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Kroger VS. Safeway

Explore the operations, strategies, and market positions of Kroger and Safeway, two leading grocery retailers in the US, with details on sales figures, store formats, and business strategies. 8 Relevant

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Kroger VS. Safeway

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  1. Kroger VS. Safeway Gina Tedesco Morgan Phillips

  2. About Kroger • One of nations largest grocery retailers • Fiscal 2008 sales of $76.0 billion • Store formats include grocery and multi-department stores, convenience stores and mall jewelry stores. • Operate under nearly 2 dozen banners • All share the same belief in building strong local ties and brand loyalty with their customers

  3. Operations. • Food stores are primary business and account for 95% of total company sales • Operate 2,470 grocery retail stores in 31 states. • Hold #1 or #2 position in 39 of the 42 major markets. • 768 convenience stores, 388 fine jewelry stores,40 food processing facilities, 818 fuel centers, and 1,964 pharmacies

  4. Stratagies • Only major U.S. supermarket to operate an economical three-tier distribution system • One stop shopping strategy (supermarket fuel enters) • Supplier Diversity Program

  5. About Safeway • The nation's third-largest retail grocery chain • Revenues $9.5 billion in the third quarter of 2009 • Fiscal 2008 Sales $41,973 million (increased from 2007) • Operates under 12 banners • Offers deli, bakery, floral, pharmacy, Starbucks, and fuel stations • In 2008, Safeway named one of “America’s Healthiest Grocery Stores” by Health magazine.

  6. Operations • 1,740 stores in the United States and Canada. • Operates Groceryworks.com an internet grocer • Largest consumer brand: the Safeway Brand • Offers Blackhawk network gift cards • Retail stores • Prepaid debit gift cards • Sports and entertainment gift cards

  7. SWY Strategies • 2009-Reducing lifestyle remodels and focusing more on necessary issues to allow Safeway to have competitive advantage over competitors • Safeway believes the company can generate $1.1 billion-$1.3 billion in free cash flow as it cuts back on capital expenditures • Developing more private label offering according to customer trends • Also developing business ventures outside its supermarkets: • Blackhawk gift card

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