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Shares of Kroger
rose about 9% on Friday as the supermarket operator raised its full-year sales outlook and said it’s drawing shoppers seeking lower-priced store brands and cheaper alternatives to dining out.
The Cincinnati-based grocer said it now expects identical sales, excluding fuel, to increase by 2.25% and 3.25% year over year, higher than its previous expectations for an increase of between 2% and 3%. Identical sales is an industry-specific metric that takes out one-time factors, such as store openings, closures and renovations. Kroger include stores and delivery sales in regions that have been in operation for five full quarters in identical sales.
So far this year, shares of Kroger are up nearly 16%, outpacing the approximately 1% gains of the S&P 500
