Kroger plans to offer more financial products
By Jessica Wohl
CHICAGO, June 28 (Reuters) - Kroger Co. (KR.N) plans to start selling more financial products at its supermarkets later this year, Chief Executive David Dillon said at the company's annual meeting on Thursday.
A shareholder also asked about talk that Kroger could be a takeover target, a suggestion that Dillon once again rebuffed.
In April, Dillon said Kroger was not interested in a leveraged buyout deal after a Wall Street Journal article said private equity firms were eyeing the Cincinnati-based grocer.
Kroger, the largest U.S. grocer, wants to continue to grow on its own, Dillon told shareholders on Thursday.
"I just want Kroger to stay independent," the questioning shareholder responded after Dillon's reply, sparking applause from the audience.
Shares of Kroger were up 1 percent at $28.54 in afternoon trade on the New York Stock Exchange after rising as high as $28.63 earlier in the session. The shares have risen nearly 39 percent over the past year.
Kroger Personal Finance already offers items such as a MasterCard that gives users rewards, including discounts on gas purchases. Dillon said there were applications for the credit card in the room where the annual meeting was held, so any shareholder who wasn't already a cardholder -- like him -- could sign up.
Kroger currently sells items such as pet insurance, mortgages, home equity lines of credit and identity theft insurance. Dillon said the company plans to introduce new financial products but did not indicate what those products might be.
The company is also trying to attract more shoppers with items such as a new fat-free milk that helps block cholesterol absorption. The milk, being sold under the company's Active Lifestyle brand, is hitting stores this week. [ID:nWNAS4945]
A shareholder proposal asking the company to prepare a report on how it is responding to pressure to address climate change was defeated.
A member of People for the Ethical Treatment of Animals and a member of the Humane Society asked Dillon about the way that some of Kroger's suppliers treat animals, such as keeping hens confined in small cages.
Dillon said standards have improved over the last few years.
On Tuesday, Kroger posted a weaker-than-expected increase in quarterly profit due to a work stoppage at a distribution center, maintained its earnings forecast for the year, and stepped up its share repurchase plans. (Reporting by Jessica Wohl)
