Kroger keeps focus on experience, price
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.”
