Kroger Posts Stronger Sales, Profit Amid Coronavirus Pandemic
Even as Kroger Co. reports a reduction in customers stockpiling goods, the biggest U.S. supermarket operator is continuing to see a surge in sales, according to The Wall Street Journal.
As many still fear restaurants amid the coronavirus pandemic, Americans have begun to cook more at home, leading to growing sales for Kroger’s grocery stores. Yet, the grocery giant stated on Thursday that it projects consumer demand to stabilize as the U.S. continues to reopen.
Kroger’s sales grew 30 percent in March, and spiked up another 20 percent in April and May. Excluding fuel, Kroger’s sales at stores open at least 15 months increased 19 percent for the quarter ended May 23, in comparison to last year’s results.
The company surpassed its financial projections, seeing profit rise 57 percent to $1.21 billion. Thursday afternoon saw shares off 5.8 percent at $30.90. A large portion of Kroger’s success comes with its e-commerce focus, and the company’s digital sales increased by 92 percent.
In other news, Kroger reported spending more than $830 million on extra earnings and health services for its workers. In addition to hiring 100,000 new staff, Kroger also provided employees with free Covid-19 testing.
Kroger’s total sales grew 14 percent to $42 billion from last year’s $37 billion. The company also reported a contribution of $236 million to multi-employer pension plans for workers.