Category Archives: Kroger

Kroger Trims Store Development Plans, Ups E-Commerce / Technology Activity

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Noting that its competitors are increasingly following Kroger’s store-building and stocking approaches, the nation’s 2nd largest grocer (after Walmart) said in a Securities and Exchange filing that 2017 will see fewer stores developed and more done in the areas of technology and e-commerce.

A Food Dive analysis said this past weekend that financial analysts more than likely view this move as a savvy one, demonstrating Kroger’s ability to flew with the needs of its markets. (The company operates a number of store names scattered across the country.) Food Dive noted that Kroger has been aggressively expanding its Click List e-commerce service as it works to establish itself as the go-to company for online sales across the country.

In the SEC filing, company executives noted that their first same-store sales slip in 52 quarters was due to food price deflation couple with an active development program. The company said it will be growing its footprint at a slower pace – by 1.8% compared to last year’s 3.44% – as it cuts back to 55 new projects, compared to 2016’s 85. And capital expenditures, the company said, will fall 13% to between $3.2-3.5 billion, compared to $3.7 billion in 2016.

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Kroger Offers 2k Employees An Early, Paid, Check-out

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Kroger has offered voluntary retirement to approximately 2,000 non-store employees who meet certain criteria of age and years of service. Savings realized by the company will be used for customer-centric activities, according to a company announcement issued earlier this month.

The company’s chairman and CEO, Rodney McMullen, said that, “Kroger would not be the successful company it is today without the incredible efforts of all of our associates. We believe a generous Voluntary Retirement Offering is in line with our company values and recognizes the long careers many of our associates have had with Kroger. [Our company] is committed to our operating model of lowering costs to invest in the areas that matter most to our customers.”

The retirement offer is not available to store-level workers, senior officers or supermarket division presidents across the company, which operates 2,796 supermarkets under several brand names across 35 states and the District of Columbia. Collectively, those stores serve an estimated 8.5 million customers daily.

It’s also one of the most aggressive supermarket companies where its in-store prepared food operations are concerned. In central Virginia, where I live, a couple can purchase a fully prepared, ready-to-eat full meal for $10 or less – nearly (or less than) as costly as buying the ingredients and preparing  the meal yourself.

While the company might not like to acknowledge this, it trains its employees so well that customers can, on occasion, actually be discouraged from buying certain items. A few months ago, I was steered away from the company’s ‘fresh’ clams by a seafood counter worker who said”Frankly, they aren’t as fresh as you’d like them to be. A lot of them come in with their shells already opening, and and that’s a clear indication they’re not really fresh.”

 

It’s details such as that, which I feel confident that employee passed ‘upstream’ to his department’s manager, is what distinguishes a good food store from a not-so-good one. Kroger is, rightly, seen as being one of the best supermarket operators in the U.S.