In the world of finance, Kroger (KR) comes across as a name synonymous with the archetypical unsung hero, who remains on the sidelines, and heads forward with steady performance when looked into. The chain of supermarkets has recently posted sales of $108.5 billion, with 45 straight weeks of increased same-store sales (5.2% exactly), across the entire network. Profit margins have gone up to $1.7 billion for 2014, which is a 13.8% growth year-on-year. A lot of this has been helped by acquiring the Harris Teeter chain (for $2 billion), which is seen as the main factor driving up the numbers for Kroger. Recently, the stock market reacted with a great push for Kroger, rallying prices to $74.97 a share, which by itself is a new all-time high for the company. Chief Executive Rodney McMullen was also excited about the fact that the company created 25,000 jobs last year.
- According to Maritz Loyalty Marketing from New York, Kroger has the highest rated loyalty program in the U.S. Every purchase made with the ‘Kroger Plus Card’ makes its customers eligible for discounts, such as $1 off every gallon purchased at Kroger gas stations, and 10 cents off if refueled at Shell gas stations. Plus, the Kroger application keeps close track of consumer behavior, often customizing according to their specific behavior.
- JP Morgan (JPM) reveals that Kroger has 35,000 products for its organic food section ‘The Simple Truth’. This also makes them the top seller of organic and natural foods in the country, and pricing is better than competitors like Whole Foods (WFM), Meijer, andTrader Joe’s.
The fact that this retail chain is minting money is actually no surprise, considering the talent pool it has in terms of people working for them. The average wage is $14 an hour, which is perhaps the highest in the retail industry. This helps them retain a lot of their people for long durations of time.
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