In this file:
· Kroger maps its new digital 'ecosystem'
· Kroger to ‘lead with fresh, accelerate with digital’ in 2021
Kroger maps its new digital 'ecosystem'
Offering a first look at its Ocado strategy, the grocer outlined plans to double online sales within three years and also improve margins.
Jeff Wells, GroceryDive
April 1, 2021
The combination of large stores, a mature pickup and delivery footprint and growing ship-to-home business helped Kroger ride the e-commerce tsunami that broke over the industry last year, resulting in its digital sales doubling to more than $10 billion.
Now, the company looks to continue riding that current by expanding capacity in existing markets while also pushing its e-commerce business into new geographies like Florida. That’s expected to double sales again, to north of $20 billion, by the end of 2023. At the same time, Kroger outlined during its annual investor conference on Wednesday some of the ways it plans to improve margins in the costly business.
For Kroger and its investors, whittling down costs is crucial at a time when profit-nabbing online orders are growing considerably faster than in-store, and projected to reach as much as $250 billion by 2025.
"Digital is now a growth engine," Rodney McMullen, Kroger's CEO, said during Wednesday's presentation...
Continuing to press its 'fresh' advantage ...
Facing skeptical investors and analysts ...
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Kroger to ‘lead with fresh, accelerate with digital’ in 2021
Executives break down strategic game plan in Investor Day event
Russell Redman, Supermarket News
Apr 01, 2021
The Kroger Co. detailed this year’s strategic growth plan — led by fresh foods and digital — at its virtual 2021 Investor Day conference.
Chairman and CEO Rodney McMullen told analysts and investors yesterday that Cincinnati-based Kroger aims to deliver a total shareholder return of 8% to 11% annually, backed by a financial model that now includes a higher operating profit base and a “clear path” to earnings growth of 3% to 5%.
In fiscal 2020, ended Jan. 30, Kroger added $10 billion to its top line. Sales totaled $132.5 billion, up 8.4% from 2019. That growth was 14.2% excluding fuel sales and dispositions. Identical sales excluding gas and adjustments surged 14.1% year over year.
“When the pandemic hit last year, our world changed dramatically. What remained constant was people’s need for food, and we were there to meet that need through new channels and formats, with a relentless focus on quality, value and convenience,” McMullen said...
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