Dec 5 Reuters Kroger topped quarterly samestore sales expectations on Thursday, benefiting from a surge in customers shopping for its lower priced and freshly sourced groceries at its stores and online.

The U.S. grocer, which competes with retail giants such as Walmart and Amazon.com, has been ramping up its ecommerce investments to keep pace with customers who prefer shopping online.

Kroger rivaled Walmart39;s Thanksgiving deals and lowering the subscription fee for Walmart Plus subscription from October end to Dec. 2 with its own holiday offers.

It sold Thanksgiving meals for less than 5 and launched a 12day deal from Dec. 4 where customers can avail a coupon every day on its website or mobile app.

They39;re both Walmart and Kroger attacking online. They both want to be there for the consumer wherever the consumer wants to shop…and they are all getting better at the digital side of the food game, said Telsey Advisory Group analyst Joseph Feldman.

Kroger39;s thirdquarter identical sales, excluding fuel, rose 2.3, beating expectations of 1.77 rise, according to data compiled by LSEG, while its adjusted earnings per share of 98 cents was in line with the estimates.

But Kroger39;s shares slipped in choppy trading as the supermarket chain narrowed its annual forecasts, saying annualized sales will be about 3 billion lower due to the sale of its specialty pharmacy unit.

The recall of meat produced by Boar39;s Head hurt quarterly sales and would remain a nearterm…