Kroger Stock Price, News & Analysis

The Kroger Co. (NYSE: KR) has announced the election of Kevin Brown and Amanda Sourry to its board of directors, effective immediately, until the annual shareholder meeting in June 2021. Brown, with over twenty years at Dell Technologies, brings expertise in supply chain management, while Sourry, formerly the president of North America at Unilever, adds significant marketing experience in consumer packaged goods. The company also bids farewell to Bobby Shackouls, who retires after over 21 years of service on the board.

The Kroger Co. (NYSE: KR) has announced the establishment of a Customer Fulfillment Center (CFC) in Phoenix, Arizona, in partnership with Ocado. This center, part of Kroger's strategy to enhance customer service through automation and efficient distribution, aims to create around 700 jobs over the next five years. The 200,000-square-foot facility will provide a high-tech solution for online grocery fulfillment and is expected to be operational within 24 months of breaking ground. This investment underscores Kroger's commitment to redefining the grocery shopping experience.

Ralphs, part of The Kroger Co. (NYSE: KR), has begun administering the Moderna COVID-19 vaccine at its pharmacies in Los Angeles and Riverside Counties, offering the service at no cost. Vaccinations will extend to additional locations in San Diego, Santa Barbara, Ventura Counties, and Long Beach starting January 11. Eligible individuals must complete a disclosure form for Phase 1A. Ralphs has tested over 250,000 COVID-19 cases nationally and is the first retailer to offer rapid antibody tests. The vaccination rollout underscores Ralphs' commitment to public health amid the pandemic.

Kroger Health announced its plan to provide the COVID-19 vaccine at its over 2,200 pharmacies and 220 clinics nationwide, partnering with federal and state health departments. The rollout will begin with priority populations as defined by health officials. Kroger Health has already facilitated over 250,000 COVID-19 tests and will start administering the Pfizer-BioNTech vaccine in Alaska this week. The company is hiring nearly 1,000 healthcare personnel to support vaccine operations, emphasizing its commitment to public health and the goal of curbing the spread of COVID-19.

Kroger has partnered with Blackhawk Network to allow customers to add gift cards to their curbside pickup orders at 1,900 locations. This initiative comes as online grocery sales are projected to increase by 40% in 2020, with a significant preference for curbside pickup options. Blackhawk's On Demand Activation enables a seamless shopping experience, enhancing customer convenience and providing new revenue opportunities for retailers. The collaboration aims to adapt to evolving shopping behaviors, making gift card purchasing more accessible during holiday shopping.

The Kroger Co. (NYSE: KR) reported strong third quarter 2020 results, with total sales of $29.7 billion, up from $28.0 billion year-over-year. The company saw a 10.9% increase in identical sales and a doubling of EPS from $0.32 to $0.80.

Kroger's operating profit reached $792 million, supported by effective execution of its Restock Kroger plan. The company raised its full-year guidance, projecting a 14% increase in identical sales and 50-53% adjusted EPS growth. Kroger invested $1.3 billion in associate wellbeing and launched new initiatives to enhance customer experience amid the pandemic.

The Kroger Co. (NYSE: KR) announced the ratification of an agreement with 20 local unions to withdraw from the UFCW International Union-Industry Pension Fund. This decision involves a withdrawal liability payment of $962 million and a $27 million transition reserve contribution, totaling approximately $760 million after taxes. The agreement aims to enhance the stability of future pension benefits for associates. This move reflects Kroger's commitment to securing associate pensions amidst funding challenges, incurring an estimated $0.98 charge per diluted share in Q4 2020.