Kroger posts first sales drop since 2021
Grocer giant Kroger posted its third-quarter results on Nov. 30, noting a slight decrease in sales to $33.96 billion, Grocery Dive reports.
The company’s report indicates that sales fell slightly year-on-year, and comparable-store sales, excluding fuel, were down 0.6%. This is the first time since the second quarter of 2021 that the grocery chain posted a negative figure for said metric.
During an earnings call, CFO Gary Millerchip indicated that performance was impacted by declining inflation during the third quarter, and that the trend affected unit growth rates.
“Today, we updated our full-year guidance to reflect the impact of new term economic pressures and food at home disinflation,” the executive added.
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Digital sales saw an uptick in the period, as pickup and delivery services offered by the grocer led to an 11% increase. CEO Rodney McMullen said that the company is expanding its base of digitally engaged households by 13%, as well as boosting digital offers and improving its personalization capabilities.
As for the firm’s pending merger with Albertsons, Kroger says they have continued to work “cooperatively” with the FTC to clear any remaining concerns.
“We are confident that we have fulfilled all the commitments we set out in the original merger agreement, including the comprehensive divestiture plan announced with C&S Wholesale Grocers,” said McMullen.
The transaction is expected to be finalized in early 2024.