Kroger continues to emphasis customer experience and competitive prices as it navigates an increasingly diverse grocery landscape.
The retailer expects to drive improvements in both areas by requiring on-time and in-full deliveries. Ensuring more predictable operations will save money, which lets Kroger keeping lowering prices. On-time deliveries should also mean fewer low-stocks and out-of-stocks, executives said during the third-quarter earnings call Nov. 30.
The company is also leaning heavily on its extensive data to determine where it needs to be price-wise on various products.
Kroger also highlighted its e-commerce efforts, noting that digital revenue is up 109%. The company declined to disclose the specific dollar amount that segment is contributing but said it will do so at some point in the future. Executives expressed confidence that, as e-commerce volume grows, Kroger can transition from fulfilling online orders in stores to having that process take place at fulfillment-specific locations.
The company also noted on the call that perishables departments, especially produce and meat, were delivering strong results.
Kroger reported net earnings of $397 million for the quarter, up from $391 million in 2016.
“This quarter shows that by investing for the future, our business continues to improve and gain momentum,” CEO Rodney McMullen said in a news release. “We remain confident in our ability to continue to grow identical supermarket store sales and market share for the balance of the year and in 2018.”