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Analysis Shows The Kroger Co.'s Supermarket Divisions in Western States Pays Hourly Associates More Than Their Peers in The Retail Industry Overall

Company Release - 1/12/2022
The UFCW + Economic Roundtable Report Is Misleading; Relies on Flawed Data

CINCINNATI, Jan. 12, 2022 /PRNewswire/ -- Today, The Kroger Co. (NYSE: KR) released an analysis, Kroger Stores Benefit Western Communities: An Assessment of the Enterprise's Compensation Packages and the Economic Impacts in the West that documents the organization's compensation of its nearly 85,000 hourly associates in four Western states: California, Colorado, Oregon, and Washington.

The ndp | analytics report, commissioned by The Kroger Family of Companies, highlights the robust economic and social contributions Kroger makes to these four states, including noteworthy employment of – and opportunities for – communities of color and lower-income populations.

"Our study underscores the fact that The Kroger Family of Companies puts its associates first," said Dr. Nam Pham, Managing Partner at ndp | analytics and co-author of the report. "Based on the organization's actual data and official government data, our findings show the organization pays hourly associates higher wages and benefits compared to its peers in the overall retail industry."

"At The Kroger Family of Companies, we are proud to provide our associates not only industry-leading pay and benefits, including health care and pensions, but to also be offering upward mobility to all of our valued associates," said Tim Massa, Kroger's senior vice president and chief people officer. "We are proud of our role as a leading employer in the U.S. and remain committed to serving our communities with reliable access to affordable, fresh groceries and other essentials."

Misleading Report from Economic Roundtable & UFCW

The Economic Roundtable published a "survey" – paid for by the UFCW – that was conducted with limited data of select communities to mischaracterize The Kroger Family of Companies workers and their compensation packages in the four Western states, according to Dr. Pham.

When asked about the disappointing claims made by the UFCW and Economic Roundtable, Dr. Pham said, "These critics have unfairly selected partial information, incomplete data, and anecdotes to spread negative and inaccurate details about the compensation and benefits The Kroger Family of Companies provides. Unlike the Economic Roundtable study, our report uses the organization's comprehensive dataset of nearly 85,000 workers at stores in four Western states, which shows the organization's hourly associates have higher compensation rates than their peers."

"Any argument that The Kroger Family of Companies does not pay its workers fairly and top market rate is not supported by actual evidence," Dr. Pham concluded.

"The implication by the Economic Roundtable that The Kroger Family of Companies does not care about the wellbeing of our associates and their families is patently untrue," continued Massa. "I am disappointed the UFCW has chosen to pull together such a misleading and untrue report – which leads me to believe they no longer have our associates' best interests at heart."

Key highlights of the Kroger Stores Benefit Western Communities report  are:

  1. Kroger pays hourly associates more than their peers in the retail industry overall. Currently, Kroger pays an average of $18.27 per hour and spends an additional $5.61 per hour for healthcare and retirement benefits, totaling $23.89 per hour for hourly associates in Western states. Kroger's hourly wages and benefits were higher than the average hourly wages and benefits of all workers in the U.S. retail industry and comparable job functions of the majority of Kroger associates. The wage premiums across Kroger's stores are more recognizable at lower earning groups.
  2. In addition to competitive wages and high-quality benefits, Kroger offers a broad range of employment opportunities for workers of all ages and aspirations. Kroger offers job and career opportunities to underserved populations at its Western stores. The enterprise's values of diversity, equity, inclusion (DEI) are reflected in its workforce. Indeed, Kroger associates are more diverse than state workforces overall.
  3. Kroger's impact extends beyond its stores. Its operations and investments create a ripple effect that generates economic and social benefits for local communities in the West. In total, Kroger's Western stores support 127,374 direct, indirect, and induced jobs and $4.7 billion in wages. These stores generate $62.3 billion in direct, indirect, and induced sales and $8.8 billion in value added to local economies. The enterprise's state and local tax contributions amount to nearly $1.2 billion. A snapshot of Kroger's support to local communities includes $57.5 million in community giving and 26 million donated meals to those in need.

To read the full report, please visit here.

About ndp | analytics
Dr. Nam Pham is Managing Partner and Mary Donovan is Principal at ndp | analytics, an economic research firm based in Washington, DC. The Kroger Company provided financial support to conduct the study. The opinions and views expressed are solely those of the authors.

Founded in 2000, ndp | analytics is a strategic economic and communications research firm. Through the rigor of quantitative analyses, the firm produces reports, creative content, and other research for a diverse group of clients, including trade associations, corporations, law firms, multi-lateral organizations, and government agencies. By uniting this rigorous analysis with clear communication, ndp | analytics turns data into action.

About The Kroger Co.
At The Kroger Co. (NYSE: KR), we are Fresh for Everyone™ and dedicated to our Purpose: To Feed the Human Spirit®. We are, across our family of companies, nearly half a million associates who serve over 11 million customers daily through a seamless shopping experience under a variety of banner names. We are committed to creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.


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SOURCE The Kroger Co.