Apr 14, 2017
In a March 30th article by Mark Hamstra in Supermarket News, leading chains intend to throttle back capital expenditure during the coming year based on expectations of continued food deflation and lower traffic.
Kroger Company will reduce capital expenditure from $3.7 billion in fiscal 2016 to $3.2 billion in fiscal 2017. There will be a 35 percent reduction in new-store development with 55 projects planned compared to 85 in fiscal 2016.
The company will implement 175 major remodels but will invest in digital technology and project which will improve efficiency. Michael Schlotman, Executive Vice President and CFO stated recently, “Capital expenditures in 2017 will be focused on sale-generating initiatives, remodels, upgrades to our logistics network and merchandising systems and digital and technology initiatives.