• June 25, 2008

Kroger, the Cincinnati, Ohio-based supermarket chain, says its first-quarter sales jumped 11.2% and that net earnings reached $386 million --a record, up from $336.6 million in the year-ago period.

And while higher fuel prices factored in--identical supermarket sales were up 9.2%, including gas--sales were strong even without gas: Excluding fuel, identical-store sales gained 5.8% in the quarter.

The company attributed the strong results to consumers' increased motivation to watch their grocery budget. "Kroger continues to help customers stretch their budgets in a number of ways, including lower prices and our expanded generic drug and gas discount programs," the company says in its earnings announcement. "Through these kinds of price reductions, our customers are saving $1 billion annually."

--Sarah Mahoney