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Does Wall Street go Krogering?
Are stock analysts loyal Kroger customers? Perhaps they would be if they could be.
Kroger Co. often likes to refer to "loyal households" when discussing its earnings performance with analysts, since these consumers tend to spend more. Loyal households, for instance, can be credited with helping the Cincinnati-based supermarket chain beat earnings expectations in the third-quarter, reported Dec. 1. Kroger posted earnings of $196 million, which is actually down from $202 million in the same quarter a year ago, but still ahead of Wall Street's expectations.
The Street's glum outlook may tell us a little something about consumer confidence, though who knows how many traders actually do their own grocery shopping.
Maybe Kroger's plan for expanding loyalty will get them in the aisles – somewhere. CEO David Dillon, answering a question by long-time analyst Chuck Cerankosky, said he is "delighted" with the trends at Kroger's pharmacy business and that, yes, the company is "working hard on improving how to use loyalty data for the benefit of our customers there, just like we are in every department."
Cerankosky followed up by asking if Kroger shoppers could earn gas rewards, a popular perk for its loyalty members, when using the Kroger pharmacy. The answer was yes, and Dillon followed up by saying, "Get your prescription refilled (at) Kroger and you can see how it works."
Cerankosky, who lives in the Kroger-free zone of Northeast Ohio, quickly zinged back: "Open some stores here, Dave."
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