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At an online investor conference, rodney mack Mack Mullen, CEO of krogh, said that krogh will attract customers through fresh food, develop advertising business to promote another income stream, and complete online grocery orders more efficiently with the help of a large automation center operated in cooperation with Ocado, a British logistics technology company.
Kroger consists of many grocery brands, including Harris Teeter, Ralphs and King Soopers, a supermarket in Colorado. During the global health crisis, its e-commerce sales soared. In the latest fiscal year ending on October 30th, 65438/kloc-0, its digital sales increased by 1 16%, reaching more than 1000 billion dollars.
Mcmullen said that the company expects that e-commerce, cooking at home and eating prepared meals will continue to promote sales after the epidemic.
Kroger's share price has risen by nearly 20% in the past year. However, its share price fell by nearly 3% earlier on Wednesday. Since165438+ reached a 52-week high at the end of October, they have dropped by about 14%, because Wall Street predicts that with the vaccination of COVID-19 vaccine, more Americans will reduce cooking at home and choose to eat in restaurants.
Krogh reiterated his forecast for this year, reducing the sales of supermarkets that have been open for at least five quarters by 3% to 5%. However, if the strong epidemic revenue last year is included, the annual same-store sales growth in the past two years is between 9. 1% and1.1%.
It is estimated that the earnings per share in 20021year will be between 2.75 and 2.95 USD.
The largest supermarket chain in China faces the same challenges as its grocery store competitors. They must cater to shoppers' preferences. Even if online sales hurt their bottom line. The profit of the grocery store is meager. For every online order, the company must bear the extra cost of selecting goods and preparing to buy them in bags. In some cases, they have to deliver the goods to your door. This requires higher labor costs, which grocers have been trying to transfer to shoppers in highly competitive industries.
According to Bain's estimation, shoppers usually have an operating profit margin of 2% to 4% when they buy groceries in stores. If the grocer selects goods from the store and then asks the customer to take back the order by clicking the receipt, the operating profit rate will drop to -5%. If the grocer takes goods from the store and delivers them to customers' homes, the operating profit rate will further drop to-15%.
Grocery suppliers have tried different solutions to improve cost-effectiveness, relying on third-party delivery services to realize expensive automation systems.
Like many other retailers, Kroger also guides customers to choose roadside pick-up or click merge options, thus eliminating transportation costs. It reached an agreement with Ocado in 20 18 to fulfill online grocery orders and make its cost more consistent with store sales. Its first two Ocado stores will open in the next few weeks.
Krogh said that this year's capital expenditure is expected to be between $3.4 billion and $3.6 billion (about RMB 23.6 billion).
Besides digital investment, Yael Cosset, chief information officer of krogh, said that grocers will attract customers by offering popular goods and services. For example, he said, it will expand the variety of adult drinks and restaurant-style catering.
Company leaders pointed out that Kroger's media and advertising business (Kroger Precision Marketing) is also a way to offset the cost of online grocery orders.
The acceleration of online sales during the epidemic forced packaged consumer goods companies to find new ways to attract customers. Major brands are eager to get more data about shoppers' preferences, hoping to make more advertisements reach customers directly.
Other retailers, including Wal-Mart, also hope to expand their advertising business by publicizing their understanding of customers' buying patterns and their ability to provide personalized services.
(Canadian-American financial feature, plagiarism will be investigated)
# Chain groceries #, Clough #, America #
Author: Wang
Editor: Kelly