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Fortune
Fortune
Steve Mollman

Kroger to spend $770 million more on employee pay and benefits this year amid ‘labor hoarding’ trend

Kroger CEO Rodney McMullen. (Credit: Lauren Justice—Bloomberg via Getty Images)

Last month we learned that Kroger has been texting and emailing former employees who had quit their jobs to ask them to come on back. Now the supermarket giant says it will spend $770 million more this year to raise hourly wages and improve health-care benefits for its workers.

Kroger made the announcement Thursday after surprising Wall Street with strong fourth-quarter results, partly a result of streamlining its supply chain to reduce costs. 

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