Kroger Q2 2023 Earnings Recap

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In Kroger’s Q2 earnings release on September 8, the company reported a slowing of comp sales for the quarter, while signaling the challenges of lapping inflation-driven results in Q3 of 2022 and facing a disinflationary macroeconomic environment for the remainder of the fiscal year.

In the most critical piece of news, Kroger and Albertsons reported the sale of 413 stores, 8 distribution centers, and 2 regional offices across 17 states to C&S, the nation’s largest privately held grocery distributor.

While the retailer reported an increase in total households for the 9^th consecutive quarter, it was the continued decline in the very-price-sensitive households which dominated the discussion. Kroger increased digitally-engaged households by 1.2M, which led to an increase of 12% in digital sales. The company highlighted the consistency of their growth strategies (Fresh, Our Brands, Personalization, and Seamless) while intentionally calling out the positive profit impact from alternative profit streams.

The company confirmed its projected 2023 ID sales of +1-2%, with underlying growth of 2.5-3.5%, while signaling they will end up at the lower end of this guidance.

Download Harvest Group’s full recap with unique takeaways for suppliers here:

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