According to the news, the Kroger who have been in news for closing stores for not paying the hour pay to their employee have announced that they will be upgrading wages. Now, Kroger plans to increase average hourly wages this year by 50 cents to $ 16 an hour after a strong year in which digital sales have doubled in the wake of the pandemic. Cincinnati-based Kroger last year spent $ 300 million to raise the average hourly wage of its workers to $ 15.50, up from $ 15 an hour, as we did reported last month as well. It is was still in doubt if Kroger will increase wages or not.
In this regard, they have official post statement on Wednesday, El-Groqal announced that he would invest $ 350 million to raise the average wage to $ 16 an hour ahead of the 2021 Investor Day webcast.
Some of Kroger’s biggest competitors have also announced wage increases. In February, Walmart said it would raise its average wage in the United States to at least $ 15.25 an hour. And earlier this year, Costco said its starting wage would be $ 16 an hour, indicating that the average worker was already earning $ 24 an hour. Kroger said it has invested more than $ 800 million in employee salaries and training over the past three years for nearly 500,000 full-time and part-time workers. In the past year, Kroger has consistently topped sales estimates as consumers stockpile food and household necessities and flock to the Kroger website to order from their safe homes.
Now, digital sales more than doubled to $ 10 billion, helping the company beat its fourth-quarter and full-year earnings projections. Kroger’s total sales rose 8.4% to $ 132.5 billion in 2020, helping to boost profits to $ 2.6 billion for the year, up 5.6%. A major sales metric, matched sales without fuel, increased 14.1% in 2020.
Besides Kroger stores, the grocer operates several regional supermarket chains in 35 states, including Fred Mayer, Harris Teter, Ralphs, Mariano, Frieze, Smith, King Supers, Qatar Financial Center, among others. The company has approximately 2,800 stores with than 10K workforces. Now, what are your thoughts? Do you think it is still enough? As workforces working in pandemic. Let us know in the comments section below!