Kroger sees 30% sales surge - FreshFruitPortal.com

Kroger sees 30% sales surge

U.S. grocer Kroger said Wednesday that it has experienced a 30% spike in sales in March as consumers stock up on groceries amid the Covid-19 outbreak, reports The Hill.

The company's stock rose about 5% as soon as the news surfaced and Kroger recently announced that it also plans to borrow US1bn to increase reserves in prepartion for the potential blowout from Covid-19 market insecurity.

“It is too early to speculate what will emerge as the ‘new normal’ in food consumption at home or what the impact on sales will be in future periods,” the company said, according to Reuters.

After significantly strong sales for Kroger in February, the Covid-19 influenced economic has been throw into turmoil. The pandemic's effect, causing a "significantly greater lift in sales across both physical retail and ditigal channels in March," is the result of Americans cooking more at home, CEO Rodney McMullen told Reuters.

In some states in the U.S., like in Minnesota, grocery stores are classified as emergency workers. Similarly, the retailer announced a temporary "hero bonus" for its employees that it calls its "frontline workers" during the pandemic.

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