The Kroger Co. operates a U.S. grocery retail business with supermarkets across multiple banners, complemented by fuel centers, pharmacies, private-label products, manufacturing, advertising and data analytics. News about KR commonly covers fresh food and seasonal merchandising, pickup and delivery services, digital coupons, private brands such as Simple Truth, Private Selection and Kroger brand products, and customer access through Kroger.com, the Kroger app and delivery marketplaces.
Company updates also include Harris Teeter, a wholly owned Kroger subsidiary, with recurring coverage of pharmacy services, nutrition support, grocery promotions, fuel rewards, community programs and associate initiatives. Other news themes include new products entering Kroger-banner stores, floral and gift offerings such as Bloom Haus, and enterprise training programs such as Pearl Street Academy.
The Kroger Co. (NYSE: KR) recently held its 2022 Business Update in Orlando, detailing its strategy of Leading with Fresh and Accelerating with Digital. CEO Rodney McMullen highlighted robust financial results and ongoing investments in innovation and technology that support sustainable growth. Key themes included enhancing customer loyalty through competitive advantages, expanding its digital ecosystem into new regions, and maintaining a total shareholder return (TSR) target of 8-11%. The updates aim to foster long-term growth while committing to environmental and social governance initiatives.
The Kroger Co. reported strong fourth-quarter results for 2021, with identical sales without fuel rising by 4.0% and digital sales demonstrating impressive two-year growth of 105%. EPS reached $0.75, or $0.91 adjusted, alongside operating profits of $965 million. For fiscal 2021, total sales increased to $137.9 billion, and adjusted EPS stood at $3.68. Looking ahead, Kroger projects 2022 identical sales growth of 2.0% to 3.0% and adjusted EPS between $3.75 and $3.85. The company continues to invest in its workforce, raising average hourly wages significantly, while maintaining a positive outlook for total shareholder returns of 8-11%.
The Kroger Co. (NYSE: KR) announced the opening of a new Customer Fulfillment Center (CFC) in northeast Ohio, powered by Ocado Group (LSE: OCDO). This facility will leverage advanced technology, including robotics and machine learning, to enhance grocery delivery services. The CFC, covering 270,000 square feet, aims to create up to 400 new jobs and is part of Kroger's strategy to double its digital sales by the end of 2023. The site is expected to begin operations in 24 months, serving areas in Ohio and Pennsylvania.
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UserTesting (NYSE: USER) has partnered with Home Chef, a leading meal solutions brand and subsidiary of Kroger (NYSE: KR), to enhance customer experience through its Human Insight Platform. This collaboration will facilitate efficient gathering of customer insights, enabling Home Chef to improve service delivery and align offerings with consumer preferences. Home Chef delivers over 7 million meals monthly, providing a variety of meal solutions across 2,200 Kroger stores in the US. The partnership aims to drive growth and refine customer experiences through targeted feedback.
The Kroger Co. (NYSE: KR) has launched a new shopping initiative at 25 Fred Meyer stores in Portland, Oregon, in collaboration with Loop, a reuse platform by TerraCycle. Customers can now buy over 20 products in reusable packaging instead of single-use plastics, aligning with Kroger's sustainability goals. The project aims to promote environmental responsibility by allowing customers to return empty containers for reuse. This partnership marks Kroger as the first grocery retailer in the U.S. to offer this innovative shopping experience, emphasizing its commitment to sustainability and the circular economy.
Kroger has partnered with Kitchen United to open a new kitchen center in Houston, Texas, allowing customers to order freshly prepared meals from various restaurants. Located at 1035 N. Shepherd Drive, this center is the second collaboration between the two companies, following a successful launch in California. The Kitchen United MIX platform enables digital ordering for pickup or delivery, featuring dishes from over 10 restaurant brands. This initiative aims to enhance customer dining options and aligns with Kroger's strategy to provide fresh meal solutions.
The Kroger Co. (NYSE: KR) will host a business update in Florida on March 4, 2022, featuring a tour of the Groveland Customer Fulfillment Center. Executives will outline the company's strategic initiatives, including 'Leading with Fresh' and 'Accelerating with Digital.' The event prioritizes safety, limiting in-person attendance to invitees only. It will also be streamed online from 8:30 a.m. to 11 a.m. ET. A replay will be available later that day at 3 p.m. ET.
The Kroger Co. is expanding its fulfillment network by opening a new spoke facility in Oklahoma City, powered by Ocado Group. This 50,000-square-foot facility aims to enhance grocery delivery by collaborating with a hub in Dallas, allowing service to areas up to 200 miles away. Kroger's strategy targets doubling digital sales and profitability by the end of 2023, and will employ up to 191 associates. This initiative follows Kroger's earlier success in Florida, showcasing their commitment to innovation in e-commerce and improved access to fresh food.
The Kroger Co. (NYSE: KR) will host its fourth quarter 2021 earnings conference call on March 3, 2022, at 10 a.m. ET. The management team will discuss financial results for both the fourth quarter and full year 2021. The presentation will be available online at ir.kroger.com, with an on-demand replay starting at approximately 1 p.m. ET on the same day. Kroger's fourth quarter concluded on January 29, 2022, and aims to highlight operational performance and growth strategies during the call.