Kroger's private label brands perform well due to inflation
By Monica Watrous, Supermarket Perimeter
CINCINNATI — Ongoing inflation is providing a boost to The Kroger Co.’s portfolio of private brands, as many budget-conscious shoppers seek to curb costs. The grocery retailer in the latest quarter saw “incredible engagement” in the business, which includes Simple Truth, Private Selection and other product lines, “with identical sales growth of 10.2% compared to last year,” said W. Rodney McMullen, chairman and chief executive officer.
“This increase was led by our Kroger and Home Chef brands,” McMullen said during a Sept. 9 earnings call. “Convenience remains a priority, and Home Chef is meeting that need by providing high-quality family meals as a budget-friendly alternative to eating out at restaurants.
“For other customers who are enjoying cooking from scratch, Our Brands are delivering innovative products at a great value. So, Our Brands’ product strategy is rooted in quality, providing customers with memorable meal experiences they crave.”
Kroger recently unveiled its lower-priced Smart Way product line, which includes canned vegetables, bread, juices and other staples. The company also expanded its Simple Truth plant-based product assortment during the quarter...