Kroger to Require More In-Office Days for General Office Associates
As it inches closer to a Federal Trade Commission decision about its impending merger with Albertsons Cos., The Kroger Co. has alerted its general office employees that they will be expected to report to their respective offices three to four days per week. Associates had been encouraged to spend at least two days per week at the office since June 2021.
The new policy will take effect Feb. 5, 2024, and will affect about 5,800 general office associates at the company’s Cincinnati headquarters, as well as those at hubs in Portland, Ore., Chicago, San Jose, Calif., Boca Raton, Fla., and Charlotte. N.C. A spokesperson told Progressive Grocer that the move will help the company “better support our teams, our customers and the communities we serve.”
"Our teams are thriving when we work together to achieve our goals," the spokesperson shared. "We look forward to welcoming our associates more often to our beautiful downtown Cincinnati and other locations."
Meanwhile, Kroger shared its latest financial results last month, reflecting a cautious consumer base and ongoing economic uncertainty. The company reported that identical sales (excluding fuel) dipped slightly by 0.6% during the quarter and said it is lowering its sales guidance for the year.
Overall Q3 sales reached $34 billion, compared to $34.2 billion in the third quarter of 2022. Despite a relative stall in sales, adjusted earnings per share (EPS) came in at $0.95 for the quarter, up from $0.88 last year, and Kroger’s operating profit increased on a year-over-year (YoY) basis from $841 million to $912 million.
As for the immediacy of the merger with Albertsons, Kroger CEO Rodney McMullen said in the earnings call that the timetable is on track. “We expect to close in early 2024, as we have all along. We continue to have a cooperative relationship with FTC and other interested parties,” he said, adding, “It’s still too early in terms of specific dates."
Cincinnati-based Kroger’s family of companies employs nearly half a million associates who serve more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. The company is No. 4 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named Kroger to its Retailers of the Century list.
