KROGER SUPERMARKET ANALYSIS

Kroger Supermarket Analysis

Kroger Supermarket Analysis

Introduction

The food and drink retail sector represents the largest industry in the US, providing employment for over three million people in primary production, manufacturing and retailing. In 2009 retail accounted for 9% of gross domestic product. In recent years US supermarkets have come under increased scrutiny over their treatment of suppliers, particularly of own-label products, yet the development of strategic supply networks has been an integral part of most supermarket strategies for the past decade. The report below provides an insight into the supermarket company, Kroger, with emphasis on its external environment analysis and company's aNALYSIS OF RESOURCES, COMPETENCE AND CULTURe. Two future strategic options are proposed in regards to the assets based strategies.

The Kroger Company is the biggest supermarket string of links in the joined States, operating nearly 1,400 shopping centres and over 800 convenience shops over 24 states. More than 90 percent of its shopping centres are superstores or blend shops (combined supermarkets and pharmaceutical shops). Most shops also have delis, bakeries, and floral departments. Some supermarkets are like minimalls, encompassing added services such as coffee stores, fast-food franchises, banks, and barber shops.

INDUSTRY ANALYSIS: PESTEL FRAMEWORK

Political Factors

Operating in a globalized environment with stores around the globe Kroger now operates in six countries in US in addition to the. Kroger's performance is highly influenced by the political and legislative conditions of these countries, including the European Union (EU). Among companies that principally function food store shops, The Kroger Co. ranks first in the joined States (discount retailer Wal-Mart Stores, Inc., through its supercenter outlets, is really the premier seller of food items in the country). Kroger runs more than 2,500 nourishment shops in 32 states in the Midwest, South, Southwest, and West; these shops operate under about two dozen banners, encompassing Kroger, Fred Meyer, Ralphs, Food 4 Less, Smith's, Fry's, Dillons, and King Soopers. More than 500 of the outlets encompass gasoline positions and almost 1,900 characteristic pharmacies. Of Kroger's total sales, 95 percent is drawn from from these nourishment retailing procedures, with the remainder approaching from the company's convenience stores, jewelry stores, and constructing facilities. Kroger operates nearly 800 convenience shops under six banners in 16 states, most of which also deal petrol, and about 440 fine jewelry shops under the titles Fred Meyer, Littman, Barclay, and Fox's. The company's 42 food processing amenities make dairy goods, bakery pieces, deli pieces, and other food store products.

For paid work legislations, the government encourages retailers to supply a blend of job possibilities from flexible, lower-paid and locally-based jobs to highly-skilled, higher-paid and centrally-located occupations (Balchin, 1994). Also to rendezvous the demand from community categories such as students, working parents and older citizens. Kroger understands that retailing has a great impact on jobs and people factors (new store developments are often seen as destroying other jobs in the retail sector as traditional stores go out of business or are forced to cut costs to compete), being an inherently local and labour-intensive ...