Though there are serious worries about the economy, Kroger, one of the country's largest grocers, is still performing well. The company turned in a strong first quarter, with same-store sales rising 4.6% not including fuel.
The performance was strong despite increased pressure on pricing from Dollar General and Walmart. Those worries have put a hit on Kroger's stock price.
But Kroger's management, which operates just under 2,500 stores under the names Kroger, City Market, Dillons, Fred Meyer and others, sees the strong performance keeping up for the rest of the year. Same-store sales projections were increased to between 3.5% and 4.5% for the remainder of the year up from 3% to 4%. Profits were also forecast to rise.
Chairman David Dillon credited the retailer's Customer First program, which gives employees incentives, among other strategies, with helping the performance.
Do you think traditional grocers can continue to perform well in this environment, or will the discounters and dollar stores eventually put too much pressure on chains like Kroger?
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