In multiple large metropolitan areas of the United States, market share data indicates that Kroger is gaining traction. The grocer operates Kroger stores along with regional brands such as Fry’s, King Soopers and Harris Teeter, Cincinnati.com reported.
In Cincinnati, for instance, the supermarket chain’s share has grown 4.9 percent over the past two years. It has reportedly arrived at nearly half – or 49.3 percent – of the total $6.1 billion in grocery sales last year in the region. Some areas where Kroger gained extra sales were places where the grocer brought additional locations online. In other cases, however, the gains came in areas where the retailer had cut back on a few stores.
Bartlett & Co. Principal Terry Kelly noted the results were promising, and, as the report noted, “suggesting Kroger’s price cuts were working to gain it new customers.” Kelly added that “Kroger is used to this type of warfare.” Even so, now that Amazon has ownership of Whole Foods Market, the rivalry will still be strong. “Call us back when Amazon has fully implemented its strategy,” Kelly said.
The news comes after it was reported earlier this month that Amazon plans to slash prices on hundreds of Whole Foods items to bring in more customers and change the brand’s image. The lower prices were said to impact 500-plus items, with a focus on produce and meat. (Whole Foods actually raised prices in February due to higher ingredient and transport costs.) The price cuts were said to be initiated on April 3, with some products discounted by as much as 20 percent. Amazon is said to be fighting back against Whole Foods’ reputation as a high-priced grocer, as retailers such as Kroger and Walmart are keeping their prices down.
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