🥫 Kroger is growing - cheap brands and home cooking are driving results!
While many retailers are reporting stagnation or uncertainty, Kroger $KR is showing interesting growth.

The company's shares gained more than 9 %after the company raised its full-year sales outlook and reported strong results in segments that reflect current consumer behavior: the search for lower prices, more packaging and a return to home cooking.

The important numbers:
Earnings per share: $1.49 per share, versus expectations of $1.46

Revenue: $45.12 billion, versus $45.19 billion in expected revenue.

In the three-month period ended May 24, Kroger's net income was $866 million, $1.29 per share.

📦Customers are saving:
Interim CEO Ron Sargent described a trend change: consumers are shifting more toward private brands, using coupons, cutting back on purchases of leftover goods (alcohol, snacks) and buying in larger packages.

This is reflected in the numbers - identical sales excluding fuel increased by 3,2 %, and e-commerce (pickup and delivery) year-on-year by 15 %.

🌱 The power of brands:
Premium private brands are driving growth for the seventh straight quarter, and Kroger plans to expand with 80 new protein products in the healthy lifestyle category.

Private brands offer higher margins and lower price sensitivity.

📉 Network optimization and pursuit of profitable e-commerce:
The company announced a plan to close approximately 60 stores within 18 months (uneconomic locations)but will accelerate expansion where there is potential for growth.

New CFO David Kennerley (ex-PepsiCo Europe) aims to bring e-commerce into profit mode and modernise operations.

⚖️ Change in leadership:
CEO McMullen has stepped down and the board is still looking for a replacement. Nevertheless, the company continues with its strategy: digitalisation, efficiency, brand expansion and focus on customer value.

Despite geopolitical pressures and tariffs, the company says it can handle imported goods without passing on costs to customers.

What's your opinion of Kroger, do you own stock in any retail chains?