Kroger vs. Publix Analysis
General Overview: Kroger and Publix Supermarkets are both dominating competitors in the grocery store market. Providing customers with low prices, unbeatable deals and a unique quality of products is what both companies strive for. The purpose of this report is to present our analysis of two competing companies within the same industry. Through research we have explored, analyzed and applied our learnings of information systems through comparing the websites, social media usage of each company, marketability and competitive advantages of Kroger and Publix Supermarkets. In this report we will present our findings of the objectives above and further compare and contrast the two companies.
Kroger Supermarkets were started in 1883 by Barney Kroger in downtown Cincinnati. Mr. Kroger started his business with the motto: “Be particular. Never sell anything you would not want yourself.” Through the years Kroger has strived to uphold this motto to its customers and to provide great service, the freshest products and expansion to meet the needs of their customer base making it one of the world’s largest retailers. Kroger now has over 2,600 stores in 34 states with $108.5 billion in annual sales. Kroger operates 37 food processing facilities and Kroger was the first grocery retailer to use the electronic scanner.
Publix Supermarkets came into the supermarket industry in September of 1930 in Winter Haven, Florida. Founded by George Jenkins who referred to the
Kroger’s corporate strategy consists of continuously innovating and creating new ways of bring value to the customer. They were pioneers for many of the things that we now consider norms in grocery stores. In the past, Kroger had rapidly expanded to many store locations to gain market share. This expansion strategy caused them to lose profits in
In 2008, the economy suffered a recession that caused consumers to cut back on spending. According to Josh Parnell (2014), typically as consumers are considering cut backs, they are also considering how they should wisely spend their money whenever they have to. While Bob hoped that a struggling economy would persuade consumers to consider eating at home more than eating out to save money, Bob’s was not always the cheaper option (Parnell, 2014). In fact, because Bob’s was a local grocery store, they struggled to compete with prices against large chain stores. Also with an economic recession, employees are looking for ways to increase their wages. As minimum wage increased nationally and affected Bob’s and its competitors, because it is a smaller company, this impacted Bob’s on a larger scale(Parnell, 2014).
It all started from a concept of managing a grocery store when Bruce Thompson realized his business plans. It was in Groves, Texas that he first invested and now, the Market Basket has expanded so much and serving different regions with a 34 full-service supermarkets.
(The Kroger Company, 2015). The company’s primary business and approximately 94% of total company sales is from the food stores, aside from the convenience store, jewelry stores and manufacturing facilities. KR operates 2,631 grocery retail stores in 34 states, which includes supermarket, warehouse stores, multidepartment stores that offers an expanded variety of national brand appeal and general merchandise. They also operate 783 convenience stores in 19 states, 325 jewelry stores named Fred Meyer Jewelers and Littman Jewelers, 37 food processing facilities, 1,293 supermarket fuel centers, and 2, 107 pharmacies. (Kroger Company Fact Book, 2013).
I agree with you. Kroger has a very good profile of every customer, or most of the customers who are the ones that use the Kroger member card when we pay at the register. They know what you buy, when you buy, what brand etc. Also with the app they track you in a real time when you enter the store. That way they know what island is the most visited and how the customer move inside the store.
Wegmans has been providing quality food to people for 100 years. In 1916, John Wegman opened their first grocery store: The Rochester Fruit and Vegetable Company. From that small beginning, the company grew to a large, successful business with over 45,000 employees, and 87 stores in six states. They now provide quality food, pharmaceuticals, wine and beer, floral services, and much more.
Trader Joe's is an American supermarket founded in Monrovia, California and owned by a German private equity family trust. Trader Joe's named after its founder, Joe Coulombe. The chain began in 1958 as convenience stores called Pronto Markets. The first store branded as "Trader Joe's" opened in 1967 in Pasadena, California (Wikipedia, Trader Joe’s). Trader Joe’s offered products such as sprouted wheat bread, whole-bean coffees, and black rice which are not always found in any grocery stores. They also focus on selling private label, gourmet, organic, imported food and domestic wines. Trader Joe’s offered private label items with brand names such as Trader Joe’s, Trader Jose, Trader Ming’s, and Trader Giotto. Their 80 percent or more products consists of private label item and they don’t carry any major brands at the store.
Introduction: The Kroger Company is United States’ largest supermarket chain by revenue and second largest general retailer company following Walmart. It was founded by Bernard Kroger in 1883 at Cincinnati, Ohio and currently operates in 35 states and the District of Columbia. About 94% of the company’s total revenue comes from food stores while convenience stores, jewelry stores, pharmacies and manufacturing facilities provide the remaining of total sales.
Along with A&P’s, Kroger, and Safeway were also early adopters of the new business model of chain format, all the benefits that resulted from this business model made chain stores dominant in the grocery industry. Between 1919 and 1932 there was an increase of market share by 26.6% for the top 5 chain firms in the U.S.
The business is an American chain store supermarket. The first branch of the store was in Austin, Texas, which is the current headquarters. The government certified it as the first store to
Giant Food Stores were founded in 1923 in Carlisle, PA as the Carlisle Meat Market. Since then it has grown into a regional grocery chain operating over 200
Many trace discount entrepreneur birth to1962, the first year of operation for Kmart, Target and Wal-Mart. But by that time, Sam Walton 's tiny chain of variety stores in Arkansas and Kansas was already facing competition from regional discount chains. Sam traveled the country to study this radical, new retailing concept and was convinced it was the wave of the future. He and his wife, Helen, put up 95 percent of the money for the first Wal-Mart store in Rogers, Arkansas, borrowing heavily on Sam 's vision that the American consumer was shifting to a different type of general store.
Walmart was first founded by Sam Walton, also referred to as “Mr. Sam” by people personally associated with Walton. His first store opened in Rogers Arkansas, in 1962. Although, Walmart was not his first business, in 1950’s Walton operated another successful store in Arkansas, named “Walton’s 5&10” (Wal-Mart Stores, 2017). Walmart’s popularity began to grow, Walton took the success of one store and opened several other in the forthcoming years. Walmart growth has been so profound that now this retailer can be found in 27 countries including several locations in every state in the US. In over forty years from the opening of the first location, Walmart has achieved many milestones. These triumphs are contributed to the increase in
Sam Walton was the founder of the Wal-Mart store and who opened the first Wal-Mart store in 1962, in Rogers, Arkansas. Sam Walton’s idea was offering lower prices and great service; however, his competitors thought it would never work. It turned out that Wal-Mart become one the most successful retail business, and the company went public in 1970 and since then the company had
7- Eleven was founded by J.C. Thompson in the year 1927. Previously it was known as the Southland Ice Company in Dallas, Texas. It was started as an ice vendor and later the company began to offer milk, eggs and bread on Sundays and evenings when the grocery stores are closed. The new business idea produced by them satisfied the customers and also increased the sales. This idea triggered them to establish their business to the modern convenience retail concept.