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The largest U.S. supermarket chain by stores and sales reported revenue of $37.5bn in the quarter ending in May, up from $36.3bn the prior year. Earnings per share on an adjusted basis more than doubled, to 73 cents per share on $626m in earnings from 32 cents per share on $303m in the prior year.
Kroger has been overhauling its operations to face rising competition in the retail food sector, particularly as Amazon rolls out food delivery and discounts at the Whole Foods chain it bought last year.
European discount chains Aldi and Lidl are also expanding in the U.S., putting pressure on established supermarkets to keep prices low. Kroger is cutting prices on some groceries to keep customers loyal.
“We’ve been aggressively working to transform our business and accelerate where we are going,” Kroger Chief Executive Rodney McMullen said in an interview.
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