Kroger has announced that its private brand sales rose 10.2% in the retailer’s latest earnings report. In a second quarter earnings call, Kroger CEO Rodney McMullen said the grocer saw record engagement with its private brands.
During the period ended Aug. 13, Kroger said that its private brand sales rose 10.2% in the second quarter, led by record growth of its namesake Kroger brand and Home Chef brand, which Kroger acquired in 2018. During the second quarter, the retailer also introduced 170 new Our Brands items, including the expansion of its Simple Truth plant-based line and seasonal fresh favorites.
The retailer has also expanded its private brand portfolio with the launch of a Smart Way product line. The line brings together 16 legacy brands into a single, easy-to-find identity.
"As our customers face an ongoing inflationary environment, we know they are looking to stretch their dollars further than ever before," said Stuart Aitken, Kroger's senior vice president and chief merchant and marketing officer. "Smart Way is an exciting, eye-pleasing product line that will be easy for customers to find. By adding a simplified opening price point brand strategy to Our Brands portfolio, we will further cater to every customer, every time."
"We are confident Smart Way will have something for everyone," said Juan De Paoli, Vice President, Our Brands for Kroger, said during the earnings conference call. "From canned vegetables and bread to juices and staples, this new product line features the products families need to put an even more affordable meal on their table."
Customers can now purchase approximately 150 Smart Way products on shelves nationwide, with additional items available this fall. Smart Way is the latest addition to Kroger's Our Brands portfolio, which includes the Kroger brand, Simple Truth, Private Selection, Home Chef and Heritage Farm, among others.