"We're going to react, and not allow our customers to think they have to go somewhere else for the best value for those products," Chief Financial Officer Michael Schlotman said during a conference call with analysts.
That follows a 0.7 percent decline in the previous quarter, with deflation in food prices weighing down results.
The company noted that the sales figure turned positive toward the end of the quarter and has remained so in the current quarter, in part helped by easing deflationary trends.
The pressure to keep prices low is likely to only grow this year, says Moody's vice president Mickey Chadha, which will hurt profitability.
The moves are intended to keep down employee turnover and generally improve customer service.