Kroger rebrands itself in every way (and might add "dynamic pricing")
Feel like the Lannisters in Season 7?... Kroger is a seasoned grocery biz vet, founded 136 years ago in Cincinnati by a German immigrant's son. Now it's facing competition from German discount grocers Aldi and Lidl, which are expanding rapdily into the US. Amazon, Walmart, and Target all got in on groceries, too. Doing nothing isn't an option anymore for Kroger, so it's changing everything:
- The project: "Restock Kroger" is what they're calling it (great inventory inside joke). We call it "Operation don't-go-out-of-business."
- The changes: Adding Walgreens stores within its stores, delivering with Instacart, and buying back $1B of shares (to thank investors for their patience). It also acquired a meal kit company.
- The rebrand: "Fresh for Everyone" is the new slogan — that'll be trumpeted by the "Kroji," the (new) emoji-ish, post-racial mascots of Kroger.
"Dynamic pricing" could be up next for groceries... Kroger also recently partnered with Microsoft on a project that includes replacing old price labels with digital ones. That got us thinking: "dynamic pricing" could be coming. AKA pricing that can change based on supply/demand (like Uber's surge pricing). If Kroger can control and changes prices instantly thanks to these stickers, it could...
- Raise prices when something is almost out of stock, to ensure that the person who gets the last jar really wants it.
- Lower prices when there's too much of something, to prevent food from going bad.
- These changes could reduce waste, increase revenue, and make Kroger more efficient. And if Kroger's not thinking about it, Amazon almost definitely is.