forecast Friday, betting on robust demand for groceries at its stores even as consumers deal with still-high inflation.

Demand for essentials and groceries has remained stable despite Americans pulling back on discretionary purchases, helping supermarket chains such as Kroger.

Most other retailers have tempered their expectations for the year.

Kroger has also invested in sprucing up its curbside pick-ups as well as its more affordable private label brands as it battles stiff competition from retail bellwether Walmart .

Still, Kroger maintained its annual earnings per share forecast, with new CFO David Kennerley noting in a statement that the macroeconomic environment remained uncertain.

The company expects full-year 2025 identical sales growth of 2.25% to 3.25%, compared with its prior target of 2% to 3% growth.

Kroger reported first-quarter identical sales growth of 3.2%, beating analysts' average expectation of 2.4%, according to estimates compiled by LSEG.

The grocer's shares were down marginally in premarket trading. They have risen about 7% so far this year.