Kroger to invest over $770 million in employees in 2023

The Kroger Co. is making a big investment this year that will raise employee wages and support comprehensive benefits.

The supermarket giant said it will invest more than $770 million in its associates during 2023. The company will use the investment to raise average hourly rates, improve healthcare options, build new training and development opportunities and more.

The new outlay builds on the $1.9 billion incremental investments in wages and comprehensive benefits Kroger has made since 2018, which has raised the company's average hourly rate to $18 or $23.50 per hour with comprehensive benefits.

"Our associates enable our success, and we are committed to investing in theirs," said Rodney McMullen, Kroger's chairman and CEO. "For so many Kroger represents a first job, a new beginning or a change in career path. Continuing to raise wages and provide excellent benefits to our associates is one way we demonstrate how much we value and respect their contributions."

In addition to raising wages, Kroger's investments have also included:

• A world-class educational benefit program that offers associates up to $21,000 toward continuing education opportunities;
• Affordable and accessible healthcare options, which include free counseling through the company's “Well-Being Assistant;”
• First-of-its-kind free financial coaching services available to all hourly associates; and
• A simple and intuitive onboarding experience to ensure every associate is confident in their role and ready to support their customers.

Fourth-Quarter, Full-Year Results

In other news, Kroger reported that its total company sales rose to $34.8 billion in the fourth quarter, compared to $33.0 billion in the year-ago period. Excluding fuel, sales increased 5.9% compared to the same period last year. The grocer’s private label identical sales increased 10.1%. Digital sales grew 12%.

Kroger’s total sales were $148.3 billion in 2022, compared to $137.9 billion for the same period last year.  Excluding fuel, sales increased 5.2% compared to last year.

Kroger’s identical sales without fuel rose 6.2% in the quarter and were up 5.6% for the full year.

"Kroger achieved exceptional results in 2022 as we executed on our Leading with Fresh and Accelerating with Digital strategy, building on record years in 2020 and 2021,” stated McMullen. Our proven go-to-market strategy enables Kroger to successfully navigate many operating environments. We believe that by delivering value for our customers, investing in our associates and serving our communities, Kroger will continue to achieve attractive and sustainable total returns for our shareholders."

Kroger operates nearly 2,800 retail food stores under a variety of banners.