Shop Talk

Retailers, consumers and prices

Check Out Line: Kroger Kroger rides lower prices, gas discounts to higher profit

June 24, 2008

kroger.jpgCheck Out the quarterly profit at Kroger Co.

The largest U.S. grocery chain posted a higher quarterly profit on Tuesday, thanks to its emphasis on lower prices and gasoline discounts – music to its shoppers’ ears and higher sales for itself.

“Kroger continues to help customers stretch their budgets in a number of ways, including lower prices and our expanded generic drug and gas discount programs,” chief executive David Dillon said in a statement.

The price cuts, he said, were helping Kroger’s customers save $1 billion annually, at a time when shoppers deem every last dollar precious, as they face skyrocketing prices for necessities such as gasoline.

Kroger also raised its outlook for the full year, based on the strength of the results from the reported quarter.

Also in the basket:

ConAgra sees higher than expected fourth quarter profit

Dollar Tree recalls 470,000 China-made glue guns

Williams-Sonoma is trimming its catalog mailings (WSJ – subscription needed)

 J.C. Penney Faults Fake Ad on YouTube (WSJ – subscription needed)

(Photo: Reuters)

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