First collaborative portfolio project.

1. Jennifer Fiddes, Tyler Madison, and AJ Spears
Margaret Cox - Introduction to Economics - 08/04/23

2. 2
LEARN MORE

3. 3

4. The Kroger Company is an American company that operates multi-
department stores and supermarkets throughout the United States.
4

5. • Founded in 1883, in Cincinnati, Ohio.
• Kroger started as a singular grocery store at 66
Pearl Street in downtown Cincinnati.
• In 1902, they rebranded as “Great Western Tea
Company” until 1946 when they assumed their
present name “The Kroger Company”.
• Today Kroger operates in 35 of 50 United States,
under 28 different names, such as; Dillons,
Food-4-Less, Fred Meyer, Fry’s, Harris Teeter,
Jay-C, King Soopers, Kroger, QFC, Ralphs,
Roundy’s, and Smith’s.
5
Target Market: Insider states that Kroger's typical shopper is a married
suburban Baby Boomer who has at least some college education and an annual
income of more than $80,000.
5

6. Top Competitors
6
All three are multi-department stores with locations throughout the United
States, however, Costco requires a paid membership to shop at their stores.

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2022 Sales Revenue: $107.6B

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2022 Sales Revenue: $226.954B

9. 9
2022 Sales Revenue: $572.75B
Quarterly Sales Revenue in 2019 - 2022

10. 10
Kroger’s Sales Revenue in 2014 - 2022, by Category
•Kroger is the third largest grocery chain
in the United States, and they are the
largest in four of the 50 states.
•Their sales consist of groceries, general
merchandise, and fuel.
•In an audited report from 2022,
Kroger’s total company sales were
$148.3 billion USD.
•Increasing from their 2021 total sales
of $137.9 billion USD.
•Even during the pandemic in 2020,
Kroger earned $132.5 billion USD from
sales.

11. In 2012, International Business Economics concluded that The Kroger Company
is an oligopoly.
11

12. 12
Factors Affecting
Demand

13. 13
If consumers income rises, they will be more likely to buy higher priced groceries and opposed to store or generic
brand groceries. Everyone needs to buy groceries, so demand does not fluctuate with income as much as other
goods and services. Richer people spend more on groceries, so a rise in income means more demand for
groceries.

14. 14
Price of Related Goods

15. 15
TGI Fridays is a restaurant. Their prices range from $6.99 to $24.49. If their prices
were to rise, demand for groceries would rise, as people would eat out less.
7-11 is a convenience store chain. Their prices range from $1 to $15 dollars. If their prices were to
fall, grocery prices would fall as well, as people would choose the more convenient option.
Rite Aid is a drug store chain that also sells groceries. Their prices range from $3 to $13. If
their prices were to fall and their selection to rise, grocery store prices would fall, as it is
more convenient to get both your drugs and your groceries at the same place and not
everyone can afford Kroger's chosen in-store pharmacy.

16. 16
All-Clad is a producer of cookware. Cookware is complementary to Kroger
because consumers need it to make meals. All-Clad is a premium cookware
brand and their ten-piece set of pots and pans costs $1499.99 at Crate and
Barrel. If the price of cookware were to rise, the demand for groceries would
be less, and people would eat out more.
Magic Chef is a kitchen appliance brand. Magic Chef prices range
from $100 for a microwave to $300 for a refrigerator or freezer. If the
price of kitchen appliances were to rise, the demand for groceries
would fall. This is because kitchen appliances are needed to prepare
and store the groceries

17. 17
There is a trend towards online grocery shopping in the industry. It is
convenient, and many learned of this convenience during Covid.

18. 18
Inflation caused many buyers to change their shopping habits.
Even though inflation is going back down, many consumers
are still trying to save money on groceries.

19. 19
The Consumer Confidence Index has seen an uptick in the past three
months. This should lead to more purchases of higher quality food, which
should result in more profits for Kroger

20. 20
Number of Buyers
 If consumer incomes rise, there will be fewer customers at Kroger, as people will
shop at more expensive grocery stores.
 If the population of the United States fluctuates, there will be more or less grocery
buyers.
 As people come of age and start their own households there will be more grocery
buyers.

21. 21
Elasticity
The grocery business
involves the sale of
necessities, so is inelastic.
Changing prices do not
affect the grocery business
very much.

22. 22
Factors
Affecting
Supply

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Legislation
Natural Disasters
Labor Strikes
Pandemics
Input Prices

24. 24
In January 2021, Kroger started testing an
A.I.shopping cart in Cincinnati, OH sponsored
by Caper Inc.
In April 2021, Kroger introduced their first
automated warehouse in Monroe, OH.
In May 2023, it was announced that Kroger was
set to partner with Cooler Screens to deliver
500 smart screens to their stores.
T E C H N O L O G Y
For the past
few years,
Kroger has
made
considerable
strides towards
innovating their
company.

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Expectations

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E
N
T
R
Y
E
X
I
T
 Kroger’s tagline is “Fresh for Everyone” noting their
prioritizing quality products and availability to consumers.
 Keeping customer data gives them a leg up on consumer
interests and needs.
 Consistently readjusting tech and operations for a
seamless in-store and online experience.
 Branching out beyond its standing as a grocery retailer.
 (Competitors) Inability to take on greater expenses to
maintain comfortable prices for consumers as well as fund
necessary company growth and/or operations.
 Lack of technological foresight stagnating company
growth.
 Rely solely on manual labor/tech (cashiers, stockers, etc.).

27. 27
170 fine
jewelry stores
2,256
pharmacies
1,585
supermarket
fuel centers
2,750 grocery
retail stores
Headquartered
in Cincinnati,
Ohio
465,000
employees
Establishments

28. 28
Graphs of Covid-19’s Impact on Kroger

29. References
29
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