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Kroger's 2014 sales increased 10.3% from the year before.
"It varies obviously by geography and particular contract," said Kroger's CFO Michael Schlotman about the average wage of Kroger associates, during a call with analysts.
"We've been on the forefront, not only with a good solid wage...We've been very up front with the unions and have done a lot of things to protect the future pension benefits of our associates, which others aren't doing out there."
“They’ve been investing in price since 2001, and you’re finally seeing the results in their comps,” said Karen Short, managing director of Deutsche Bank Securities, New York.
“And it hasn’t just been price — it’s been price, service, quality of product, that they have loyalty card data. I think they saw the writing on the wall and made the decision in 2001, and you’re seeing payback from a 15-year investment cycle.”
At the Telsey Advisory Group Conference last month, Kroger president and COO Michael Ellis said these food trends are "on fire" and also noted large-pack yogurt and frozen and fresh organic berries.
"Simple Truth has been our most successful brand launch ever, reaching billion dollar brand status in less than two short years," said Ellis in a call with analysts.
Kroger plans to continue to expand the brand.
This is the highest level in seven years, said Ellis during a call with analysts.
Kroger added 25,000 jobs in 2014.
Kroger is working to help dairy farmers convert their herd to organic to increase the supply, said Schlotman at the Telsey Advisory Group Conference.
Kroger first focused on price to compete with Wal-Mart, also reaching out to customers to get feedback on stores, before launching its “Customer 1st” strategy," Meredith Adler, managing director, Barclays Capital, told SN.
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