Retailer News / Channels / News / Grocery

Kroger To Discuss Nonfood Corporate Brands In 2013

March 8, 2013
/ Print / Reprints /
ShareMore
/ Text Size+

Kroger reported this week that sales in 2012 rose 4 percent, excluding fuel, from a year earlier, adjusting for an extra week in the 2012 calendar. The company also said that it would begin talking about corporate brand share in non-grocery items this year.

The reining PLBuyer Retailer of the Year is the second-largest private label grocery retailer in North America, according to the PLB Top 35. The company said its corporate brand dollar share in grocery was 27 percent in the fourth quarter, while unit share reached 33.5 percent.

Kroger President Rodney McMullen told analysts that the retailer added 588 corporate brand items in the grocery department in 2012, many under the Simple Truth and Simple Truth Organic lines that were launched in the summer.

And then McMullen said that Kroger was preparing to discuss its work with its corporate brands in the non-grocery departments.

“Our practice has been to disclose our corporate brands’ share in grocery category only,” he told analysts, according to transcripts from Seeking Alpha. “The reason for not using a broader base was the introduction of new items in categories where we previously had not been broadly represented. We felt this would have portrayed our growth in a too-favorable light. With this behind us, we plan to begin giving a view of our share across a broader portion of the store in future quarters.”

That means areas where Kroger has been working in private label outside of grocery – its Comforts for Baby line, Pet Pride, housewares and more – could get a spotlight as early as June, when the retailer would be expected to announce fiscal first quarter earnings for 2013.

In all, Kroger posted sales of $96.8 billion in 2012, with $25.849 billion in private label sales. That’s up from $24.401 billion in 2011 and moves the retailer closer to Walmart at the top of the PLB Top 35.

Walmart reported 2012 U.S. sales of $274.49 billion, and using the same calculations for private label shares as in 2011, that projects to $32.609 billion in private label sales.

In 2011, Kroger was $6.98 billion behind Walmart. Early projections are that gap closed in 2012 to about $6.7 billion.

“We plan to continue developing innovative products that solve for unmet needs and that our customers won’t find anywhere else in 2013,” McMullen said, according to the Seeking Alpha transcripts.

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

Recent Articles by Chris Freeman

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

July 2014 New Food Products

This month’s new food products include coffee, energy bars, healthy pizza for kids, specialty sauces, Greek yogurt dip, gelato, puffed grain snacks, snack seasonings, and much more.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB July 2014 cover

July 2014

The July 2014 issue of Private Label Buyer includes articles on changing retail dynamics as well as category insights on store brand cosmetics and paper products. Check it out today!

Table Of Contents Subscribe

Innovation

Which private label category is currently seeing the most innovation?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

PLB Marketplace

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px