1. In recent years, Krogers - largest grocery chain with 2,800 stores in the US - cut prices to compete with Walmart and managed to increase market share and sales.
But deflation has been hard on the supermarket chain.
The company's stock lost more than a quarter of its value this year, as price cuts weighed on profits.
CEO Rodney McMullen expressed frustration that many customers don't even notice.
2. “The other thing that’s always hard is getting your message out, because it’s fascinating – in our research, most people are saying their basket of goods costs more money,” McMullen said on a call with analysts this month.
The likely reason for McMullen’s lament: Food, on average, makes up only about 15 percent of a consumer’s budget. Except for gas and other energy-related items, prices for most other goods are going up, if only modestly.
No comments:
Post a Comment