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Kroger Situation Analysis Paper

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Every industry is becoming more competitive year by year. The grocery store sector is one prime example of this trend. Kroger Inc. is currently experimenting with new product lines, refining their core business, utilizing technology to better serve their customers, and selling off segments of their corporation. The company realizes they need to innovate or die and that in order to retain and attract customers, selling groceries is not enough. Consumers will voice their opinions on their efforts by staying with Kroger or breaking off and giving their business to one of Kroger’s many competitors. Kroger Inc. is one of the largest grocery store chains in the United States. According to their website, they currently “operate 2,793 grocery retail …show more content…

They are in an industry where on one side Walmart is selling their groceries extremely low while cutting corners on the experience, and on the other side, Amazon is selling groceries nearly at cost, selling groceries online and having them delivered, and expanding into the brick and mortar store with their purchase of Whole Foods. Kroger is currently attempting to balance their approach to best compete with all of their completion. With their new ClickList program, I do not believe they have the expertise in home delivery or the expertise in electronics to be able to successfully make this a viable program for them.. Furthermore, I do not believe introducing a new clothing line will help draw consumers to their stores. They had previously attempted to do this with furniture a few years back and have since abandoned that idea. It will be soon when they realize this effort will not catch on with consumers. Their line of convenience stores has seen declining sales year after year. Although the main contributor to this is most likely declining fuel prices, this certainly is not the only contributor. Other competing convenience stores are able to dedicate their entire effort into improving their company while Kroger is not able to put their full dedication to this branch of the company. Their private brands seem to be doing very well. Since Kroger has vast amounts of data about their consumers purchasing habits, they are able to very well tailor their products to their customers. They should double down on private brands and insure they do not lose any quality as they ramp of the number of products they are producing. In my opinion, their focus on the experience is their best shot. Many people do not like shopping at places like Walmart because it is a terrible experience, however, many people do like going to the Kroger line of stores because they already have a great experience as it is. If Amazon’s home delivery

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