Latest / Chuck Douglas / Kroger Loses 12 Billion

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Kroger Loses 12 Billion · Chuck Douglas

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  Speaker 1: Chuck Douglas in the Power Hour, 610 WTV and the
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  Speaker 1: number 821-9886. If you have any, if you have any
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  Speaker 1: thoughts on that time we spent with Bernadine Kent, that, that, that, that.
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  Speaker 1: Can you believe what happens and nobody, nobody, this shouldn't
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  Speaker 1: even be, there shouldn't, there shouldn't even be debate. You're
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  Speaker 1: late on the paperwork. There's money missing. You've got owner-occupant
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  Speaker 1: status in a house way outside of the district that
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  Speaker 1: you're running for. There's a mandatory residency requirement for the legislature.
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  Speaker 1: If you're going to serve there, you've got to live there.
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  Speaker 1: And your treasurer says, I'm not the treasurer. I wouldn't
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  Speaker 1: think there's a lot of thinking to be done here.
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  Speaker 1: I mean, it just, it seems like a no-brainer, as
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  Speaker 1: they say. Which means Zach could make the decision. We
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  Speaker 1: don't need that. Huh? We don't need that.
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  Speaker 2: What, huh?
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  Speaker 1: Huh? Don't need what?
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  Speaker 3: Me making decisions.
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  Speaker 1: Well, as long as they don't involve anything important. Okay.
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  Speaker 1: I can stay.
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  Speaker 3: I can deal with that.
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  Speaker 1: That's fine. I mean, can you believe that story? That's
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  Speaker 1: just crazy that this kind of stuff can happen, and
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  Speaker 1: it has to go this far. And then we got
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  Speaker 1: to refile and come back. Why couldn't somebody just go, oh, yeah,
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  Speaker 1: that's wrong. We can't do this. It doesn't seem like
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  Speaker 1: there should have to be any kind of pomp and circumstance,
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  Speaker 1: no kind of procedure, nothing. It's right there in front
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  Speaker 1: of you. And yet, here we are. So, anyway, stranger
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  Speaker 1: things have happened. Again, 821-9886, number 821-WT. Did you have anything,
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  Speaker 1: by the way, the email that I sent you earlier?
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  Speaker 1: Because I sent you... A list of things that may
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  Speaker 1: very well be topics, things that are on my mind
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  Speaker 1: this afternoon. Was there anything that was in that email
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  Speaker 1: that you definitely wanted to tell me about or wanted
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  Speaker 1: to talk about?
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  Speaker 3: I mean, other than Sidney Sweeney, that was the whole
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  Speaker 3: show as far as I was concerned, but you had
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  Speaker 3: other plans.
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  Speaker 1: I don't think she merits an entire show. Okay, whatever.
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  Speaker 3: Plus, the Kroger's losing money because of customers' habits.
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  Speaker 1: Oh, you want to do that? I think it's interesting.
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  Speaker 1: That is actually a good story. Well, I mean, not
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  Speaker 1: if you're Kroger. It's not a good story. But Kroger Corporation, yeah,
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  Speaker 1: they are– somebody actually said, which one on Facebook today?
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  Speaker 1: I'm not talking about a particular store. I'm talking about
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  Speaker 1: the company, the Kroger company.
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  Speaker 3: Did anybody– one Kroger loses 12%?
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  Speaker 1: Yeah. All right. So here's the story. It comes from
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  Speaker 1: the U.S. Markets Report from I think Wall Street Journal
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  Speaker 1: publishes the street. Kroger loses $ 12 billion as customer behavior
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  Speaker 1: takes a turn. Kroger is facing mounting pressure from shifting
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  Speaker 1: customer habits, causing it to lose $ 12 billion as competition intensifies.
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  Speaker 1: In recent months, the grocery chain, which operates regional supermarkets, Ralph's,
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  Speaker 1: Fred Meyer, Smith's, as well as Kroger stores, has grown
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  Speaker 1: laser-focused on attracting and retaining price-conscious customers by offering more
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  Speaker 1: value and lower prices in its stores. Now, I find
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  Speaker 1: this interesting because while at the same time they're saying
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  Speaker 1: they're laser-focused and they changed up their Kroger points so
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  Speaker 1: they're not just fuel points, you can use them on
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  Speaker 1: groceries now, too, to get a discount on your groceries.
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  Speaker 1: While Kroger's making these efforts and laser-focusing, you've got those
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  Speaker 1: commercials out there talking about how bad Kroger is and
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  Speaker 1: how they're doing all this bad stuff. So that is
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  Speaker 1: very interesting. Story continues here. For example, it began offering
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  Speaker 1: extra savings on gas in March, refreshed its loyalty rewards
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  Speaker 1: program to include more simplified offers. In May, Kroger CEO
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  Speaker 1: Greg Foran confirmed plans to cut prices on thousands of
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  Speaker 1: items in the stores, a move that takes on Walmart, Costco,
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  Speaker 1: and other retailers, emphasizing their lower prices. The reality is
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  Speaker 1: the basket has to come down, said Foran in a
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  Speaker 1: Bloomberg report. It needs to be across thousands of products.
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  Speaker 1: It has to be something that passes the common sense
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  Speaker 1: piece with customers. Despite the efforts to keep customers away
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  Speaker 1: from rivals, Kroger's lost more than $ 12 billion in what
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  Speaker 1: they call CPG. That's consumer packaged goods. And they're losing
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  Speaker 1: out to Amazon. Have you noticed Amazon is suddenly making
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  Speaker 1: a big push to get groceries through Amazon? Have you
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  Speaker 1: seen those commercials? Yeah.
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  Speaker 3: I used to get groceries through Amazon for a little bit.
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  Speaker 1: I don't do it on a regular basis. I've ordered
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  Speaker 1: a few things. Before you check out, would you like them?
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  Speaker 2: Oh, yeah.
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  Speaker 1: Why not? Yeah. I've never really looked at their prices
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  Speaker 1: and compared to what I can get at the store. Anyway,
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  Speaker 1: they're losing to Amazon, Walmart, Costco over the past year,
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  Speaker 1: according to what they call the numerator report. Specifically, these
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  Speaker 1: consumer packaged goods, the spending at Kroger and Ralph stores
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  Speaker 1: declined by $ 715 million. $ 516 million at Ralph's. Customers made
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  Speaker 1: $ 9 million and $ 5. 5 million fewer trips, respectively, to those stores.
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  Speaker 1: Kroger incurred direct losses of more than a billion dollars
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  Speaker 1: as a result of this lack of traffic through their stores. Now,
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  Speaker 1: I'm going to tell you why there's a lack of traffic.
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  Speaker 1: I don't know if all stores are like my beloved Westside,
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  Speaker 1: but that whole security guard thing, it's backfiring. If I
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  Speaker 1: have to go to Kroger... I will go out to
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  Speaker 1: Galloway or I will go over to Holt Road, Georgesville Road.
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  Speaker 1: That's where I go. Unless it's like I got to
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  Speaker 1: get there and get back quick. Then I'll go ahead
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  Speaker 1: and go to the one over by my house. But
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  Speaker 1: here's the thing. I don't want the Kroger on Wilson
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  Speaker 1: Road to go away because plenty of people live there
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  Speaker 1: who need to buy groceries. I want it to be better.
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  Speaker 1: I do not want to feel as if I am
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  Speaker 1: a criminal every time I try to go out of
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  Speaker 1: there with my groceries. And these big, burly, gun-toting security guards,
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  Speaker 1: I need to see your receipt, before you can walk
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  Speaker 1: out the door. It's ridiculous. Stop. Look, if we would
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  Speaker 1: just admit you know who the good guys are, you
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  Speaker 1: know who the bad guys are, you know where there's safety,
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  Speaker 1: you know where there's danger. Use your common sense. But
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  Speaker 1: everybody's got to be politically correct now, so you have
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  Speaker 1: to offend everyone equally. And that's ridiculous. That's ridiculous. I
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  Speaker 1: told the story months ago. The security guy stood at
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  Speaker 1: the end of the cash register thing, the belt. He's
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  Speaker 1: standing there. He's like six feet away from it. Watches
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  Speaker 1: me with a cashier, checking out, putting in my Kroger ID.
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  Speaker 1: swiping my debit card. While I'm there with this cashier,
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  Speaker 1: the cashier's manager comes over. Manager's talking to the cashier.
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  Speaker 1: She wants to see her after the transaction's done. I
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  Speaker 1: pay in front of the security guard. And before I
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  Speaker 1: can leave the store, he wants to see my receipt.
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  Speaker 1: That's ridiculous. That's ridiculous. So why are there fewer trips?
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  Speaker 1: Maybe there's a couple of people out there that feel
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  Speaker 1: like me. The story continues. Lower income Kroger shoppers pulled
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  Speaker 1: back in their spending by 5.2% year over year as
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  Speaker 1: they made 30 million fewer trips. 30 million fewer trips.
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  Speaker 1: 30 million fewer trips. And those low income shoppers are
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  Speaker 1: probably shopping at stores just like the one I just
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  Speaker 1: described to you. Bad enough, they got to be broke.
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  Speaker 1: Be low-income shoppers. Buying the unbrand, as we used to
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  Speaker 1: call it. The generic stuff. Bad enough, now they got
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  Speaker 1: to go through this. We got to see your receipt
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  Speaker 1: before you can leave. The report notes that low-income households
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  Speaker 1: are creating a $ 1 billion spending gap for the company.
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  Speaker 1: Also states customer spending on grocery staples like canned goods, beverages,
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  Speaker 1: and candy has increased by $ 800 million over the past year.
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  Speaker 1: That's not because people are buying more. It's because a
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  Speaker 1: damn 12-pack of pop costs $ 9, $ 10, $ 11, $ 12 for
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  Speaker 1: 18 cents worth of chemicals. Now, when you think of it,
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  Speaker 1: I know you go to the gas station to carry
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  Speaker 1: out whatever you pay a dollar for a can of pop.
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  Speaker 1: You got a good deal. But when you buy it
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  Speaker 1: in the store, it's not supposed to cost $ 12 for
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  Speaker 1: a 12-pack. And then they try to disguise it. This
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  Speaker 1: week at Kroger, it's, what is it? Buy three at $ 11. 99 each.
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  Speaker 1: So that's $ 36. A 12-pack? Yeah. Oh, gosh. So it's
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  Speaker 1: $ 36 for those three. And then you get, what do
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  Speaker 1: you get? Is it three free? I don't know because
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  Speaker 1: I'm not going to spend that kind of money. I
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  Speaker 1: think you get three more free. So it's still $ 6
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  Speaker 1: per 12-pack, right? Is that what it is? I forget
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  Speaker 1: what the sale is because, again, I don't buy the garbage.
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  Speaker 1: It doesn't appeal to me. But that's just too daggone
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  Speaker 1: much for soda pop. So it's not that people are
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  Speaker 1: going in and buying more candy online. Or sodas. Did
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  Speaker 1: you see candy now? Like $ 3. 99 of candy bar or something?
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  Speaker 3: Candy's super expensive now.
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  Speaker 1: Are they making it with gold? Is the chocolate turning
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  Speaker 1: to gold when you digest it?
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  Speaker 3: I don't know. I noticed it a few years ago
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  Speaker 3: when Charlie was old enough to kind of run into
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  Speaker 3: the store by himself and buy candy. And I was like,
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  Speaker 3: I gave you $ 20. You have a candy bar and
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  Speaker 3: a half and a nickel left over.
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  Speaker 1: What's going on? Absolutely nuts. Absolutely nuts.
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  Speaker 2: Anyway.
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  Speaker 1: Keep an eye on Kroger. I wish them well. Cincinnati-based company.
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  Speaker 1: I don't want them to disappear. I want them to
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  Speaker 1: continue to be there for people who need to buy groceries. But, yeah,
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  Speaker 1: this isn't just about the economy, Kroger. This is about
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  Speaker 1: the way you are perceiving your customers and your customers
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  Speaker 1: are perceiving your perception of them. Or maybe that's just me.
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  Speaker 1: Joe wants to talk about something completely different. That's the
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  Speaker 1: call we had with Bernadine Kinn a little while ago. Joe,
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  Speaker 1: I've got about a minute here. You're on 610 WTVN.
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  Speaker 2: Hey, Chuck. That was quite a story. It reads like
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  Speaker 2: a spy novel or something. It's incredible.
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  Speaker 1: I can't believe that there's not more people saying this
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  Speaker 1: is ridiculous. Why is this not outraging everyone?
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  Speaker 2: Well, because... Because, well, because Ishmael Muhammad is a Democrat
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  Speaker 2: and Bernadine is a Republican. And if the Democrats, you know,
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  Speaker 2: caught a Republican doing shady stuff, they'd be all over him.
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  Speaker 2: And I mean, it'd be go for the jugular. But
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  Speaker 2: when the Republicans find a Democrat doing shady stuff, they
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  Speaker 2: treat him with kid gloves and tiptoe around and say, oh,
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  Speaker 2: you know, we're looking into it and Oh, sorry, there's
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  Speaker 2: nothing we can do. So, you know, that's the that's
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  Speaker 2: the rhino mentality. So, Roberta Dean, I love her. She's great.
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  Speaker 2: And she's going to.
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  Speaker 1: Be a former Democrat. She's a pretty good Republican, isn't she?
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  Speaker 2: Yeah, and she's the one that endorsed Trump and she
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  Speaker 2: got the right on Air Force One with Trump. So,
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  Speaker 2: that's why the Democrats hate her even more. But she
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  Speaker 2: really loves the people of her district and we hope
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  Speaker 2: They get the message.
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  Speaker 1: All right. Well, hey, do you live in the district, Joe?
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  Speaker 2: Well, I live near it. I'm in the 15th Senate District.
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  Speaker 2: I'm actually running for the Senate in the Ohio Senate District.
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  Speaker 2: And the third Ohio House District is one-third of the
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  Speaker 2: Ohio Senate District.
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  Speaker 1: Is this Joe Healy?
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  Speaker 2: It is.
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  Speaker 1: Oh, man, why didn't you tell me who you were
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  Speaker 1: right off the bat?
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  Speaker 2: Well, you know, I like to keep a low profile.
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  Speaker 1: How are you going to run for office and keep
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  Speaker 1: a low profile? Come on, man. Come on, yeah.
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  Speaker 2: Because Bernadine is the star of the show, that's why.
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  Speaker 1: Yeah, well, no, you know what? Justice and the right
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  Speaker 1: way of doing things is the star of this show
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  Speaker 1: as far as I'm concerned. This is ridiculous that we
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  Speaker 1: are even questioning any of this. Music's playing. Joe Healy,
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  Speaker 1: do you have a campaign website or where can people
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  Speaker 1: find you, Joe?
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  Speaker 2: Just Joseph Healy on Facebook.
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  Speaker 1: Joseph Healy on Facebook. All right. And leave him silly
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  Speaker 1: little cartoons. He loves that stuff. Really, he does.