For Kroger, a Less-Than-Super Market

Kroger Co. (Cincinnati) reported that net income dropped 5 percent in its fiscal fourth quarter on a sales increase of 3 percent.

Citing the recession, effects of the terrorist attacks and increased competition from supercenters such as Wal-Mart, chairman and ceo Joseph Pichler called it “the most challenging of my 22 years in the business.”

Though overall sales were slightly higher, same-store sales dropped 0.3 percent for the nation's largest supermarket chain. And Kroger also felt the financial hit from an $18.4 million investment during the period ending Feb. 2, 2002, to convert computer systems in acquired stores.

Kroger said it is considering converting the 131 Fred Meyer stores it purchased in 1999 to Kroger stores.