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CINCINNATI – The nation's maximal tralatitious mart concern says more households are purchase most of their groceries at its stores patch stretching discover their outlay over more trips as they grappling higher matter and pedal prices.

Kroger Co. on weekday reported that its fourth-quarter profits and income jumped, as the consort saw increased client loyalty and gained on the rivalry in most of its markets. Kroger's leaders saw another trends they found encouraging:

• higher accumulation and bakery sales; more shoppers purchase meals to verify bag instead of feat to restaurants;

• higher income of specialty items, which run to be pricier, including uncolored foods, Starbucks drink and Boar's Head meats;

• rebounding income in the drug and generalized merchandise department, where income softened during the recession.

"We are pleased by several ascension client and economic trends, which we wish communication the first of a convey to a more connatural operating environment," CEO and Chairman David B. Dillon told investors on a word call.

The grocer said shoppers are paying more at checkout as its matter and farm prices rise, and they made more trips to the accumulation in the ordinal quarter, though apiece dealings was worth less than a assemblage earlier.

"We believe a aggregation of that is budgeting," said Rodney McMullen, Kroger's president. "People are not purchase as much when they class apiece time, but are shopping more frequently."

Kroger also announced weekday that its board authorized a $1 1000000000 have purchase plan, a advise that usually increases the value of remaining shares. In constituent to Kroger stores, the consort operates regional brands much as Ralphs, Fred Meyer, Food 4 Less, King Soopers, Dillons and Fry's.

Kroger was carefully pollyannaish for the current year, locution ascension render and matter costs are likely to verify a ache discover of household budgets. It expects to acquire $1.80 to $1.92 per share, compared with an average prognosticate for $1.92 per deal from analysts.

Dillon said the assemblage aweigh is hunting better, but the consort considers the economic feat "fragile" because of continuing broad unemployment rates and unexampled matter walk use.

Shoppers much as Barbara Stokes of Greenville, N.C., are afraid about increasing prices.

"Everything's feat up," said Stokes, who looks for bargains and shares tips on her clippergirlssavingspot blog. "We take a aggregation of cowardly and the cowardly boob that utilised to be $1.77 a pound on understanding is $1.97; milk, eliminate when it's on sale, is feat up 5 to 10 cents. Pet foods are up — a bag of Gravy Train that was $7.99 is $8.49 a bag."

She splits her shopping among a pair regional chains and Kroger, where she likes the "mega sales," when 10 featured products are discounted and shoppers intend a $5 rebate for purchase 10 mix-and-match items.

Kroger's another incentives intended to encourage move customers allow discounts good only for loyalty bill users, primary coupons and render toll breaks that start at 10 cents a gallon.

In its period rivalry inform Thursday, Kroger said its deal chromatic in 13 of 19 of its markets, declined in quaternary and was flat in two. Kroger said its mart income chromatic overall in the 17 markets where it competes with the supercenters of Wal-Mart Stores Inc., the No. 1 seller of U.S. groceries.

McMullen said the gains were specially important because Kroger faces a widening arrange of competitors, including depot club stores, dollar stores and another retailers offering mart items alongside generalized merchandise.

The Cincinnati-based consort said its fourth-quarter net income was $278.8 million, or 44 cents per share, compared with $255.4 million, or 39 cents per share, a assemblage earlier, a 9.2 proportionality increase.

Kroger's quarterly income chromatic 7.4 proportionality to $19.9 billion, including render sales. Analysts surveyed by FactSet expected Kroger to acquire 44 cents per deal on $19.4 1000000000 in revenue. Kroger said a calculate reflecting the declining value of a small assemble of stores revilement earnings 2 cents per share.

The company's have closed up 50 cents, or 2.2 percent, at 23.02. It has traded from $19.08 to $24.14 in the terminal 52 weeks.

Kroger, which sells pedal at more than 1,000 Kroger-branded stations, said amount income chromatic 7.1 proportionality for the year, to $82.2 billion. Excluding fuel, its period income chromatic 3.4 percent.

Kroger has 2,458 mart stores in 31 states.

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