Kroger Succeeds By Keeping Track of Customers
keeping close tabs on its customers and that more than anything may explain
how the grocer has managed to achieve significantly higher same-store
gains than rivals Safeway and Supervalu.
chief executive of Kroger, told the Los Angeles
the company’s work with Dunnhumby has given it greater insights into
the shopping behavior of its customers.
“We send our
very best customers coupon books specifically targeted at what they actually
buy. The redemption rate of these coupons is significantly higher than
other coupons,” Mr. Dillon said.
the data it receives on its customers to divide its stores into three
groups. A store serving an affluent consumer base, for example, would
have an expanded wine selection and no value-priced private label items.
At the opposite end, a so-called value store would “be much more focused
on price,” Mr. Dillon said.
of the Dunnhumby system, according to the LA Times report, is
it allows Kroger to identify items that will continue to sell at higher
years ago we paid too much attention — almost every day — looking at
what our competition was doing,” Mr. Dillon said. “We can’t ignore our
competitors, but we have to pay more attention to what our customers
want in our stores.”
Questions: Has Kroger gotten better at understanding its customers
in your opinion? Is its work in this area above that of its competitors
in markets across the country?