No matter what economic culture exists, Kroger has successfully adjusted to meet customer expectations and earn brand loyalty.
Kroger CEO W. Rodney McMullen believes that the company’s cutomers have been increasingly positive about the economy since late last year.
“They are feeling more comfortable with their discretionary spending, in part, due to the low retail price of fuel,” McMullen said during Kroger’s fourth-quarter earnings conference call on March 5, according to Seeking Alpha. “Customers’ perceptions of the economic recovery are still very much divided. And yet, we continue to deepen loyalty with all of our customers. That is because whatever the external factors are at play at a given time, be it inflation in certain commodities, fluctuating fuel prices, or 
unemployment, we adjust to win with the customer.”
Fourth-quarter sales rose 9%, to $25.21 billion while Kroger posted a 213% rise in profit.
“First, let me say how proud I am to work with such a great and outstanding team of associates,” McMullen said. “Each of them deserves a round of applause for improving our connection with all customers and growing our core business, right in line with our growth strategy. We are innovating to grow. We expanded our digital capabilities to deepen our relationship with customers in new and exciting ways. More customers than ever before are engaging on our digital properties.”
McMullen said the company’s learnings from its Vitacost and Harris Teeter mergers allowed it to build an experience that gives the customer “the ability to interact with us when, where, and how they want. Our Corporate Brand team keeps pushing the boundaries on what customers can expect from store brands. Our leading natural and organics brand, Simple Truth, hit a $1 billion in annual sales for the first time in less than two years after the introduction.”
What’s more, McMullen said Kroger’s personalized offers, weekly promotions, and price investments helped customers stretch their dollars.
“We are currently investing $3.5 billion annually in lower prices,” McMullen explained. “Even though natural and organic foods have been notoriously out of reach for many customers, we used our merchandising expertise, manufacturing base, and buying power to make them affordable and accessible to all customers through Simple Truth, which continues to see double-digit sales growth.”