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Kroger SWOT & PESTLE Analysis

ID : 52503653| Jun 2019| 18 pages


Business Sector :Retail

Operating Geography :United States, North America

About Kroger :

Kroger is an American retail company founded by Bernard Kroger in 1883, headquartered in Cincinnati, Ohio with the motto of “Be particular. Never sell anything you would not want yourself.” The Kroger Co. was started by the son of a merchant, who invested his life savings of $372 to open a grocery store.
After 130 years of successful business, Kroger today ranks as one of the world’s largest retailers, operating either directly or through its subsidiaries with 2,782 supermarkets under a variety of local banner names, of which 2,268 had pharmacies and 1,489 had fuel centres, 319 fine jewellery stores, 784 convenience stores, an online retail store, as well as franchised 69 convenience stores as of February 2018. The Kroger Co. not only operates as a retailer but also delves in manufacturing and processing of food for sale in its supermarkets. It runs retail food and drug stores, multi-department stores which encompasses many other merchandise. It employs approximately 449,000 staff as of 2018.
The Kroger Co.’s USP or unique selling proposition lies in ranking as one of the world’s largest retailer with nearly 2,800 stores in 35 states under two dozen banners and annual sales of more than $115.3 billion. Kroger’s mission statement reads “OUR MISSION is to be a leader in the distribution and merchandising of food, health, personal care, and related consumable products and services. We’re on a mission to end hunger in the communities we call home and eliminate waste across our company by 2025.” Kroger’s vision is “Serving America through food inspiration and uplift.”

Kroger Revenue :

$ 122,662 million – FY ending February 3rd, 2018 (y-o-y growth 6.4%)
$ 115,337 million – FY ending January 28th, 2017

Competitive Analysis of Kroger

The SWOT Analysis of Kroger is presented below:
1. Leading player in the American Market
2. Growing market share:
3. Strong innovation and personalisation
4. Digitization of stores.
5. Focus on better product and service delivery through partnerships
6. Well managed supply chain
7. Private labels give a competitive advantage

1. Low global presence
2. High debt load.
1. Clocking record organic sales
2. In-Store Health Clinic Programs and launch of Kroger Persona Finance(KPF) hold strong potential opportunity.
3. Expansion of ClickList
4. Expand globally, especially in emerging economies
1. Growing Competition from established players
2. Threat of New entrants in Online Retail
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Detailed SWOT Analysis of Kroger



1. Leading player in the American Market: Kroger is one of the world’s largest retailers, as measured by revenue in 2018. The company operates 2,782 supermarkets under a variety of local banner names in 35 states and the District of Columbia. Amongst these, 2,268 have pharmacies and 1,489 have fuel centres where customers can gas up their vehicles during shopping excursions. In 1972, Kroger became the first grocery retailer in America to test an electronic scanner. Also in the ‘70s, the supermarket became the first grocer to formalize consumer research, interviewing 4,000 shoppers the first year.
Approximately 33% of “Our Brands” units and 44% of the grocery category Our Brands units are produced in the 37 food production plants, primarily bakeries and dairies. The remaining brands items are produced under stringent specifications by third party manufacturers. Apart from the primary stores and channels, the company operates 782 convenience stores, either directly or through franchisees, 274 fine jewellery stores and an online retailer. Kroger offers a wide spectrum of store formats to gratify all kinds of shoppers. Their formats include supermarkets, multi-department stores, Marketplace stores, price-impact stores, and fine jewellery stores.

2. Growing Market Share: Kroger’s overall market share grew approximately 21 basis points in 2017 – a slight acceleration over last year’s growth of 16 basis points based on IRI’s calculations. Kroger’s 2017 gain was about 2-tenths of a per cent nationwide. Apart from Seattle, Kroger has not lost market share in any of the 10 cities where it primarily operates. Having a clear vision and strategy it is also expected that the market share of the grocery market will grow further.

3. Strong Innovation and personalisation: Kroger has long been a leader in customer satisfaction by creating unique, personalized shopping experiences that drive loyalty. The company delivers more than 3 billion personalized recommendations to customers. The company expanded their digital coverage area and enhanced the digital shopping experience to provide customers with relevant products, recipes, digital coupons, weekly ads, smart shopping lists and more. Kroger leverages the science behind Customers’ decision-making process to design educated space-planning that optimizes shelf space allocation and assortment, and improve in-stocks, ensuring customers have easy access to the products they desire.
Kroger continues to take steps to remain at the pinnacle of a tight market with its path in innovation through new ideas and partnerships. Kroger has partnered with the University of Cincinnati to operate an innovation lab inside of the school's 1819 Innovation Hub. In May, the company signed an exclusive deal with Ocado to bring its automated facilities to the U.S. and help Kroger lead the competitive e-commerce space.

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This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

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Check Out Analysis of Other Relevant Companies

References used in Kroger Analysis Report

1. Kroger History-

2. Income Statement-

3. Number of Employees-

4. Kroger Sustainability-

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SWOT & (2020). Kroger SWOT & PESTLE Analysis - SWOT & [online] Available at: [Accessed 14 Jul, 2020].

In-text: (SWOT &, 2020)

Copyrights and Disclaimer

Kroger SWOT and PESTLE analysis has been conducted by Soumya Surya Adhikari and reviewed by senior analysts from Barakaat Consulting.

Copyright of Kroger SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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