Kroger entering Northeast with delivery-only model

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cathandler
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Kroger entering Northeast with delivery-only model

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Re: Kroger entering Northeast with delivery-only model

Post by ClownLoach »

They seem to be very clear in calling this service Kroger Delivery, without mention of any regional brands. This seems to point even more at the eventual rebranding of the stores all to Kroger. Not only are they targeting markets they currently don't have stores in, but they are also building these in existing markets (SoCal) for Kroger Delivery service - not Ralphs Delivery...
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Re: Kroger entering Northeast with delivery-only model

Post by buckguy »

This really belongs in the "Mid-Atlantic" group. Construction of this warehouse popped up in the past on that Board. The real issue will be what they have to offer. Delivery from other chains is already available in all the major population centers in the region Frederick would serve. Kroger probably has some legacy brand recognition that transplants might acknowledge, but it's unclear that they would have something unique to offer. They may be hoping for a price advantage, but I could see major competitors countering that long enough to make it difficult for them to gain a foothold.
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Re: Kroger entering Northeast with delivery-only model

Post by klkla »

ClownLoach wrote: October 13th, 2021, 8:38 am
They seem to be very clear in calling this service Kroger Delivery, without mention of any regional brands. This seems to point even more at the eventual rebranding of the stores all to Kroger. Not only are they targeting markets they currently don't have stores in, but they are also building these in existing markets (SoCal) for Kroger Delivery service - not Ralphs Delivery...
That would be a stupid move on their part. Ralph's has operated in Los Angeles since the 1880's. Despite stocking a log of Kroger brands the Ralphs brand is much more important in SoCal.
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Re: Kroger entering Northeast with delivery-only model

Post by jamcool »

I imagine any Kroger rebranding would primarily take place closest to existing Kroger stores-the Midwest (Jay C/Pay Less/Baker’s/Dillon’s) and the Southwest (Fry’s/Smith’s NM/King Soopers/City Market)Kroger-Texas.
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Re: Kroger entering Northeast with delivery-only model

Post by storewanderer »

klkla wrote: October 16th, 2021, 7:17 pm
ClownLoach wrote: October 13th, 2021, 8:38 am
They seem to be very clear in calling this service Kroger Delivery, without mention of any regional brands. This seems to point even more at the eventual rebranding of the stores all to Kroger. Not only are they targeting markets they currently don't have stores in, but they are also building these in existing markets (SoCal) for Kroger Delivery service - not Ralphs Delivery...
That would be a stupid move on their part. Ralph's has operated in Los Angeles since the 1880's. Despite stocking a log of Kroger brands the Ralphs brand is much more important in SoCal.
I think they should leave Food 4 Less, Ralphs, Fred Meyer, and QFC with their brands. These other brands at this point they could just rebrand I guess- based on that they have taken away everything unique about the various banners anyway. Also I think customers generally have a positive connection to Kroger at the banners based on the private label experience.

The Kroger brand should only be used on the standard 70k square foot food/drug combo. Ralphs and QFC don't fit that; too many smaller stores. Fred Meyer- too many bigger stores. Food 4 Less- different format.
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Re: Kroger entering Northeast with delivery-only model

Post by veteran+ »

IMO, I don't think it would be a good idea to replace King Soopers with Kroger.

That is a storied brand since 1906 with hardly a blemish, until Kroger.
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Re: Kroger entering Northeast with delivery-only model

Post by storewanderer »

veteran+ wrote: October 17th, 2021, 8:59 am IMO, I don't think it would be a good idea to replace King Soopers with Kroger.

That is a storied brand since 1906 with hardly a blemish, until Kroger.
I would argue Kroger successfully ran King Soopers unblemished for close to 35 years (bought it in 1982?).

King Soopers was supposedly the most profitable division in the 90's and into the 00's but I suspect some other divisions have since passed King Soopers in profitability.

As for the past few years...........

But they are still the market leader.
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Re: Kroger entering Northeast with delivery-only model

Post by buckguy »

Given that Kroger's CEOs in the 90s through 2014 came from Dillon's including one Dillon family member, it's no surprise Dillon's prospered.

As for the Northeast, they are going into markets that either are new or where they had been a failure in the past. They're also going to Florida where their SuperX-based stores and family centers never seemed to have made a big splash.
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Re: Kroger entering Northeast with delivery-only model

Post by veteran+ »

storewanderer wrote: October 17th, 2021, 6:48 pm
veteran+ wrote: October 17th, 2021, 8:59 am IMO, I don't think it would be a good idea to replace King Soopers with Kroger.

That is a storied brand since 1906 with hardly a blemish, until Kroger.
I would argue Kroger successfully ran King Soopers unblemished for close to 35 years (bought it in 1982?).

King Soopers was supposedly the most profitable division in the 90's and into the 00's but I suspect some other divisions have since passed King Soopers in profitability.

As for the past few years...........

But they are still the market leader.
I worked at King Soopers when it was still under Dillon until 1984. Perhaps the process of merging (buying) started in 1982. We were operating as if it was still under Dillon.

The dilution of Dillon's way took time. Kroger's style (however successful for them) has had incremental effects on King Soopers as perceived by consumers and employees (not good). Of course they still are the market leader (the power of their brand equity) but that lead is not as wide as it used to be.

Kroger's reign has not been unblemished with KS, as reported by co-workers I kept in touch with and friends that still live there. Thank goodness for Kroger that Safeway was weak in those early days and maybe still so.

;)
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