Kroger Co (KR.N), the biggest U.S. supermarket operator, said more shoppers are coming to its stores to buy natural and prepared foods as well as gasoline amid a slow economic recovery, sending its shares up 2.5 percent.
The company, whose stores include Ralphs and Food 4 Less, has been outpacing rivals such as Safeway Inc (SWY.N) and Supervalu Inc (SVU.N) as it works to keep its prices low while other types of stores, such as Target Corp (TGT.N) and Family Dollar Stores Inc (FDO.N), have added more food to their store shelves.
While higher costs for groceries and gas are behind some of the sales increase, Kroger also said it gained market share as shoppers visited more often, and held its ground in markets where it competes with Wal-Mart supercenters. Wal-Mart Stores Inc (WMT.N) sells more groceries than any other U.S. retailer.
Still, the economic recovery has been slower and weaker than expected, Chairman and Chief Executive David Dillon said.
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