Kroger OK With Lower Promotional Prices

Kroger Co. is comfortable with the way CPG companies are handling price declines, Michael Schlotman, senior vice president and chief financial officer, said yesterday.

SCOTTSDALE, Ariz. — Kroger Co. [3] is comfortable with the way CPG companies are handling price declines, Michael Schlotman, senior vice president and chief financial officer, said here yesterday.

"We’ve seen a few moves toward saner pricing in promotional allowance activity [rather than] list-cost reductions," he said. "We understand that a company wouldn't want to lower list prices and then increase them if they creep back up, so we're comfortable with what they're doing.

"Besides, our operators can't tell if the list price came down or whether a product came in on promotion. It hits the stores at a reduced price either way, so we're indifferent at the end of the day."

Schlotman spoke at an Arizona field trip sponsored by Morgan Stanley [4], New York.

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