Carol Spieckerman

FD Buyer: Can Kroger Whip Wal-Mart?

June 17, 2010

FROM RETAILWIRE:
In a word, "no." But it certainly seems to be holding its own with nimble pricing and an aggressive private label program. How does Kroger match up against Wal-Mart? What are the advantages and disadvantages Kroger has versus Wal-Mart?      [more...]

The biggest advantage that Walmart has over Kroger (other than its wider geographic coverage in the U.S. and internationally) is its expansive category portfolio and category synergies. When one category is slipping, another one will be on the uptick...consumer electronics may feature a hot launch one week that ends up driving traffic to Home and the next week, a sale on bicycles will result in additional purchases in toys.

Kroger has done a terrific job articulating a clear value message while bringing in specialty foods that creep into Whole Foods' territory. However, comparing Kroger to Walmart is like comparing apples to ornaments.