Traditional Supermarkets Are Losing Shoppers, But Kroger, For One, Is Fighting Back

Share to twitterTraditional supermarkets continue to lose their share of Americans' food and consumables budget. On American consumers’ grocery shopping list, one item is increasingly missing: traditional supermarkets.

Where are consumers shopping instead? Supercenters led by Walmart and wholesale clubs like Costco have picked up share to represent 20% and over 9% of U.S. food and consumables purchases last year. doubled down on produce and other grocery salesNot all traditional grocers have lost ground.

The shifting consumer behavior and increased competition have put traditional supermarkets, led by Kroger, on their toes. Kroger in late 2017 started a three-year plan to “Restock Kroger,” a key part of which involves making itself an “omnichannel” retailer and meeting consumer demands how, when and where they want.

Kroger has also bought meat-kit company Home Chef to meet increased convenience demand. With private label an increased focus for retailers including Amazon and Target, Kroger said Thursday that its own line of store brands saw sales rise 3.1% as it rolled out 203 new items during the quarter., Kroger recently unveiled its private-label Simple Truth line of fresh meatless burger patties and other products.

Kroger is the No. 2 U.S. brick-and-mortar grocery seller, with a 9% share of the market in 2018, trailing only Walmart and its 26% share, according to Euromonitor data.

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