Kroger 2010: Time to Shift Gears

Kroger has size, scale, confidence, and a history of comparative success even in the recent downturn. Yet it is increasingly at risk from a lack of speed in responding to new competition and non-traditional threats to its business. Many premium core shoppers are still loyal, but as Walmart raises its game and more operators step up, Kroger has yet to make an effective strategic response. Most of the issues and concerns with Kroger’s performance are the same as they were years ago. Kroger has always been steady, thoughtful, and patient, but the pace of competition is increasing:

• As the economy improves, can Kroger hold the shopper who has new and ..interesting outlet choices?
• Will a lack of outreach to new shoppers and a failure to set and meet new ..expectations hamper Kroger’s ability to compete?

Can Kroger change gears fast enough to meet the challenge—and what will it mean for vendors?