Retailers, consumers and prices
Check Out Line: Private brands boost Kroger profit
Check out consumers eating at home. Kroger Co.‘s fourth-quarter profit rose more than 8 percent, a signal that Americans are making more of their meals rather than dining out. The company earned 53 cents per share, topping the forecast of 49 cents to 52 cents it gave back in December.
The country’s No. 2 grocery seller, behind Wal-Mart, said about 27 percent of its fourth-quarter grocery revenue came from sales of its own brands. Thirty-five percent of the grocery items it sold were Kroger’s own products, not name brands. Even the high-end Private Selection label did well, showing that those consumers who used to buy more of their dinners at restaurants have started to look for affordable, yet indulgent, fare.
Sales at established supermarkets, excluding renovations, rose 3.8 percent in the quarter, not including sales of gasoline. Kroger expects such sales to rise 3 percent to 4 percent this year.
Also in the basket: