Shipping woes, discounts bite into Kroger's margins, shares fall
By Praveen Paramasivam, Reuters
Sep 10, 2021
Sept 10 (Reuters) - U.S. supermarket chain Kroger Co (KR.N) reported a fall in a main measure of profitability on Friday, blaming wastage, discounts and this year's squeeze on global supply chains.
The company's shares tumbled as much as 9.1%.
U.S. retailers have been spending more on shipping and labor this year, as pandemic-driven port congestion and a shortage of drivers increase the cost of stocking up their shelves.
"Consistent with many retailers, we experienced supply chain constraints and increased warehouse and transportation costs during the quarter," Kroger Chief Financial Officer Gary Millerchip said on an earnings call.
"We expect supply chain costs to remain elevated in the second half of the year."
Kroger's gross margin...