The U.S. supermarket chain Kroger has opted to innovate and improve the customer experience through technology. Applied to practically all its stores in the United States, it is offering in-store flyers, from which customers must scan the QR code to obtain digital discount coupons. In this way, they intend to offer their loyalty program members their Weekly Digital Deals in a simpler way, using their app. This new initiative aims to meet the needs of customers after the failure of its $25 billion merger with Albertsons.
In addition, it also eliminated its Kroger Ship service after failing to compete with Amazon and Walmart. On the other hand, it has announced the closure of more than 60 stores for not considering them unprofitable, and with them the closure of brands such as Harris Teeter and Pick ‘n Save. The current situation of this supermarket chain is not the most suitable, and is betting on technological innovation to stay afloat and be able to compete in the market with other chains.
Kroger
Kroger is an American supermarket company. Founded in Ohio in 1883, it operates as a chain of supermarkets, gas stations and a publicly traded company. Headquartered in Cincinnati, it has approximately 2,722 stores in the United States. It also has a network of pharmacies, bakeries, dairies and a growing e-commerce business. Some of the brands associated with Kroger are Ralphs, Dillions, King Soopers, QFC, Harris Teeter, Pick’n Save, among many others.
Kroger’s current situation
Kroger’s current situation is not the most buoyant. That is why it has opted for technological innovation to try to catch up with its competitors. In 2022 it merged with Albertsons for $25 billion and it turned out to be a failure, so the company has decided to implement a series of adjustments. In addition to the failure of the merger, it has disabled its home delivery service, as it has not been able to compete with Walmart and Amazon.
In addition, it has had to face several investigations for being accused of alleged overpricing through electronic tags. However, despite all the hurdles Kroger has had and continues to face, it exceeded revenue expectations in the first quarter of the year, with a total of $45.12 billion. However, it was not enough to meet Wall Street’s expectations.
Technological innovations and discounts
Kroger’s novelty comes to its stores with physical flyers that are given to customers and have scannable digital discounts. The company intends to deliver this way the Weekly Digital Deals to its customers, who can benefit from these discounts on each visit. According to the company, this measure has arisen from the customers’ own need. A company spokesperson explained: “We are always listening to our customers to create a better shopping experience”.
How can I benefit from the discounts?
It is very easy to get one of these discounts. The brand is offering printed flyers, which have a scanned code that automatically adds the digital discount coupons to the customer’s account. The most striking thing is that they are not single-use coupons, but can be used up to 5 times. Discounts are available every Wednesday, and every Tuesday you can check the offers that will be released. Another feature is that you can make use of the coupons in that same purchase, or if you prefer, save them for another time, all through the company’s loyalty ID. That’s why in order to enjoy this new feature, you have to be a member of Kroger’s loyalty club.
Upcoming closings
Despite expectations for the future, Kroger continues to pay the consequences of its bad run. It has announced the closure of more than 60 stores that are not proving to be as profitable as they should be. With them, it will also close its Harris Teeter and Pick’n Save brands. In principle, there is no talk of layoffs, only a strategy to improve its products and to enhance the growth of its e-commerce.