Dive Brief:
- Kroger credited improved experiences, including reduced wait times and more orders fulfilled without substitutions, for 8% year-over-year digital sales growth, executives said on a Q1 2024 earnings call Thursday.
- Associates powered record high customer experience metrics for online and in-store transactions alike, according to CEO Rodney McMullen. The grocer improved CX tech while also improving wages and benefits for better employee retention.
- “We'll continue to invest in our associates,” McMullen said during the call. “When our associates have a better experience, they provide a better experience to our customers.”
Dive Insight:
Associates, working in tandem with technology, are creating better experiences across Kroger’s operations, from faster order fulfillment to better in-stock rates.
Kroger’s investments in machine learning and AI are paying off for the in-store pickup experience, according to McMullen. The time it takes to prepare an order for pickup has been “dramatically reduced” at Kroger’s busiest stores.
Kroger’s top priority for its digital business is to maintain high NPS scores. High scores lead to repeat orders, which can generate further sales increases, McMullen said.
Sales growth at stores open for at least 12 months was less than 1%, but better in-stock rates and other experiential improvements led to more traffic in stores. Kroger’s future brick-and-mortar results will benefit from experienced associates and better technology.
“Every day we strive to provide an outstanding customer experience, and we are focused on sharpening our store execution to do just that,” McMullen said.
