Kroger (NYSE:KR)

KrogerKroger is a publicly traded grocery store chain with 2,625 stores. Krogers operates stores in four categories: 2,269 combo stores, carrying a combination of food and drug items; 98 marketplace stores, carrying full-service grocery, pharmacy and expanded general merchandise including outdoor living products, electronics, home goods and toys; 127 multi-department stores, carrying more than 225,000 food, apparel, and general merchandise products, including full-service grocery, apparel, home and garden, electronics, and hardware; and 131 price-impact warehouse stores, carrying distinctive ethnic products, catering to the demographics of the neighborhoods that they serve at low prices in a warehouse format. These stores are operated across 14 banners: Kroger, Ralphs, Dillons, Smith’s, King Soopers, Fry’s, QFC, City Market, Owen’s, Jay C, Pay Less, Baker’s, Gerbes, Scott’s Food & Pharmacy, and Harris Teeter. Kroger acquired Harris Teeter in 2014, purchasing 100% of the outstanding stock for $2.4 billion. Kroger’s total revenue in millions in 2014 was $108,465 and it employed approximately 400,000. Kroger does not report their average number of SKUs, but they carry a wide assortment of items including groceries, fresh produce, flowers and gifts, pharmacy items, and financial services (e.g., check cashing, bill payment, no contract wireless cell phone plans). Their stated mission or value proposition is to improve customers’ shopping experiences through improved service, product quality and selection and price.

Kroger’s Good Jobs Score Overview

Overall
Score
5.6
Overall
Rank
#4
Customer/Employee Scores
Productivity/Customer Scores
Productivity/Employee Scores

 

Kroger’s Customer Score

Customer
Score
6.5
Customer
Rank
#8
ACSI provides scores for Kroger in two industries: (1) Supermarkets and (2) Health and Personal Care Stores. Because not all Kroger stores can be categorized unambiguously we use the mean of all scores for Kroger as a whole.
Additional Customer Data

The Good Jobs Customer component is comprised of ACSI, Consumer Reports, and Yelp scores (see Methodology for more details). Although not part of the Good Jobs Score, the following table provides additional data on customer satisfaction.

 

Kroger’s Employee Score

Employee
Score
5.2
Employee
Rank
#5
Kroger, Harris Teeter, Ralphs Glassdoor Rating Trend
The Glassdoor rating used in the Good Jobs Score for KR is the average of all of Kroger’s retail brand’s ratings weighted by the number of respondents on Glassdoor. The only retail brand that is not represented on Glassdoor is Ruler Foods.
Because Kroger operates stores under so many banners the above graph only shows Kroger’s three biggest retail brands. However, all brands are taken into account for the Good Jobs Score. To see Glassdoor trends for all brands, see Kroger’s Detail Page.
Additional Employee Data

The Good Jobs Employee component is comprised of Glassdoor and Indeed scores (see Methodology for more details). Although not part of the Good Jobs Score, the following charts provide additional data on employee satisfaction and level of unionization.

  • The above charts provide additional information as measured by Glassdoor.com. They serve to show Kroger’s relative position to its peer-group and do not imply a causal relationship between the dimensions.

 

Kroger’s Productivity Score

Productivity
Score
5.2
Productivity
Rank
#4
Sales / SQFT
Sales / Employee
Inventory TurnoverVI
 
more performance data
FY2011FY2012FY2013FY2014
Fiscal year end1/28/20122/2/20132/1/20141/31/2015
Number of employees339,000343,000375,000400,000
Number of stores2,4352,4242,6402,625
Total store sqft² (m)149.0149.0161.0162.0
Average store size (sqft²)61,19161,46960,98561,714
Revenue (m)$90,269$96,619$98,375$108,465
Gross margin (%)20.89%20.56%20.57%21.16%
EBITDA margin (%)4.28%4.45%4.50%4.77%
Same-store sales growth (%)4.90%3.50%3.60%5.20%
Source: 10-K filings with the S.E.C.

 

Kroger’s CEO W. Rodney McMullen

 
Rodney McMullen succeeded David B. Dillon as Kroger’s CEO in FY2014. He was promoted to Chief Executive Officer on January 1, 2014 and was appointed Chairman of the Board on January 1, 2015.

CEO-to-Cashier pay ratio
Pay ratio methodology
We follow a methodology established by the Economic Policy Institute. CEO compensation data is collected from Compustat’s annual executive compensation database and, where needed, extended by companies’ FAB 14A proxy filings with the S.E.C.. Hourly cashier compensation is collected from Glassdoor, with an average sample size of N=293. Annual cashier pay is estimated by multiplying hourly pay by 40 hours/week and 52 weeks.
CEO Approval
This metric, as collected by Glassdoor.com, represents a reviewer’s positive/neutral/negative rating of the current CEO. The CEO approval percentage is the share of reviewers who rate the CEO positively.

 

Kroger’s Disclosure Details

The following data are based on SASB disclosure recommendations for the Human Capital dimension in the restaurant industry. They will be updated once SASB provides recommendations for the retail industry.

Voluntary Turnover RateNot Reported
Involuntary Turnover RateNot Reported
Average Hourly Wage (by region)Not Reported
% of Employees at Minimum WageNot Reported
Amount of legal/regulatory fines and settlements associated with labor law violationsNot Reported
Amount of tax credit received for hiring through enterprise zone programs
(these State and Local government programs encourage companies to create jobs in specific geographic area targeted for economic revitalization)
Not Reported

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