The Cincinnati Business Courier reports that some 1300 Kroger employees have decided to accept early buyout packages; the company announced last December that it was offering early retirement to about 2,000 non-store employees.
According to the story, "This was the first time Kroger has offered a voluntary workforce reduction package. It did cut employment in 2001, but those job cuts weren’t voluntary."
This move is part of a broader cost-cutting initiative at the retailer, which is trying to lower administrative costs. "That’s vital," the story says, "as Kroger and virtually all other supermarkets are battling the effects of food price deflation, which cuts into their sales and profits. Kroger had its industry-leading streak of 52 consecutive quarters posting same-store sales growth snapped last quarter. Food price deflation was largely to blame."
According to the story, "This was the first time Kroger has offered a voluntary workforce reduction package. It did cut employment in 2001, but those job cuts weren’t voluntary."
This move is part of a broader cost-cutting initiative at the retailer, which is trying to lower administrative costs. "That’s vital," the story says, "as Kroger and virtually all other supermarkets are battling the effects of food price deflation, which cuts into their sales and profits. Kroger had its industry-leading streak of 52 consecutive quarters posting same-store sales growth snapped last quarter. Food price deflation was largely to blame."
- KC's View:
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Part of being a leader is knowing when to take your medicine, even if it doesn't taste great. Part of being a retail leader is knowing that you have to make stores a priority - staff cuts are best started at headquarters.
