Chasing The Customer … Kroger’s 10 Years of Empirical Success!

Nobody in the food industry has done a better job than Dave Dillon, dunnhumby and the Kroger team in defining and delivering the future of customer based retailing. Just look at the numbers!
Kroger Strategy:  people, prices, products, shopping experience, right in-store merchandise mix, right media mix, targeted promotions delivered by big data insights, retail level and individual customer execution.
Results: 40 qtrs of ID sales growth. That’s 10 consecutive years since the dunnhumby launch .
  1. ID sales currently at 3 to 3.5% without sq footage expansion or acquisition. (Note: Walmart in 1.5% range. Peer retailers running 3.1 to – 6.3%)
  2. Almost 1/2 HH’s in America carry Kroger or affiliate frequent shopper card.
  3. 85% of HH’s in operating markets carry cards.
  4. 90 % of transactions are on a Kroger or affiliate card.
  5. 95% of Kroger sales growth during last decade comes from existing customers.
  6. Kroger apps now in top 2% of ios downloads.
  7. 35% of grocery items now in private label vs. industry  average of around 20%.
  8. Loyal HH’s spend 50% grocery budgets at Kroger. (This is way above the industry average.)
  9. Kroger uses both e media and direct mail. In 2012 they sent out 9 million 1/4 ly mailings, 8.5 million which were customized.
  10. Both Kroger and Safeway now feel they can experiment with a goal of substantially cutting back traditional newspaper print media budgets and move to more measurable targeted e media and direct mail.

Note: Macy’s has relatively recently started working with dunnhumby and posted strong holiday sales this season versus a peer group segment that was woefully weak.

2 Responses to “Chasing The Customer … Kroger’s 10 Years of Empirical Success!”
  1. Richard Essigs says:

    Ron, a good perspective from someone who has seen it all relating to shopper marketing, loyalty cards in retail. Enjoyed the top ten list.


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