Ralphs is selling gas*

kroger.jpgThe superrmarket chain has opened four stations in Southern California, though so far none of them is super local local (Lake Balboa, Corona, Murrieta, and Rancho Cucamonga). As with Costco and other big chains, prices are lower than average - and Ralphs shoppers can use points on their store rewards card. Ralphs parent, Kroger Co., has been in the retail gas business for quite a while - more than 1,000 of Kroger's 2,435 supermarkets nationwide have fuel stations. Last year, gas sales were $13.1 billion, nearly double the level of two years earlier. Profit margins are over 20 percent. From the Daily News:

"It's just about being able to find a site where we can put a fueling facility. We would like to grow this area of our business," she said. Ralphs buys unbranded gasoline and diesel in the wholesale market, [said company spokeswoman Kendra Doyle]. The company's foray into the retail gasoline market won't have any real impact on competition, said Bob Van der Valk, an oil industry analyst based in Terry, Mont. "It's their way of moving merchandise, not necessarily gasoline. It's a loss leader,

*Reader correctly takes issue with my describing Lake Balboa as not "super local." Fair enough. Also, Kroger's Food 4 Less chain also has several fuel stations in the area.


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Retail stories:
Sears store and warehouse in Boyle Heights sold
Amazon keeps pushing for faster L.A. delivery
Holiday shopping: On your marks, get set... spend!
Ron Burkle buying most of Fresh & Easy chain
More than a third of all electric car sales come from L.A., S.F.

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook