US; Double-digit growth for Kroger's organic line
The Kroger Co. reports double-digit growth in sales of its "natural and organic" line Simple Truth for the third quarter.Financial analysts predicted the Cincinnati-based retailer would pay 61 cents per share for the quarter, but its balance sheet showed stockholders would receive 73 cents per share.
“Our financial results were driven by strong sales and core business performance, and helped by higher fuel margins in the third quarter,” Kroger CEO Rodney McMullen said during a Dec. 4 conference call.
Even without the fuel sales, Kroger had a 5.6% increase in identical supermarket sales for the quarter, compared to the third quarter of 2013. It marked the 44th consecutive quarter of positive identical supermarket sales growth, excluding fuel.
Across all of its stores, Kroger posted a 13.7% increase in third quarter sales — excluding fuel sales the increase was 11.2% compared to the same period in 2013, according to the financial report.
McMullen and other corporate officers said they expect continued increases in “natural and organic” sales in 2015. The retailer’s in-house organic label, Simple Truth, is projected to hit $1 billion in sales this fiscal year.
The Simple Truth brand already includes more than 40 organic fresh produce items, according to the Kroger website. Fresh herbs, salad mixes, lettuces and cherry tomatoes are available in clamshells. A variety of fresh-cut produce such as broccoli and cauliflower florets and baby carrots are available in bags. The line also includes potatoes, mushrooms and other fresh commodities.
Source: produceretailer.com
