"Kroger Co. raised its full-year sales forecast, illustrating that the grocer is attracting value-seeking consumers who are opting to eat at home. The company said it now expects comparable sales, excluding fuel, to gain as much as 3.4%, versus its previous guidance calling for a 3.25% increase. Kroger's shares rose as much as 4.4% in premarket trading. The stock had gained about 10% this year through Wednesday's close."
"Food retailers have posted steady sales in recent years, benefiting from shoppers prioritizing necessities even as they cut spending elsewhere. People are staying cautious overall, buying things on sale or purchasing cheaper items. The grocery chain's comparable sales and adjusted earnings beat expectations during the latest quarter, driven by higher sales of fresh food, e-commerce and pharmacy items. Kroger is seeking to establish a new chapter of growth after calling off a $24.6-billion deal with rival Albertsons Cos., a fight that's now unfolding in court."
Kroger raised its full-year comparable-sales forecast to as much as 3.4% excluding fuel, up from prior guidance of 3.25%. Sales gains reflect value-seeking consumers choosing to eat at home and increased demand for fresh food, e-commerce and pharmacy items. Comparable sales and adjusted earnings exceeded expectations in the latest quarter. Management under interim CEO Ron Sargent is refocusing on core retail operations, accelerating new store openings, closing underperforming locations and improving e-commerce profitability and fulfillment speed. Kroger plans near-term corporate layoffs to cut costs. The company is diversifying sourcing, discontinuing some items, expanding private brands and offering more promotions amid growing discount competition from Walmart and Amazon's grocery initiatives.
Read at Los Angeles Times
Unable to calculate read time
Collection
[
|
...
]