In this Cloud Wars Horizon Minute, episode 76, Tom Smith analyzes the business performance of grocery retail giant Kroger, which continues to exceed expectations and increase its performance outlook. Tom explains how the company is able to do this and why it sets Kroger apart.
Highlights
00:15 — Kroger is one example of a user/tech buyer that’s firing on all cylinders
00:53 — Quarterly revenue was $34.2 billion, up from $31.9 billion a year ago and above analyst estimates of $34 billion. Earnings exceeded estimates and the company raised its go-forward outlook for revenue and earnings for the third consecutive quarter.
01:15 — Its digital sales grew by 10% — a solid figure yet below the 16% reported by Walmart — a huge rival in grocery retail. The company refers to its strategy as Leading with Fresh and Accelerating with Digital and, notably, is working through a proposed merger with Albertsons to help accelerate growth.
01:46 — Some examples of initiatives behind this strong performance:
- A new Our Brands Innovation Summit to identify new private brand items that highlight market trends. How many grocery retailers are you aware of holding innovation summits?
- 147 new Our Brands items, including products to enhance the holiday season
- Increased delivery sales by 34% over last year driven by Kroger Boost and Customer Fulfillment Centers — included launching floral and sushi delivery in collaboration with DoorDash in more than 1,000 locations
02:45 — It’s always great to highlight examples of companies performing ahead of expectations, at a time when doom and gloom could prevail.
More Kroger and Retail Insights:
- How ‘Accelerating With Digital’ Pushes Kroger to the Top of Retail Performers
- Why Walmart’s, Kroger’s Latest Digital Moves Are So Important
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