Kroger Could Grow By Building Stores, Not Just Buying Them

Kroger Co. will look at growing by building its own stores just as much as buying them, CEO David Dillon told a group of investors and analysts last Wednesday at the company’s investor conference.

“We look at M&A (mergers and acquisitions) as one of the vehicles we can use to go into new markets and one of the vehicles that can add fill-in,” Dillon said. “There’s not a preference. Sometimes you have a choice and sometimes you don’t. We pick a strategy based on the fact of the situation.”

Mike Ellis, Kroger’s (NYSE: KR) senior vice president of retail divisions, added that Kroger CFO Mike Schlotman has told company executives that as long as the financial performance of new stores can meet Kroger’s targets, it doesn’t matter which route it takes to expand. Ellis will become president and COO on Jan. 1, when Rodney McMullen takes over for the retiring Dillon as CEO.

To read the rest of the story, please go to: Cincinnati Business Courier