Please ensure Javascript is enabled for purposes of website accessibility

Kroger Reports a 30% Sales Surge in March

By Demitri Kalogeropoulos – Apr 1, 2020 at 10:31AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Last month was one for the record books at the country's biggest supermarket chain.

Kroger (KR) revealed fresh details on Wednesday about its sales trends as COVID-19 fears drove shoppers to its supermarket chains for stock-up purchases in recent weeks.

In an operating update, the country's biggest grocery store chain said demand began spiking in late February before soaring through most of March. Comparable-store sales jumped 30% for the month, management estimated, compared to around 2% gains in recent quarters. "The demand has been broad based across grocery and fresh departments," executives said. Kroger's digital channel is seeing a similar lift in customer interest.

A shopper walks the grocery aisles.

Image source: Getty Images.

Kroger noted a tapering of customer traffic late in the month as shoppers adjusted to a sharply reduced pace of dining, work, social, and travel outings. Still, the retailer is prepared for significantly higher volumes in the weeks to come and has scaled up hiring while providing bonuses to frontline employees through April 18.

Management said it is too early to predict where food consumption levels will settle after social distancing measures are lifted. Yet the company feels confident in affirming its prior 2020 outlook that called for comps to rise by at least 2.25%, which would mark a third straight year of accelerating sales growth.

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Kroger Co. Stock Quote
The Kroger Co.
KR
$43.75 (%)

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.