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Kroger Cody Butler, Ahmad Damra, & Doug Edwards Sullivan University Kroger Since it first began in the late 1800’s, Kroger had been a store motivated to expand its role in the community. After first starting out by selling grocery items to customers, it began to also sell bakery items and opened bakeries within the grocery store itself. This was a big convenience for the consumer to be able to shop for most of their grocery items within the same store. The company then set its sights on the meat industry by purchasing several meat markets and packing plants. This allowed them to provide cuts of meat to their customers so that they didn’t have to go to another store to purchase meats. Once again, they found a needed service…show more content…
The supercenters are not concerned with making a large profit margin on their food products that they are selling, instead they are using the food products to entice shoppers into their stores and then they are able to make their higher profit margins on none food items that they sell to the consumer while they are shopping. By not needing to maintain a high profit margin on the food items, this has allowed the supercenters to keep their food prices down in comparison with most traditional supermarkets. [ (Senauer & Seltzer, 2010) ] The recession, which started in 2008, has helped drive the need for private-label products, or as they are more commonly called, store brand products. These private-label products generally cost the consumers about twenty-five percent less than the major national brands that are offered. Throughout the supermarkets and other types of food retailers, the private-label sales grew by more than 9% from 2008 to 2009, and these types of private-label sales accounted for about 35% of Kroger’s overall sales. Most stores do not operate their own processing plants for these private-label items; Kroger does however operate their own plants for the private-label products. [ (Senauer & Seltzer, 2010) ] Point of Sale (POS) data systems have allowed the supermarkets and supercenters, to be able to better understand the consumer purchasing behaviors. This has allowed the stores
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