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Kroger's Our Brands See Seventh Consecutive Quarter of Growth

As private label sales continue to grow, the grocer will soon add new products to its Simple Truth brand
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Kroger Simple Truth Rescue Bundles
Kroger continues to see strong growth across its assortment of own brands.

For the seventh consecutive quarter, growth of Kroger’s Our Brands assortment of private label products outpaced national brands, with the grocer set to introduce 80 new items to its Simple Truth store brand.

In the company’s recent conference call to discuss first-quarter results, Kroger CEO Ron Sargent said as more shoppers search for value, the Cincinnati, Ohio-based grocer is excited about the potential for its Our Brands business.

“We are growing sales by offering high-quality products to customers at all budget levels,” he said. “Simple Truth and Private Selection led our sales growth, highlighting that customers want premium products while also spending less.”

Sargent said with shoppers currently more focused on value, Kroger has responded to that need with its private label selection, promotional pricing, carrying more products in larger pack sizes, and offering more coupons.

“We’re seeing some discretionary spending that’s a little softer in areas like snacks and adult beverages, pet and general merchandise categories,” he added.

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Additionally, consumers are also looking for new options to help them eat healthier. To meet this growing need, Sargent said Kroger’s Our Brands team is working to create new products designed to support healthier eating habits.

Earlier this year, the company identified protein as a major customer need and will soon debut 80 new protein products under its Simple Truth brand. Products in the new assortment will include bars, powders, and shakes.

“This is just one way that Kroger and Our Brands are innovating to stay ahead of what our customers want,” he said.

With the new Simple Truth products in the pipeline, Sargent also feels there is opportunity for Kroger’s Our Brands to accelerate further in the years ahead.

“The quality is terrific, and the products create great value for our customers,” he said. “It allows us to lead the pack in product innovation. And the best part about Our Brands is that it differentiates us from our competitors.”

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