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• The Walmart of groceries

• The Amazon of physical grocery stores

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• Groceries: A wide assortment of food items including fresh produce, meat, dairy, pantry staples, and frozen foods.
• Pharmacy Services: Provides prescription fulfillment, over-the-counter medications, and immunizations within many of its stores.
• Fuel Sales: Operates gas stations, often co-located with its supermarkets, offering gasoline and diesel.
• General Merchandise: Sells non-food items such as household goods, health & beauty products, and seasonal items.
• Private Label Products: Develops and sells its own exclusive brands across various categories like food, household, and personal care.
• Online Grocery Pickup & Delivery: Offers convenient services for customers to order groceries online for in-store pickup or home delivery.

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Kroger (KR) - Major Customers

• Everyday Household Shoppers: This is Kroger's core customer base, encompassing individuals and families seeking a convenient, one-stop shop for their weekly or bi-weekly grocery needs. They look for a wide assortment of fresh produce, meats, dairy, pantry staples, and household goods, often balancing quality, price, and convenience for their daily lives.
• Value-Oriented Shoppers: These customers are highly sensitive to price and actively seek to maximize savings. They are attracted to Kroger's sales, promotions, digital coupons, store brand products (e.g., Kroger brand, Heritage Farm, P$$T!), and loyalty programs (like the Kroger Plus Card) to stretch their budgets.
• Health-Conscious & Specialty Shoppers: This category includes individuals focused on healthy eating, organic products, natural foods, and those with specific dietary requirements (e.g., gluten-free, vegan, allergen-free). Kroger caters to this segment through its Natural Foods sections, its private label organic brand (Simple Truth), and expanded selections of fresh, specialty, and prepared foods.

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• PepsiCo (PEP)
• The Coca-Cola Company (KO)
• Procter & Gamble (PG)
• Nestlé S.A. (NSRGY)
• Unilever PLC (UL)
• The Kraft Heinz Company (KHC)
• General Mills, Inc. (GIS)
• Tyson Foods, Inc. (TSN)
• Ocado Group plc (OCDO.L)

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Ronald Sargent, Interim Chief Executive Officer and Chairman of the Board

Mr. Sargent was named Interim Chief Executive Officer and Chairman of the Board in March 2025. He has served as a Kroger director since 2006 and as Lead Director from June 2018 to March 2025. Prior to his current role, Mr. Sargent was the Chairman and Chief Executive Officer of Staples, Inc., a business products retailer, from 2002 until his retirement in 2016. He joined Staples in 1989 and also spent 10 years with Kroger in various roles across stores, sales, marketing, manufacturing, and strategy earlier in his career.

David Kennerley, Executive Vice President and Chief Financial Officer

Mr. Kennerley was elected Executive Vice President and Chief Financial Officer in March 2025, with his role becoming effective April 3, 2025. Before joining Kroger, he held numerous leadership positions at PepsiCo from 2001 to 2025, including serving as CFO, Europe. His career at PepsiCo began in 2001 as a manager in the International Corporate Finance/Treasury Department, and he later held various roles in Planning and Commercial Finance and as senior finance director for the Global Beverages Group.

Mary Ellen Adcock, Executive Vice President and Chief Merchant and Marketing Officer

Ms. Adcock was elected Executive Vice President in 2025 and is responsible for sales and category planning, analytics & execution, e-commerce, digital merchandising, fuel, and Kroger's Our Brands. She joined Kroger in 1999 as a human resources assistant manager at the Country Oven Bakery. Her extensive background at Kroger includes leadership roles in manufacturing, such as human resources manager, general manager, and division operations manager, as well as Vice President of Deli/Bakery Manufacturing and Natural Foods Merchandising. She also served as Vice President of Operations and Merchandising for Kroger's Columbus Division, Group Vice President of Retail Operations, and Senior Vice President of Retail Operations.

Yael Cosset, Executive Vice President and Chief Digital Officer

Mr. Cosset was elected Executive Vice President in 2025. He leads Kroger's digital strategy, focusing on its digital presence, personalization, e-commerce, and alternative profit businesses, including 84.51˚ LLC and Kroger Personal Finance. Prior to this, he was Senior Vice President and Chief Information Officer, and served as Chief Digital Officer from 2017 to 2019. Before his time at Kroger, Mr. Cosset held several leadership roles at dunnhumby, including executive vice president of consumer markets, global chief information officer, and CEO of KSS Retail.

Timothy Massa, Executive Vice President and Chief People Officer

Mr. Massa has been the Executive Vice President and Chief People Officer since March 2025. He joined Kroger in 2010 as vice president of corporate human resources, talent development. He was promoted to Group Vice President of Human Resources and Labor Relations in April 2014. Before joining Kroger, Mr. Massa spent 21 years in various human resources leadership roles at Procter & Gamble.

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The Kroger Co. (KR) faces several key risks to its business, primarily driven by the highly competitive nature of the grocery industry, the complexities surrounding its proposed merger, and broader macroeconomic factors.

1. Intense Competition and Evolving Consumer Preferences: Kroger operates in a fiercely competitive retail market, contending with traditional grocery chains, discount retailers such as Walmart, Costco, and Target, and rapidly expanding e-commerce giants like Amazon/Whole Foods Market. The company is under continuous pressure to adapt to shifting consumer preferences, which include a growing demand for online shopping, private-label brands, healthier food options, and overall convenience. This competitive landscape necessitates ongoing innovation and strategic investments to maintain market share and customer loyalty.

2. Uncertainty Surrounding the Albertsons Merger and Regulatory Scrutiny: Kroger's proposed merger with Albertsons has faced significant difficulties in obtaining approval from the Federal Trade Commission (FTC). The company has planned to divest a substantial number of stores to C&S Wholesalers to appease regulators, but there is still uncertainty regarding whether this will be sufficient and how these divestitures will ultimately impact Kroger's market position, operational efficiency, and profit margins. The outcome of this merger process holds considerable implications for Kroger's strategic growth and financial performance.

3. Economic Downturns, Inflation, and Supply Chain Disruptions: Kroger's business is susceptible to macroeconomic fluctuations, including economic recessions that can lead to reduced consumer spending. The grocery industry also operates on thin margins, making it particularly vulnerable to inflationary pressures, rising labor costs, and disruptions within the global supply chain. These factors can significantly increase operational expenses and potentially impact the company's profitability if costs cannot be effectively passed on to consumers.

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• The aggressive expansion and increasing market penetration of discount grocers like Aldi and Lidl. These chains employ highly efficient business models focused on private labels and lean operations, allowing them to offer significantly lower prices. Their continued rapid store openings in key markets directly threaten Kroger's market share and pricing power, forcing competitive responses that can impact margins.
• Amazon's evolving and technologically advanced presence in the grocery sector. This includes the continuous development and expansion of Amazon Fresh stores, Whole Foods Market, and their integrated online grocery services. Amazon's unique strengths in logistics, e-commerce, and proprietary technologies (like "Just Walk Out" systems in more grocery-sized formats) create a multi-faceted competitive pressure on traditional grocers to innovate and invest heavily in technology and supply chain efficiencies to match customer expectations for convenience and price.

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Kroger's main products and services operate within several large addressable markets in the United States. Here's an overview of their estimated market sizes:

• Grocery/Supermarket Sales: The U.S. grocery retail market is a significant sector. The US Grocery Retail Market is valued at over $900 billion in 2025. Another estimate for the Supermarkets & Grocery Stores industry in the United States for 2025 is approximately $883.1 billion. However, some forecasts suggest sales at U.S. grocery stores will increase to $1.6 trillion in 2025. Therefore, the addressable market for Kroger's core grocery and supermarket business in the U.S. is estimated to be approximately $900 billion to $1.6 trillion in 2025.
• Pharmacy Services: Kroger operates numerous pharmacies within its stores. The U.S. retail pharmacy market is projected to be approximately $609 billion to $643 billion in 2025. Specifically, the U.S. retail pharmacy market is estimated to increase from US$ 609.2 billion in 2025. Other estimates project the U.S. retail pharmacy market to grow from US$ 612.7 billion in 2025, while the Pharmacies & Drug Stores industry is estimated to reach $609.6 billion in 2025. Another report values the United States pharmacy market at USD 643.4 billion in 2024.
• Online Grocery Sales: Kroger has a growing presence in the online grocery market. U.S. online grocery sales are forecast to reach $228.44 billion in 2025. Other projections indicate nationwide online grocery sales will total as much as $327.7 billion in 2025.
• Fuel Centers: null

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1. Digital Transformation and E-commerce Expansion: Kroger is significantly investing in its digital capabilities, including AI-driven supply chain systems and personalized online shopping tools, to enhance customer experience and operational efficiency. The company is accelerating e-commerce growth through a dedicated e-commerce unit and investments in fulfillment centers. Digital sales have shown robust growth, with a 15% surge in Q1 FY2025, and e-commerce sales reached $13 billion in 2024.
2. Expansion of "Our Brands" Private-Label Portfolio: A key component of Kroger's strategy involves expanding its private-label portfolio, known as "Our Brands." This initiative aims to offer quality products at competitive prices, fostering customer loyalty and expanding profit margins. Private-label sales exceeded $32 billion in 2024, and the company continues to increase the variety and availability of these products.
3. New Store Growth, Modernization, and Optimization: Kroger is actively expanding its physical presence through strategic new store openings, renovations, and the introduction of small-format stores in urban areas. The company plans to complete 30 major store projects in 2025, focusing on high-growth markets, and expects to increase store openings by 30% in 2026. These new stores are designed to be modern, customer-focused, and integrate digital platforms. While the company plans to close approximately 60 underperforming stores over the next 18 months, this is part of a broader strategy to optimize its store network and enhance profitability.
4. Growth in Pharmacy and Fresh Categories: Kroger has identified its pharmacy and fresh food categories as significant drivers of identical sales growth. The company reported strong performances in these segments, with fresh identical sales outpacing center store sales. An uptick in the pharmacy business, partly driven by the popularity of certain weight-loss drugs, has also contributed to sales growth. Kroger aims to meet customer demand for healthier options across its fresh departments.

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Share Repurchases

• Kroger's Board of Directors approved a new share repurchase program in December 2024, authorizing the repurchase of up to $7.5 billion of common stock, replacing a previous $1 billion authorization.
• The company initiated a $5 billion accelerated share repurchase (ASR) program in the fourth quarter of fiscal 2024, with completion expected by no later than Kroger's fiscal third quarter 2025.
• After the ASR program's completion, Kroger plans to resume open market share repurchases under the remaining $2.5 billion authorization by the end of fiscal 2025.

Share Issuance

• No significant dollar amount of shares issued by Kroger in the last 3-5 years was identified in the available information, with the trend in shares outstanding generally indicating net repurchases.

Inbound Investments

• Kroger received $500 million in a Post IPO funding round on February 18, 2020, with Berkshire Hathaway being one of the participating investors.

Outbound Investments

• In October 2022, Kroger entered into a definitive agreement to acquire Albertsons Companies, Inc. for an estimated total enterprise value of approximately $24.6 billion, including the assumption of about $4.7 billion of Albertsons' net debt.
• As part of the proposed Albertsons merger, Kroger committed to investing $500 million to lower prices and an additional $1.3 billion to improve Albertsons' stores.
• The merger agreement with Albertsons was terminated on December 11, 2024, due to significant regulatory scrutiny and legal challenges.

Capital Expenditures

• Kroger's capital expenditures averaged $3.296 billion for the fiscal years ending January from 2021 to 2025.
• Capital expenditures increased from $3.078 billion in 2023 to $3.904 billion in 2024, reaching a peak of $4.017 billion in the fiscal year ending February 2025.
• Planned capital expenditures for fiscal year 2025 are projected to be between $3.6 billion and $3.8 billion, with a focus on strategic growth initiatives such as new store projects with efficient layouts and faster construction timelines, and enhancing the customer experience.