Tough Times

The tough economy hit closer to home last night after Debbie talked to some very good friends of ours from when we lived in Dunn, N.C.. Ronald is in the building supply business and has been for his whole adult life. His wife told us last night that they had been hit hard and were having to take out a equity line on their house just to make ends meet. It struck me that their story could just as easy be my story. While people need to eat and I am in the grocery business, God reminded me very clearly to be thankful in all things and to count my blessings one by one each and every day. There is nothing that "exempts" our industry from a sluggish economy. Actually our industry is one of the most competitive industries in America with everyone vying for the grocery dollar. Think about it! You have drugstores on every corner and they have all started selling groceries as well. You can now buy soft drinks at Home Depot and Lowes. Don't forget the warehouse clubs like Sam's, Costco, and BJ's. There are convenience stores built on top of convenience stores. Our profits are constantly under attack because of increased costs of petroleum based products and the costs of raw food products. Being a publicly traded company, Wall Street is always looking for improved balance sheets to push investors towards one company versus another. Additionally, like the auto industry, Kroger is somewhat manipulated by labor unions which also forces our costs in doing business up versus most of our competitors. Nothing will surprise me!! I expect a notification at anytime that the Company will issue buyout options to mid-level management to cut costs.
I am thankful that I have longevity. I am thankful I am fully vested in our pension program. I am thankful that I was wise enough to fully fund my 401K plan starting back in 1988. I am thankful that we have been more frugal than not. I am thankful that Debbie has a good job. I am thankful that God has smiled on us.
I am thankful for our friends, Ronald and Vicki Dupree. My prayer is that through the storm they find themselves in, that they continue to lean on our heavenly Father and find refuge in His love for them that has no bank balance.