The Kroger Company

The Kroger Company
Name	The Kroger Co.
Type	Public
Traded as	NYSE: KR, S&P 500 component
Industry	Retail, Grocery
Founded	0 1883 in Cincinnati, Ohio, U.S.
Founder	Bernard Kroger
Hq location city	Cincinnati, Ohio
Hq location country	United States
Num locations	2,800+ stores
Area served	United States
Key people	Rodney McMullen (Chairman & CEO), Gary Millerchip (CFO)
Products	Supermarkets, hypermarkets, convenience stores
Revenue	▲ US$148.3 billion (2023)
Operating income	▲ US$3.2 billion (2023)
Net income	▲ US$2.2 billion (2023)
Assets	▲ US$50.1 billion (2023)
Equity	▲ US$10.9 billion (2023)
Num employees	~430,000 (2023)

The Kroger Company. It is one of the world's largest retail companies by revenue and the largest supermarket operator in the United States by store count. Founded by Bernard Kroger with an initial investment of $372, the company has grown from a single Cincinnati grocery store into a national conglomerate operating under numerous banners. Headquartered in its founding city, it operates a vast network of stores across multiple formats, including hypermarkets, department stores, and convenience stores, while also maintaining significant manufacturing and food processing facilities.

History

The company was founded in 1883 when Bernard Kroger used his life savings to purchase the Great Western Tea Company, a small Cincinnati storefront. A pioneering figure in American retail, Kroger emphasized private label products and customer satisfaction, introducing in-store bakeries and butcher shops. Major expansion began in the early 20th century through acquisitions, including the 1950s purchase of Henke & Pillot in Texas. The 1980s and 1990s saw transformative deals, such as the merger with Dillon Companies and the acquisition of Fred Meyer, which diversified its store formats into hypermarkets and jewelry retail. In 2022, the company announced a planned merger with rival Albertsons, a deal subject to review by the Federal Trade Commission and several state attorneys general.

Operations

The company operates over 2,800 retail food stores across the United States, spanning a multi-format strategy that includes combination stores, marketplace stores, and price-impact warehouse stores like Food 4 Less. Its store operations are supported by one of the nation's largest freight transportation fleets and a network of over 40 food processing plants, which produce thousands of private label items. A significant focus is on the ClickList and Kroger Ship digital platforms, bolstered by partnerships with Ocado to build automated customer fulfillment centers. Its data analytics subsidiary, 84.51°, leverages purchase data for targeted marketing and supply chain optimization.

Subsidiaries and brands

The company's portfolio includes numerous regional supermarket banners, each serving distinct demographic markets. Major subsidiaries include Fred Meyer, which operates supercenters in the Pacific Northwest, and Harris Teeter, serving the Southeastern United States. Other significant banners are Ralphs in Southern California, King Soopers in Colorado, Fry's Food and Drug in Arizona, and Smith's Food and Drug in the Intermountain West. Its manufacturing arm, the Kroger Manufacturing group, produces goods under flagship private label brands like Simple Truth and Private Selection.

Financial performance

As a component of the S&P 500 and Fortune 500, the company reported annual revenues exceeding $148 billion for the 2023 fiscal year. Its primary stock is traded on the New York Stock Exchange under the ticker symbol KR. Financial performance is driven by its core grocery business, growth in private label sales, and expanding digital commerce segment. The proposed merger with Albertsons is projected to create a entity with combined revenues approaching $210 billion, a figure that has drawn scrutiny from Congress and investor analysts.

Labor relations

The company is one of the largest private employers in the United States, with a unionized workforce primarily represented by the United Food and Commercial Workers across many regions. Labor relations have periodically involved contract negotiations and strike actions, such as those affecting King Soopers workers in Colorado. In 2022, it announced plans to terminate its pension plan for future non-union hires, moving to a 401(k)-only system. The National Labor Relations Board has been involved in adjudicating disputes related to union organizing activities at several of its distribution centers.

Environmental and social initiatives

The company has implemented a sustainability framework called the Zero Hunger | Zero Waste initiative, aiming to end food waste and food insecurity in its communities by 2025. It partners with Feeding America and local food banks for product donations. Environmental goals include a commitment to sustainable sourcing, particularly for seafood and palm oil, and reducing greenhouse gas emissions across its operations and supply chain. Its corporate social responsibility reporting aligns with guidelines from the Sustainability Accounting Standards Board.

Category:Companies listed on the New York Stock Exchange Category:Retail companies established in 1883 Category:Companies based in Cincinnati