Tuesday, December 06, 2005

Kroger Rings Up a Profit Dispite the High Oil Prices

According to CNNMONEY, Kroger's third quarter profits rose nearly thirty percent. I kind of find this a little peculiar since all that people talked about when the country was experiencing such high energy prices and when the oil companies were reporting record earnings, was that the other markets such as grocers and merchants like Krogers and WalMart would suffer the worst from these prices. This goes to show that Americans did not seem to adjust their spending due to the high energy prices and seemed to react totally opposite of what was expected. How do you explain this? And why does the market get so out of whack when oil prices sky rocket? It has always been amusing to me to watch these people freak out, but then everything seems to always work out fine.

1 comment:

Rita Soworowski said...

Seeing that Krogers is a store that is mostly in smaller citys it is expected that even with the rise in gas prices that people will take time to run to the corner store,(Krogers), for food. People are not going to cut on using fuel becuase it is in their own self intrest to eat, to buy things, and to get out of the house. Most people do not think of how much gas they are spending when they go to the store.