Consumers’ growing inclination toward easy-to-cook meals and at-home dining trends has opened up several avenues for grocery businesses, and leading grocery retailer — The Kroger Co. KR — is no exception to this trend. The company has been proactively responding to consumers’ dining practices with unique meal solutions as well as boosting revenues and market share. Progressing along such lines Kroger announced that its subsidiary, Home Chef, has reached $1 billion in annual sales. The subsidiary is engaged in providing meal solutions including meal kits, heat-and-eat and ready-to-cook options. Let’s take a closer look at this latest milestone achieved by the company’s brand.
Home Chef’s Sizzling Success
Home Chef, which was founded in 2013, merged with Kroger in 2018. Since then, the companies have worked together for coming up with innovative food products and have continued to transform consumer’s approach to preparing meals. Home Chef’s offerings underscore Kroger’s commitment to making fresh meal options easily accessible.
Home Chef’s products uphold the idea of making meal preparation simpler with easy-to-cook delicious recipes. It focuses on reducing meal preparation time, without compromising on flavors or quality. It offers more than 500 products across a variety of categories, including meal kits, heat-and-eat meals, ready-to-eat products and seasonal meals, among others. The brand’s product expansion efforts are based on consumers’ feedback regarding their mealtime needs. Home Chef’s products are available in over 2,200 Kroger Family of Stores, both in-store and online along with pickup or delivery options. Kroger’s stores also offer Home Chef gift cards.
Management is proud to see Home Chef reach the $1 billion sales mark. The company plans to continue making strategic investments to augment the brand by adding more products and making it easily accessible across markets.
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On Track With Growth Efforts
Kroger is undertaking every effort for maintaining strong footing in the grocery space. The company has been introducing new items under its “Our Brands” portfolio. It launched 142 new items during the second quarter of fiscal 2021. Kroger collaborated with ghost kitchen partner Kitchen United to provide consumers on-demand meal pickup and delivery from popular restaurants. The company’s partnership with 80 Acres Farms is also encouraging.
The company has also been undertaking efforts to expand digital presence. It has been focusing on no-contact delivery option, low-contact pickup service and ship-to-home orders. It is continuing to expand contactless payment solutions like Kroger Pay, Scan as well as Bag and Go. Additionally, Kroger has been expanding its Customer Fulfillment Center (CFC) to ensure efficient deliveries.
We expect Kroger to continue gaining from these well-chalked strategic measures. A glimpse of this Zacks Rank #1 (Strong Buy) company’s price performance so far this year reveals that it has increased 27% compared with the industry’s rise of 3.8%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
More Stocks to Consider
Walmart WMT, with a Zacks Rank #2, has a long-term earnings growth rate of 5.5%.
The TJX Companies TJX has a long-term earnings growth rate of 10.5%. It currently caries a Zacks Rank #2.
Costco COST, carrying a Zacks Rank #2, has a long-term earnings growth rate of 8.6%.
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