According to the recent fiscal year report of 2020, here’ what the CEO of Kroger have to say about it “I feel very humbled by the strength of our partners and what we continue to achieve together. Our customers are the focus of everything we do and we will continue to serve them as we have done since the start of the pandemic, through our leadership in food and as a health partner, providing COVID-19 tests and vaccines.
While, Kroger continued to increase its market share during the quarter. Our ability to meet our customers’ evolving needs is testament to our deep competitive trenches, disciplined investments in our increasingly robust digital capabilities, as well as our partners continued focus on our customers. We ended fiscal year 2020 with solid sales and profits, Demand for fresh and convenient food and meal solutions across modalities, including in-store, delivery and home delivery, continued throughout the fourth quarter. “Supported by our strong performance and cash position, we have been pleased to commit more than $ 2.5 billion to protect the environment in which our partners and customers work and shop and reward employees, including nearly $ 1 billion to better secure pensions.”
Furthermore, the company had total sales of $ 30.7 billion in the fourth quarter, compared to $ 28.9 billion for the same period last year. Excluding fuel and banking, sales grew by 10.7%. Gross margin was 22.9% of sales for the fourth quarter. Gross margin in first out, excluding fuel, decreased by 6 basis points compared to the same period last year, reflecting a continuation in price investments matched by growth in alternative profit streams and sourcing benefits. The LIFO balance for the fourth quarter was $ 84 million, compared to LIFO’s fee of $ 36 million for the same period last year. LIFO credit was mainly driven by fourth-quarter working capital improvements in pharmacy stocks and dairy contraction.
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In addition, the operating, general and administrative rate decreased by 7 basis points, excluding fuel and control items, reflecting the leverage of sales and implementation of cost saving initiatives, offset by continued investments related to COVID-19 to protect the health and safety of partners, customers and communities. Increase incentive costs. Rent and consumption, excluding fuel, decreased by 28 basis points due to sales leverage. As a result of the UFCW pension fee, the interest income tax rate for the fourth quarter of 2020 was 30.8%. This compares to an 18.3% year-on-year rate that was lower than our actual rate due to increased tax cuts. If you want to see the complete report please click here