Grocery stores infamously have some of the lowest margins in all of retail and typically hover in the 1-3% range. As a sector they have about zero room for inefficiency and have to be this aggressive about chasing operating cost reductions.
The increased profits that have occurred in recent decades have landed with the big food companies, not with the retail chains selling their products at very little margin.
Wonder the margins on those $9 boxes of Cheerios at major California grocers.
They did promise to increase the cost of breakfast a couple years ago.