Kroger Adopts Multi-Format Strategy To Prepare For Growing Competition

Kroger aims to improve its ability to compete in the retail market by acquiring smaller operators with different formats. Speaking at the Goldman Sachs Global Staples Forum, Kroger chief financial officer Michael Schlotman said the retailer creates its business plan with a focus on what it perceives as a constantly growing competition in the market. Lessons Kroger learns from its acquired companies help the retailer stay relevant to its customers in different markets. For example, its acquisition of Roundy’s has taught Kroger how to operate in downtown locations, while its Ruler Foods unit helps the retailer compete with Aldi and other discount retailers. Kroger also competes in the high-end fresh and natural food segment through its Main & Vine unit, while its private label “Simple Truth” helps it to focus on the growing market for organics.