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The story
Founded by Bernard Kroger in 1882.1
Early history (1883 to 1950s)
In 1883, 23-year-old Bernard Kroger, the fifth of ten children born to German immigrants, invested his life savings of $372 (equivalent to $12,854 in 2025) to open a grocery store at 66 Pearl Street in downtown Cincinnati. He operated under the motto: "Be particular. Never sell anything you would not want yourself." He experimented with marketing products his company had produced so that his customers would not need to patronize separate stores and farms.
In 1884, Kroger opened a second location, and by 1902, the Kroger Grocery and Baking Company was incorporated. By this time, the business had expanded to 40 stores with annual sales of $1.75 million. In addition, Kroger became the first grocery chain to have its own bakery.
In 1916, Kroger company began using self-service shopping. Previously, all goods were kept behind counters, customers had to request items from clerks who would then retrieve and deliver them.
In 1929, it was rumored that Safeway would merge with Kroger. By the end of the 1920s, Kroger, through its acquisition of smaller chains, controlled more than 5,500 stores, mainly in the Midwest and South.
During the 1930s, Kroger Grocery and Baking Company became the first grocery chain to monitor product quality and to test foods offered to customers. It also became the first company with a store surrounded on all four sides by parking lots. In 1932, the company tested a pilot project after it opened a grocery store in Indianapolis. The facility, which was surrounded by a 75-car parking space, allowed the company to determine the close relationship between parking facilities and gross sales.
1950s and 1960s
Beginning in 1955, Kroger began acquiring supermarket chains, expanding into new markets. In May, Kroger entered the Houston, Texas, market by acquiring the Houston-based 26-store chain Henke & Pillot. In June, Kroger acquired the Krambo Food Stores, Inc. of Appleton, Wisconsin. In July, it purchased Child's Food Stores, Inc. of Jacksonville, Texas, and operated 25 supermarkets in Texas, Arkansas, and Louisiana.
In January 1956, the company bought out Big Chain Stores, Inc., a chain of seven stores based in Shreveport, Louisiana, later combining it with the Childs group. All of these chains adopted the Kroger banner in 1966.
During all the acquisitions, in September 1957, Kroger sold off its Wichita, Kansas, store division, which consisted of 16 stores, to J. S. Dillon and Sons Stores Company, then headed by Ray S. Dillon, son of the company founder.
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In October 1963, Kroger acquired the 56-store chain Market Basket, providing them with a foothold in the lucrative southern California market. Prior to this time, Kroger had no stores west of Kansas. Kroger, however, failed to make significant headway, only managing a 5 percent market share. By 1982, it withdrew from the California market.
In 1965, Henke's Family Center stores were folded into the newly-created Kroger Family Center subdivision. These retail units were typically 50,000–80,000 square feet and included expanded home goods and pharmacy departments. The format was a response to the 1962 emergence of big box discount retailers including Woolworth's Woolco, Kresge's Kmart, and the Waltons' Walmart. The Family Center concept was also an answer to grocery chains creating big box grocery and variety store combos including A&P's The Family Mart and Meijer's Thrifty Acres which were also created in 1962. The Kroger Family Centers were a forerunner of the Kroger Marketplace hypermarket stores of the 21st Century.
Kroger opened stores in Florida under the SupeRx and Florida Choice banners from the 1960s until 1988, when the chain decided to exit the state and sold all of its stores; Kash n' Karry bought the largest share. The company also exited the Washington, D.C., market in 1966 after it sold its stores to another grocery chain operating in the area.
In 1967, the first bar code scanner was introduced in a Kroger supermarket in Cincinnati, Ohio. The adoption of this technology, however, was slow until the 1990s when supermarkets converted to its use.
1970s
In the 1970s, Kroger became the first grocer in the United States to test an electronic scanner and the first to formalize consumer research.
Although Kroger has long operated stores in the Huntsville-Decatur area of northern Alabama (as a southern extension of its Nashville, Tennessee, region), it has not operated in the state's largest market, Birmingham, since the early 1970s, when it exited as a result of intense competition from Winn-Dixie and local chains Bruno's Supermarkets and Western Supermarkets.
Kroger built an ultra-modern dairy plant (Crossroad Farms Dairy) in Indianapolis in 1972. At the time, it was considered the largest dairy plant in the world.
Kroger exited the Chicago market in 1970, selling its distribution warehouse in Northlake, Il. and 24 stores to the Dominick's Finer Foods grocery chain.
Kroger exited the Minneapolis–Saint Paul area in 1970, selling 16 stores to Quality Foods, which rebranded the stores to Piggly Wiggly.
Kroger exited Milwaukee in 1972, selling a few stores to Jewel. Kroger would later return in 2015 upon its acquisition of Roundy's.
Kroger entered the Charlotte market in 1977 and expanded rapidly throughout the 1980s when it bought some stores from BI-LO. However, most stores were in less desirable neighborhoods and did not fit in with Kroger's upscale image. Less than three months after BI-LO pulled out, that company decided to re-enter the Charlotte market, and in 1988, Kroger announced it was pulling out of the Charlotte market and put its stores up for sale. Ahold bought Kroger's remaining stores in the Charlotte area and converted them to BI-LO.
In 1978, sixteen retail members of Parkview Markets Inc., filed an anti-trust lawsuit against Kroger.
1980s
Kroger had a number of stores in the Western Pennsylvania region, encompassing Pittsburgh and surrounding areas from 1928 until 1984 when the U.S. began experiencing a severe economic recession. The recession had two significant and related effects on Kroger's operations in the region. One of them was that the highly cyclical manufacturing-based economy of the region declined in greater proportion than the rest of the U.S., which undercut demand for the higher-end products and services offered by Kroger.
Kroger sought wage rollbacks in several areas during this time period including in Western Pennsylvania, Eastern Ohio, the West Virginia Panhandle and Michigan. The second effect of the economic recession was to worsen labor-management relations, causing a protracted labor strike in 1983 and 1984. During the strike, Kroger withdrew all of its stores from the Western Pennsylvania market, including some recently opened "superstores" and "greenhouses", selling these stores to Wetterau (now part of SuperValu), who promptly flipped the stores to independent owners while continuing to supply them under the FoodLand and Shop 'n Save brands. Kroger's exit ceded the market to lower-cost, locally owned rivals, most notably Giant Eagle and the SuperValu-supplied grocers. (Kroger purchased Eagle Grocery company, whose founders went on to create Giant Eagle.) Kroger still maintains a presence in the nearby Morgantown, West Virginia, Wheeling, West Virginia, and Weirton, West Virginia/Steubenville, Ohio, areas where Giant Eagle has a much smaller presence and the SuperValu-supplied stores are virtually nonexistent, though in all of these cases, Walmart remains a major competitor, with Aldi and IGA affiliate Reisbeck’s Food Market.
Kroger entered the San Antonio, Texas, market in 1980 but pulled out in mid-1993. On June 15, 1993, the company announced the closure of its 15 area stores. From 1984 to 1986, Kroger exited the Pittsburgh, Cleveland, Akron, and St. Louis markets. The company cited that higher wages for union employees made it unable to compete.
The chain closed several stores around Flint, Michigan, in 1981, which were converted by local businessman Al Kessel to a new chain called Kessel Food Markets. Kroger bought most of these stores back in 1999 and began reverting them. Several other Michigan stores were sold to another Flint-based chain, Hamady Brothers, in 1980. The Hamady acquisition was short-lived.
In 1982, Kroger sold the 65-store Market Basket chain it had operated for several years in southern California. The stores were reverted to the Boys Markets branding, after acquiring the chain. Boys Markets was acquired by the Yucaipa Companies in 1989. When Yucaipa acquired Ralphs, the Boys brand disappeared.
In 1983, The Kroger Company acquired Dillon Companies grocery chain in Kansas along with its subsidiaries (King Soopers, City Market, Fry's and Gerbes) and the convenience store chain Kwik Shop. David Dillon, a fourth-generation descendant of J. S. Dillon, the founder of Dillon Companies, became the CEO of Kroger.
In northeastern Ohio, Kroger had a plant in Solon, Ohio, until the mid-1980s. When that plant shut down, Kroger closed its northeastern Ohio stores in the Cleveland, Akron, and Youngstown areas. Some of those former Kroger stores were taken over by stores like Acme Fresh Markets, Giant Eagle, and Heinens.
Kroger opened and had about 50 stores in St. Louis until it left the market in 1986, saying that its stores were unprofitable. Most of its stores were bought by National, Schnucks, and Shop 'n Save. Most of the remaining Kroger stores in eastern Missouri and west-central Illinois became a western extension of the Central Division (headquartered in Indianapolis).
Kroger also experienced a similar withdrawal from Chattanooga, Tennessee, in 1989. Many of these stores were sold to the local grocery chain Red Food, which was in turn bought by BI-LO in 1994. Today, Chattanooga is the only metropolitan market in Tennessee in which Kroger does not operate with the nearest location being Dalton, Georgia, with 2 stores (Walnut Avenue and Cleveland Highway).
1990s
In the 1990s, Kroger acquired Great Scott (Detroit), Pay Less Food Markets, Owen's Market, JayC Food Stores, and Hilander Foods. Additionally, the Houston market was strengthened when Kroger bought several stores from AppleTree Markets, which were former Safeway stores in early 1994.
In 1998, Kroger merged with the then fifth-largest grocery company Fred Meyer, along with its subsidiaries, Ralphs, QFC, and Smith's.
In the late 1990s, it acquired many stores from A&P as it exited many markets in the South. Kroger also swapped all ten of its Greensboro, North Carolina-area stores in 1999 to Matthews, North Carolina-based Harris Teeter, for 11 of that company's stores in central and western Virginia. Kroger in turn would acquire Harris Teeter 15 years later.
2000s
Long the dominant grocer in western Virginia, Kroger entered the Richmond, Virginia, market in 2000, where it competes against market leaders Martin's (including former Ukrop's stores) and Food Lion. Kroger entered the market by purchasing Hannaford stores that either already existed or were being built in Richmond. Hannaford purchases also included the competitive Hampton Roads market, where it now competes with Farm Fresh, Harris Teeter, and Food Lion. The Hannaford locations in these markets were purchased from Delhaize by Kroger as a condition of Delhaize's 2000 acquisition of the Hannaford chain, which had previously competed against Food Lion, also owned by Delhaize. Walmart Supercenters are also major competitors in both markets, and the chain briefly competed against Winn-Dixie, which has now exited Virginia.
In 2001, Kroger acquired Baker's Supermarkets from Fleming Companies, Inc.
Albertsons exited the San Antonio and Houston markets in early 2002, selling many of the Houston stores to Kroger.
In 2004, Kroger bought most of the old Thriftway stores in Cincinnati, Ohio, when Winn-Dixie left the area. These stores were reopened as Kroger stores.
In 2007, Kroger acquired Scott's Food & Pharmacy from SuperValu Inc., and in the same year, also acquired 20 former Michigan Farmer Jack locations from A&P when A&P exited the Michigan Market.
In 2008, Kroger began a partnership with Murray's Cheese of New York City. Murray's Cheese counters within Kroger stores sell various artisanal cheese from all parts of the world.
2010s
On July 9, 2013, Kroger announced that it would acquire the 212 stores of Charlotte-based Harris Teeter in a deal valued at $2.5 billion and that it would assume $100 million in the company's outstanding debt. Harris Teeter's stores are in eight Southern states, with a major portion of them in its headquarters state of North Carolina. Doing so, Kroger acquired Harris Teeter's click-and-collect program, which allows online ordering of groceries. Some industry experts saw this as a competitive move against online grocers such as AmazonFresh. The Harris Teeter acquisition marked Kroger's return to the Charlotte market after a 25-year absence. It also allowed Kroger to enter Asheville for the first time. Charlotte and Asheville had been the only large markets in North Carolina where Kroger had no presence.
In 2013, Kroger announced that the spouses of the company's unionized workers would no longer be covered by the company's insurance plan. The company cited the Patient Protection and Affordable Care Act as a prime reason for the move. The benefit cut affected roughly 11,000 workers in Indiana. The company announced in April 2013 that full-time employees would maintain their health insurance benefits. In 2013, Kroger was noted for carrying 17 out of 22 Red List species, four of which are in the top list of said species.
On February 11, 2014, Kroger announced it would acquire YOU Technology, a digital coupon/identity company founded by Ajay Amlani, that pioneered the ability for shoppers to load digital coupons onto their loyalty card profiles. It also specialized in being one of the earliest companies to use AI/ML to personalize digital coupons to shoppers based on their past purchase history and intent to buy. The company enabled the loading of billions of coupons and singlehandedly drove the demise of paper coupons. It was later sold by Kroger to Inmar with a $565 million price disclosed.
On March 3, 2015, Kroger announced it would enter Hawaii, having registered with the state as a new business in February 2015. Kroger was planning to expand to Hawaii in 2006 but withdrew after it had already submitted registration. Kroger, which is in the process of looking for locations to open its first store, will face competition from Honolulu-based rivals Foodland and Times; major retailers Safeway, Walmart, and Costco; Japanese-owned Don Quixote; and Department of Defense-owned DeCA Commissaries.
On May 1, 2015, Kroger announced the acquisition of the seven-store Hiller's Market chain in Southeast Michigan, and that it would operate all but one of those stores under the Kroger banner.
In June 2015, Kroger eliminated the Harris Teeter brand from the crowded Nashville, Tennessee, market, where its growth had been stunted by aggressive competition since it entered with six stores in the early 2000s. Kroger has traditionally had a market-leading presence in Nashville and initially promised to keep the five remaining Harris Teeter stores open when it acquired the chain, but the market "did not support Harris Teeter's future business plans". Two Harris Teeter stores were closed outright, and three closed temporarily while being converted to the Kroger brand (one of these would undergo a major remodeling and replace a neighboring Kroger store).
On November 11, 2015, Kroger and Roundy's announced a definitive merger, bringing Roundy's chain's 166 primarily Wisconsin-based chains under Kroger ownership. The merger is valued at $800 million, including debt. The acquisition, which brought Kroger back to Wisconsin after a 43-year absence, will retain the Roundy's, Pick 'n Save, Mariano's, Metro Market and Copps names, along with its Milwaukee operations. (Within a year-and-a-half, however, Kroger had rebranded all Copps locations to the Pick 'n Save banner.)
In April 2016, Kroger announced that it had made a "meaningful investment" in the Boulder, Colorado-based Lucky's Market, an organic foods supermarket chain that operated 17 stores in 13 states throughout the Midwest and Southeast United States.
In February 2017, Kroger withstood large community protests after announcing the closing of two smaller-sized Louisville-area stores. Despite high store volumes and high population densities, the Old Louisville (lease expiration) and Southland Terrace stores closed.
On February 7, 2017, it was announced that Kroger Co. had purchased Murray's Cheese.
As of 14 February 2017, Kroger is no longer offering a discount to senior citizens 59 and up.
On May 1, 2017, Kroger, along with the University of Kentucky and UK Athletics, sports and campus marketing partner JMI Sports, announced a 12-year, $1.85 million per year campus marketing agreement. Included in the agreement is the naming rights to Commonwealth Stadium, the university's football stadium, which will be renamed Kroger Field. This agreement makes the University of Kentucky the first school in the Southeastern Conference to enter into a corporate partnership for the naming rights to their football stadium.
On May 10, 2017, Kroger opened its first convenience store in Blacklick, Ohio, labeled "Fresh Eats MKT". The new prototype stores will have about 12,000 square feet (1,100 square meters) of space, and will be very similar to the Walmart Neighborhood Market project, as these stores only sell food. These stores have a Starbucks, and a Kroger Pharmacy. On June 1, 2017, Kroger opened their second Fresh Eats. Kroger is also going to convert some Turkey Hill stores into the concept store. The CFO, Mike Schlotman, has called these stores a "small test". Local reaction to this new concept has been positive. The concept was discontinued in March 2020.
In February 2018, Kroger announced that it will be selling its 762 convenience stores to EG Group, a British service station operator, for $2.15 billion. They operate under the Turkey Hill, Loaf 'N Jug, Kwik Shop, Tom Thumb and Quik Stop banners. Kroger will retain just over 20 convenience stores. Kroger's supermarket fuel centers are not included in the sale. The sale was closed on April 20, 2018.
On April 10, 2018, Kroger announced plans to hire an estimated 11,000 new employees. An estimated 2,000 managerial positions will be filled by the new hires. With the addition of these new hires, the total number of people employed by the company is close to half a million.
On May 17, 2018, Kroger announced a partnership with Ocado, a UK-based online supermarket. The partnership is designed to improve Kroger's ecommerce program, including online ordering, automated fulfillment, and home delivery via the construction of 20 new, automated fulfillment centers. The first of these fulfillment centers, located in Monroe, Ohio, opened in April 2021. As of September 2023, eight total fulfillment center locations have been constructed and opened, with additional locations in Groveland, Florida, Forest Park, Georgia, Pleasant Prairie, Wisconsin, Dallas, Texas, Romulus, Michigan, Aurora, Colorado, and Frederick, Maryland. Each fulfillment center also operate in conjunction with several "spoke" facilities, which assist to further extend the capable range of delivery. As of September 2023, the latest "spoke" facility to be opened is located in Johnstown, Colorado. Kroger has taken advantage of its investment in online shopping capability to grow rapidly during the pandemic. In 2020, Kroger's online sales grew by 116%, to over $10B annually.
From Wikipedia’s article on Kroger, shared under CC BY-SA 4.0.9