Could Kroger be eyeing Safeway next?

Steve Watkins Staff Reporter- Cincinnati Business Courier

 

 

Kroger Co.’s biggest supermarket rival is talking about putting itself up for sale, and some industry watchers say Cincinnati-based Kroger is a potential buyer.

 

Pleasanton, Calif.-based Safeway Inc. said last week when it reported fourth-quarter results that it’s also in talks to potentially sell the company. It wouldn’t name a potential buyer or buyers.

 

http://www.bizjournals.com/cincinnati/blog/2014/02/could-kroger-be-eyeing-safeway-next.html

Interesting... I'd say there's already a lot of market overlap between Safeway and Kroger. Out west, there may be a Safeway and a Fry's (a Kroger brand) right across the street from eachother. This is quite common in Phoenix.

Kroger getting into the fuel business now? I saw a standalone kroger gas station being built in Deerfield Twp yesterday.

Kroger getting into the fuel business now? I saw a standalone kroger gas station being built in Deerfield Twp yesterday.

 

I've seen some Kroger Fuel Stations a few blocks from their respective Kroger store here in Louisville. In Cincinnati, the Kroger in Norwood on Montgomery has a Kroger Fuel station down closer to Dana, i think. I'me sure there's a Kroger store somewhere nearby.

Interesting - this would be much larger than even the Fred Meyer acquisition and would not be very long after just closing the deal with Harris Teeter.  I think there would be some overlap but probably more in the far west.  It seems as least in the eastern half of the US there is not a ton of duplication (but I will admit I have not done any research).

It'd be nice if Kroger could set aside a tiny fraction of the funds it's using to buy every single grocery chain in the country, and use it to better support the OTR and Walnut Hills stores in its own back yard.

I'm actually not that disappointed in the OTR Kroger. Or the Walnut Hills Kroger for that matter. I am disappointed in the buildings from the outside, but the actual stores are decent.

 

Those stores are a lot cleaner, better stocked, and more welcoming than the Safeway I went to while I lived in DC. Both of those stores either break even or lose money, so they are already doing those neighborhoods favors by keeping them open.

Kroger getting into the fuel business now? I saw a standalone kroger gas station being built in Deerfield Twp yesterday.

 

Yea, we've had 'em up here for years now. Turkey Hill is what they call them up thisaway.

Safeway deal would make Kroger No. 1 in these major markets

Steve Watkins Staff Reporter- Cincinnati Business Courier

 

 

Kroger Co. would vault to the top market share position in several important markets if it can secure a deal with Safeway Inc. for its stores.

 

A research report by Deutsche Bank analyst Karen Short on Friday said Kroger (NYSE: KR) would leap to No. 1 in grocery market share in Seattle, San Diego and Portland, Ore., if it were to buy the Safeway markets in those cities. Kroger is now second in share in Seattle and Portland and fourth in San Diego.

 

http://www.bizjournals.com/cincinnati/news/2014/03/04/safeway-deal-would-make-kroger-no-1.html

Kroger getting into the fuel business now? I saw a standalone kroger gas station being built in Deerfield Twp yesterday.

 

Kroger has been in the fuel business for a while.  They also own Tom Thumb fuel stations and others.

I can't imagine there is any way that Kroger would want to buy Safeway.  More likely they will buy individual stores in areas that Kroger is looking to expand into or increase its presence.  Similar to what they did with Thriftway, Winn-Dixie, and other struggling grocery chains.

Kroger might bid for all of Safeway

Mark Calvey Senior Reporter- San Francisco Business Times

 

 

Kroger is considering a bid for all or part of Safeway, the Wall Street Journal reported Wednesday.

 

In an earlier era, the idea of combining the nation's largest and second-largest traditional grocer would have been unthinkable. Now it may be the only way for the two large grocers to compete against the nation's largest seller of groceries, Walmart.

 

http://www.bizjournals.com/sanfrancisco/blog/2014/03/safeway-kroger-walmart-buyout-kr-swy.html

I'm actually not that disappointed in the OTR Kroger. Or the Walnut Hills Kroger for that matter. I am disappointed in the buildings from the outside, but the actual stores are decent.

 

Those stores are a lot cleaner, better stocked, and more welcoming than the Safeway I went to while I lived in DC. Both of those stores either break even or lose money, so they are already doing those neighborhoods favors by keeping them open.

 

The OTR store is steadily improving in terms of quality and selection, too. 

Looks like Albertsons beat Kroger to the punch on this.

Kroger is buying VitaCost, an online health food store.

Kinda interesting since they just snagged Harris Teeters (SP?) which has online shopping capabilities.

http://www.bizjournals.com/cincinnati/blog/2014/07/kroger-acquisition-should-speed-its-online-prowess.html

Remember PeaPod?

Nice to see Wal Mart finally getting taken to school!

 

 

Here’s the story behind Kroger’s hiring binge

Steve Watkins Staff Reporter- Cincinnati Business Courier

 

Kroger Co.’s big hiring binge is a clear sign that it’s not only whipping Walmart but that it expects to continue beating up on its rival.

 

Cincinnati-based Kroger, the nation’s largest operator of traditional supermarkets, said last week it’s looking to fill 20,000 jobs across the company. That’s on top of 375,000 people it already employs.

 

http://www.bizjournals.com/cincinnati/blog/2014/09/here-s-the-story-behind-kroger-s-hiring-binge.html?page=all

Cross post from the Econ thread.  Good to see Kroger expanding its employee base downtown.

 

Wells Fargo moving employees out of Kroger Building

Oct 23, 2014, 2:27pm EDT

Tom Demeropolis Reporter- Cincinnati Business Courier

 

 

Wells Fargo & Co. is moving 62 employees to the Sawyer Point Building in downtown Cincinnati from the Kroger Building at 1014 Vine St.

 

Wells Fargo signed a five-year lease for about 19,000 square feet of space at the Sawyer Point Building, located at 720 E. Pete Rose Way. The San Francisco-based company is moving its commercial banking and insurance offices to the fourth floor in mid-November.

 

http://www.bizjournals.com/cincinnati/news/2014/10/23/wells-fargo-moving-employees-out-of-kroger.html

New Kroger opened near downtown Lexington, Ky. Features a parking deck, escalator and elevator, cupcake shop/bakery, made-to-order pizzas, bistro, Starbucks, two local restaurants that operate "food carts." It's really three levels - warehouse and bakery on the lower level, store operations on the first level and a 125-space parking deck on the upper level. This is how a model grocery store CAN be if Kroger's actually tries to do something urban - you know, like in Cincinnati. Instead, all that is ever proposed are suburban boxes and giant surface lots. Full set of photos at http://www.kentucky.com/2015/01/21/3653224_euclid-kroger-opens-thursday.html?rh=1

 

 

 

 

 

 

 

 

 

 

 

Cool! Still seems like they have a lot of surface parking though. I suppose they couldn't meet their parking needs without at least 2 parking levels.

It's not as big as you think - one lane going in, the other going out. I was there last night (opening day) and I had to park on the roof. A lot of the lower level was handicapped parking. Compare the aerial 45 with the non-45 view (http://goo.gl/maps/uDYj9).

I think there might be a big difference in regional management philosophies at Kroger. Go to a lot of Cincinnati Krogers, especially in the eastern 'burbs like at Ameila or Eastgate and you feel like you just stepped into 1994, though the Dublin one looks like that too. Then compare that many of the Columbus ones which look much more modern inside, like the South High St. one which has been remodeled and expanded twice in that time despite being in a crappy neighborhood. Kroger stores look a LOT different in some of their other markets such as Richmond VA. I could even tell that the WV Krogers were run differently than the one just across the river in Chesapeake Ohio which looked just like the Olentangy and SW Columbus (at Eakin Rd. and Harrisburg Pk.) The architecture is even vastly different. Then the Portsmouth Kroger and the Columbus Refugee Rd. Kroger's are alike. The two Huntington Krogers (again in a different region), one on 3rd and one in Barboursville were much different than anything else I've seen.

They should at least do something like that with roof parking for the Corryville Kroger rebuild.

Kroger buys big chunk of DunnhumbyUSA, changes name

 

Kroger Co. has acquired the majority of Cincinnati-based DunnhumbyUSA, the data analysis firm that has provided it with valuable customer insight.

 

Kroger is keeping the people and technology behind the “secret sauce” that analysts say gives Kroger an edge over competitors, Kroger spokesman Keith Dailey said. The new firm, to being operation on Monday, will change its name to 84.51°. That signifies the longitudinal coordinate of the new Dunnhumby building opening soon downtown at Sixth and Race streets. The building will change its name from Dunnhumby Centre to 84.51°.

 

Cincinnati-based Kroger (NYSE: KR), the nation’s largest operator of traditional supermarkets, will retain 500 of 700 DunnhumbyUSA employees. Those people now work for 84.51° and will operate from the new downtown building. The companies didn’t disclose financial terms of the deal.

 

Stuart Aitken, who ran DunnhumbyUSA, is now CEO of the new 84.51°.

 

Cont

Kroger to invest nearly $500 million in expansion

Apr 30, 2015, 6:48am EDT

Lisa Benson Managing Editor-

Cincinnati Business Courier

 

 

Kroger Co. will spend nearly $500 million to build 11 stores and remodel 22 others in major expansion effort in Central Indiana

 

The Associated Press reports that the expansion is part of a four-year strategic plan that includes the addition of 3,440 permanent Kroger (NYSE: KR) jobs in Indiana. The Cincinnati-based grocer will build seven of its mega Kroger Marketplace stores in Fishers, Franklin and Indianapolis. Five traditional Kroger stores also are part of the plan, as well as five expansions, 17 remodeling projects, a regional training center in Indianapolis and 16 new gas stations.

 

http://www.bizjournals.com/cincinnati/morning_call/2015/04/kroger-to-invest-nearly-500-million-in-expansion.html

Kroger touts another high-end acquisition

May 4, 2015, 7:09am EDT Updated: May 4, 2015, 7:36am EDT

Staff Cincinnati Business Courier

 

Kroger Co. ended a busy week with another major acquisition on Friday, Detroit Free Press reports.

 

The Cincinnati-based grocery giant (NYSE: KR) will purchase Hiller’s Markets, a company that includes seven high-end grocery stores in Detroit.

 

Financial terms of the deal weren’t disclosed.

 

http://www.bizjournals.com/cincinnati/morning_call/2015/05/kroger-touts-another-high-end-acquisition.html

Roundy's takeover gives Kroger stronger Downtown store model

 

Kroger announced Wednesday it has cut an $800 million deal to acquire Milwaukee-based Roundy's Inc., adding 151 stores.

 

Roundy’s brings to Kroger an expanded footprint with a complementary base of 151 stores and 101 pharmacies in new geographies including Milwaukee, Madison and Northern Wisconsin, which are served under the Pick ‘n Save, Copps and Metro Market banners.

 

The merger also expands Kroger’s presence with an innovative store format in the Chicagoland area, where Roundy’s operates 34 stores under the Mariano’s banner. Roundy’s also operates two distribution centers in Oconomowoc and Mazomanie, Wisconsin, and a commissary in Kenosha, Wisconsin. Roundy’s had revenues of nearly $4 billion for fiscal year 2014.

 

Cont

"Kroger Co. is looking to make another acquisition, and supermarket chain Fresh Market is the target this time, according to published reports."

 

I see this as a pretty big deal.  Kroger continues to explode.  I have to wonder, does anyone one know many positions and/or how much job growth has occurred both in downtown and in the region because of all of their growth?

 

Any chance we could squeeze in a new Kroger World Headquarters Tower downtown anytime soon?

 

 

 

 

http://www.bizjournals.com/cincinnati/news/2016/02/11/kroger-could-buy-fresh-market.html

Good for Kroger, but I'm more concerned about 1 company gaining so much market share. I suppose it's a little different that Target and Walmart sell groceries now, but if you want to do your shopping at an actual grocery store, Cincinnatians don't have many options other than Kroger.

Ugh, this sucks. I really enjoy Fresh Market precisely because it's kind of the anti Kroger. Guess the only option we'll have besides Kroger now is the two Whole Foods and one Trader Joes that we have in the region.

Ugh, this sucks. I really enjoy Fresh Market precisely because it's kind of the anti Kroger. Guess the only option we'll have besides Kroger now is the two Whole Foods and one Trader Joes that we have in the region.

 

There are three Fresh Thymes in the region as well, including the brand new location in Newport.  Much better alternative to either WFs or TJs in my humble opinion. 

I wouldn't even expect Kroger to keep all 3 Cincinnati area Fresh Market stores open. The Oakley one is right around the corner from their massive new Kroger Marketplace. The West Chester one is right across the street from a Kroger.

I wouldn't even expect Kroger to keep all 3 Cincinnati area Fresh Market stores open. The Oakley one is right around the corner from their massive new Kroger Marketplace. The West Chester one is right across the street from a Kroger.

 

That would be like closing a Lexus dealership because there's a Toyota dealership nearby.

This is a little off topic but I think the "secret sauce" behind Kroger's success is that their store brand products (and the other specialty bands owned by Kroger) are so good they are indistinguishable from the name brands and in some cases even better. When I was growing up the generic store brand was of always of poorer quality and that's not the case anymore. Those Kroger brands can be sold at these other stores they're acquiring.

Indeed, it's not that Cost Cutter stuff from the '80s that came in the yellow packaging with the scissors on it that was usually inferior in at least one key aspect.

 

edit: here we go!

 

 

 

I wouldn't even expect Kroger to keep all 3 Cincinnati area Fresh Market stores open. The Oakley one is right around the corner from their massive new Kroger Marketplace. The West Chester one is right across the street from a Kroger.

If the stores are making a profit why close them down???

This is a little off topic but I think the "secret sauce" behind Kroger's success is that their store brand products (and the other specialty bands owned by Kroger) are so good they are indistinguishable from the name brands and in some cases even better.

 

In some cases, a store brand is actually the exact same as the name brand product.  Stores will sometimes buy excess capacity or excess inventory from the manufacturer and it just goes into the store brand label.  The manufacturer doesn't care because they still make money and the store isn't permitted to advertise that their generic version is literally the same as the name brand equivalent.

Good for Kroger, but I'm more concerned about 1 company gaining so much market share. I suppose it's a little different that Target and Walmart sell groceries now, but if you want to do your shopping at an actual grocery store, Cincinnatians don't have many options other than Kroger.

 

This is exactly why I begged friends to make at least one of their grocery trips per month to Remke.  Like them or not, local operators can help keep the big boys honest. Even they continue to shrink as Kroger becomes increasingly dominant.

A real challenge for Kroger is the movement toward local food, and Kroger is probably the worst chain in the state for local sourcing.

Ugh, this sucks. I really enjoy Fresh Market precisely because it's kind of the anti Kroger. Guess the only option we'll have besides Kroger now is the two Whole Foods and one Trader Joes that we have in the region.

 

No love for Jungle Jim's? 

Good for Kroger, but I'm more concerned about 1 company gaining so much market share. I suppose it's a little different that Target and Walmart sell groceries now, but if you want to do your shopping at an actual grocery store, Cincinnatians don't have many options other than Kroger.

 

I don't know the most up-to-date statistics, but at least as of a couple years ago, Wal-Mart sold more groceries than anyone else in the U.S.  Fairly certain that remains the case.  Kroger may be the largest "traditional" grocer, but there are definitely bigger fish out there. 

Ugh, this sucks. I really enjoy Fresh Market precisely because it's kind of the anti Kroger. Guess the only option we'll have besides Kroger now is the two Whole Foods and one Trader Joes that we have in the region.

 

No love for Jungle Jim's?

 

Love Jungle Jims, but I'm not driving out to Fairfield or Eastgate to do grocery shopping on a regular basis. That's like a once or twice a year type of spot for me.

 

Also, I've been to Fresh Thyme and I really didn't care for it. I can't pinpoint exactly why, but I remember being underwhelmed with their prepared foods, which is something that Fresh Market excels at, IMO.

Fresh Thyme is like a slightly cheaper version of Fresh Market, so you can expect a slight step down in quality as well. I like shopping at Fresh Thyme since I'm more price-conscious, but it doesn't have the same "premium" feel of Fresh Market. 

Good for Kroger, but I'm more concerned about 1 company gaining so much market share. I suppose it's a little different that Target and Walmart sell groceries now, but if you want to do your shopping at an actual grocery store, Cincinnatians don't have many options other than Kroger.

 

I don't know the most up-to-date statistics, but at least as of a couple years ago, Wal-Mart sold more groceries than anyone else in the U.S.  Fairly certain that remains the case.  Kroger may be the largest "traditional" grocer, but there are definitely bigger fish out there. 

 

I think WalMart did about $140 billion in US groceries last year, while Kroger did $100 billion. Kroger's future though is in collecting information more than selling groceries. When you walk into a modern Kroger, an AI is tracking you everywhere, analyzing your traffic pattern, calling cashiers to the registers when it predicts check-out traffic is about to spike, then analyzes your entire purchase since you swiped that Kroger Plus Card. This may somewhat explain why Kroger has not aggressively pursued urban format. Their almost self-aware intelligence gathering system has probably indicated that the right opportunity is still in the future.

Good for Kroger, but I'm more concerned about 1 company gaining so much market share. I suppose it's a little different that Target and Walmart sell groceries now, but if you want to do your shopping at an actual grocery store, Cincinnatians don't have many options other than Kroger.

 

I don't know the most up-to-date statistics, but at least as of a couple years ago, Wal-Mart sold more groceries than anyone else in the U.S.  Fairly certain that remains the case.  Kroger may be the largest "traditional" grocer, but there are definitely bigger fish out there. 

 

I think WalMart did about $140 billion in US groceries last year, while Kroger did $100 billion. Kroger's future though is in collecting information more than selling groceries. When you walk into a modern Kroger, an AI is tracking you everywhere, analyzing your traffic pattern, calling cashiers to the registers when it predicts check-out traffic is about to spike, then analyzes your entire purchase since you swiped that Kroger Plus Card. This may somewhat explain why Kroger has not aggressively pursued urban format. Their almost self-aware intelligence gathering system has probably indicated that the right opportunity is still in the future.

 

Yup kroger is all about data, and pushing consumer pattern data into innovative new shopping products.

 

I know they are working on prototypes for smart carts that will calculate your total, and guide you to various lanes based off your kroger shopping list. Apperantly connected via through the kroger app somehow. There's other stuff as well, but yeah kroger is really honed in on consumer data. Once you step into the store they are anaylizing everything possible about you and your shopping patterns. I work there, and the details you learn is sort of borderline creepy, but in my opinion that's what is krogers secret sauce.

 

 

^ Haha, yeah it is kind of crazy.  I remember when I first moved here in 2013 I was shopping for a few months with my new Kroger Plus card, and I got something either in the mail or e-mail, and it was coupons for the exact things I buy or maybe a slight substitute or different brand of product.  At first I thought, dang that's amazing, they sent me coupons for the exact things I buy!  but then my neighbor in Mt. Adams worked for Dunhumby and he was telling me about everything they do, and I told him about what happened to me with the coupons, and he told me that it wasn't a coincidence on those coupons.  I felt like a doofus

Good for Kroger, but I'm more concerned about 1 company gaining so much market share. I suppose it's a little different that Target and Walmart sell groceries now, but if you want to do your shopping at an actual grocery store, Cincinnatians don't have many options other than Kroger.

 

I don't know the most up-to-date statistics, but at least as of a couple years ago, Wal-Mart sold more groceries than anyone else in the U.S.  Fairly certain that remains the case.  Kroger may be the largest "traditional" grocer, but there are definitely bigger fish out there. 

 

I think WalMart did about $140 billion in US groceries last year, while Kroger did $100 billion. Kroger's future though is in collecting information more than selling groceries. When you walk into a modern Kroger, an AI is tracking you everywhere, analyzing your traffic pattern, calling cashiers to the registers when it predicts check-out traffic is about to spike, then analyzes your entire purchase since you swiped that Kroger Plus Card. This may somewhat explain why Kroger has not aggressively pursued urban format. Their almost self-aware intelligence gathering system has probably indicated that the right opportunity is still in the future.

Kroger actually did $108.5 billion, making it the 3rd largest world retailer and the largest retailer doing business strictly in the US:

 

http://www.cincinnati.com/story/money/2016/01/20/kroger-named-worlds-third-largest-retailer/79072302/

 

But by now it's reasonable to suspect that Kroger has surpassed Costco Wholesale ($112.6 billion) and become the world's 2nd largest retailer.  So really - what's there not to like about this Cincy food giant except that it doesn't occupy a 70-story HQ tower @ Vine & Central Pkwy?  :-D

...and won't open a quality store in Downtown Cincinnati :)

Indeed, it's not that Cost Cutter stuff from the '80s that came in the yellow packaging with the scissors on it that was usually inferior in at least one key aspect.

 

edit: here we go!

 

 

I think I remember this actually being a real beer.  I'm testing my memory by not looking it up. 

 

I remember the IGA we went to when I was a kid did some remodeling and added a theme to the wine aisle with an overhead lattice with fake plastic ivy and some brick wallpaper.  The intent was to trick us into thinking we were in Italy or France, not right next to piles of Sanka and Kinsford Charcoal.  And the IGA was situated above a majestic bluff, not oriented on an odd diagonal between an RV dealer and a credit union. 

 

 

^That absolutely was a real beer.  There was a light beer too. As was KingKwiks house brand "Nite and Day" Beer.