Kroger closes 2 Southern California stores over $4 per hour 'hero pay' ordinance

[El OchoCinco]

So if you were the CEO, would you subsidize these underperforming stores with the profits from other stores?
$15 to $15.50 is just over a 3% raise.
$15 to $19 is over 25%

The argument was that stores cannot raise salaries because it eats into profits. Krogers made $2.9 billion last year and raised salaries across the board.

these specific stores were already underperforming and losing money but the idea that Kroger closed them simply because paying workers more is bad for business... Krogers did the opposite across the board.

Most of the employees at the closed stores were going to be moved to other places so salaries were not really being cut, just moved elsewhere.

 

[Ricter]

I remember when US business was "going to be destroyed" by the handicap access laws.

 

[Tsing Tao]

Republicans are confused. They think corporations can't adjust to increased costs.

Not at all. Corporations adjust constantly and efficiently to increased costs. The adjustment here is to close the store in the region/area that caused the costs to increase beyond acceptable levels.

Perhaps you don't like the way they adjusted?

 

[Ricter]

Not at all. Corporations adjust constantly and efficiently to increased costs. The adjustment here is to close the store in the region/area that caused the costs to increase beyond acceptable levels.

Perhaps you don't like the way they adjusted?

Besides those two Kroger's stores there are more than a dozen other grocery stores in Long Beach City, which appears to be a suburb, and all of them have to pay hero pay now, too. As of March so do the stores in LA proper. Level playing field, so if they can't increase prices to preserve their margin, like their competition has, apparently, then as 85 mentioned they were on their way out already anyway.

 

[DiceAreCast]

It's completely irrelevant what Kroger makes company wide. They can shut any store they like if it does not appear profitable enough or if they want to send warning shots to copy cat councils. Or they can shut for whatever other reason they like. Their own decision. Bravo Kroger for this move. Those communist enforcements will only push up prices further for everyone. All those additional costs are taken out of OUR pockets to line those of those fucking councils. A tax raise effectively.

Dont believe everything you read.....Poor Kroger.. those stores were underperforming but when you look at the entire Kroger portfolio as income and earnings are consolidated it does not fit the narrative.

I don't believe in the HERO PAY ordinance either just to be clear but this story does not support not raising wages. Kroger already did on its own and still has $2.6 billion in PROFITS.

Kroger is making way more money AND raised salaries.

Kroger's total sales surged 8.4% to $132.5 billion in pandemic-ravaged 2020 – tallying extra receipts to add the equivalent of nearly two Fortune 500 companies to its total revenues.

The Cincinnati-based grocer also posted a $2.6 billion profit for the year, a 5.6% increase. A key sales metric, identical sales without fuel, increased 14.1% in 2020.

Kroger also updated its average hourly pay for its workers. The company said that rose to $15.50 in 2020, up from $15 per hour. The grocer said it spent $300 million in 2020 to boost regular wages to its associates.

Looking ahead, Kroger said it plans to spend an extra $350 million in 2021 to boost overall wages, but did not provide a forecast for increasing average hourly



Seems Kroger has no issue with increased salaries with all the billions in profit, they just object to being told to do so by the City Council.

Kroger is not suffering financially AND pays its workers $15 an hour yet still makes billions...

go figure...making more money and giving workers higher pay.

 

[DiceAreCast]

They do adjust, and you pay the difference. Makes sense?

Republicans are confused. They think corporations can't adjust to increased costs.

 

[DiceAreCast]

Look where this got us. Many products on Amazon are a multiple the price of just a year or so ago. Companies pass through those cost to consumers. Near instantaneously.

I think most of you are confused with no business background. Corporations always adjust to increased costs across the board. Costs have icnreased significantly due to logistics issues with COVID.

Kroger has $2.6 billion in PROFITS and on their own accord raised worker salaries to the tune of 9 figures. So Korger proves what you said is untrue.

All Kroger is doing is closing underperforming stores but they are not avoiding raising salaries in the economic boom they enjoyed in 2020. Those stores could be near tons of competitors or are old and outdated or for whatever reason. the hero pay thing might have just been the final nail in the coffin but Kroger was agreeing to transfer employees elsewhere.

 

[DiceAreCast]

Or the cost of looting and mongrels lining up with their fucking foot stamps, much higher theft rates, violent incidents, people touching shit without buying as if they are in Africa to such degree the produce has to be thrown away. Or communist leftist city councils with their exorbitant demands.

Name me one single reason why you would want to open a new supermarket branch anywhere in downtown America today.

Are there no other grocery stores, besides Kroger's, in the neighborhood? I have heard that many poor neighborhoods are "food deserts" because no grocery store can be profitable there. Maybe the problem is food safety regulations and the costs those add to business.

 

[DiceAreCast]

Yeah you should definitely not cut any bad or money losing habits because bottom line you still are net profitable. Quite a stupid argument. As Tao pointed out companies operate store by store, Apple closes and opens different stores all the time even though they make billions. What concept of this does not compute?

The argument was that stores cannot raise salaries because it eats into profits. Krogers made $2.9 billion last year and raised salaries across the board.

these specific stores were already underperforming and losing money but the idea that Kroger closed them simply because paying workers more is bad for business... Krogers did the opposite across the board.

Most of the employees at the closed stores were going to be moved to other places so salaries were not really being cut, just moved elsewhere.

 

[Ricter]

It's completely irrelevant what Kroger makes company wide. They can shut any store they like if it does not appear profitable enough or if they want to send warning shots to copy cat councils. Or they can shut for whatever other reason they like. Their own decision. Bravo Kroger for this move. Those communist enforcements will only push up prices further for everyone. All those additional costs are taken out of OUR pockets to line those of those fucking councils. A tax raise effectively.

The federal minimum wage has been raised 22 times in our history, and yet we still have stores. More than ever.

You're thinking is cartoonish.