US grocery retailer Kroger has declined to comment on reports that it is considering a preliminary bid for rival Albertson’s but said it was committed to its strategy of boosting sales.
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David Dillon, chief executive of Kroger, told the Financial Times that the company’s four-year price cut strategy was providing benefits and the company was poised for growth.
“I think we caught this trend in time for growth. I think the changes we have made have already begun producing results, which is why sales are up this year,” Dillon was quoted as saying.
Traditional US supermarket retailers such as Kroger, Albertson’s and Safeway have been hit hard by the popularity of discount retailers and the dominance of Wal-Mart.
Although declining to comment on whether Kroger is considering a bid for some or all of Albertson’s operations, Dillon told the FT that if a private equity firm bought Albertson’s he did not think that it would have a significant impact on Kroger.
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By GlobalData“Whatever they end up deciding to do will be consistent with what is happening in the industry, which is greater consolidation, greater fall-out from those companies that are not able to address the combination of what the customer wants today,” he told the newspaper.
