Supermarket Perimeter - January 2024 - 6

the
WIRE
Kroger prioritizes
lower prices
Higher interest rates,
reduced savings and
fewer government
benefits from the
Supplemental Nutrition
Assistance Program
are impacting how
consumers spend
their money and, in
turn, strategy at The
Kroger Co., said William
R. McMullen, chief
executive officer.
" As we've seen over
recent quarters, our
customers are actively
looking for value, and
our budget-conscious
customers are under
more significant
spending pressure, "
he said. " We are also
looking for ways to
support customers
with additional value,
including in-store
displays with everyday
staples at low price
points. We've seen a
great response from all
customers to these offers,
but engagement from
our budget-conscious
households has been
especially strong. "
He gave a value
example in Kroger
offering a Thanksgiving
meal bundle that served
a group of 10 for less
than $5 per consumer.
In the quarter
ended Nov. 4, net
earnings attributable to
Cincinnati-based Kroger
were $646 million, or
89¢ per share on the
common stock, which
was up 62% from $398
million, or 55¢ per
share, in the previous
year's third quarter. Last
year's quarter included
a $207 million net loss
on investments. Sales
dipped 0.7% to $34 billion
from $34.20 billion.
Excluding fuel, sales
decreased 0.5%.
Digital sales increased
11% when compared to
the previous year's third
quarter.
" Digital offers have
increased compared
to last year, and
our personalization
capabilities have
resulted in an even more
significant increase in
redemptions, driving
loyalty and increasing
digitally engaged
households this quarter
by 13%, " McMullen said.
Study forecasts
more normalcy in
'24 food markets
Following nearly four
years of significant
economic disruption
led by the COVID-19
pandemic and followed
by supply chain
challenges, labor
shortages and a period
of severe inflation, there
are signs the North
American food and
beverage market may be
returning to a semblance
of normalcy.
Yet " normal " should
not be construed as
beneficial to all; rather,
it may signal a higher
degree of market
predictability.
The market researcher
Circana is forecasting
that after three years
of food and beverage
volume sales decreases,
the market will see
modest volume growth
in 2024. Market dynamics
seen supporting the
growth include a
continued easing of
inflation, an improving
macroeconomic
environment and
food and beverage
6 - JANUARY 2024
supermarketperimeter.com
manufacturers growing
their promotional
investments to entice
consumers.
The survey
of consumer
sentiment
slipped for the
fourth straight
month,
falling 5% in
November.
Whether branded
manufacturers or their
private label counterparts
capture the volume
growth remains to be
seen. Despite the positive
economic factors cited
by Circana, the University
of Michigan's Survey of
Consumers illustrates
a cloud of consumer
pessimism hanging
over the US economy.
Specifically, the survey
of consumer sentiment
slipped for the fourth
straight month, falling 5%
in November.
While the survey
showed both current
and expected consumer
personal finances
improved modestly in
November, the long-run
economic outlook
slid 12% in part due to
concerns about the
effects of higher interest
rates and the ongoing
wars in Gaza and Ukraine.
A recent report
from FMI - The Food
Industry Association
demonstrates how
consumers are
embracing private
brands, with 95% of
shoppers saying they are
buying private brands
occasionally, and 46%
saying they are buying
store brand items " most
or all of the time. "
Target earnings soar
Net earnings soared 36%
for Target Corp. in the
third quarter despite a
drop in revenue.
Net earnings were $971
million, or $2.10 per share
on the common stock,
compared with $712
million, or $1.55 per share,
in the previous year's
third quarter. Revenues of
$25.40 billion were down
4.2% from $26.52 billion,
reflecting a sales decline
of 4.3% and a 0.6% decline
in other revenue. Gross
margin rate in the quarter
was 27.4%, up from 24.7%
in the previous year's
third quarter.
Target's stock on
the New York Stock
Exchange closed at
$130.46 per share on
Nov. 15, up 18% from a
Nov. 14 close of $110.79
per share.
Comparable sales
declined 4.9% in the
quarter.
In the food and
beverage category,
comparable sales were
down slightly from last
year's third quarter,
but seasonal candy
and snacks performed
well, said A. Christina
Harrington, chief growth
officer.
Target expected
to grow its full-year
operating income by $1
billion or more in 2023,
Cornell said.
Kroger
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Supermarket Perimeter - January 2024

Table of Contents for the Digital Edition of Supermarket Perimeter - January 2024

Supermarket Perimeter - January 2024 - Intro
Supermarket Perimeter - January 2024 - 1
Supermarket Perimeter - January 2024 - 2
Supermarket Perimeter - January 2024 - 3
Supermarket Perimeter - January 2024 - 4
Supermarket Perimeter - January 2024 - 5
Supermarket Perimeter - January 2024 - 6
Supermarket Perimeter - January 2024 - 7
Supermarket Perimeter - January 2024 - 8
Supermarket Perimeter - January 2024 - 9
Supermarket Perimeter - January 2024 - 10
Supermarket Perimeter - January 2024 - 11
Supermarket Perimeter - January 2024 - 12
Supermarket Perimeter - January 2024 - 13
Supermarket Perimeter - January 2024 - 14
Supermarket Perimeter - January 2024 - 15
Supermarket Perimeter - January 2024 - 16
Supermarket Perimeter - January 2024 - 17
Supermarket Perimeter - January 2024 - 18
Supermarket Perimeter - January 2024 - 19
Supermarket Perimeter - January 2024 - 20
Supermarket Perimeter - January 2024 - 21
Supermarket Perimeter - January 2024 - 22
Supermarket Perimeter - January 2024 - 23
Supermarket Perimeter - January 2024 - 24
Supermarket Perimeter - January 2024 - 25
Supermarket Perimeter - January 2024 - 26
Supermarket Perimeter - January 2024 - 27
Supermarket Perimeter - January 2024 - 28
Supermarket Perimeter - January 2024 - 29
Supermarket Perimeter - January 2024 - 30
Supermarket Perimeter - January 2024 - 31
Supermarket Perimeter - January 2024 - 32
Supermarket Perimeter - January 2024 - 33
Supermarket Perimeter - January 2024 - 34
Supermarket Perimeter - January 2024 - 35
Supermarket Perimeter - January 2024 - 36
Supermarket Perimeter - January 2024 - 37
Supermarket Perimeter - January 2024 - 38
Supermarket Perimeter - January 2024 - 39
Supermarket Perimeter - January 2024 - 40
Supermarket Perimeter - January 2024 - 41
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Supermarket Perimeter - January 2024 - 46
Supermarket Perimeter - January 2024 - 47
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Supermarket Perimeter - January 2024 - 68
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-february-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-january-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-december-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-november-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-october-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-september-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-august-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-july-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-february-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-january-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-december-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-november-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-october-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-september-2022
https://digital.supermarketperimeter.com/sosland/sp/-supermarket-perimeter-august-2022
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https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2022
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https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-february-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-january-2022
https://digital.supermarketperimeter.com/sosland/sp/-supermarket-perimeter-december-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-november-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-october-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-september-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-august-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-july-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2021
https://digital.supermarketperimeter.com/sosland/sp/2021_02_01
https://digital.supermarketperimeter.com/sosland/sp/2021_01_01
https://digital.supermarketperimeter.com/sosland/sp/2020_12_01
https://digital.supermarketperimeter.com/sosland/sp/2020_11_01
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https://digital.supermarketperimeter.com/sosland/sp/2020_09_01
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https://digital.supermarketperimeter.com/sosland/sp/2020_07_01
https://digital.supermarketperimeter.com/sosland/sp/2020_06_01
https://digital.supermarketperimeter.com/sosland/sp/2020_05_01
https://digital.supermarketperimeter.com/sosland/sp/2020_04_01
https://digital.supermarketperimeter.com/sosland/sp/2020_03_01
https://digital.supermarketperimeter.com/sosland/sp/2020_02_01
https://digital.supermarketperimeter.com/sosland/sp/2020_01_01
https://digital.supermarketperimeter.com/sosland/sp/2019_12_01
https://digital.supermarketperimeter.com/sosland/sp/2019_11_01
https://digital.supermarketperimeter.com/sosland/sp/2019_10_01
https://digital.supermarketperimeter.com/sosland/sp/2019_09_01
https://digital.supermarketperimeter.com/sosland/sp/2019_08_01
https://digital.supermarketperimeter.com/sosland/sp/2019_07_01
https://digital.supermarketperimeter.com/sosland/sp/2019_06_01
https://digital.supermarketperimeter.com/sosland/sp/2019_05_01
https://digital.supermarketperimeter.com/sosland/sp/2019_04_01
https://digital.supermarketperimeter.com/sosland/sp/2019_03_01
https://digital.supermarketperimeter.com/sosland/sp/2019_02_01
https://digital.supermarketperimeter.com/sosland/sp/2019_01_01
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