Placer.ai: An analysis of Kroger’s diverse, national reach
Kroger — the largest grocer in America after Walmart with sales of nearly $150 million in 2023 — continued to see traffic rise at its top banners in the first quarter by adhering to a strategy of serving different audiences with different supermarkets.
In the Carolinas, Harris Teeter’s traffic rose by 5.6% year-over year. King Soopers won a 6.7% increase in Colorado. In Mountain states like Utah and Wyoming, Smith’s experienced an 8.3% rise in shoppers. And in Arizona, it was Kroger’s Fry’s banner that earned a 5% increase, according to a new report from the Placer.ai.
The foot traffic data provider noted that, even within individual states, Kroger positions its wide range of grocery brands to fit the demographics and income levels of specific markets. In Virginia, for instance, the average household income of neighborhoods served by Kroger supermarkets is $74,200. Meanwhile, markets with HHIs topping $115,000 are seeded with higher-end Harris Teeter stores.
Similar differences can be observed in Wisconsin – where Pick ‘n Save and Metro Market serve different demographics.
“Kroger Co.’s strategy of acquiring and maintaining regional brands has allowed the company to expand its footprint across the country while catering to the needs and preferences of local shoppers,” said Placer.ai analyst Samuel Roche. “Kroger’s footprint now extends across three of the four U.S. regions – the West, South, and Midwest – with only the Northeast lacking a presence of any Kroger presence.”
Between January and May 2024, Kroger’s eponymous banner accounted for 47.4% of visits to the company’s grocery portfolio – followed by Fred Meyer (7.6%), Ralphs (6.3%), Harris Teeter (6.3%), Smith’s Food and Drug (6.2%), Fry’s Food Stores (5.9%), King Soopers (5.2%), and Food 4 Less (4.8%).
The Kroger banner covers the widest number of states, ranging from the Great Lakes, south to Georgia and Alabama, and west to Texas.