The Kroger Co. (KR): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Kroger, one of the largest supermarket chains in the U.S., manages to stay competitive in the ever-evolving retail landscape? With a history spanning over a century and 2,800 stores operating under various banners, how does Kroger maintain its position, especially with a 17.5% market share in the Supermarkets & Grocery Stores industry? Dive in to explore its journey, ownership structure, core mission, operational strategies, and the diverse revenue streams that contribute to its success, including total company sales of $147.1 billion in 2024.

The Kroger Co. (KR) History

The Kroger Co.'s Founding Timeline

Year established

The company was established in 1883.

Original location

The company's origin traces back to Cincinnati, Ohio.

Founding team members

The company was founded by Bernard Kroger.

Initial capital/funding

Bernard Kroger invested his life savings of $372 to open his first grocery store.

The Kroger Co.'s Evolution Milestones

The Kroger Co.'s Transformative Moments

• Pioneering Self-Service: In 1916, the company introduced self-service shopping, a move that transformed the grocery industry. This shift allowed customers to select their own items, improving efficiency and changing the way people shopped.
• Embracing Technology and E-commerce: Recognizing the shift towards digital solutions, the company invested heavily in e-commerce and technology. The introduction of online ordering, delivery, and innovative in-store technologies has enhanced customer convenience and helped the company stay competitive in a rapidly evolving market.
• Mergers and Acquisitions: The company has strategically pursued mergers and acquisitions to expand its market presence and diversify its offerings. Notable examples include the merger with Fred Meyer in 1999 and the proposed merger with Albertsons in 2022. These moves have allowed the company to enter new markets, leverage synergies, and strengthen its competitive position.

Read more about the investors of the company: Exploring The Kroger Co. (KR) Investor Profile: Who’s Buying and Why?

The Kroger Co. (KR) Ownership Structure

The Kroger Co. operates with a mixed ownership structure, featuring a blend of institutional, insider, and public shareholders. This structure influences the company's governance and strategic direction.

Kroger's Current Status

Kroger is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol KR.

Kroger's Ownership Breakdown

The ownership of Kroger is distributed among various types of shareholders. Here's a breakdown:

Kroger's Leadership

Kroger's direction is guided by a team of experienced leaders. As of April 2025, key figures include:

• Chairman and CEO: Rodney McMullen
• Senior Vice President and CFO: Gary Millerchip

For more insights into Kroger's financial performance, read Breaking Down The Kroger Co. (KR) Financial Health: Key Insights for Investors.

The Kroger Co. (KR) Mission and Values

The Kroger Co. aims to be more than just a grocery store, aspiring to enrich the lives of its customers, associates, and communities. Its core values reflect a commitment to integrity, honesty, and building a culture of safety and caring.

The Kroger Co.'s Core Purpose

Official mission statement

Kroger's mission statement is: 'To be a leader in the distribution and merchandising of food, pharmacy, health and personal care items, seasonal merchandise, and related products and services. To earn the long-term loyalty of our customers, we must operate the best stores, offer the best value, and provide the best service. To achieve our mission, we must:

• Provide a rewarding employment experience and a workplace where diverse people want to join and grow.
• Provide a fair return on investment to our shareholders.
• Be a responsible member of our communities.'

Vision statement

Kroger's vision statement is: 'To be among the world’s leading retailers.' This vision is supported by various strategic initiatives:

• Customer First: Kroger aims to improve the customer experience through personalization and convenience.
• Associate Growth: Investing in employee training and development to enhance their capabilities and career opportunities.
• Shareholder Value: Delivering sustainable financial performance and returns to investors.
• Community Engagement: Supporting local communities through philanthropic efforts and responsible business practices.

Company slogan/tagline

Kroger’s current tagline is 'Fresh for Everyone.' This slogan encapsulates the company's commitment to:

• Providing fresh, high-quality products to all customers.
• Creating an inclusive and welcoming shopping environment.
• Offering a wide variety of options to meet diverse needs and preferences.

For more insights into Kroger's stakeholders, check out: Exploring The Kroger Co. (KR) Investor Profile: Who’s Buying and Why?

The Kroger Co. (KR) How It Works

The operates as a retailer, running supermarkets and multi-department stores that combine food and drug offerings. It also manufactures and processes food for sale in its supermarkets.

Product/Service Portfolio

Operational Framework

The operational framework is built around providing a wide variety of products and services to meet the daily needs of consumers. Key aspects of this framework include:

• Supply Chain Management: operates an extensive supply chain, including manufacturing plants, distribution centers, and transportation networks, to ensure efficient product flow from suppliers to stores.
• Store Operations: Supermarkets are designed for customer convenience, featuring well-organized layouts, customer service, and various payment options.
• Technology Integration: Employs technology to enhance operations, including data analytics for inventory management, customer relationship management (CRM) systems for personalized marketing, and e-commerce platforms for online sales.
• Private Label Brands: Develops and markets its private label brands, offering customers value and differentiation while improving profit margins.
• Customer Loyalty Programs: Runs customer loyalty programs like Kroger Plus to gather data and provide personalized discounts, offers, and rewards.

Strategic Advantages

The strategic advantages that drive its market success are:

• Scale and Market Presence: has a large number of stores across the United States, providing it with significant scale advantages in procurement, distribution, and marketing.
• Brand Recognition: is a well-known and trusted brand with a long history, attracting a loyal customer base.
• Diversified Offerings: Combines grocery, pharmacy, fuel, and financial services, making it a one-stop-shop for many consumers.
• Data Analytics and Personalization: Leverages data analytics to understand customer preferences and personalize offers, improving customer satisfaction and driving sales.
• Focus on Sustainability: Increasingly emphasizes sustainability initiatives, appealing to environmentally conscious consumers and enhancing its corporate reputation.

To gain more insights, check out: Mission Statement, Vision, & Core Values of The Kroger Co. (KR).

The Kroger Co. (KR) How It Makes Money

The Kroger Co. primarily makes money by selling a wide variety of products through its retail supermarkets, multi-department stores, and online channels. These products include groceries, pharmacy items, and fuel.

Kroger's Revenue Breakdown

Kroger's Business Economics

Kroger's business economics are influenced by several key factors:

• Pricing Strategies: Kroger employs competitive pricing strategies, including everyday low prices and promotional offers, to attract customers.
• Supply Chain Management: Efficient supply chain management is crucial for maintaining low costs and ensuring product availability. Kroger operates its own manufacturing facilities and distribution centers, giving it greater control over its supply chain.
• Customer Loyalty Programs: The company uses loyalty programs and personalized promotions to retain customers and drive repeat purchases.
• Private Label Brands: Kroger's private label brands offer higher margins compared to national brands, contributing to overall profitability.

Kroger's Financial Performance

Kroger's financial performance can be assessed through the following key metrics:

• Revenue Growth: Kroger's revenue growth is driven by same-store sales increases, new store openings, and e-commerce expansion. In 2024, Kroger reported total sales of approximately $150 billion.
• Gross Margin: Gross margin, which is revenue less the cost of goods sold, is a critical indicator of profitability. Kroger's gross margin typically ranges between 20% and 25%.
• Operating Income: Operating income reflects the profitability of Kroger's core business operations.
• Net Earnings: Net earnings represent Kroger's bottom-line profit after all expenses and taxes.
• Return on Invested Capital (ROIC): ROIC measures how effectively Kroger is using its capital to generate profits.

To gain more insights into Kroger's investor profile, consider reading: Exploring The Kroger Co. (KR) Investor Profile: Who’s Buying and Why?

The Kroger Co. (KR) Market Position & Future Outlook

As of April 2025, The Kroger Co. stands as one of the largest supermarket chains in the United States, holding a significant position in the grocery retail market. Future outlook involves continued focus on e-commerce, personalized customer experiences, and expansion of private-label brands to drive growth and maintain competitiveness. For a deeper dive into who is investing in Kroger and their motivations, check out: Exploring The Kroger Co. (KR) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

The Kroger Co. maintains a strong industry position through several key strategies:

• Focus on Customer Loyalty: Kroger utilizes loyalty programs and personalized offers to retain customers and encourage repeat business.
• Private Label Expansion: Kroger's Simple Truth brand and other private-label products offer higher margins and differentiate them from competitors.
• Technology Integration: Investing in technology to improve supply chain efficiency, enhance the online shopping experience, and provide data-driven insights.
• Strategic Partnerships: Collaborating with other companies to expand product offerings and services, such as meal kits and delivery options.