CINCINNATI, May 14, 2020 /PRNewswire/ -- The Kroger Family of
Companies (NYSE: KR) today announced it has hired more than 100,000
workers in the past eight weeks, including those from the
hardest-hit sectors like restaurants, hotels and food service
distributors. Prior to the crisis, Kroger's
workforce topped 460,000 associates and recent hiring
efforts have helped the retailer to
provide continuous access to fresh, affordable food and
essential products to communities during the pandemic.
"Throughout the pandemic, Kroger's top priority has been to
provide and maintain a safe environment for our associates and
customers with open stores, comprehensive ecommerce solutions and
an efficiently operating supply chain," said Rodney McMullen, Kroger's chairman and CEO.
"Since March, we have invested to reward our associates and
safeguard our associates, customers and communities."
The Kroger Family of Companies has invested $700 million since March to reward associates and
safeguard associates, customers and communities, all of which was
contemplated in the guidance provided in a business update on
April 1.
"In the coming months, we know that our associates' needs will
continue to evolve and change, and our commitment is that we will
continue to listen, be responsive and make decisions that advance
the needs of our associates, customers, communities and business,"
continued McMullen.
Expedited Hiring and Onboarding Process
The Kroger
Family of Companies initiated its expedited hiring process in
early March to shorten the time between application and employment,
onboarding new hires in an average of 72 hours. Kroger also
adjusted its new hire approach to focus on tasks vs. role-based
development, concentrating on culture and safety. This adjustment
allows new hires to more quickly acclimate to their role and
expectations.
The expedited hiring and onboarding process also reinforced
Kroger's continued focus on associate and customer safety,
directing immediate support to the expansion of Kroger Pickup availability, as well as enhanced
cleaning and sanitization practices in its stores and
facilities.
"During these uncertain times, we're humbled to be able to
provide new career opportunities to workers in the
industries most affected by this pandemic," said Tim Massa, Kroger's senior vice president and
chief people officer. "Through our expedited hiring and onboarding
process and cross-sector partnerships, we've welcomed more than
100,000 new associates to the Kroger Family of Companies in roles
across our retail stores, ecommerce business, manufacturing
facilities and distribution centers."
In March, Kroger formed employment partnerships with local,
regional and national businesses to create a shared-resource model
that temporarily flexes employees to Kroger roles, ensuring the
food supply chain continues without disruption. Current partners
include Frisch's, Marriott International, McLane Foodservice,
Shamrock Foods, Sodexo, SodexoMAGIC, Sysco, Thunderdome Restaurant
Group, US Foods, Waffle House and more.
Open roles remain nationwide across Kroger's retail stores,
ecommerce business, manufacturing facilities and distribution
centers. Candidates may apply via jobs.kroger.com.
Kroger's Long-term Commitment to Raising Wages, Associate
Benefits
In 2017, the organization launched Restock
Kroger and announced that it would invest $500 million in associate wages as part of its
business plan between 2018 and 2020.
As a result of this continuing investment in wages, Kroger has
increased its average rate to over $15 per hour. As stated in November 2019, Kroger expects over the three-year
time period to spend approximately $800
million in associate wage investments, which excludes the
aforementioned COVID-19 associate investments.
"We provide our associates with health care and retirement
benefits that many of our competitors do not offer their employees.
This was true prior to the pandemic and remains true today,"
continued Massa. "Kroger also provides retirement benefits in the
form of pension investments for many of our frontline associates,
which fewer than 9% of U.S. companies provide. With health care and
retirement benefits factored in, Kroger's average hourly rate grows
from $15 to well over $20."
In 2018, Kroger established Feed Your Future, an
industry-leading education assistance program that offers
associates—full or part time—up to $3,500 annually ($21,000 over the course of employment)
toward continuing education and development opportunities including
a high school equivalency exam, professional certifications and
advanced degrees. Since launching, more than 5,000 associates have
participated in the program, with 87% being hourly store
associates. To date, Kroger's investment in Feed Your Future
surpasses $8 million.
Ways Kroger will continue to invest in, support and protect
its associates:
- Offering COVID-19 testing to associates based on
symptoms and medical need
- Providing Emergency Leave to associates most directly affected
by the virus or experiencing related symptoms and providing paid
time off
- Supplying masks for all associates and encouraging them to stay
home if they are sick
- Encouraging customers to wear masks in stores, or
alternatively, use ecommerce services
- Providing comprehensive benefits packages, including healthcare
coverage and retirement benefits
- Offering $5 million through
the organization's Helping Hands fund to
provide financial support to certain associates experiencing
hardships due to COVID-19, including childcare costs
- Making available mental health resources
- Continued implementation of customer capacity limits and
special shopping hour for senior shoppers and higher-risk
customers
- Continued plexiglass partitions and physical distancing floor
decals
- Expanding contact-free payment solutions like Scan, Bag, Go and
Kroger Pay
- Offering a no-contact delivery option, low-contact pickup
service and ship-to-home orders
Sharing What We've Learned: A Blueprint for
Businesses
As businesses across America begin to reopen, Kroger has created a
resource guide that includes actionable recommendations and
learnings the organization has applied in the last eight
weeks to safeguard its associates, customers, and communities, as
well as what it has learned through regular interaction with
business leaders in other countries that are ahead of the U.S. in
terms of the pandemic cycling through their countries. Today,
the organization is releasing its fifth installment
of Sharing What We've Learned: A Blueprint for
Businesses, focusing on protection of the supply chain.
The resource is available to download
at KrogerBlueprint.com.
To download Kroger photography and b-roll assets,
visit here.
This press release contains certain statements that constitute
"forward-looking statements" about the future performance of the
company, including with respect to Kroger's investment in associate
wages. These statements are based on management's assumptions and
beliefs in light of the information currently available
to it. Such statements are indicated by words or phrases such as
"expect and "guidance." Various uncertainties and other
factors could cause actual results to differ materially from those
contained in the forward-looking statements. These include the
specific risk factors identified in "Risk Factors" in our annual
report on Form 10-K for our last fiscal year and any subsequent
filings as well as the following:
•Kroger's ability to achieve sales, earnings, incremental FIFO
operating profit, and adjusted free cash flow goals may be affected
by: labor negotiations or disputes; changes in the types and
numbers of businesses that compete with Kroger; pricing and
promotional activities of existing and new competitors, including
non-traditional competitors, and the aggressiveness of that
competition; Kroger's response to these actions; the state of the
economy, including interest rates, the inflationary and
deflationary trends in certain commodities, changes in tariffs, and
the unemployment rate; the effect that fuel costs have on consumer
spending; volatility of fuel margins; changes in government-funded
benefit programs; manufacturing commodity costs; diesel fuel costs
related to Kroger's logistics operations; trends in consumer
spending; the extent to which Kroger's customers exercise caution
in their purchasing in response to economic conditions; the
uncertain pace of economic growth; changes in inflation or
deflation in product and operating costs; stock repurchases;
Kroger's ability to retain pharmacy sales from third party payors;
consolidation in the healthcare industry, including pharmacy
benefit managers; Kroger's ability to negotiate modifications to
multi-employer pension plans; natural disasters or adverse weather
conditions; the effect of public health crises or other significant
catastrophic events, including the coronavirus; the potential costs
and risks associated with potential cyber-attacks or data security
breaches; the success of Kroger's future growth plans; the ability
to execute on Restock Kroger; and the successful integration of
merged companies and new partnerships. Our ability to achieve these
goals may also be affected by our ability to manage the factors
identified above. Our ability to execute our financial strategy may
be affected by our ability to generate cash flow.
•Kroger's ability to achieve these goals may also be affected by
Kroger's ability to manage the factors identified above.
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.