Executive Summary Of Kroger

Business Summary The Kroger Co., which was founded in 1883 and incorporated in 1902, is one of the nation’s largest retailers. Kroger is currently operating more than 2,640 supermarkets and multi-department stores which takes 93% of total sales of Kroger. Kroger has twelve banners which including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith’s. They also operates 786 convenience stores, jewelry stores and food processing plant. The total food store square footage was approximately 160.7 million as of February 2014.

Table 1: Kroger’s Operations Primary and Secondary Markets Kroger’s operation was under four format including combo stores, multi-department

Marketplace stores sell a full food store and pharmacy along with general merchandise. However, Marketplace stores do not sell apparel. Price-impact warehouse stores offer everyday low prices, plus promotions for a wide selection of grocery and health and beauty care items. Kroger also operates convenience stores, jewelry stores, and food processing plants. The company's convenience stores sell general merchandise and food items, and, primarily sell gasoline. Kroger is also one of the largest U.S. jewelry retailers, including 320 jewelry stores. In addition, Kroger operates 38 manufacturing plants, including 18 dairies, 9 deli or bakery plants, 5 grocery products plants, 2 beverage plants, 2 meat plants and 2 cheese plants. There are nearly 40% of Kroger’s corporate brand volume is manufactured by its own

Based on the 2014 Form-10K of Kroger, these factors consisting of: labor issues; changes of competitors; product safety; strategy execution; data and technology; indebtedness; legal proceedings; multi-employer pension obligations; integration of new business; current economy condition, including interest rates, the inflationary and deflationary trends in certain commodities, and the unemployment rate; the price change of fuel; government regulation; manufacturing commodity costs; trends in consumer spending; natural disasters or adverse weather conditions. Every year, Kroger will face various claims and lawsuits in the normal operation of business, including suits charging violations of certain antitrust, wage and hour, or civil rights laws. However, these suits are uncertain and unpredicted. It is hard to evaluate the influence on the company’s financial reports.

SWOT Analysis

Table 2: SWOT Analysis