Kroger Set for Holiday Rush, Plans to Hire 10,000 Employees

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The holiday season is right around the corner, and all the retailers are gearing up to make the most out of this busiest time of the year. After series of announcements by other retailers, The Kroger Co.KR unveiled its plans to hire seasonal workers for the season.

In order to provide customers with a great shopping experience and exceptional service during this festive season, the company intends to appoint more than 10,000 seasonal associates. As part of Restock Kroger, the company is making an additional investment of about $500 million in associate wages, training and development.

Holiday season is a crucial time for retailers as it accounts for a sizeable chunk of yearly revenues and profits. Retailers try to attract customers with early-hour store openings, huge discounts and promotional strategies. Moreover, holidays are a perfect time for Kroger to do brisk business as people crave for great foods in every celebration.

According to National Retail Federation ("NRF"), retailers are likely to appoint 585,000-650,000 temporary employees this festive season, up from 582,500 last year. Data compiled by the nation's largest retail trade group calls for a 4.3-4.8% rise in November and December sales (excluding autos, gas and restaurant) to $717.45-$720.89 billion, up from $687.87 billion in 2017.

Kroger, which faces stiff competition with Walmart WMT , is trying all means to attract consumers and attain incremental revenues. Additionally, the company remains on track to boost market share by introducing new items, digital coupons, and order online, pick up in store initiative.

Meanwhile, the "Restock Kroger" program is gaining traction. Also, the Ocado deal and the Home Chef acquisition bode well for the company. Kroger's concerted efforts to expand in the growing meal-kits space are commendable as well. Recently, Kroger and Home Chef launched "weekly rotating in-store meal kits". Moving ahead, the company plans to introduce a quick-cook meal kit - a Home Chef Express product.

We believe that these strategies are likely to bolster the company's performance and drive the stock further. In a year's time, shares of this Zacks Rank #3 (Hold) have increased 34.5%, outperforming its industry 's and S&P 500 index's growth of 12.3% and 8.2%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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