Beatrice Teston
Professor Persily- Lamel
KSB 100- 001
Which companies are sharing good news in their financial
reporting?
Two companies that have been continuously successful within
the grocery industry are The Kroger Co.
and Safeway Inc. Kroger has been able
to able to maintain success within the industry, enduring the recession and
staying strong during the recovery period. The popular supermarket chain is now
a $70.0 billion company. Estimated 2012-2013 annual revenue for Kroger is $92,845
million, a 2.7% change from the 2011-2012 annual revenue report. Kroger has been adding new establishments at
an average annual rate of 1%. Total food sales for the supermarket has risen
6.1% for the year with an expectation to increase at an annualized rate of
5.7%.
Safeway Inc. has also been significantly increasing in market
share and annual revenue for the past several years. Safeway has about 1,700
stores across the country with 32 manufacturing plants across the US. Safeway’s
revenue is said to grow 2.0% annually, expecting to reach $40.8 billion by
years end, more than $2 million from the previous year. Safeway sits with a market share of 8.3%,
however Kroger has the largest market share at 18.9%.
Whole Foods Market, although smaller and newer, is the
world’s top natural food chain market. The company has 285 locations in
the United States presently. They are definitely something to look out
for in a competitive landscape, especially with 1.7% market share that is expected to
grow continuously. The estimated average industry revenue for this year is said to reach
$8.4 billion, mostly influenced by their loyal customer base and ideal product
lines.
Safeway and Kroger are two major players in the grocery industry accompanied with Whole Foods slowly behind them, however gaining financial heat due to its growing consumer loyalty and preference. The two major players have been able to withstand during the recession and recovery period, now exceeding expectations and keeping up with new consumer demands. Whole Foods has been innovating and developing based on changing consumer ethics, which is also influencing places like Safeway and Kroger to also come up with breakthrough supermarket marketing ideas.
I do realize that Kroger and Safeway are one of the two leading grocery companies in the industry because of their large market share. I would also like to agree with the fact that Whole Foods Inc. is one of the newer companies; because of this, I think it just needs time before its idea of all organic food catches on completely with everyone. Eventually, I think it could potentially, in time, rise to the top of the market share ladder with Kroger and Safeway.
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