In this file:
· Surprise! Kroger may be winning the grocery wars vs. Amazon and Walmart
· FDA cracks down on Kroger
Surprise! Kroger may be winning the grocery wars vs. Amazon and Walmart
Alexander Coolidge, Cincinnati Enquirer
April 14, 2019
Is Kroger winning the grocery wars?
Battered by a two-year price war and waging an expensive battle for superior home delivery, Kroger's profits have taken a hit. But it has steadily increased sales even as it cuts prices.
New market share data shows Kroger getting traction in several of America's largest metro areas over the past two years, according to industry tracker Chain Store Guide.
Kroger is the nation's largest supermarket chain. Besides Kroger stores, the grocer operates several regional supermarket chains in 35 states, including Fred Meyer, Harris Teeter, Ralphs, Mariano's, Fry's, Smith's, King Soopers, QFC and others.
The data provides a before-and-after look of the grocery industry in the wake of Amazon's 2017 takeover of Whole Foods for $13.7 billion, which intensified already cutthroat competition.
Here in Cincinnati, Kroger's share has increased 4.9% over the last two years to 49.3% of the region's total $6.1 billion of groceries sales in 2018. That suggests Kroger's stores are collectively raking in $300 million more than in 2016.
Most of that gain came from the rest of the region's Top 5 grocers: Walmart, down 0.6%; Meijer, down 0.5%; Costco, down 0.3%; and Sam's Club, down 1.4%. But Jungle Jim's, Aldi, Whole Foods and Trader Joe's also lost market share.
Amber Fowler, a 38-year-old mother of three and a fitness instructor from Mount Washington in suburban Cincinnati, said she shops mostly at Kroger, but likes prepared and frozen items at other stores.
"We use a lot of Simple Truth items and their other store brands are affordable," Fowler said. "I like Fresh Market, Whole Foods and Trader Joe's prepared and frozen foods for easy dinner options."
Kroger competes against different sets of major players in the largest metro markets, but the Cincinnati-based grocer has mostly eked out gains:
Each of these gains marks slightly bigger pieces of astronomically large pies, with tens and sometimes hundreds of millions of shifting shopper dollars...
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FDA cracks down on Kroger
By Erin Caproni, Cincinnati Business Courier
Apr 15, 2019
Kroger Co. is one of 12 retailers facing criticism from the U.S. Food and Drug Administration related to its sale of tobacco products to minors.
A letter from FDA commissioner Scott Gottlieb was sent to Kroger chairman and CEO Rodney McMullen on April 5 that said the Cincinnati-based grocer (NYSE: KR) has a violation rate of 23 percent in inspections related to the sale of tobacco products to minors.
“This violative history is disturbing and cannot possibly come as a surprise to corporate leadership,” the letter stated.
Kroger was given 15 days to recognize receipt of the letter and 30 dys to provide a written response that “includes a detailed plan, including timeframes, to address and mitigate illegal sales to minors.”
Walmart Inc. and 10 other retailers including Family Dollar Stores, 7-Eleven Inc., and other gas station convenience store operators also received similar letters as the FDA rolls out its Youth Tobacco Prevention Plan to discourage teens from smoking.
“We all share the important responsibility of keeping harmful and addictive tobacco products out of the hands of kids. Retailers...