Kroger Shares Q1 2022 Results, Plans New Membership Rollout
Kroger has shared its Q1 2022 financial results, showing an increase in sales and profit from last year. The company also detailed plans to launch its Boost membership program nationally over the next few weeks.
First covered by Store Brands’ sister publication Progressive Grocer, same-store sales without fuel increased 4.1% at Kroger in Q1. Fresh department comps increased 5.2% and Our Brands comps increased 6.3%. Digitally engaged households grew by more than half a million, and digital coupon downloads increased 11%.
Total company sales during the first quarter were $44.6 billion, compared to $41.3 billion for the same period last year. Excluding fuel, sales increased 3.8% compared to the same period last year. Profit was $664 million, or 90 cents a share, up from $140 million, or 18 cents a share in Q1 of 2021.
"Our team is doing an outstanding job managing costs in an inflationary environment, which is allowing us to continue to invest in our associates while providing our customers the freshest food at affordable prices when and where they need it. We are delivering everyday value through personalized experiences, trusted Our Brands products, data-driven promotions, and seamless e-commerce solutions," said CEO Rodney McMullen. "Looking ahead, we are well positioned to continue delivering for our customers, investing in our associates, and driving sustainable returns for shareholders."
First launched as a pilot in November, the new Boost membership program offers customers two different membership levels and includes benefits such as 2X fuel points earned on every dollar spent, extra savings on Kroger's private brands and free two-hour or next-day delivery.
The company says it is seeing positive feedback for the program from shoppers in its four pilot divisions of Cincinnati/Dayton, Columbus, Central Indiana (Indianapolis) and Atlanta.
As inflation continues to drive food and fuel prices up, and consumers keep stocking up on groceries, Kroger expects the program will make a big difference for price-conscious shoppers.
Cincinnati-based Kroger operates nearly 2,800 retail stores nationwide under a variety of banners.