On Friday, Kroger Co. (NASDAQ:$KR) reported lower quarterly profit after an intensifying grocery price war hit its bottom line. Shares in the company, which has already plundered by 38% this year, decreased nearly 10% to $22.55, a three-and-a-half year low as of morning trading. As a result, same-store sales and operating margins would be lower than expected for the remainder of the year.

Operating nearly 2,800 U.S. food stores, Kroger is the bigger U.S. supermarket owner, with brands such as Ralphs, Harris Teeter and Food 4 Less. The company has been cutting prices to battle competition from main rival Wal-Mart Stores Inc. (NASDAQ:$WMT), and newly merged Amazon.com (NASDAQ:AMZN) and Whole Foods Market.

As a result, Kroger’s net income decreased by 6.8% to $353 million, or 39 cents per share in 2Q17. Kroger also forecasts a full-year operating margin excluding items, that is 30-40 basis points lower than in 2016.

Undoubtedly, Amazon.com’s $13.7 billion Whole Foods acquisition is rattling the grocery industry. Grocers like Kroger are worried that online retailers could upend the food business like it did for books and electronics. Kroger executives expressed that they would halt longer-term forecasting due to the “dynamic operating environment”, while expecting “pricing environment to remain highly competitive in 2017”.

For now, Kruger is rebutting against the new online threat by testing delivery at more than 150 stores and offering a new service, ClickList, that allows online ordering and curbside pickup service. The company hopes to implement the service at more than 1,000 stores by the end of the year.

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