Kroger’s ad business sees most profit growth since 2021
Retail media is becoming increasingly critical to one of the nation's largest grocery chains as Kroger reported its best retail media profit growth since 2021.
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Retail media is becoming increasingly critical to one of the nation’s largest grocery chains. Profit for the Kroger Precision Marketing advertising business grew 24% in the second quarter, according to Kroger’s latest financial earnings release.
This marks the company’s best retail media profit growth since 2021, CEO Greg Foran told investors on a conference call Friday morning. Media monetization grew 88 basis points over the past year, Foran said. Meanwhile, e-commerce sales grew 20%, marking the second consecutive quarter of profitable e-commerce growth, the company said.
Foran brought up e-commerce and retail media within the first few sentences of Friday’s earnings call, before any mention of traditional merchandising. The fact that retail media profits are a central point in a major retailer’s earnings conversation shows how important the sector has become in retailers’ overall strategies.
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This briefing is based on reporting from Modern Retail. Use the original post for full primary-source context.
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