Earnings Preview: Kroger Co.

DAN SEWELL

CINCINNATI (AP) — The Kroger Co. reports first-quarter earnings Tuesday before the market opens. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Cincinnati-based Kroger, the nation's largest traditional grocery chain, has picked up sales in the recession from the many households that have cut restaurant spending and are eating at home more and eating more frugally.

Chairman and CEO David B. Dillon said in an interview early in the quarter that people are buying what they need, not what they want, which he said puts Kroger in a strong position.

Sales for its store brands, usually priced below national brands, have been rising, as have sales for prepared meals and deli foods. The company has expanded coupons and "10-for-$10" sales in which shoppers can mix and match items such as half-gallons of orange juice or paper towel rolls for $1 each.

Kroger operates some 2,500 supermarkets and multi-department stores in 31 states, under two dozen local banners that include Ralphs, Fred Meyer, Food 4 Less, Fry's, King Soopers, Smith's, Dillons, QFC and City Market.