Lessons from Kroger

One of the most interesting things I learned about Kroger this semester was how diversified they were.  Before, when I thought of Kroger, I thought of just supermarket.  I had no idea that it was involved in as many different businesses as it is.  There are 16 supermarket brands under the company, the multi-department store Fred Meyer, several convenience stores, and 4 jewelry store brands.  It also offers financial and medical services.  Kroger is becoming a one stop shop for customers.  Kroger has a very strong organizational culture and is very involved in local communities.  Kroger competes with Wal-Mart for customers.  However Kroger is not about having the lowest price.  Kroger's strategy is to provide shoppers with a better overall shopping experience.  Sometimes Kroger will have a lower price and sometimes it won't.  But Kroger counts on its focus on customers as being the main factor that keeps its customers returning.  Kroger is more concerned with focusing on its loyal existing customers than dropping prices significantly to attract new customers.  The loyal customer is Kroger's main target group.