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Kroger

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The Kroger Co. is a massive American retail corporation.

Kroger in Fort Worth, TX
Kroger in Fort Worth, TX

It is headquartered in Cincinnati, Ohio. The company operates many different types of retail locations. These include supermarkets and multi-department stores across the United States. Kroger also manages manufacturing facilities and supermarket fuel centers. They provide essential services like pharmacies and in-store medical clinics. Because of its size, Kroger is a major private-sector employer. It also appears on the Fortune 500 list. This list ranks the largest U.S. corporations by their total revenue.

The exterior of a Kroger Marketplace store in Athens, Georgia 05
The exterior of a Kroger Marketplace store in Athens, Georgia 05

Kroger uses several different store formats to serve customers. Some locations are supermarket "combo" stores. Others are marketplace stores, which are much larger. They also operate warehouse-style locations and multi-department stores. In 1965, the company created the Kroger Family Center subdivision. These units were typically 50,000 to 80,000 square feet. They included expanded pharmacy and home goods departments. This format was a response to the rise of big box discount retailers. These competitors included Walmart, Kmart, and Woolco. The Family Center concept eventually led to modern marketplace hypermarkets.

Modern grocery shopping was changed by Kroger's early innovations. In 1916, the company began using self-service shopping. Before this, all goods were kept behind counters. Customers had to ask clerks to retrieve items for them. Kroger was also the first grocery chain to have its own bakery. In the 1930s, it became the first chain to monitor product quality. They also became the first company to test foods offered to customers. In 1932, they tested a pilot project in Indianapolis. This store was surrounded by a 75-car parking lot. The company wanted to study the link between parking and sales.

The interior produce section of a Kroger Marketplace store in Athens, Georgia 03
The interior produce section of a Kroger Marketplace store in Athens, Georgia 03

In 1967, Kroger introduced the first bar code scanner in Cincinnati. This technology allowed stores to scan items quickly. While the adoption was slow at first, most supermarkets converted to this by the 1990s. In the 1970s, Kroger also became a leader in consumer research. They were the first grocer in the U.S. to test electronic scanners. They also built the Crossroad Farms Dairy in Indianapolis in 1972. At that time, it was considered the largest dairy plant in the world.

The company began with a single small shop. In 1883, 23-year-old Bernard Kroger opened a grocery store. He was the fifth of ten children born to German immigrants. He used his life savings of $372 to start the business. The shop was located at 66 Pearl Street in downtown Cincinnati. Bernard lived by a strict motto for his customers. He said, "Be particular. Never sell anything you would not want yourself." By 1902, the Kroger Grocery and Baking Company was incorporated. By that year, the business had 40 stores and $1.75 million in annual sales.

Wright Brothers Memorial Kroger
Wright Brothers Memorial Kroger

Kroger grew significantly through many corporate acquisitions. In 1955, the company began buying supermarket chains to expand. They bought Henke & Pillot in Texas and Krambo Food Stores in Wisconsin. In 1963, they acquired the 56-store Market Basket chain. This gave them a foothold in southern California. However, they only reached a 5 percent market share there. They eventually withdrew from the California market in 1982. In 1983, they acquired Dillon Companies, which included King Soopers and Fry's. A major milestone occurred in 1998. Kroger merged with Fred Meyer, which included brands like Ralphs and Smith's.

Growth has not always been easy for the corporation. Economic recessions in the 1980s caused challenges in Western Pennsylvania. A declining manufacturing economy reduced demand for high-end products. This led to a long labor strike during 1983 and 1984. During this time, Kroger withdrew from the Western Pennsylvania market. They also exited markets like Chicago and Minneapolis in 1970. In the 1980s, they left several cities, including Pittsburgh and St. Louis. They cited high wages for union employees as a reason. Today, about two-thirds of Kroger employees are represented by labor unions. Most of these workers belong to the United Food and Commercial Workers. This large workforce helps maintain one of the nation's largest retail networks.

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File:Kroger in Fort Worth, TX.png
Kroger in Fort Worth, TX.png
File:Wright Brothers Memorial Kroger.jpg
Wright Brothers Memorial Kroger.jpg
File:The_exterior_of_a_Kroger_Marketplace_store_in_Athens,_Georgia_05.jpg
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File:The_interior_produce_section_of_a_Kroger_Marketplace_store_in_Athens,_Georgia_03.jpg
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