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Kroger bolsters work force with almost $800M
The grocery giant continues to invest in workers; $1.9 billion has been given to the backbone of operation since 2018
2 Min Read
On top of an increase in wages, Kroger has also invested in training options for its employees.The Kroger Co.
It’s always great to see grocers put money back into the store, and it’s even better to see them invest in those who carry the pulse of the organization — the workers.
Kroger announced it is giving back $770 million to its employees in the form of increased wages and benefits, which include training and development opportunities. This is not a one-off move for the grocer giant. Kroger has invested $1.9 billion in its work force since 2018. The average hourly rate has gone up from $18 an hour to $23.50. Kroger also has set up an educational benefit program that provides $21,000 for continuing-education opportunities; affordable health care options that are easy to access, including free counseling via Well-Being Assistant; free financial coaching services; and an onboarding experience that leads to employee confidence.
“Our associates enable our success, and we are committed to investing in theirs,” said Kroger Chairman and CEO Rodney McMullen. “For so many, Kroger represents a first job, a new beginning or a change in career path. Continuing to raise wages and provide excellent benefits to our associates is one way we demonstrate how much we value and respect their contributions.”
With a merger with Albertson’s still pending, grocery giant Kroger continues to be a force all its own, and 2023 could be a monumental year.
Kroger unveiled fourth quarter results on March 2. Total company sales were $34.8 billion in the final quarter of 2022, compared to $33 billion for the same period last year. Excluding fuel, sales increased 5.9% compared to the same period last year. Total company sales were $148.3 billion in 2022, compared to $137.9 billion for the same period last year. Excluding fuel, sales increased 5.2% compared to the same period last year.
Kroger’s progress in the digital arena helped bolster gains not only in the fourth quarter, but also for all of FY 2022. The grocer’s digital revenue grew 12% over the final three months, and for the year delivery sales were up 22%. Digitally engaged household numbers went through the roof, with Kroger reaching about 900,000 more than the previous year.
Cost savings also exceeded $1 million for the fifth consecutive year.
“Kroger's 2022 results demonstrate the strength of our value creation model. In 2023, we expect to build on this momentum and deliver revenue and EPS growth on top of the record results achieved over the past three years,” said Kroger CFO Gary Millerchip. “We expect to grow revenue by continuing to invest in our customers through competitive pricing and personalization, fresh products and a better shopping experience. Building on our significant investments over the past four years, we will also continue to increase associate wages. We will fund these investments through product mix improvements, cost saving initiatives and growth in our alternative profit businesses.”
