Kroger is scaling hurdles related to supply chain conditions and labor challenges, said Chairman and CEO Rodney McMullen, as the company announced its third quarter 2021 results earlier this week.
"Kroger's strategy to lead with fresh and accelerate with digital continues to connect with our customers,” he said. “Our agility, and the commitment from our amazing associates, is allowing us to navigate current labor and supply chain conditions and provide the freshest food at affordable prices across our store and digital ecosystem."
Total company sales were $31.9 billion in the third quarter, compared to $29.7 billion for the same period last year. Excluding fuel, sales increased 2.9 percent compared to the same period last year.
"Kroger is executing against its key financial and operational initiatives and continues to invest in strategic priorities that will drive attractive and sustainable total shareholder returns. We believe our business is emerging stronger through the pandemic and is well positioned to grow beyond 2021,” said CFO Gary Millerchip.
The following third quarter 2021 highlights were outlined:
Leading with Fresh
• Surpassed $1 billion in annualized sales for Home Chef, becoming the newest Our Brands billion dollar brand in Kroger's portfolio
• Our Brands launched 216 new items during the quarter with plans to launch several unique products focused on helping customers enjoy the holiday season like Private Selection Holiday Trail Mix and Simple Truth Cranberry Pistachio Bread.
• Expanded launch of our End-to-End Fresh program to over 50 additional stores
• Announced plans with Kipster Farms to bring the world's first carbon-neutral, cage-free eggs to retail shelves under Simple Truth® brand
Accelerating with Digital
• Launched Kroger Delivery Now nationwide with Instacart to provide 30-minute delivery, enabled by first-of-its-kind virtual convenience store shopping experience
• Introduced Boost by Kroger Plus, an annual membership program that provides customers free delivery and additional fuel points on purchases in four divisions
• Shared plans for five new customer fulfillment centers powered by the Ocado Group including expansions in California and Florida and entrance for the first time into the Northeast region
• Announced collaboration with Bed Bath & Beyond and buybuy Baby on a national ecommerce experience via Kroger.com and a small-scale physical store pilot to expand home and baby product offerings
• Kroger Precision Marketing launched a new programmatic advertising marketplace allowing agencies and brands to reach consumers by applying Kroger customer data to campaigns within their preferred ad-buying platform.
Associate Experience
• Increased Kroger Family of Companies' average hourly wage to greater than $16 and with comprehensive benefits, will be greater than $21 by the end of 2021
• Received two Brandon Hall Group - Excellence in Human Capital Management Awards, including Gold recognition for Leading through a Crisis during the COVID-19 pandemic and Silver recognition for A Fresh Welcome, organization's new and innovative onboarding program, which launched in 2020
•Held nationwide hiring event with more than 20,000 opportunities in retail, ecommerce, manufacturing, merchandising, corporate, healthcare, and more
Live Our Purpose
• Kroger Health partnered with Anthem Blue Cross and Blue Shield to offer new Medicare Advantage plans that include an allowance to help customers purchase groceries and health items
•Kroger Health has administered more than 8.5 million COVID-19 vaccine doses to date, supporting customers and associates
Marked one-year anniversary of organization's Framework for Action: Diversity, Equity and Inclusion plan to better use company's platform to create and advocate for more equitable communities. Shared the following progress:
• 405,000 associates completed diversity and inclusion training
• Increased our partnerships with Historically Black Colleges and Universities and Hispanic-Serving Institutions from six to seventeen
• Achieved $4.1 billion in diverse supplier spend in 2020, a 21 percent increase versus prior year
•The Kroger Co. Foundation collectively invested $3.1 million to advance racial equity through partnerships with Black Girl Ventures, Everytable, LISC, Thurgood Marshall College Fund, and other organizations
• Scored 100 on both the Disability Equality Index presented by Disability: IN and the American Association of People with Disabilities and the Corporate Equality Index presented by the Human Rights Campaign Foundation
• The Zero Hunger | Zero Waste Foundation Innovation Fund made impact investments during the first-ever Venture Showcase in two peer-selected startups, Agua Bonita and Matriark Foods
Related: Kroger, Kipster Farms Introduce First Carbon-Neutral Eggs; Kroger Co. Invests in Upcycled Food Startups.