Kroger, the second-largest grocery retailer in the US, has reported record sales in 2017.
In 2017, the grocery chain reported a total of 3.07 million sales, a 14% increase from the previous year, the company said in a statement.
That’s a record for the company, and is the highest year-over-year increase Kroger has posted in nearly a decade.
“The growth in our business is the result of consumers using our stores to buy the products they need and want, while also finding value in our services and our team,” Kroger CEO and co-founder Fred Smith said in the statement.
The company’s growth is being driven by a growing number of customers buying items online.
Kroger said in its statement that the online shopping was the third largest source of revenue for the grocery company in 2017, after retail sales and restaurant sales.
Online shopping has grown more than 20% in the past five years, the biggest increase in the company’s history.
Krogers customers, including millennials, have become increasingly interested in shopping online, according to Smith.
Kroglers sales were up 13% in 2017 compared to the same period last year, while its average weekly shopping time was up nearly 13%.
“Kroger’s customers have found that online shopping is a great way to save money on groceries, and the Kroger team is always looking for ways to increase the value of our services to keep our customers coming back for more,” Kroghers general manager of online and e-commerce business, Julie Schonfeld, said in an email.
“Kruger is a leader in online grocery shopping, and this year’s record number of sales demonstrates that our customers are buying and enjoying our products, while being able to buy them at the same time.”
Krogers biggest challenge is convincing people to buy online and get rid of paper.
Krogs customers have been skeptical about the convenience of paper grocery receipts, and Kroger says the trend is changing.
“Our customers are not only getting a more convenient way to pay for groceries, but they’re also spending more money,” Schonfield said.
“Our focus is on growing the customer base through the convenience and convenience of the digital checkout process, and we’ll continue to grow our business to deliver the most value to our customers.”