They are trying VERY hard to compete with stores that have similar pricing. Publix is more expensive but the difference is less than it used to be and Publix runs circles around them for service level.
Kroger employees generally hate their jobs from what I can tell. And how do you fix that? You can either give them better wages and working conditions OR you can threaten them when people report they are cutting corners on their cleaning, mishandling produce, and not being friendly.
Honestly, IMO, they're closest to Walmart for service level. At least, that is the case locally. But, prices are usually lower (especially on the basics) at Walmart. And, the produce at Walmart is usually better. So, they either give up on trying to pretend to be premium and become more like Walmart or they find a way to get their employees to not act aloof or surly.