Kroger Announces $130 Million Thank You Pay for Associates,
CINCINNATI, May 15, 2020 /PRNewswire/ -- The Kroger Co. (NYSE: KR) Family of Companies today announced that it will provide a special Thank You Pay to hourly frontline grocery, supply chain, manufacturing, pharmacy and call center associates to acknowledge their dedication to maintaining safe, clean and stocked stores.
"Our associates have been instrumental in feeding America while also helping to flatten the curve during the initial phases of the pandemic. To recognize and thank our associates for their incredible work during this historic time, we offered special pay in March, April and May," said Rodney McMullen, Kroger's chairman and CEO.
"As the country moves toward reopening, we will continue to safeguard our associates' health and well-being and recognize their work. At the same time, we will continue running a sustainable business that provides steady employment and opportunities to learn and grow for over half a million associates."
The Kroger Family of Companies' new $130 million Thank You Pay bookends an Appreciation Pay first provided to frontline workers for their efforts at the start of the pandemic in March. It also follows multiple Hero Bonuses that were paid in April through mid-May, with a final payment by May 23.
The one-time Thank You Pay, which will be $400 for qualified full-time associates and $200 for qualified part-time associates, will be paid out in two installments on May 30 and June 18.
Continues Paid Emergency Leave Guidelines
As part of its ongoing investment in associate and customer safety, the Kroger Family of Companies also announced today that it will continue its COVID-19 Emergency Leave guidelines to provide paid time off to associates most directly affected by the virus or experiencing related symptoms.
"We want our associates to continue to feel supported in prioritizing their health," said Tim Massa, Kroger's senior vice president and chief people officer. "Our associates should only be working if they are healthy and symptom free. By continuing paid emergency leave, our associates most directly affected by the virus or experiencing related symptoms should feel supported in staying home, promoting a safer environment to work and shop in."
The new Thank You Pay of $130 million and extended paid COVID-19 Emergency Leave are in addition to the $700 million the Kroger Family of Companies has invested since March to reward associates and safeguard associates, customers and communities, all of which was contemplated in the guidance provided in a business update on April 1.
Ways the Kroger Family of Companies will continue to invest in, support and protect its associates:
- Offering COVID-19 testing to associates based on symptoms and medical need
- Providing COVID-19 Emergency Leave to associates most directly affected by the virus or experiencing related symptoms and providing paid time off
- Supplying masks for all associates and encouraging them to stay home if they are sick
- Encouraging customers to wear masks in stores, or alternatively, use ecommerce services
- Providing comprehensive benefits packages, including healthcare coverage and retirement benefits
- Offering $5 million through the organization's Helping Hands fund to provide financial support to certain associates experiencing hardships due to COVID-19, including childcare costs
- Making mental health resources readily available
- Continuing implementation of customer capacity limits and special shopping hour for senior shoppers and higher-risk customers
- Continuing the use of plexiglass partitions and physical distancing floor decals
- Expanding contact-free payment solutions like Scan, Bag, Go and Kroger Pay
- Offering a no-contact delivery option, low-contact pickup service and ship-to-home orders
To download Kroger photography and b-roll assets, visit here.
This press release contains certain statements that constitute "forward-looking statements" about the future performance of the company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by words or phrases such as "guidance." Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings as well as the following:
- Kroger's ability to achieve sales, earnings, incremental FIFO operating profit, and adjusted free cash flow goals may be affected by: labor negotiations or disputes; changes in the types and numbers of businesses that compete with Kroger; pricing and promotional activities of existing and new competitors, including non-traditional competitors, and the aggressiveness of that competition; Kroger's response to these actions; the state of the economy, including interest rates, the inflationary and deflationary trends in certain commodities, changes in tariffs, and the unemployment rate; the effect that fuel costs have on consumer spending; volatility of fuel margins; changes in government-funded benefit programs; manufacturing commodity costs; diesel fuel costs related to Kroger's logistics operations; trends in consumer spending; the extent to which Kroger's customers exercise caution in their purchasing in response to economic conditions; the uncertain pace of economic growth; changes in inflation or deflation in product and operating costs; stock repurchases; Kroger's ability to retain pharmacy sales from third party payors; consolidation in the healthcare industry, including pharmacy benefit managers; Kroger's ability to negotiate modifications to multi-employer pension plans; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events, including the coronavirus; the potential costs and risks associated with potential cyber-attacks or data security breaches; the success of Kroger's future growth plans; the ability to execute on Restock Kroger; and the successful integration of merged companies and new partnerships. Our ability to achieve these goals may also be affected by our ability to manage the factors identified above. Our ability to execute our financial strategy may be affected by our ability to generate cash flow.
- Kroger's ability to achieve these goals may also be affected by Kroger's ability to manage the factors identified above.
About The Kroger Co.
At The Kroger Co. (NYSE: KR), we are Fresh for Everyone™ and dedicated to our Purpose: To Feed the Human Spirit®. We are, across our family of companies, nearly half a million associates who serve over 11 million customers daily through a seamless shopping experience under a variety of banner names. We are committed to creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.
View original content to download multimedia:http://www.prnewswire.com/news-releases/kroger-announces-130-million-thank-you-pay-for-associates-continues-paid-emergency-leave-301060267.html
SOURCE The Kroger Co.