US grocery retailer Kroger has reported higher second-quarter profit, helped by growth in customer traffic and average transaction size.


The company reported net earnings of US$196.5m, or 27 cents per share, for the second quarter ended 13 August 2005. Net earnings in the year-ago period were $142.4m, or 19 cents per share.


Total sales for the second quarter increased 6.8% to $13.9bn. Identical supermarket sales increased 5.1% with fuel and 3.4% without fuel. By either measure, this represents Kroger’s highest identical sales since the merger with Fred Meyer in 1999.


“Kroger’s business strategy is squarely aimed at consistently meeting the needs of our customers through great service, selection and value. In the second quarter, our associates continued to focus on improving the shopping experience for our customers,” said David Dillon, chairman and chief executive officer. “This commitment to placing the ‘customer first’ helped drive growth in customer traffic and average transaction size.”


Business at Ralphs and Food 4 Less in southern California continued to improve during the second quarter. In southern California, identical supermarket sales without fuel at both divisions continued to grow in the second quarter and, on a combined basis, increased 2.9% over the prior-year period.

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“Our recovery there remains on track. Our associates at Ralphs and Food 4 Less are targeting areas of the business that our customers have told us are important to them. As a result, we are seeing sustained improvement in southern California,” Dillon said.