NEW YORK — The Kroger Co., the corporate parent of King Soopers and City Market stores, said Friday that its profit dipped slightly in the second quarter, as the nation’s largest traditional grocer faced higher expenses and an increased tax rate.
The Cincinnati-based company said a key sales figure rose during the period as its loyalty program helped attract shoppers. But merchandise costs — which includes advertising, warehouse and transportation expenses — also rose 4.3 percent.
Like other supermarkets, Kroger has been paying more to stock its shelves as a result of rising commodity costs. The company has tried to offset the impact by introducing more store-brand items, which lessens its need to stock up on brand-name products.
To hang onto customers, Kroger’s loyalty program offers customers discounts based on their past purchases.
For the three months ended Aug. 11, the company reported net income of $279.1 million, or 51 cents per share. That’s down from $280.8 million, or 46 cents per share, a year ago when there were more outstanding shares.
Revenue, including fuel, climbed 3.9 percent to $21.73 billion. The Associated Press
