Kroger has established a corporate-wide focus on operations, merchandising, and support systems. This structure enhances Kroger's ability to achieve synergies from economies of scale throughout the company. Kroger has 17 retail divisions, which are organized on a geographic basis. Kroger's Merchandising Group ("KMG") in Cincinnati directs and coordinates most of the company's retail buying process by bringing together top merchants in almost every major category to develop strategies and direct merchandise selection. While most of the Company's merchandise selections are driven by KMG teams, local retail divisions round out their merchandise by directly buying items that reflect local preferences. This allows Kroger retail divisions to tailor their stores' offerings to meet local market demographics and regional preferences. These items are purchased by division buyers from suppliers that can offer quality and outstanding service at a competitive price. The organizational structure of Kroger supports the local divisional merchandising and operating strategies that are targeted to customers in each local market. Kroger's retail divisions implement merchandising, pricing and operations that address local market conditions.
http://www.thekrogerco.com/supplier/supplierdiversity_doingbusiness.htm
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