Kroger introduces dozens of new private label items, increases sales in Q4

America’s largest grocery retailer, Kroger, ended fiscal 2021 strongly, with increased sales and profit.

First covered by Store Brands’ sister publication Progressive Grocer, same-store sales increased 4% at The Kroger Co. Digital sales grew 105% on a two-year stack. Total company sales were $33 billion in the period, compared to $30.7 billion for the same period last year.

Total company sales, excluding fuel, increased 3.7% compared to the same period last year. Net income at Kroger totaled $566 million, or 75 cents per share, a 1.7% increase from the prior year period. Adjusted EPS was 91 cents. 

The growth was highlighted by private label, with Kroger releasing 72 new own brand items in Q4 alone, many in support of providing easy food at home meal solutions, including Simple Truth skillet meals for two and Kroger brand multi-serve tray meals.

In the fourth quarter, which ended Jan. 29, Kroger expanded its autonomous delivery partnership with Nuro, expanded its footprint of fulfillment centers in Indiana and North Carolina, and more.

"Our strategy of leading with fresh and accelerating with digital propelled Kroger to record performance in 2021, on top of record results in 2020. We are incredibly proud of our associates who continue to deliver for our customers through the pandemic," CEO Rodney McMullen said. "As we look to 2022, we expect the momentum in our business to continue and have confidence in our ability to navigate a rapidly changing operating environment. We are leveraging technology, innovation, and our competitive moats to build lasting competitive advantages. Our balanced model is allowing us to deliver for shareholders, invest in our associates, continue to provide fresh affordable food to our customers and uplift our communities."

For the full year of fiscal 2021, revenue at Kroger was $137.9 billion, an increase of 0.2%. Net earnings for fiscal 2021 were $1.6 billion, an increase of 1.2%. Kroger returned $2.2 billion to shareholders in 2021. The company repurchased $1.6 billion of shares in 2021, under its board authorizations. Kroger also increased the dividend by 17% from 72 cents to 84 cents, marking the 15th consecutive year of dividend increases, which resulted in a payout of $589 million.

Kroger serves 60 million households annually nationwide through a digital shopping experience, and operates nearly 2,800 retail food stores under a variety of banner names including Ralph’s, King Soopers, Mariano’s, Food 4 Less and more.