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.”
Other highlights in FY 2022 included:
- Celebrated the 10th anniversary of the Simple Truth brand, a greater than $3 billion brand providing customers with more than 1,500 natural and organic products
- Opened its 1,000th Murray’s Cheese shop
- Opened a new Kroger Delivery Customer Fulfillment Center in the Denver Metro area, one of the fastest-growing areas in the country
"Kroger achieved exceptional results in 2022 as we executed on our Leading with Fresh and Accelerating with Digital strategy, building on record years in 2020 and 2021,” said Kroger Chairman and CEO Rodney McMullen. “Our proven go-to-market strategy enables Kroger to successfully navigate many operating environments. We believe that by delivering value for our customers, investing in our associates and serving our communities, Kroger will continue to achieve attractive and sustainable total returns for our shareholders."