Latest / Omni Talk Retail / Kroger's E-Commerce Finally Turns a Profit | Fast Five Shorts
Transcript
- 0:00Kroger
- 0:00reported
- 0:00Q1
- 0:01fiscal
- 0:012026
- 0:02results
- 0:02this
- 0:03week,
- 0:03posting
- 0:04$46.1
- 0:05billion
- 0:05in
- 0:06total
- 0:06sales,
- 0:06which
- 0:07was
- 0:07up
- 0:07about
- 0:072%
- 0:08year
- 0:08over
- 0:08year.
- 0:08But
- 0:09its
- 0:09identical
- 0:09sales,
- 0:10excluding
- 0:10fuel,
- 0:11rose
- 0:12just
- 0:121%,
- 0:13which
- 0:13came
- 0:13in
- 0:13below
- 0:14expectations.
- 0:15However,
- 0:16according
- 0:16to
- 0:16Grocery
- 0:16Dive
- 0:17and
- 0:17Kroger's
- 0:17earnings
- 0:18release,
- 0:18the
- 0:18purported
- 0:19milestone
- 0:19of
- 0:20the
- 0:20quarter
- 0:20was
- 0:20that
- 0:20Kroger's
- 0:21E
- 0:21Commerce
- 0:21business,
- 0:22including
- 0:22its
- 0:23media
- 0:23operations,
- 0:24turned
- 0:24a
- 0:24profit
- 0:24for
- 0:25the
- 0:25first
- 0:25time
- 0:25ever,
- 0:25ever
- 0:26in
- 0:26Q1,
- 0:26ahead
- 0:27of
- 0:27management's
- 0:28original
- 0:28timeline.
- 0:29Adjusted
- 0:29E
- 0:29Commerce
- 0:30sales
- 0:30grew
- 0:3019%
- 0:31in
- 0:31the
- 0:31quarter,
- 0:32led
- 0:32by
- 0:32delivery
- 0:33and
- 0:33Kroger
- 0:34Precision
- 0:34Marketing
- 0:35profit
- 0:35grew
- 0:35more
- 0:35than
- 0:3620%.
- 0:37CEO
- 0:37Greg
- 0:38Forens
- 0:38said
- 0:38he
- 0:39has
- 0:39visited
- 0:39over
- 0:39100
- 0:40stores
- 0:40since
- 0:40taking
- 0:41the
- 0:41role
- 0:41and
- 0:42observed
- 0:42that
- 0:42roughly
- 0:43two
- 0:43out
- 0:43of
- 0:43five
- 0:44are
- 0:44in
- 0:44very
- 0:44good
- 0:44condition,
- 0:45two
- 0:46out
- 0:46of
- 0:46five
- 0:46are
- 0:46in
- 0:46moderate
- 0:47condition,
- 0:47and
- 0:47one
- 0:48out
- 0:48of
- 0:48five
- 0:48needs
- 0:48meaningful
- 0:49improvement,
- 0:50which
- 0:50if
- 0:50you're
- 0:50keeping
- 0:51score
- 0:51at
- 0:51home,
- 0:52means
- 0:52that
- 0:52more
- 0:52than
- 0:52half
- 0:52the
- 0:53store
- 0:53base
- 0:53has
- 0:53work
- 0:53to
- 0:54do.
- 0:54Kroger,
- 0:55meanwhile,
- 0:55held
- 0:56its
- 0:56full
- 0:56year
- 0:562026
- 0:57guidance
- 0:58steady.
- 0:59Jen,
- 0:59how
- 0:59would
- 1:00you
- 1:00assess
- 1:00where
- 1:00Kroger
- 1:01stands
- 1:01in
- 1:01its
- 1:02turnaround
- 1:02right
- 1:03now
- 1:03and
- 1:03is
- 1:04the
- 1:04digital
- 1:04story
- 1:05the
- 1:05feel
- 1:05good
- 1:06story
- 1:06Kroger
- 1:07is
- 1:07pitching
- 1:07it
- 1:08to
- 1:08be?
- 1:09I
- 1:09mean,
- 1:10I
- 1:10think
- 1:10this
- 1:10is
- 1:10positive
- 1:11momentum.
- 1:11I
- 1:11like
- 1:11to
- 1:12celebrate
- 1:12all
- 1:12the
- 1:12little
- 1:13wins.
- 1:13So
- 1:14I'll
- 1:14call
- 1:14this
- 1:14a
- 1:14small
- 1:15win
- 1:15in
- 1:15the
- 1:15fact
- 1:16that
- 1:16E
- 1:16Grocery
- 1:17and
- 1:17Retail
- 1:17Media
- 1:18are
- 1:18turning
- 1:18a
- 1:18profit
- 1:19for
- 1:19the
- 1:19first
- 1:19time.
- 1:19I
- 1:19mean,
- 1:19we
- 1:20just
- 1:20talked
- 1:20about
- 1:20that
- 1:20in
- 1:20the
- 1:21last
- 1:21headline.
- 1:22We
- 1:22have
- 1:22to
- 1:22be
- 1:22able
- 1:22to
- 1:23do
- 1:23that
- 1:23profit
- 1:24and
- 1:24perhaps
- 1:24they've
- 1:24already
- 1:25looked
- 1:25at
- 1:25Sweden.
- 1:25Chris
- 1:26I
- 1:27don't
- 1:27know,
- 1:27maybe
- 1:27that's
- 1:27their
- 1:28secret.
- 1:30But
- 1:30I
- 1:32I
- 1:33so
- 1:33I
- 1:33definitely
- 1:33see
- 1:33it
- 1:34as
- 1:34positive
- 1:34momentum.
- 1:35I
- 1:35just,
- 1:35I
- 1:36have
- 1:36a
- 1:36really
- 1:36hard
- 1:36time
- 1:37calling
- 1:37something
- 1:38a
- 1:38feel
- 1:38good
- 1:38story
- 1:40if
- 1:40the
- 1:40CEO
- 1:40says
- 1:41only
- 1:412
- 1:41out
- 1:41of
- 1:425
- 1:42stores
- 1:42are
- 1:43in
- 1:43very
- 1:43good
- 1:43condition.
- 1:45I
- 1:45realize
- 1:45we're
- 1:45talking
- 1:46a
- 1:46lot
- 1:46about
- 1:46E
- 1:46Grocery,
- 1:47but
- 1:47we've,
- 1:47I
- 1:48mean
- 1:48it's
- 1:48very
- 1:49clear
- 1:49the
- 1:49store
- 1:50still
- 1:50matters,
- 1:51the
- 1:51footprint
- 1:52still
- 1:52matters.
- 1:53And
- 1:54I
- 1:54like
- 1:54the
- 1:54honesty
- 1:55there.
- 1:55I
- 1:55like
- 1:55that
- 1:55he's
- 1:56just
- 1:56putting
- 1:56it
- 1:56out
- 1:56there.
- 1:57Like
- 1:57I
- 1:57have
- 1:57visited
- 1:58this
- 1:58many
- 1:58stores
- 1:59and
- 1:59two
- 1:59out
- 1:59of
- 1:59five
- 1:59are
- 2:00in
- 2:00very
- 2:00good
- 2:00condition
- 2:01because
- 2:01you
- 2:01have
- 2:01to
- 2:01be
- 2:01able
- 2:02to
- 2:02name
- 2:02it
- 2:02to
- 2:02fix
- 2:03it.
- 2:03Yeah,
- 2:04I
- 2:04like
- 2:04it.
- 2:05But
- 2:06there's
- 2:06obviously
- 2:07significant
- 2:07work
- 2:07to
- 2:07be
- 2:08done
- 2:08in
- 2:08a
- 2:08turnaround
- 2:09if
- 2:09your
- 2:09stores
- 2:10are
- 2:10in
- 2:10that
- 2:11situation.
- 2:11So
- 2:12for
- 2:12it
- 2:12to
- 2:12be
- 2:12the
- 2:12feel
- 2:13good
- 2:13story
- 2:13about
- 2:13the
- 2:14turnaround,
- 2:14I
- 2:14think
- 2:14we'd
- 2:15have
- 2:15to
- 2:15see
- 2:15both
- 2:16E
- 2:16Grocery
- 2:17and
- 2:17the
- 2:17stores
- 2:18improving.
- 2:19And
- 2:19right
- 2:19now
- 2:19it
- 2:19feels
- 2:20like
- 2:20the
- 2:20stores
- 2:20aren't
- 2:20there
- 2:21yet.
- 2:21Yeah,
- 2:21I
- 2:22agree.
- 2:22I
- 2:22think
- 2:22the
- 2:23E
- 2:23Commerce
- 2:23headline
- 2:24you
- 2:24know,
- 2:24I
- 2:24think
- 2:25it
- 2:25feels
- 2:25like
- 2:25a
- 2:25data
- 2:26point
- 2:26that
- 2:26gets,
- 2:26gets
- 2:27shared
- 2:27out
- 2:28when
- 2:28there's
- 2:28nothing
- 2:28else
- 2:29good
- 2:29to
- 2:29talk
- 2:29about.
- 2:30That's
- 2:30kind
- 2:30of
- 2:30what
- 2:30I'm
- 2:31thinking
- 2:31about
- 2:31it
- 2:31when
- 2:31I
- 2:32think
- 2:32back
- 2:32to
- 2:32how,
- 2:32you
- 2:33know,
- 2:33how
- 2:33I
- 2:33read
- 2:33the
- 2:33tea
- 2:34leaves
- 2:34on
- 2:34earnings
- 2:34announcements
- 2:35but
- 2:35because
- 2:35I
- 2:36don't
- 2:36think
- 2:36it's
- 2:36really
- 2:36a
- 2:36feel
- 2:36good
- 2:37story
- 2:37at
- 2:37all.
- 2:37I
- 2:37mean
- 2:37just
- 2:38based
- 2:38on
- 2:38the
- 2:38data
- 2:38we
- 2:38just
- 2:39went
- 2:39through
- 2:39exhaustively
- 2:40in
- 2:40the
- 2:40last
- 2:40headline,
- 2:41Jen,
- 2:41they're
- 2:42losing
- 2:42share
- 2:43like
- 2:43that,
- 2:43that's
- 2:43not
- 2:44keeping
- 2:44pace.
- 2:44The
- 2:4520,
- 2:45what
- 2:4519,
- 2:4620%
- 2:46growth,
- 2:47you
- 2:47know,
- 2:47that
- 2:47I
- 2:48come,
- 2:48that
- 2:48I,
- 2:48that
- 2:48I
- 2:49remarked
- 2:49on
- 2:50like
- 2:50that's
- 2:50losing
- 2:50share
- 2:51relative
- 2:51to
- 2:51the
- 2:51other,
- 2:52the
- 2:52other
- 2:52headline
- 2:52we
- 2:53talked
- 2:53about.
- 2:53That's
- 2:53not
- 2:53good.
- 2:54And
- 2:55the
- 2:55other
- 2:55point
- 2:55I'd
- 2:55make
- 2:56too
- 2:56about
- 2:56the
- 2:56store
- 2:57side.
- 2:58He's
- 2:58been
- 2:58in
- 2:58position.
- 2:59I
- 2:59went
- 2:59back
- 2:59and
- 2:59looked
- 2:59Jen,
- 3:00he's
- 3:00been,
- 3:00I'm
- 3:00curious
- 3:01what
- 3:01you
- 3:01think
- 3:01on
- 3:01this
- 3:01too.
- 3:02He's
- 3:02been
- 3:03in
- 3:03position
- 3:03now
- 3:03for
- 3:03six
- 3:04months
- 3:04which
- 3:05is
- 3:05a
- 3:05decent
- 3:05amount
- 3:06of
- 3:06time
- 3:06in
- 3:06grocery
- 3:07because
- 3:07we're
- 3:07not
- 3:07talking
- 3:07about
- 3:08apparel
- 3:08here.
- 3:09We've
- 3:09got
- 3:09nine
- 3:09month
- 3:10lead
- 3:10times
- 3:10and
- 3:10it's
- 3:10going
- 3:11to
- 3:11take
- 3:11a
- 3:11while
- 3:11to
- 3:11readjust
- 3:12everything.
- 3:13So
- 3:13you're
- 3:13already
- 3:13losing
- 3:14sharing
- 3:14e
- 3:14grocery
- 3:15half
- 3:15the
- 3:15store
- 3:16base
- 3:16needs
- 3:16improvement
- 3:17self
- 3:17admittedly
- 3:18to
- 3:18his
- 3:18credit,
- 3:19can
- 3:19he
- 3:19really
- 3:20just
- 3:20flip
- 3:20the
- 3:20switch
- 3:21operationally
- 3:21and
- 3:21turn
- 3:21things
- 3:22around
- 3:22when
- 3:22Amazon
- 3:23and
- 3:23Walmart
- 3:23are
- 3:23gunning
- 3:24for
- 3:24them
- 3:24the
- 3:25way
- 3:25that
- 3:25they
- 3:25are?
- 3:26I,
- 3:27I
- 3:27kind
- 3:27of
- 3:27actually
- 3:28think
- 3:28this
- 3:28is
- 3:28not
- 3:29a
- 3:29feel
- 3:29good
- 3:29story
- 3:29at
- 3:30all
- 3:30and
- 3:30it's
- 3:30kind
- 3:30of
- 3:30a
- 3:30warning
- 3:31story
- 3:31in
- 3:31terms
- 3:31of
- 3:32like
- 3:32this,
- 3:32this,
- 3:33this
- 3:33Kroger
- 3:34story
- 3:34could
- 3:34get
- 3:34a
- 3:35lot
- 3:35worse
- 3:35before
- 3:35it
- 3:35gets
- 3:36better.
- 3:36Better.
- 3:36But
- 3:36I
- 3:36don't
- 3:36know
- 3:37Jen,
- 3:37talk
- 3:37me
- 3:37off
- 3:37the
- 3:37ledge.
- 3:38Don't
- 3:38jump
- 3:39Chris.
- 3:42Balls
- 3:43don't
- 3:43jump
- 3:43Jen.
- 3:43Eat
- 3:43the
- 3:43Swedish
- 3:44meatballs.
- 3:45Hear
- 3:45you
- 3:45on
- 3:46that.
- 3:46I,
- 3:47you
- 3:47know
- 3:48it's
- 3:48awesome
- 3:48that
- 3:48they
- 3:49turn
- 3:49a
- 3:49profit
- 3:49but
- 3:50with
- 3:50you
- 3:50bringing
- 3:51up
- 3:51the
- 3:51stats
- 3:51from
- 3:51the
- 3:51last
- 3:52headline.
- 3:52Yeah.
- 3:52Every
- 3:53single
- 3:53category
- 3:54from
- 3:54the
- 3:54last
- 3:54headline
- 3:54was
- 3:55improving
- 3:5525%
- 3:56or
- 3:56more
- 3:57while
- 3:57they're
- 3:59boasting,
- 3:59you
- 4:00know,
- 4:0019
- 4:00and
- 4:0120.
- 4:01Right.
- 4:01So
- 4:02to
- 4:02me
- 4:02that
- 4:02shows
- 4:03that
- 4:03they're
- 4:03not
- 4:03really
- 4:03keeping
- 4:04pace.
- 4:06I
- 4:06don't
- 4:07know
- 4:07like
- 4:07I
- 4:08don't
- 4:08know
- 4:08what
- 4:08he's
- 4:08done
- 4:09in
- 4:09the
- 4:09last
- 4:09six
- 4:10months.
- 4:10Exactly.
- 4:10I
- 4:11agree
- 4:11with
- 4:11you.
- 4:11Six
- 4:11months
- 4:12is
- 4:12a
- 4:12good
- 4:12amount
- 4:12of
- 4:12time.
- 4:13I
- 4:13would
- 4:13say
- 4:1312
- 4:14months
- 4:14is,
- 4:14is
- 4:15fair
- 4:15to
- 4:15judge
- 4:15a
- 4:16CEO
- 4:17on
- 4:17turnaround
- 4:18steps
- 4:18because
- 4:18sometimes
- 4:19it
- 4:19can
- 4:19take
- 4:19three
- 4:20to
- 4:20six
- 4:20months
- 4:20to
- 4:20even
- 4:21name
- 4:21it
- 4:21to
- 4:22fix
- 4:22it.
- 4:22Right.
- 4:23So
- 4:23Per,
- 4:24I
- 4:24would
- 4:24only
- 4:24assume
- 4:25that
- 4:25if
- 4:25he's
- 4:25putting
- 4:25that
- 4:25stat
- 4:26out
- 4:26there
- 4:26about
- 4:26the
- 4:26stores,
- 4:27his
- 4:27number
- 4:28one
- 4:28priority
- 4:28is
- 4:29I'm
- 4:29gonna
- 4:29go
- 4:29fix
- 4:29this
- 4:29and
- 4:30put
- 4:30a
- 4:30different
- 4:30stat
- 4:30out
- 4:31in
- 4:31six
- 4:31months.
- 4:32Right.
- 4:33So
- 4:34I
- 4:34don't
- 4:35think
- 4:35you
- 4:35should
- 4:35jump.
- 4:36But
- 4:36I
- 4:36do
- 4:36agree
- 4:36with
- 4:37you
- 4:37that
- 4:37there
- 4:38are
- 4:38a
- 4:38couple
- 4:38of
- 4:39warning
- 4:39signs
- 4:39here
- 4:39that
- 4:40don't
- 4:41look
- 4:41so
- 4:41pretty.
- 4:42Hopefully
- 4:42they're
- 4:42just
- 4:42bringing
- 4:43them
- 4:43to
- 4:43light
- 4:43so
- 4:43they
- 4:43can
- 4:44fix
- 4:44them.
- 4:44Yeah,
- 4:45I'm
- 4:45looking
- 4:45over
- 4:45the
- 4:45edge
- 4:46of
- 4:46the
- 4:46bridge
- 4:46to
- 4:46see
- 4:46how
- 4:47high
- 4:47it
- 4:47is.
- 4:47That's
- 4:48kind
- 4:48of
- 4:48where
- 4:48my
- 4:48head
- 4:48is
- 4:48on
- 4:49this
- 4:49one,
- 4:49Jen.
- 4:49I'm
- 4:49not.
- 4:50I'm
- 4:50not
- 4:50sure
- 4:50either.
- 4:50And
- 4:51from
- 4:51the
- 4:51people
- 4:51I
- 4:52talk
- 4:52to,
- 4:52people
- 4:52love
- 4:53him
- 4:53too.
- 4:53People
- 4:53that
- 4:54have
- 4:54worked
- 4:54with
- 4:54him
- 4:54love
- 4:54him.
- 4:55They
- 4:55think
- 4:55that
- 4:55he's
- 4:56the
- 4:56single
- 4:56best
- 4:57retail
- 4:58operator
- 4:58merchant
- 4:59they've
- 4:59ever
- 4:59seen.
- 4:59And
- 5:00so
- 5:01I
- 5:01give
- 5:01him
- 5:01a
- 5:02lot
- 5:02of
- 5:02credit,
- 5:02but
- 5:03hopefully
- 5:05he's
- 5:05got
- 5:05a
- 5:05plan
- 5:05and
- 5:05he's
- 5:06going
- 5:06to
- 5:06execute
- 5:06on
- 5:06it.
- 5:06And
- 5:07it's
- 5:07funny
- 5:07because
- 5:08actually
- 5:09between
- 5:09when
- 5:09I
- 5:09put
- 5:10my
- 5:10thoughts
- 5:10together
- 5:10for
- 5:10this
- 5:11headline
- 5:11and
- 5:11you
- 5:11and
- 5:12I
- 5:12are
- 5:12recording
- 5:12this,
- 5:12I
- 5:12actually
- 5:13saw
- 5:13him
- 5:13out
- 5:13on
- 5:13social
- 5:13media
- 5:14talking
- 5:14about
- 5:14his,
- 5:15I
- 5:15think
- 5:15his
- 5:165F
- 5:16plan
- 5:17to
- 5:17get
- 5:17Kroger
- 5:18where
- 5:18it
- 5:18needs
- 5:18to
- 5:19be,
- 5:19so
- 5:19hopefully
- 5:20he
- 5:20can
- 5:20do
- 5:20it.