U.S.: Kroger stock jumps as coronavirus impacts sales

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U.S.: Kroger stock jumps as coronavirus impacts sales

Supermarket chain Kroger says its selling more amid stockpiling in the U.S. over fears of coronavirus, the spike in sales has led to a jump in its stock, reports The Wall Street Journal.

Kroger stock up 8.11% is likely due to higher sales of staple items like paper towels, hand sanitizer and cleaning products as consumers prepare for a coronavirus outbreak. The biggest grocer in the U.S., Kroger said Thursday that it's still too early to calculate the impact of recent buyings.

However, it did detail that it has created a special task force to do exactly that - to further monitor the sales situation around coronavirus. Similarly, retailers across the country have ramped up efforts to confront the rise in demand, especially for canned food items and disinfectants.

“While it is obviously very early for this public health event in the United States, we are not seeing anything so far that would cause us to change our guidance,” chief executive Rodney McMullen told the journal.

With shares currently awt US$33.47, the company said the uptick has come both from in-store purchases and online. In addition to antibacterial products being sold rapidly and in large quantities, foods like canned tuna, pasta and snack bars have been going off the shelves.

This news follows a big announcement from Warren Buffett regarding his investment in the retailer.

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