September 12, 2013
Being from the home of Kroger’s has always been a hallmark store as a native Cincinnatian. My perspective has an subjective-objective lens. Companies can view profits as a sign of internal development when varied factors align within a period that drives revenue. The news that “Kroger reports $317 million profit” may be more about the economy than what the company is doing.
Cincinnati news that “Kroger Co. reported a $317 million profit for the second quarter ended Aug. 17, up 13.6 percent from the same period a year ago. Sales rose 4.6 percent to $22.7 billion for the nation’s largest supermarket chain. The company reported a $279 million profit on sales of $21.7 billion in the same period a year ago.
“We are improving our connection with customers and associates, rewarding shareholders and investing to grow our business,” said chief executive David Dillon, in a statement. “We intend to continue building on this positive momentum with execution at every level of the company.” Kroger’s 60 cents of earnings per share were a second quarter record.”
It is important to identify the nexus between food and the economy which has socioeconomic relevance. The synthesis that an unstable economy influences sales in spirits and food has been documented. The relationship of food and patterning economic trends opens the analyses that Kroger’s profits are correlated to consumers shrinking disposable income that drives comfort purchasing i.e. food.
The model of selling items roughly under $6.00 attracts a captive market where consumers can assert power, influence and decision-making in a world where these elements are shrinking in the workplace, politically and economically. The importance to analyze cultural economics is relevant. I have developed and asserted a new analytical process that deciphers economics through culture, power and demographics, cultural economics.
Kroger’s success is dependent on consumers purchasing power and the prime directive for survival in which Maslow’s Hierarchy of Needs determined that food and shelter were basis of need and indeed company’s providing need based services such as, Kroger’s benefit. We can extrapolate that Krogeresque businesses are in a recession proof opportunity, as long as it manages efficiencies for sustainability.