Kroger planning big changes for hundreds of stores

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Kroger planning big changes for hundreds of stores

Kroger is planning to revamp at least 20 to 30 percent of its 2,793 stores, the Cincinnati-based company recently announced.

The grocery store chain recently announced its “Restock Kroger” campaign, which will seek to change the customer experience at 558 to 838 stores, according to the company.

Kroger will spend $9 billion in capital investments on the Restock Kroger plan over the next three years, according to the company. The campaign is expected to boost Kroger’s operating margin by $400 million by 2020, according to a press release from Kroger.

As part of the plan, Kroger will redesign stores to maximize self check while also expanding “Scan, Bag, Go” to 400 stores in 2018. Scan, Bag, Go allows shoppers to check out using wireless hand-held scanners in aisles as they shop.

The grocery stores will also undergo a space optimization process that will include reorganizations of some layouts and shelves at certain locations, according to Kroger.

Last year, Kroger expanded its online ordering grocery ordering service, called ClickList, to select locations in the Miami Valley.

Kroger plans to use technology and data analytics to improve shopping experiences and offerings as well, according to the company.

“Combining our food expertise and data analytics uniquely positions Kroger to create new and highly-relevant customer experiences, delivered both digitally and in stores,” Kroger CEO and chairman Rodney McMullen said in a prepared statement last week.

Kroger’s decision to retool around one-fourth of its grocery stores comes just after the company’s announcement that it may sell off its convenience store arm.

Kroger is considering selling more than 700 of its convenience stores because they are ““potentially of more value outside of the company than as part of Kroger,” the company said. The convenience stores employ 11,000 people. As major local grocer, Kroger employs more than 8,100 associates in the Miami Valley.

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