CINCINNATI — Officials of Kroger Co. here on Wednesday reiterated a cautious outlook on acquisitions, saying that high prices — or low quality — has kept the retailer out of the market despite interest in a merger.
"What we've seen is the people who selling any assets that are good enough quality we would want, still have some big idea of a big multiple in their head," David Dillon, Kroger's chairman and chief executive officer, told analysts at an investor conference here on Wednesday. "And frankly, if we're going to spend money for something at a multiple today, we don't have to look much further than buying our own stock, which is a good buy today in my view."
Dillon added he would be "surprised" to see Kroger tackle a new store format, saying the company was focused primarily on tying together its existing formats and focusing on their evolution.
Dillon acknowledged the customer is in a "funk" and the "economy is still giving us interesting challenges," but Kroger reiterated its annual earnings guidance, saying a focus on loyal customers and key components of its "Customer 1st" strategy were helping it to gain on competitors over the long term.
