Kroger
| File:Kroger logo.svg Logo used since 2004 | |
| Company type | Public company |
|---|---|
| Industry | Retail (supermarkets, multi-department stores) |
| Founded | December 0, 1883 in Cincinnati, Ohio, U.S. |
| Founder | Bernard Kroger |
| Headquarters | Cincinnati , United States |
Area served | United States (35 states plus District of Columbia) |
| Products | Grocery outlets, multi-department stores, manufacturing facilities, fuel stations, pharmacies, healthcare clinics, jewelry shops |
| Owner | Berkshire Hathaway (8.09%) |
Number of employees | 414,000 (2023) |
| Website | www |
The Kroger Company, commonly known as Kroger, stands as a prominent American retail enterprise, managing supermarkets and multi-department stores throughout the United States either directly or through its subsidiaries. Established in 1883 by Bernard Kroger in Cincinnati, Ohio, the company oversees 2,719 grocery outlets operating under various brand names across 35 states plus the District of Columbia, with a primary focus on the South, Midwest, and Western regions. Its retail formats encompass 134 multi-department stores, 2,273 combined supermarkets, 191 marketplace stores, and 121 price-impact warehouse-style locations.
Beyond retail, Kroger runs 33 manufacturing facilities, 1,642 fuel stations, 2,254 pharmacies, 225 in-store healthcare clinics known as The Little Clinic, and 127 jewelry shops. The company’s corporate headquarters are situated in downtown Cincinnati.
Ranking as the largest supermarket chain in the United States by revenue and the fifth-largest general retailer nationwide, Kroger holds a significant position within the retail sector. It is one of the biggest American-owned private employers and is ranked number 25 on the Fortune 500 list based on total revenue. For 2023, Kroger reported revenues of $150 billion with a net profit of $2.3 billion and employs around 414,000 individuals. Berkshire Hathaway owns an 8.09% stake in the company.
Union representation covers roughly two-thirds of Kroger’s employees, predominantly through the United Food and Commercial Workers (UFCW). In 2024, Kroger is recognized as a reliable dividend-paying stock among investors.
Kroger’s operational strategy focuses on a variety of store formats combined with integrated manufacturing and fuel services to sustain its competitive edge and retain market share within its core regions.
Early history (1883 to 1950s)
In 1883, at age 23, Bernard Kroger, whose parents were German immigrant merchants, invested $372 to launch a grocery store at 66 Pearl Street in Cincinnati. His guiding principle was "Be particular. Never sell anything you would not want yourself." He expanded the product range by offering company-manufactured goods to minimize customers’ need to shop elsewhere.
By 1902, the Kroger Grocery and Baking Company had been incorporated and grown to forty stores with annual sales reaching $1.75 million. It was pioneering as the first grocery chain to operate its own bakery. In 1916, Kroger introduced self-service shopping methods that replaced traditional clerk-assisted transactions.
Although there were merger rumors with Safeway in 1929 that never came to fruition, Kroger announced plans in 2022 to acquire Safeway’s parent company Albertsons; however, this merger was blocked by a federal judge in 2024 and subsequently abandoned by Albertsons.
During the 1930s, Kroger led innovations in product quality assurance and food safety testing. It also became the first grocery chain to feature stores surrounded entirely by parking lots. A pilot store launched in Indianapolis in 1932 offered parking for 75 cars, illustrating how parking availability positively influenced sales.
1950s and 1960s
Beginning in 1955, Kroger expanded aggressively through acquisitions. In May of that year, it entered the Houston market by purchasing Henke & Pillot’s 26-store chain. The following month brought acquisition of Krambo Food Stores in Appleton, Wisconsin; then in July came Child's Food Stores based in Jacksonville, Texas—together operating around 25 locations across Texas, Arkansas, and Louisiana.
In January 1956, Kroger acquired Big Chain Stores from Shreveport, Louisiana and later merged it with Child's Food Stores. By 1966 all these regional chains had been rebranded under the Kroger name.
In September 1957, Kroger sold its Wichita division consisting of sixteen stores to J. S. Dillon and Sons Stores Company.
A notable expansion occurred in October 1963 when Kroger bought Market Basket’s chain of fifty-six stores to enter southern California; however, despite this entry Kroger only achieved about a five percent market share before withdrawing from California by 1982.
Throughout the 1960s until divesting all locations in 1988, Kroger operated Florida stores under SupeRx and Florida Choice banners. Most of these were sold to Kash n' Karry as part of its strategic exit from that market.
1970s
During the 1970s, Kroger was at the forefront of implementing electronic scanning technology and formalized consumer research within the American grocery sector.
Although Kroger continued operating stores in northern Alabama, it withdrew from the Birmingham area in the early 1970s due to strong competition from Winn-Dixie and regional chains. In 1972, the company established Crossroad Farms Dairy in Indianapolis, which became the largest dairy facility worldwide at that time.
Kroger exited several key markets during this decade: in Chicago, it sold 24 stores to Dominick's in 1970; in Minneapolis–Saint Paul, 16 locations were sold to Quality Foods also in 1970; and in Milwaukee, stores were divested to Jewel in 1972. Notably, Kroger reentered the Milwaukee market in 2015 through acquiring Roundy's.
The company entered Charlotte, North Carolina, in 1977 and grew by acquiring BI-LO outlets. However, by 1988, facing stiff competition and poorly positioned stores, Kroger withdrew from Charlotte. Ahold subsequently purchased these locations and rebranded them as BI-LO.
In 1978, Parkview Markets Inc. initiated an antitrust lawsuit against Kroger.
1980s
Kroger maintained operations in Western Pennsylvania until 1984 but exited due to the early 1980s economic downturn and deteriorating labor relations marked by a prolonged strike. The stores were sold to Wetterau (later integrated into SuperValu), which operated them under FoodLand and Shop 'n Save banners. This departure allowed competitors such as Giant Eagle and local grocers to increase their presence.
In 1980, Kroger expanded into San Antonio, Texas, but shuttered all 15 stores by mid-1993 because of competitive challenges and union wage expenses. Between 1984 and 1986, Kroger also withdrew from Pittsburgh, Cleveland, Akron, and St. Louis for comparable reasons.
Several Michigan locations were either closed or sold during the early 1980s; some transitioned into Kessel Food Markets before Kroger reacquired many of these stores in 1999. Additionally, other Michigan outlets were briefly sold to Hamady Brothers.
In southern California, Kroger divested its Market Basket chain in 1982; this chain reverted to Boys Markets branding before ultimately disappearing following acquisition by Yucaipa Companies.
A major acquisition occurred in 1983 when Kroger purchased Dillon Companies—including King Soopers, City Market, Fry's, Gerbes—and convenience store chain Kwik Shop. Following this transaction, David Dillon, a family member of Dillon’s founder, assumed the role of Kroger’s CEO.
Mid-decade saw Kroger close its Solon, Ohio production facility and exit northeastern Ohio markets; these stores were absorbed by regional chains such as Acme Fresh Markets and Giant Eagle.
Due to lack of profitability, Kroger left St. Louis in 1986; most locations were sold to National Supermarkets, Schnucks, and Shop 'n Save. The remaining stores were incorporated into Kroger’s Central Division.
Kroger exited Chattanooga, Tennessee in 1989 with numerous outlets sold to Red Food (which was later acquired by BI-LO). Currently, Chattanooga is the only major Tennessee city without a Kroger presence—the closest stores are located in Dalton, Georgia.
1990s
Throughout the 1990s, Kroger expanded its footprint by acquiring Great Scott (Detroit), Pay Less Food Markets, Owen's Market, JayC Food Stores, and Hilander Foods. The Houston area was strengthened through purchasing former Safeway locations from AppleTree Markets in early 1994.
A landmark business development took place in 1998 when Kroger merged with Fred Meyer—the fifth-largest grocery retailer—along with its subsidiaries Ralphs, QFC, and Smith's. This merger created the largest grocery company nationwide.
Later in the decade, Kroger acquired several stores from A&P as that company withdrew from Southern markets. In a strategic move in 1999, Kroger exchanged its ten Greensboro, North Carolina stores for eleven Harris Teeter locations in Virginia—a company it would fully acquire fifteen years later.
2000s
In 2000, Kroger expanded its footprint in Virginia by acquiring Hannaford stores from the Delhaize Group, thereby entering the Richmond market and extending into competitive regions such as Hampton Roads. This expansion placed Kroger in direct competition with established chains like Martin's Food Stores, Farm Fresh, Harris Teeter, and Food Lion, as well as Walmart Supercenters.
The following year, Kroger enhanced its regional presence by purchasing Baker's Supermarkets from Fleming Companies. In 2002, Kroger took advantage of Albertsons' withdrawal from the San Antonio and Houston markets by acquiring numerous Houston locations.
Kroger’s growth in Cincinnati continued in 2004 through the acquisition of former Thriftway stores from Winn-Dixie, which were subsequently rebranded under the Kroger name. In 2007, the company further expanded by buying Scott's Food & Pharmacy from SuperValu Inc., along with 20 former Michigan Farmer Jack stores acquired from A&P as it exited the Michigan market.
In 2008, Kroger formed a strategic alliance with New York City's Murray's Cheese to introduce artisanal cheese counters within its supermarkets. This partnership broadened Kroger’s product offerings and appealed to a more upscale customer base.
2010s
On July 9, 2013, Kroger declared its $2.5 billion acquisition of Harris Teeter, a Charlotte-based chain operating 212 stores and carrying $100 million in debt. Harris Teeter serves eight Southern states, predominantly North Carolina. This purchase incorporated Harris Teeter’s click-and-collect grocery service into Kroger’s operations, strengthening its online grocery presence and positioning it competitively against digital grocers such as AmazonFresh. The deal marked Kroger’s reentry into the Charlotte market after a 25-year absence and extended its reach into Asheville, North Carolina.
In 2013, citing provisions of the Affordable Care Act, Kroger eliminated insurance coverage for spouses of unionized workers in Indiana while maintaining benefits for full-time employees. That same year, the company faced scrutiny for offering 17 out of 22 species listed on the IUCN Red List, raising sustainability concerns.
On February 11, 2014, Kroger acquired YOU Technology, an innovator in AI-powered digital coupon personalization founded by Ajay Amlani. YOU Technology facilitated billions of digital coupon downloads and accelerated the decline of paper coupons. Later, Kroger sold this business to Inmar for $565 million.
By March 2015, Kroger had registered plans to enter Hawaii’s grocery market, competing against local chains like Foodland and Times Supermarkets as well as national retailers including Safeway, Walmart, and Costco.
On May 1, 2015, Kroger purchased Hiller's Market—a seven-store chain in Southeast Michigan—converting all but one location to the Kroger brand. By June that year, due to competitive pressures in Nashville, Kroger phased out the Harris Teeter brand there by closing or converting stores under its own banner.
On November 11, 2015, Kroger completed an $800 million merger (including debt) with Roundy's, acquiring Wisconsin-based chains such as Pick 'n Save and Mariano's. This transaction marked Kroger’s return to Wisconsin after a hiatus of over four decades.
In April 2016, Kroger made a strategic investment in Lucky's Market, an organic-focused supermarket operating throughout the Midwest and Southeast.
Despite strong demand locally, Kroger closed two Louisville-area stores in February 2017. On February 7 of that year, it acquired specialty retailer Murray's Cheese to further enhance its premium product lineup.
Early in 2017, Kroger discontinued its senior citizen discount program. On May 1, it secured a long-term naming rights agreement for twelve years with the University of Kentucky for its football stadium—renamed Kroger Field—signifying a major marketing partnership within collegiate athletics.
On May 10, 2017, Kroger introduced "Fresh Eats MKT," its inaugural convenience store concept in Ohio featuring a small-format layout focused on food offerings alongside Starbucks and pharmacy services; this concept was discontinued by March 2020.
In February 2018, Kroger divested its convenience store division—including Turkey Hill and Loaf 'N Jug brands—to UK-based EG Group for $2.15 billion but retained over twenty locations along with supermarket fuel centers. The transaction was finalized on April 20.
April 2018 saw Kroger announce plans to hire roughly 11,000 employees across various roles to support ongoing expansion and operational growth.
On May 17, 2018, Kroger partnered with Ocado—a UK-based ecommerce technology firm—to advance automated fulfillment capabilities; their first fulfillment center opened in Monroe, Ohio in April 2021. By September 2023, eight fulfillment centers along with multiple "spoke" facilities had been established nationwide to accommodate rapid online sales growth—online revenue surged over 116% during the pandemic surpassing $10 billion annually.
On May 24, 2018, Kroger acquired meal kit provider Home Chef for $200 million with additional potential earn-outs up to $500 million contingent on performance milestones.
In June 2018, Kroger exited the Raleigh-Durham market by shuttering all fourteen stores; several locations transitioned to Harris Teeter or other operators.
By July 2018, after industry opposition, Kroger reversed plans to implement a Net-90 payment policy for produce suppliers.
October 2018 witnessed expansion of online wine delivery services into fourteen states through a collaboration with DRINKS offering curated six- and twelve-bottle selections.
In December 2018, Kroger entered an agreement with Walgreens to retail groceries inside drugstores under the "Kroger Express" brand featuring meal kits and ready-to-eat meals.
Responding to automation trends favored by competitors such as Walmart and Target starting in 2019, Kroger invested heavily in replacing traditional cashier lanes with self-checkout kiosks and mobile checkout apps to boost efficiency.
March 2019 marked an expansion of autonomous grocery delivery via partnership with robotics firm Nuro deploying driverless vehicles in Houston.
Beginning August 2019 at Dillons stores in Kansas following pilot tests, Kroger introduced fees ranging from $0.50 to $3.50 for debit card cash-back transactions.
September 2019 saw collaboration with the Plant Based Food Association to trial plant-based meat products at select locations in Denver and parts of Indiana and Illinois.
November 2019 brought a refreshed corporate logo coupled with the "Fresh For Everyone" tagline alongside expanded wine delivery service now including Arizona among other states.
By December 2019, Kroger ranked as the second-largest grocery retailer in the U.S., boasting $110 billion in sales (based on data from 2016) and earning recognition as the leading supermarket chain across several states according to consumer analytics.
2020s
Amid the COVID-19 pandemic, Kroger introduced a temporary "hero pay" hazard bonus of $2 per hour for frontline employees between March and May 2020. Beginning in January 2021, Long Beach, California, imposed a $4 hourly hazard pay requirement on large grocery chains, including Kroger locations. Comparable regulations enacted in Seattle and Washington prompted Kroger to shutter several stores, attributing the closures to financial pressures linked to these wage mandates. The United Food and Commercial Workers (UFCW) union interpreted these shutdowns as cautionary signals against hazard pay legislation.
Despite these obstacles, Kroger experienced approximately a 30% sales increase in impacted stores relative to 2019, alongside an 87.7% rise in net income for 2020. By November 2020, quarterly revenue hit $29.72 billion, accompanied by swift growth in earnings per share and a 14% boost in annual dividends. Early in 2020, Berkshire Hathaway began purchasing Kroger stock, ascending to a top ten shareholder position by August 2021.
In July 2021, a lawsuit alleging wrongful death was filed following an employee’s suicide reportedly linked to workplace mistreatment. Later that year, Kroger discontinued certain COVID-19-related benefits for workers who remained unvaccinated. Additionally, in 2021, a cybersecurity breach compromised pharmacy customer information at Fred Meyer and QFC outlets.
Throughout 2021, Kroger divested several Fred Meyer properties in Washington state through sale-leaseback agreements with Benderson Development Company, generating nearly $600 million. In August of the same year, Elaine Chao—former U.S. Secretary of Labor and Transportation—was appointed to Kroger’s board of directors, which drew some negative reactions from customers.
A tragic mass shooting occurred at a Kroger store in Collierville, Tennessee in September 2021, resulting in one fatality and multiple injuries; the location was temporarily closed afterward. That month also saw the rollout of an updated Kroger logo featuring the "Fresh Cart" icon symbolizing fresh produce offerings.
Starting in late 2021, Kroger expanded its online grocery delivery services into South Florida and additional U.S. markets through a partnership with UK-based Ocado Group to develop automated fulfillment centers. In April 2022, Kroger launched its Kroger Restaurant Supply division in Dallas-Fort Worth to cater to foodservice customers beyond traditional retail grocery.
In October 2022, Kroger announced plans for a $24.6 billion merger with Albertsons, including intentions to divest assets to meet regulatory requirements. By early 2024, however, attorneys general from Washington and Colorado filed lawsuits aiming to block the merger due to concerns over increased prices and diminished competition; simultaneously, the Federal Trade Commission initiated legal action opposing the deal based on potential adverse effects on consumers and employees.
A 2022 survey highlighted declining wages and deteriorating living conditions for many Kroger employees despite rising executive compensation—CEO Rodney McMullen earned more than $22 million in 2020 while over two-thirds of the workforce remained part-time with inconsistent schedules.
In July 2024, Kroger announced plans to sell off 579 stores as part of efforts to alleviate antitrust concerns raised by the FTC; this divestiture heavily impacted the Dallas market with numerous Albertsons locations slated for sale. The UFCW reiterated its opposition to the merger notwithstanding these store sales. In December 2024, a U.S. district court judge blocked the proposed merger on grounds that it would harm both consumers and workers.
Business trends
2015 108,465 1,728 30,497 28.94 400,000 2,625 782 326 3,733 - 2016 109 ,830 2 ,039 33 ,897 24 .20 431 ,000 2 ,778 784 323 3 ,885 - 2017 115 ,337 1 ,975 36 ,505 19 .60 443 ,000 2 ,796 784 319 3 ,899 - 2018 122 ,662 1 ,907 37 ,197 20 .01 449 ,000 2 ,782 782 274 3 ,838 - 2019 121 ,852 3 ,110 38 ,118 21 .59 453 ,000 2 ,764 253 3 ,017 - 2020 122 ,286 1 ,659 45 ,256 24 .16 435 ,000 2 ,757 242 2 ,999 -| Year | Revenue in million US$ |
Net income in million US$ |
Total Assets in million US$ |
Price per Share in US$ |
Employees | Supermarkets | C-stores | Jewelers | Total stores |
|---|---|---|---|---|---|---|---|---|---|
| 2006 | 60,553 | 958 | 20,482 | 6.94 | 290,000 | 2,507 | 791 | 428 | 3,726 |
| 2007 | 66,111 | 1,115 | 21,215 | 8.12 | 310,000 | 2,468 | 779 | 412 | 3,659 |
| 2008 | 70,336 | 1,209 | 22,293 | 8.13 | 323,000 | 2,486 | 782 | 394 | 3,662 |
| 2009 | 76,148 | 1,249 | 23,257 | 6.42 | 326,000 | 2,481 | 771 | 385 | 3,637 |
| 2010 | 76,609 | 70 | 23,126 | 7.12 | 334,000 | 2,468 | 777 | 374 | 3,619 |
| 2011 | 82,049 | 1,116 | 23,505 | 7.86 | 338,000 | 2,460 | 784 | 361 | 3,605 |
| 2012 | 90,269 | 602 | 23,476 | 8.63 | 339,000 | 2,435 | 791 | 348 | 3,574 |
| 2013 | 96,619 | 1,497 | 24,634 | 13.33 | 343,000 | 2,424 | 786 | 328 | 3,538 |
| 2014 | 98,375 | 1,519 | 29,281 | 21.97 | 375,000 | 2,640 | 786 | 320 | 3,746 |
|
2021 132 ,498 2 ,585 45 ,256 35 .13 465 ,000
- |
2022 137 ,888 1 ,655 48 ,662 42 .12 420 ,000
- |
2023 148 ,258 2 ,244 49 ,086 44 .23 430 ,000
- |
2024 150 ,039 2 ,164 49 ,623 60 .55 414 ,000
- |
2025 147 ,123 2 ,665 52 ,616 409 ,000
|
Chains
Kroger Marketplace
Kroger Marketplace represents a hypermarket chain introduced in 2004 around the Columbus, Ohio region, succeeding the defunct Big Bear Stores. Drawing inspiration from Kroger’s Fry's Marketplace in Arizona and the Fred Meyer model, these outlets blend grocery shopping with a variety of departments such as jewelry, coffee shops, pizza counters, banking services, toys, appliances, and home décor. Presently, there are 188 Kroger Marketplace stores in operation.
This retail format competes directly with chains like Meijer, Target Corporation, and Walmart by providing an extensive assortment of products under a single roof, thereby strengthening Kroger's market position and competitive edge. Beginning in 2005, numerous Ohio Kroger Food & Drug locations underwent renovations to adopt this concept. Growth continued with new openings in Ohio suburbs including Lebanon, Liberty Township, Gahanna, Middletown, and Englewood during 2006 and 2007.
Further expansion occurred with new stores launched in Kentucky cities such as Hebron, Walton, Lexington, and Newport; Ohio’s Beavercreek and Mount Orab; South Carolina’s North Augusta; and a notably large store established in Oakley, Cincinnati in 2015. The Centerville store, inaugurated in 2011 at , holds the distinction of being the largest Kroger store constructed entirely from scratch.
Kroger Marketplace extended its footprint into Tennessee with locations in Farragut (2008), Thompson's Station (2009), and Gallatin (2010). Texas welcomed its first store in Richmond (2009), followed by additional sites in Rosenberg, Frisco, Willis, Little Elm, Fort Worth’s Alliance Town Center, Mansfield, Wylie, and Baytown through 2011.
Arkansas joined the Marketplace network with stores opening in Little Rock (2010), Conway (2012), and Jonesboro (2014). Indiana saw its inaugural Marketplace in Fort Wayne in 2011 as part of a $100 million expansion initiative; a La Porte location was announced for a 2018 debut.
The presence of Kroger Marketplace in Virginia began with Richmond (2012), followed by Virginia Beach (2013), Henrico County (2013), and Portsmouth (2014). Michigan's first Marketplace opened in Lambertville (2013), with subsequent expansions to Shelby Township and White Lake Township by 2016.
In 2016, Kroger entered Mississippi’s market at Hernando with a remodeled facility featuring wider aisles and amenities such as Starbucks and ClickList. Alabama’s initial Kroger Marketplace launched in Huntsville in 2017.
This deliberate expansion strategy highlights Kroger’s business approach of integrating varied product lines and services to fuel growth across multiple regions while diversifying revenue channels and increasing market influence.
Distribution and logistics
Kroger oversees its food distribution through subsidiaries including Kroger Group Cooperative, Inc., Kroger Group, Inc., Peytons, WESCO, and Inter-American Products. The company operates a mixed fleet comprising both company-owned trucks and contracted carriers. In June 2018, Kroger initiated trials for autonomous grocery deliveries by partnering with Nuro, an autonomous vehicle firm, showcasing its commitment to adopting advanced logistics technologies.
Additionally, Kroger operates one of the nation’s largest private label manufacturing networks with 33 facilities across 17 states producing approximately 40% of its own brand products. Its private label strategy is structured into three tiers aimed at distinct consumer segments: economically priced basic products; mid-level brands that rival national labels; and premium organic selections.
Private Label Brands
Kroger’s "Our Brands" collection represents more than 30% of its unit sales, focusing on quality levels that align with the company’s strategic goals to boost market share and strengthen its competitive position through exclusive offerings.
Banner Brand
Products under the Banner Brand carry the Kroger name or that of its subsidiaries, such as Ralphs and King Soopers, and are exclusively available within Kroger stores. This line is positioned as an economical choice, generating annual sales exceeding $13 billion. A significant portion of health and beauty items in this rapidly expanding private label segment are manufactured by third parties, including products like ibuprofen and contact lens solutions.
Private Selection
Private Selection caters to consumers looking for gourmet or premium alternatives to standard Kroger offerings, competing directly with regional upscale brands.
Simple Truth
Introduced in 2012, Simple Truth is Kroger’s leading natural and organic brand, marking the company’s venture into gluten-free products such as flour mixes and bread. It also became Kroger’s first brand launched in China via Alibaba’s Tmall platform. By 2018, Simple Truth reached $2 billion in yearly sales, highlighting its vital role in Kroger’s product lineup and overall business expansion.
Smart Way
The Smart Way label represents Kroger’s value-oriented private brand, consisting of approximately 150 products. Rolled out in two stages starting September 2022, it unifies 16 former brands under a single price-focused banner.
Other Private Label Brands
Kroger also manufactures a variety of department-specific private labels, especially prominent in Fred Meyer stores where over 50% of sales come from non-food items. Notable private labels include:
- Abound – natural pet nutrition
- Bakery Fresh Goodness – freshly baked goods
- Bloom Haus – floral products
- Comforts – infant care items
- Dip – fast fashion line created by Joe Mimran
- Everyday Living – household essentials
- HD Designs – premium home décor
- HemisFares – imported specialty foods
- Home Chef – meal kit and food delivery service acquired in 2018
- Kroger Mercado – Hispanic-inspired culinary products
- Luvsome – pet food line
- Murray's Cheese – artisanal cheese retailer established in Greenwich Village in 1940
- OfficeWorks – office supplies and stationery
- Pet Pride – pet food
Pharmacy Group
Kroger once operated the SupeRx drugstore chain and acquired Hook's Drug Stores in 1985, merging them into Hook's-SupeRx. The company exited standalone pharmacy operations in 1994 by selling these stores to Revco, which was later acquired by CVS.
Currently, Kroger manages 2,252 pharmacies mainly located inside its grocery stores. This pharmacy division remains a profitable sector with locations across City Market, Dillons, Fred Meyer, Fry's, King Soopers, QFC, Ralphs, Harris Teeter, Smith's Food and Drug, and Kroger Supermarkets.
Supermarket Petroleum Group
Since 1998, Kroger has broadened its fuel services by installing fuel stations within supermarket parking areas and, more recently, launching independent fuel centers near locations with limited space. By the second quarter of 2022, Kroger managed 1,629 fuel centers associated with its supermarkets. In 2006, the company standardized the branding across its convenience store chains and fuel stations by introducing a unique rhombus-shaped logo that incorporates a stylized map of the United States, symbolizing its extensive market presence. This emblem continues to be used at convenience stores that were sold to EG Group in 2018.
Kroger Personal Finance
Established in 2007, Kroger Personal Finance provides a range of financial products including branded Visa credit cards, mortgage loans, home equity financing, insurance offerings, identity theft protection services, and wireless plans. In 2017, Kroger collaborated with MasterCard to issue the 1-2-3 REWARDS credit card through U.S. Bank. Nevertheless, in 2019, Kroger limited the acceptance of Visa credit cards at Foods Co. Supermarkets and Smiths due to escalating fees associated with premium card transactions.
Kroger Wireless
Operating under the former name i-wireless, Kroger Wireless is a private-label cellular service available nationwide at more than 2,200 Kroger retail outlets spanning 31 states. Utilizing the T-Mobile network infrastructure, it provides plans featuring unlimited calling, texting, and data usage. Customers can acquire mobile devices either in select stores or online and activate compatible T-Mobile phones. This wireless service complements Kroger’s diverse product and service offerings by boosting customer interaction and generating additional revenue.
84.51°
A fully owned subsidiary of Kroger, 84.51° specializes in data analytics and consumer behavior insights. Formed in April 2015 following Kroger’s complete acquisition of Dunnhumby USA from Tesco, this entity leverages advanced analytics and machine learning to support Kroger’s strategic initiatives aimed at improving customer experiences and operational effectiveness.
Pricing discrepancies and overcharges
In 2025, investigations conducted by The Guardian, Consumer Reports, and the Food & Environment Reporting Network uncovered widespread instances of overcharging at Kroger stores caused by expired sale tags leading to inflated checkout prices. Evaluations across 26 locations in 14 states plus Washington, D.C., revealed more than 150 products with outdated tags resulting in an average overcharge of 18%, equating to approximately $1.70 per item. In Colorado, union-led inspections at King Soopers outlets found over 300 expired price tags with average overcharges close to 15%. An internal review identified roughly 6% of price tags as inaccurate—exceeding Kroger’s acceptable error threshold of 1%. The problem was attributed to persistent understaffing that allowed expired tags to remain uncorrected for extended periods. Kroger refuted claims of systemic issues by highlighting that such errors constitute a very small portion of billions of transactions processed and emphasized ongoing efforts to audit pricing accuracy.
Animal welfare
Responding to animal rights advocacy, Kroger pledged in 2017 to source exclusively cage-free eggs by 2025. However, in 2022 the company adjusted this commitment to achieving a target of 70% cage-free eggs by 2030 as part of revised sustainability objectives.
Further reading
- The Kroger story: A century of innovation by George Laycock, The Kroger Company, Cincinnati, Ohio. 1983, 143p.
- Charles F. Phillips, A History of the Kroger Grocery & Baking Company, National Marketing Review, Winter 1936, vol. 1, no. 3, pp. 204–215
Videos
- Is Amazon Threatening Kroger?, CNBC, February 21, 2019
External links
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