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Private Label, Loyalty Programs Boost Kroger

CINCINNATI–The grocer posts a 9.2% same-store sales gain with fuel and a 5.8% rise without during its first quarter.

By Debra Hazel | Updated on June 25, 2008

CINCINNATI–A reliance on value products and promotions have led to record earnings at The Kroger Co., executives said at the company’s first quarter conference call.

The expansion of private-label products and promotions to help cash-strapped customers led to net earnings of $386 million, compared with $336.6 million last year. Total sales increased 11.5% to $23.1 million. Identical-supermarket sales increased 9.2% with fuel and 5.8% without fuel.

“Kroger’s performance during the quarter demonstrates the resiliency of our ‘customer first’ strategy,” said David B. Dillon, chairman and CEO. “Our latest customer research indicates the two biggest concerns on shoppers’ minds today are high gas prices and food costs. These two factors are driving some of the behavior changes we are seeing lately, such as shoppers combining trips and actively pursuing gas discount offers.”

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