Kroger’s strong overall tonnage growth is being driven in large part by corporate brands, W. Rodney McMullen, vice chairman of the nation’s largest grocer told analysts during a third quarter earnings call.December 22, 2009
Kroger’s strong overall tonnage growth is being driven in large part by corporate brands, W. Rodney McMullen, vice chairman of the nation’s largest grocer told analysts during a third quarter earnings call.
“Our value brands are clearly winning with customers who in previous downturns shopped elsewhere for this value proposition,” he said, adding that national brand grocery tonnage grew as well. “Tonnage growth was particularly strong in dairy, meat, produce and grocery as customers responded positively to lower prices.”
Kroger’s private label unit share is 35 percent, representing dollar sales of approximately 25 percent, McMullen said, adding that private label unit growth grew by double digits in the third quarter “on top of double-digit growth a year ago in the same quarter.”
McMullen added that shopper baskets are also increasing, which bodes well for the future. “Each month, customers are putting more items in their baskets because they are getting more for their money in our family of stores. We are encouraged by what this shift means for the long-term growth of our business.”