Its going to happen because of a simple model they use to fuel their stores. They're banking and relying that part time employees is a more effective model than full time employees. The thing about part time employees is they're more likely to call in on the weekends than a full time employee. I heard a manager tell me yesterday she had alot of people call in at work. I believe in the end when they reduce full time employees and have more part time employees they won't have the manpower to stock our stores. I'd hate to think what will happen when HEB comes into the area and they find out that they pay alot more than what Kroger currently pays. What will happen when their full time employees start leaving for a pay raise?
Good points. I'm seeing a LOT more Kroger salaried managers hustling the freight now, including on over nights. After all, they are salaried; no concerns about over time for them.
If HEB moves into the area, Kroger will die. HEB is a South Texas store and is very strong. Wal-Mart is their only competition, if you want to call it that. However, HEB doesn't exactly shell out the big bucks to their employees either, but it's better than what Kroger pays. Management makes decent money though.
HEB competes at 2 levels: typical grocery stores (HEB) and high-end (Central Market). Central Market competes with Whole Foods. At Central Market, they have very large service counters. To serve customers, you must 'take a number.' Seriously. They do have some nice products in there though; it's hard not to buy something if you can actually afford it. Store layout sucks. You must walk through the entire store to get out.
-- Edited by T-Bone on Tuesday 17th of July 2012 09:20:13 PM
