Kroger Changes Strategy

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arizonaguy
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Kroger Changes Strategy

Post by arizonaguy »

Looks like the era of new, large Marketplace stores may be over.

Kroger plans to "utilize more of its capital to fund technology and infrastructure upgrades to provide customers with a seamless shopping experience by accelerating digital growth in the region through services like curbside pickup, Scan, Bag, Go and delivery."

Source: https://www.ibj.com/articles/68205-krog ... in-fishers

Seems like they've decided to operate from the same playbook that Walmart is now operating from.
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Re: Kroger Changes Strategy

Post by storewanderer »

They have been delaying and/or canceling some new build Marketplace Stores for over a year now. I think they have opened a few during this period, too, though.

But yes, they have definitely changed their strategy... meanwhile companies who seem to want to operate stores, and sell groceries, like WinCo, or even Albertsons, keep adding stores... Kroger is going to get left in the dust if they don't get back to focusing on their stores. They are the superior operator, but they are losing focus.
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Re: Kroger Changes Strategy

Post by arizonaguy »

storewanderer wrote: April 9th, 2018, 8:59 pm They have been delaying and/or canceling some new build Marketplace Stores for over a year now. I think they have opened a few during this period, too, though.

But yes, they have definitely changed their strategy... meanwhile companies who seem to want to operate stores, and sell groceries, like WinCo, or even Albertsons, keep adding stores... Kroger is going to get left in the dust if they don't get back to focusing on their stores. They are the superior operator, but they are losing focus.
I'm an older millennial (32) and have a number of friends in the 28 - 36 age range. I can't tell you how many times I've seen people my age talk about how much they like Clicklist. To that end, this strategy may be working. Fry's also replaced a small-ish conventional store near me with a large Marketplace store about 2 years ago. I avoid the "mega Fry's" if I need to run in for a few items as the store is really too large for a quick in and out (I live near 2 other smaller Fry's stores that I use if I only want an item or two). The general merchandise side of most of the Marketplace stores I've visited tends to get very little foot traffic and it appears that a very small percentage of sales are general merchandise. The stores also tend to be located near Target, Walmart, or Kohl's stores which offer a more comprehensive general merchandise selection.
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Re: Kroger Changes Strategy

Post by pseudo3d »

storewanderer wrote: April 9th, 2018, 8:59 pm They have been delaying and/or canceling some new build Marketplace Stores for over a year now. I think they have opened a few during this period, too, though.

But yes, they have definitely changed their strategy... meanwhile companies who seem to want to operate stores, and sell groceries, like WinCo, or even Albertsons, keep adding stores... Kroger is going to get left in the dust if they don't get back to focusing on their stores. They are the superior operator, but they are losing focus.
Already I think they slipped to second place in Houston, which is one of their strong markets. In the early 1990s they were really in trouble as Randalls was outpacing them in growth and having better stores (they were about to lose to Fiesta, which Randalls has slipped under some years back), while Kroger had a lot of small, outdated stores (sub-40,000 square feet Greenhouse stores or even older), but then they accelerated back to #1 as they replaced a lot of their Greenhouse stores with Signature stores or acquired Albertsons stores and kept up the pace as they built huge Marketplace stores to compete with the large H-E-B stores as Randalls became irrelevant.

With their Signature stores and remaining Greenhouse stores getting little more than decor swaps in recent years, and H-E-B starting to really burrow into the Inner Loop (where traditionally Kroger has dominated), their second place status seems guaranteed.
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Re: Kroger Changes Strategy

Post by storewanderer »

arizonaguy wrote: April 9th, 2018, 9:29 pm
storewanderer wrote: April 9th, 2018, 8:59 pm They have been delaying and/or canceling some new build Marketplace Stores for over a year now. I think they have opened a few during this period, too, though.

But yes, they have definitely changed their strategy... meanwhile companies who seem to want to operate stores, and sell groceries, like WinCo, or even Albertsons, keep adding stores... Kroger is going to get left in the dust if they don't get back to focusing on their stores. They are the superior operator, but they are losing focus.
I'm an older millennial (32) and have a number of friends in the 28 - 36 age range. I can't tell you how many times I've seen people my age talk about how much they like Clicklist. To that end, this strategy may be working. Fry's also replaced a small-ish conventional store near me with a large Marketplace store about 2 years ago. I avoid the "mega Fry's" if I need to run in for a few items as the store is really too large for a quick in and out (I live near 2 other smaller Fry's stores that I use if I only want an item or two). The general merchandise side of most of the Marketplace stores I've visited tends to get very little foot traffic and it appears that a very small percentage of sales are general merchandise. The stores also tend to be located near Target, Walmart, or Kohl's stores which offer a more comprehensive general merchandise selection.
The Clicklist strategy only works if it draws new customers in. Even then, I question how profitable the whole concept is. I think the concept is necessary and they need it to be competitive. But it is not the end all. I am concerned they are doing things that are causing such a focus on Clicklist and these other initiatives that they are not properly spending money on new stores and remodels at this point. Selling off the convenience stores, delaying or canceling new stores and remodels, etc. all to support these "digital initiatives" strikes me as questionable.
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Re: Kroger Changes Strategy

Post by Super S »

I don't know if Clicklist is catching on everywhere. The only thing I ever think about when I hear talk about this are all of the empty reserved Clicklist order pick-up parking spaces. I am sure somebody is using it, but I personally do not know anybody who does.

What I don't understand though is how some Fred Meyer stores are being remodeled every 10 years or less, while others can go 15-20 years between remodels despite being very busy.
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Re: Kroger Changes Strategy

Post by babs »

The current round of Fred Meyer remodels has more to do with growing the size of grocery and reducing home and electronics. It has nothing to do with the date of the latest remodel.
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Re: Kroger Changes Strategy

Post by rwsandiego »

And then we have Kroger restaurants.

http://www.cookinglight.com/syndication ... a%22%22%7d
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Re: Kroger Changes Strategy

Post by SamSpade »

rwsandiego wrote: April 10th, 2018, 4:06 pm And then we have Kroger restaurants.

http://www.cookinglight.com/syndication ... a%22%22%7d
Intriguing / humorous on so many levels. Too bad they've phased out all those Smitty's Restaurants in Arizona. ;-)

Legitimately, this sounds more like a test to see if they can be more competitive with Hy-Vee with in-store restaurants.
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Re: Kroger Changes Strategy

Post by jamcool »

The restaraunts were long gone even before Kroger took over
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