News

Cincinnati -- The Kroger Co. reported Thursday that net income in the first quarter rose to $439.4 million, from $432.3 million last year.

The operator of namesake stores as well as Ralphs, Food 4 Less and others, also said it authorized a $1 billion share buyback.

Sales during the period were $29.06 billion, up from $27.46 billion last year but missing Wall Street’s expected $29.16 billion. Same-store sales rose 4.2%, the grocer’s 34th straight quarter of growth.

Fort Worth, Texas -- Pier 1 Imports reported Thursday that net income for the quarter ended May 26 rose to $17.8 million, from $14.1 million in the year-ago period.

Sales increased 7.9% to $361.1 million from $334.6 million last year, and same-store sales rose 7.2% during the first quarter on top of last year’s 10.2% gain.

Washington, D.C. -- A report released by the Labor Department on Thursday showed that the cost of living in the U.S. dropped in May by the most in three years.

The consumer-price index declined 0.3%, more than forecast and the biggest drop since December 2008, after no change the prior month.

Economists projected a 0.2% decrease, according to the median estimate in a Bloomberg News survey. The core measure, which excludes food and energy costs, increased 0.2% for a third month.

Issaquah, Wash. -- Costco Wholesale Corp. said Thursday it has acquired partner Controladora Comercial Mexicana’s 50% share interest in Costco Mexico for approximately $760 million, funded by dividend proceeds, cash and investment balances.

The Costco México joint venture has been 50% owned by each of Costco Wholesale and CCM and operated by Costco Wholesale. :

Jaime Gonzalez Solana will continue as CEO of Costco México.
 

By Jundong Song, [email protected]

Wal-Mart, the largest grocer in the world, does not run any traditional loyalty programs to enroll and reward customers for their loyalty. Will this prove to be a costly mistake?

Giving competitors an edge

NAPERVILLE, Ill. — OfficeMax has launched a new delivery program that reuses and recycles boxes it uses for deliveries to business customers. The new program – Boomerang Box by OfficeMax – is projected to reduce box consumption by 80% among participating businesses.

WASHINGTON — After a surprisingly strong first quarter, consumers have slowed their spending in May, according to the latest report from the National Retail Federation. The NRF reported that May retail sales (excluding automobile, gas stations and restaurants) decreased 0.3%seasonally adjusted from April but increased 4.8% unadjusted year-over-year, marking 23 consecutive months of retail sales growth.

Canadians love a deal even more than American’s judging from the strong same-store sales and surging profits produced by the nation’s leading dollar store operator.

The 721 unit Montreal-based Dollarama chain said its first quarter same-store sales increased by a weather-aided 8.1%, and total first quarter sales increase 14.9% to $398 million for the period ended April 29. Earnings per share increased 40% to 56 cents from 40 cents. The gross margin rate increased to 36.3% of sales from 35.7% and expenses declined to 18.5% of sales compared to 19.7%.

Overall, this month saw gain in flyer distribution as well as the size of flyer. The largest push of this month came from Walmart with more than 100% increase in flyer drops this month as compared to same month last year. Walmart dropped almost three flyers per market as compared to none in the second week of May this year. Also, a 26-page flyer was dropped in the first week as compared to 12-page flyer previous year.

PLEASANTON, Calif. — Safeway has transitioned to using reusable product containers (RPCs), rather than corrugated boxes, to ship many types of produce from the farm fields, through the distribution channel and to final store destination. This transition eliminated the use of over 17 million pounds of corrugated boxes.