Kroger is an American retail corporation that runs supermarkets and multi-department stores across the United States. It is one of the largest supermarket chains in the U.S., known for its extensive network of stores and a wide variety of products, including groceries, pharmacy services, and general merchandise.
In 1902, Kroger Grocery and Baking Company was incorporated and had grown to forty stores, selling $1.75 million worth of merchandise each year. Kroger also became the first grocery chain to have its own bakery.
In 1916, Kroger company began using self-service shopping, a departure from the previous system where clerks retrieved items for customers.
From 1928, Kroger had a presence in the Western Pennsylvania region, encompassing Pittsburgh and surrounding areas.
In 1929, there were rumors that Safeway would merge with Kroger.
In 1932, Kroger tested a pilot project after it opened a grocery store in Indianapolis that was surrounded by a 75-car parking space, allowing the company to determine the close relationship between parking facilities and gross sales.
Beginning in 1955, Kroger expanded into new markets by acquiring supermarket chains. In May, it entered the Houston, Texas, market by acquiring the Houston-based 26-store chain Henke & Pillot. In June, Kroger acquired the Krambo Food Stores, Inc. of Appleton, Wisconsin. In July, it purchased Child's Food Stores, Inc. of Jacksonville, Texas, which operated 25 supermarkets in Texas, Arkansas, and Louisiana.
In January 1956, Kroger bought out Big Chain Stores, Inc., a chain of seven stores based in Shreveport, Louisiana, which was later combined with the Childs group.
In September 1957, Kroger sold its Wichita, Kansas, store division, consisting of 16 stores, to J. S. Dillon and Sons Stores Company.
In October 1963, Kroger acquired the 56-store chain Market Basket, giving them a presence in the Southern California market.
In 1966, the Big Chain Stores, Inc. and Childs groups adopted the Kroger banner.
In 1970, Kroger exited the Minneapolis-Saint Paul area and sold 16 stores to Quality Foods, which rebranded the stores to Piggly Wiggly.
In 1972, Kroger built an ultra-modern dairy plant named Crossroad Farms Dairy in Indianapolis, which was considered the largest dairy plant in the world at the time.
In 1972, Kroger exited the Milwaukee market, selling a few stores to Jewel.
In 1977, Kroger entered the Charlotte market and expanded rapidly throughout the 1980s when it bought some stores from BI-LO.
In 1978, sixteen retail members of Parkview Markets Inc. filed an anti-trust lawsuit against Kroger.
In 1980, Kroger entered the competitive San Antonio, Texas, market.
In 1980, Kroger sold several other Michigan stores to another Flint-based chain, Hamady Brothers.
In 1981, Kroger closed several stores around Flint, Michigan, which were converted by local businessman Al Kessel to a new chain called Kessel Food Markets.
By 1982, Kroger withdrew from the California market after failing to make significant headway.
In 1982, Kroger sold the 65-store Market Basket chain it had operated for several years in southern California.
In 1983, Kroger faced a protracted labor strike due to worsening labor-management relations during the economic recession.
In 1983, The Kroger Company acquired Dillon Companies grocery chain in Kansas along with its subsidiaries and the convenience store chain Kwik Shop.
From 1984 to 1986, Kroger exited the Pittsburgh, Cleveland, Akron, and St. Louis markets. The company cited that higher wages for union employees made it unable to compete.
In 1984, during a labor strike, Kroger withdrew all of its stores from the Western Pennsylvania market, selling them to Wetterau.
Until 1984 Kroger had a number of stores in the Western Pennsylvania region, encompassing Pittsburgh and surrounding areas. The U.S. began experiencing a severe economic recession, which undercut demand for the higher-end products and services offered by Kroger.
From 1984 to 1986, Kroger exited the Pittsburgh, Cleveland, Akron, and St. Louis markets. The company cited that higher wages for union employees made it unable to compete.
In 1986, Kroger exited the St. Louis market due to unprofitable stores, with most stores being bought by National, Schnucks, and Shop 'n Save.
In 1988, Kroger announced it was pulling out of the Charlotte market and put its stores up for sale. Ahold bought Kroger's remaining stores in the Charlotte area and converted them to BI-LO.
In 1988, Kroger exited the Florida market after operating stores under the SupeRx and Florida Choice banners and sold all of its stores.
In 1989, Boys Markets was acquired by the Yucaipa Companies, after the Market Basket chain was reverted to the Boys Markets branding.
In 1989, Kroger also experienced a similar withdrawal from Chattanooga, Tennessee.
On June 15, 1993, Kroger announced the closure of its 15 area stores in San Antonio, Texas.
In 1994, Kroger strengthened its presence in the Houston market by acquiring several stores from AppleTree Markets, which were former Safeway stores.
In 1994, the grocery chain Red Food, which had bought many of Kroger's stores, was in turn bought by BI-LO.
In 1998, Kroger merged with Fred Meyer, the then fifth-largest grocery company, along with its subsidiaries, Ralphs, QFC, and Smith's.
In 1999, Kroger bought most of the Kessel Food Markets stores back and began reverting them.
In 1999, Kroger swapped all ten of its Greensboro, North Carolina-area stores to Harris Teeter for 11 of that company's stores in central and western Virginia.
In 2000, Kroger entered the Richmond, Virginia, market by purchasing Hannaford stores and also entered the Hampton Roads market.
In 2001, Kroger acquired Baker's Supermarkets from Fleming Companies, Inc.
In early 2002, Kroger acquired many of the Albertsons stores after Albertsons exited the San Antonio and Houston markets.
In 2004, Kroger bought most of the old Thriftway stores in Cincinnati, Ohio, when Winn-Dixie left the area. These stores were reopened as Kroger stores.
In 2006, Kroger had planned to expand to Hawaii, even submitting registration, but ultimately withdrew those plans.
In 2007, Kroger acquired Scott's Food & Pharmacy from SuperValu Inc. Also in 2007, Kroger acquired 20 former Michigan Farmer Jack locations from A&P when A&P exited the Michigan Market.
In 2008, Kroger began a partnership with Murray's Cheese of New York City. Murray's Cheese counters within Kroger stores sell various artisanal cheeses from around the world.
In April 2013, Kroger announced that spouses of unionized workers would no longer be covered by the company's insurance plan, citing the Patient Protection and Affordable Care Act. This change affected roughly 11,000 workers in Indiana. At the same time, Kroger announced that full-time employees would maintain their health insurance benefits. Also in 2013, Kroger was noted for carrying 17 out of 22 Red List species.
On July 9, 2013, Kroger announced it would acquire Charlotte-based Harris Teeter for $2.5 billion, assuming $100 million in debt. This acquisition of Harris Teeter's click-and-collect program marked Kroger's return to the Charlotte market after 25 years and entry into Asheville, North Carolina.
In February 2015, Kroger registered as a new business in the state of Hawaii, setting the stage for its entry into the Hawaiian market.
On March 3, 2015, Kroger announced its intention to enter the Hawaii market, having registered with the state in February 2015. Kroger will face competition from several major retailers already operating in Hawaii.
In April 2015, Kroger created 84.51°, a wholly owned subsidiary engaged in data science and consumer insights, after purchasing the remaining half of Dunnhumby USA from Tesco.
On May 1, 2015, Kroger announced the acquisition of the seven-store Hiller's Market chain in Southeast Michigan. Kroger would operate all but one of these stores under the Kroger banner.
In June 2015, Kroger eliminated the Harris Teeter brand from the Nashville, Tennessee market, where its growth had been stunted by aggressive competition. Two Harris Teeter stores were closed, and three were converted to the Kroger brand.
On November 11, 2015, Kroger and Roundy's announced a definitive merger, bringing Roundy's chain's 166 primarily Wisconsin-based chains under Kroger ownership for $800 million. The acquisition brought Kroger back to Wisconsin after 43 years, retaining the Roundy's, Pick 'n Save, Mariano's, Metro Market, and Copps names.
In April 2016, Kroger announced that it had made a "meaningful investment" in Lucky's Market, an organic foods supermarket chain.
In 2016, Kroger's sales reached $110 billion, contributing to its recognition as the second-largest grocer in the nation in December 2019.
On February 7, 2017, it was announced that Kroger Co. had purchased Murray's Cheese.
In February 2017, Kroger faced community protests after announcing the closing of two smaller-sized stores in the Louisville area, despite high store volumes and population densities.
As of February 2017, Kroger discontinued its discount for senior citizens aged 59 and up.
On May 1, 2017, Kroger, the University of Kentucky, and JMI Sports announced a 12-year, $1.85 million per year campus marketing agreement, renaming Commonwealth Stadium to Kroger Field. The University of Kentucky is the first school in the Southeastern Conference to enter into a corporate partnership for football stadium naming rights.
On June 1, 2017, Kroger opened their second Fresh Eats store, furthering the "small test" of this new concept.
In 2017, MasterCard became the network for Kroger's newly branded 1-2-3 REWARDS credit card issued by U.S. Bank.
In 2017, the first Kroger Marketplace store in Alabama opened in Huntsville, Alabama.
In February 2018, Kroger announced that it would be selling its 762 convenience stores to EG Group for $2.15 billion. Kroger retained just over 20 convenience stores, while supermarket fuel centers were not included in the sale.
On April 10, 2018, Kroger announced plans to hire an estimated 11,000 new employees, including approximately 2,000 managerial positions, bringing the total number of employees close to half a million.
On April 20, 2018, the sale of Kroger's 762 convenience stores to EG Group was finalized.
On May 17, 2018, Kroger announced a partnership with Ocado, a UK-based online supermarket, to improve Kroger's ecommerce program with online ordering, automated fulfillment, and home delivery via new automated fulfillment centers.
On May 24, 2018, Kroger announced they were acquiring Home Chef for $200 million, with an additional $500 million in incentives based on performance targets.
On June 13, 2018, Kroger Mid-Atlantic announced that the Kroger branding would be leaving the Raleigh-Durham area. All 14 Kroger-branded stores were to transition, with eight becoming Harris Teeter, one a Crunch Fitness, and one a Food Lion. The future of the remaining four stores was unclear.
In June 2018, Kroger announced that it would begin testing driverless cars for grocery delivery, partnering with the autonomous car company Nuro.
In July 2018, Kroger officials retreated from a Net 90 payment plan to the produce industry.
In October 2018, Kroger announced online wine delivery to 14 states in partnership with DRINKS, offering customers assorted wines in 6-bottle or 12-bottle packs.
On December 4, 2018, Kroger announced a deal to sell food inside Walgreens drugstores under the "Kroger Express" brand, offering meal kits and other meal solutions.
In 2018, Kroger sold 782 convenience stores to EG Group.
In 2018, Kroger's Simple Truth brand, their flagship natural and organic brand, reached $2 billion in annual sales.
In 2018, the logo Kroger introduced in 2006 was still used at the convenience stores that were sold to EG Group.
In August 2019, Kroger began charging customers between $0.50 and $3.50 for receiving cash back when making purchases with debit cards. The fees were first test marketed in March at Kansas area Dillons stores.
In November 2019, Kroger unveiled an updated logo with the 'Fresh For Everyone' tagline and 'Krojis.' Kroger also expanded its online wine delivery program into Arizona in partnership with DRINKS, making the service available in 19 states plus Washington D.C.
In December 2019, Kroger was named the second-largest grocer in the nation, with $110 billion in sales in 2016. Also in December, USA Today listed Kroger and its brands as the top supermarket in several states.
In 2019, Kroger began gradually shifting towards creating more self-checkout lanes and smartphone apps due to increased self-checkout usage.
From the end of March 2020, Kroger provided a raise of US$2 an hour to essential workers.
In March 2020, Kroger discontinued the "Fresh Eats MKT" concept.
In May 2020, Kroger ended the "hero pay" raise of US$2 an hour for essential workers.
In 2020, Kroger's online sales grew by 116%, reaching over $10 billion annually.
In January 2021, the Long Beach City Council in California passed an ordinance mandating a US$4 per hour hazard pay increase for essential workers in large grocery stores like Kroger.
According to a PBS NewsHour February 13, 2021 broadcast, during the pandemic, Kroger provided their essential workers with a hazard pay, which the company called "hero pay."
In April 2021, Kroger closed two Seattle QFC stores, citing the city's COVID-related hazard pay law as the reason.
In April 2021, Kroger opened the first of its automated fulfillment centers, located in Monroe, Ohio, as part of its partnership with Ocado.
On October 14, 2022, Kroger announced a merger with Albertsons in a deal worth $24.6 billion. The merger aimed to combine both companies into one entity but divesting some stores to C&S Wholesale Grocers to secure regulatory approval.
In 2022, Kroger announced it would acquire Safeway's parent company, Albertsons.
As of September 2023, Kroger operates eight fulfillment centers in conjunction with Ocado, with the latest "spoke" facility being opened in Johnstown, Colorado. Locations include Ohio, Florida, Georgia, Wisconsin, Texas, Michigan, Colorado and Maryland.
By 2023, Kroger had been investing millions of dollars to replace cashier stations with automation.
On July 9, 2024, Kroger released a complete list of 579 stores that would be divested to address antitrust concerns from the Federal Trade Commission. The Dallas market was most affected, with 26 Albertsons locations, including the Tom Thumb chain and six Market Street locations, slated for sale. Following this announcement, the United Food and Commercial Workers voiced their continued opposition to the merger, stating Kroger's announcement "changes nothing".
In December 2024, a federal judge blocked the merger between Kroger and Albertsons, leading Albertsons to back out of the deal.
In 2024, Bernard Kroger's initial investment of $372 in 1883 is equivalent to $12,554.
In 2024, Kroger is ranked No. 25 on the Fortune 500 and is frequently listed as a good dividend stock for investors.
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