SWOT ANALYSIS ON Kroger

abhishreshthaa

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SWOT ANALYSIS ON Kroger : The Kroger Co. (NYSE: KR) is an American retail supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ 76.7 billion in sales during fiscal year 2009. It is the country's largest grocery store chain[3] and its second-largest grocery retailer by volume [4] and second-place general retailer in the country, with Wal-Mart being the largest.[5] As of 2010, Kroger operated, either directly or through its subsidiaries 3,619 stores.[6]

Kroger's headquarters are centralized in Downtown Cincinnati,[7] but it spans many states with store formats that include supermarkets, hypermarkets, department stores, convenience stores and mall jewelry stores. Kroger-branded grocery stores are located throughout the Midwestern and Southern United States.


Strengths

* Multiple formats and solid market share in major metropolitan areas
* dunnhumby & shopper insights program
* Well known regional brands
* Developed private label and loyalty marketing programs
* Pricing image
* Very strong organic growth (i.e., comparable and identical store sales)
* Kroger Card Discount

Weaknesses

* High operating expense structure
* Inconsistent productivity and execution across divisions
* Legacy costs - store base aging rapidly

Opportunities

* Expansion of Food 4 Less and Marketplace formats into new markets
* Leverage synergies across Kroger East and West
* Centralizing functions to create operating and merchandising efficiencies
* Beginning to re-capture shoppers and trips

Threats

* Wal-Mart expansion in core Kroger markets
* Gross margin pressure
* Labor unions
* Competitive threats inside and outside of channel (Whole Foods, Costco, etc.)
* Aging real estate
* Economic downturn
 
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