Third option, it will accelerate automation. IIRC Kroger is unionized, F&CW?
Replace the people with self-serve scanners.
Krogers is constantly redesigning their checkout approaches so no doubt they are already in the process of organizing a special solution for this challenge. The bright side is no healthcare or benefits are going to be lost since I don’t know any retail chains that offer more than 30-35 hours a week (or 15-20) even now.
Here, King Soopers (Krogers) is only partially unionized, deli workers, butchers, I think.