September 6, 2012

Kroger Hits Sustainability Milestones

Energy savings, waste reduction and community involvement are spotlighted in The Kroger Co.’s sixth annual sustainability report, in which the grocer details how it has met annual sustainability benchmarks.

“Kroger associates embrace sustainability in their everyday business practices,” said David B. Dillon, Kroger’s chairman and CEO. “In 2011, our stores saved enough energy to power every single-family home in Columbus, Ohio, for a single year. We’re proud to have donated the equivalent of 160 million meals to local food banks through our partnership with Feeding America, placing us among the top-tier donors. We continue our commitment to help make the world a better place in a variety of ways.”

Highlights of the complete report include the following environmental and social sustainability progress in 2011:

- Kroger has saved more than 2.34 billion kilowatt hours of electricity, which equals 1.47 million metric tons of greenhouse gas emissions. That equates to taking more than 292,000 cars off roads for one year. Today, one of Kroger's new stores will consume 30% less energy than a store built in 2000. Kroger has reduced energy consumption thanks to increased use of LED lighting, motion sensors, skylights and control systems that monitor lighting, heating and cooling and refrigeration. Kroger increased fleet efficiency by 9.75% in the past year, and by 25.5% since 2008.

- In 2011, the company’s Ralphs/Food 4 Less Division designed and built a unique resource recovery system, which is expected to convert 55,000 tons of unsold organics, annually, into renewable energy that will power its own facility. Also last year, 19 of Kroger’s 39 manufacturing plants sent “zero waste” to landfills. Kroger stores, manufacturing facilities and distribution centers recycled more than 1.1 billion pounds of corrugated cardboard and paper. Improved bagging techniques and increased use of reusable bags have prevented approximately 1 billion plastic bags from being used since 2008. In 2011, Kroger sold and provided customers with more than 5.3 million reusable bags, an average of 14,200 per day

http://www.progressivegrocer.com/top-stories/headlines/corporate-responsibility/id36180/kroger-hits-sustainability-milestones/

September 5, 2012

Consumer Fees Unrelated to Swipe Fees: Survey

Despite industry claims, the monthly service fees banks charge consumers are not related to debit swipe fees, according to the Merchants Payments Coalition (MPC), which has analyzed new data from moneyrates.com and Bankrate.com.

Since the passage of the Durbin Amendment last October, banks and credit card issuers have said that the newly imposed debit card swipe fee reductions have forced them to raise the fees they charge consumers for services such as checking accounts, but MPC’s examination of the data revealed the opposite.

“Swipe fees have tripled over the last decade, but that certainly hasn’t resulted in consumer checking fees getting cut by a similar amount,” noted Tom Wenning, EVP and general counsel of the Arlington, Va.-based National Grocers Association (NGA), one of the member associations of MPC, a group of retailers, supermarkets, drug stores, convenience stores, fuel stations, online merchants and other businesses working for a more competitive and transparent card system.

In fact, Bankrate.com surveys show that swipe fees and checking account fees have risen in tandem for six consecutive years. From 2005 to 2011, checking fees increased from $11 to $14 on average, while swipe fee revenues ballooned from about $30 billion to $60 billion.

http://www.progressivegrocer.com/top-stories/headlines/industry-intelligence/id36170/consumer-fees-unrelated-to-swipe-fees-survey/

September 5, 2012

Supervalu to Close 60 Underperforming Stores

Supervalu Inc. will close 60 underperforming or non-strategic stores this fiscal year, including 38 in its retail food reporting segment and 22 Save-A-Lot locations.

In the latest move since the ouster of former boss Craig Herkert and the announcement of restructuring plans, the company estimates the closures will generate $80 million to $90 million over the next three years from monetizing owned real estate, eliminating cash operating losses and selling departmental assets. Supervalu owns the real estate for about a third of the stores being closed. Proceeds will be used to reduce outstanding debt and for other general corporate purposes.

The majority of the stores are expected to close before Dec. 1, the end of Supervalu’s fiscal 2013 third quarter.

“These decisions are never easy because of the impact a store closure has on our team members, our customers, and our communities,” said Wayne Sales, Supervalu president, CEO and chairman, adding that the move “reflects our commitment to move with a greater sense of urgency to reduce costs and improve shareholder value.”

Closures will include include 27 Albertsons stores (19 in Southern California, including one previously announced location, and eight in the Intermountain West region), four Acme stores and one previously announced Jewel-Osco location.

http://www.progressivegrocer.com/top-stories/headlines/industry-intelligence/id36181/supervalu-to-close-60-underperforming-stores/