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Re: Kroger reports a $1.7B profit, stock soars

By: joe-taylor in FFFT3 | Recommend this post (0)
Sat, 07 Mar 15 9:46 PM | 38 view(s)
Boardmark this board | Food For Further Thought 3 		Msg. 09931 of 65535
(This msg. is a reply to 09911 by clo)
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We have been going into grocery stores for most of our life and the one that we frequent these days is the Kroger chain of stores which has an outlet here in Marion, Illinois where we live. We were married for almost fourteen years to a home EC ed major and the things that she taught us about food and purchasing it have served us well throughout this part of our life.

We started out with small neighborhood grocery stores back in our youth in southern Illinois when my father's business delivered dress poultry to so many of them located around the geographic area that he served. The one common denominator that we have found with all of these such businesses is the customer service that they deliver to the base that determines whether they will thrive, survive or simply retreat into the vaults of local history. For most, the encounter at the check out line is where the deal is either made or broken depending on how the employee there reacts to the many moods of their clientele. Kroger has emphasized that encounter to their employees and they are graded on how they deal with their customers on an individual basis. Kroger has tried the idea of automated checkout lanes where there is no interaction with a human being but they have found that these lanes only appeal to a certain kind of customer who is in a hurry and knows how to interact with them. The corporation has gone so far as to emphasis surveys that the customer can take to evaluate their experience and they will give a free item to any customer if the employee does not emphasis and point out the survey to them.

We could go to other grocery stores to shop as there are a number of them available in the area but we simply happen to like the experience that we continually have at our local store. Kroger provides a good mix of price points and service that we personally find attractive and we are not surprised that they have announced record earnings in the last year, as well as good growth. There are other grocery chains in Marion but most of them rely on low prices as their reason for existence and that will only carry you so far when there are few employees to help you find something that you need so desperately at a particular time. Kroger has an abundance of employees walking around or stocking the shelves and most all of them can tell anyone where a particular item is among the sixteen or more isles that populate the store. We have even had employees go so far as to lead us all the way across this many thousand square foot store to find a particular item for us that we are having trouble locating.

In addition, this store has a pharmacy, a Starbucks coffee shop which is rare in southern Illinois, and the branch of a local bank that is the only place in the area where one can find live tellers available on a Sunday afternoon. The parking lot is usually full seven days a week and just before a snow storm the place is alive with those taking in enough provisions to last an Alaskan winter. The shelves are usually well stocked and even in the busiest of times one seldom comes away without what one went in looking for.


Regards,


Joe


To say that "God exists" is the greatest understatement ever made across space and time.

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The above is a reply to the following message:
Kroger reports a $1.7B profit, stock soars
By: clo in FFFT3
Sat, 07 Mar 15 6:14 AM 		Msg. 09911 of 65535

Kroger reports a $1.7B profit, stock soars

Kroger reported a $1.7 billion profit for 2014 – a 13.8 percent increase from the previous year. 

Sales rose 10.3 percent to $108.5 billion – helped by last year's acquisition of the North Carolina-based Harris Teeter chain. Identical store sales excluding fuel – which exclude acquisitions, new or closed stores – rose 5.2 percent last year.

The solid results on Thursday propelled Kroger shares, which jumped as high as 7.6 percent to $74.97 – a new all-time high. The stock closed at $74.31, up 6.7 percent.

"2014 was an outstanding year by all measures. Kroger captured more share of the massive food market, delivered on our commitments and invested to grow our business," Kroger CEO Rodney McMullen said.

McMullen also noted the company created nearly 25,000 jobs in the last year. 

Kroger's $1.04 of earnings per diluted share for the fourth quarter and $3.49 for the fiscal year ended Jan. 31 beat Wall Street estimates. During the final three months of its year, Kroger earned $518 million on sales of $25.2 billion.

Wall Street analysts had forecast Kroger would post a nearly $1.7 billion profit – excluding one-time items – on sales of $108.5 billion. Analysts had also expected about a $443 million profit on $25.2 billion in the fourth quarter.

Kroger's stock has nearly doubled in value in the last year as the company has continued to grow market share even as rivals like Walmart struggle. Thursday's results mark the 45th straight quarter of identical stores growth – more than 11 years of increasing sales at stores open at least 15 months.

Kroger executives have credited their success to their Customer 1st strategy unveiled more than a dozen years ago to combat competition from nontraditional rivals like Walmart, but also drugstores and dollar stores that turned to cheap groceries to drive customer traffic.

Kroger's strategy has focused on competitive pricing, while also offering a wider variety of products, a faster, more enjoyable shopping experience and customer service. The company has tapped Downtown-based consumer insights firm dunnhumbyUSA to help it lure more customers.

Last year, Kroger reported a $1.5 billion profit on sales of $98.4 billion.

Looking ahead, Kroger said it expected this year's diluted earning per share to range from $3.80 to $3.90 – suggesting an annual profit of $1.8 billion to $1.9 billion.

Kroger expects its identical supermarket sales, excluding fuel, to grow between 3 percent to 4 percent.

The Cincinnati-based grocer currently employs almost 400,000 and runs 2,625 stores in 34 states and the District of Columbia. It is the nation's No. 1 supermarket company.

http://www.cincinnati.com/story/money/2015/03/05/kroger-reports-a-profit/24417665/

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