Chasing the Customer … Kroger Does It Better!

 Kroger Always Looks At The Numbers!

numbers“We continue to differentiate ourselves via the joint venture we formed to create dunnhumbyUSA, a consumer insights company. Years of experience with dunnhumby have made us exponentially better at personalization and individualized rewards. By deepening our focus on our customers, we have redefined our business model and made it more sustainable than ever. “

If you want to know how Kroger does it … see the above. Management is always guided by the dynamics of their research.  They use those numbers / insights to shape their management vision and execute those visions well with the help of a great employee team. Kroger is never about the past. It executes today and gets ready for tomorrow. Kroger simply delivers the customer experience by serving their customers better!

 

Another 1/4 of YOY Growth …

Kroger just posted 1 qtr sales growth of 4.6% identical store sales  w/o fuel while growing fifo GM 1Bp to logo_kroger21.01%. (That’s 41 continuous qtrs of YOY growth!)

Add the Harris Teeter acquisition w/o fuel and you get 11.4% growth.

See full financial report: http://ir.kroger.com/CorporateProfile.aspx?iid=4004136

Not easy to do …

That kind of growth while maintaining margins is not an easy task in the difficult and competitive retail food industry. They also maintained their ROIC on invested capital.

An amazing 10+ years of essentially organic growth

If you want to see how Kroger has had 10 years of 1/4 over 1/4 growth, click here: https://rl098.wordpress.com/2014/01/17/chasing-the-customer-krogers-10-years-of-empirical-success/

This kind of growth takes visionary management, great employees and a keen understanding and implementation of data science. Results – you serve your customers better than anyone else can!

Kroger analyst rating

Separately, TheStreet Ratings team rates KROGER CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

“We rate KROGER CO (KR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company’s strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.”

http://www.thestreet.com/story/12750210/1/why-kroger-kr-stock-is-higher-this-morning.html

Kroger leadership … No Excuses!

It has been a tough decade for a lot of retailers … Safeway, SuperValu, Sears, Albertsons have all had difficulties and were forced to downsize or consolidate

WalMart in May reported its lowest quarterly growth in 5 years (0.8%).

“Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected,” Chief Executive Doug McMillon said in a statement.

Wal-Mart is the latest retailer to flag a colder-than-usual winter for weak sales. Department store operator Macy’s on Wednesday cited the harsh winter for a 1.7 percent decline in quarterly sales.

It was cold in Kroger land too … ‘nuf said!

Advertisements
Comments
One Response to “Chasing the Customer … Kroger Does It Better!”
  1. Tom O'Reilly says:

    Great blog Ron. Hope all is well. Appreciate the info. Best. Tom

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: