Restock Kroger Transformation Is Successfully Repositioning the Business to Create Sustainable Shareholder Value
CINCINNATI, OH - Kroger continues to reinvent its business model in order to deliver value for its customers, associates, and investors. The retailer recently updated investors on how its Restock Kroger framework has driven strong shareholder return. One such strategy is using its adjusted free cash flow to invest back into the business.
“Through the Restock Kroger framework and intensity around operational excellence, we are achieving cost savings of over $1 billion each year and are investing savings back into the business with an emphasis on the customer and associate experience,” stated Rodney McMullen, Chairman and Chief Executive Officer. “We are improving the customer experience by widening and deepening our competitive moats that include fresh, seamless, personalization and Our Brands. These moats are strong today and growing in relevance as customers eat more food at home. We are improving the associate experience by focusing on talent, culture, and wage investments. We are living our purpose through our commitments to a world with Zero Hunger | Zero Waste and our framework for action to advance diversity, equity, and inclusion in our business and communities."
According to a press release, this allocation strategy allows Kroger to drive profitable growth while also maintaining its current investment grade debt rating and returning capital to shareholders.
"We are creating shareholder value by executing our strategy. We have returned approximately $6.4 billion to shareholders via dividends and repurchased shares since the beginning of fiscal 2017. Kroger is growing market share and our Total Shareholder Return has outperformed the market and our peer group over the last 12 months. And we are incredibly excited for the future."
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