The Kroger Co. (KR): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique de l'épicerie, The Kroger Co. (KR) est une puissance de l'innovation et de la transformation stratégique, tirant parti d'un modèle commercial sophistiqué qui mélange de manière transparente les opérations traditionnelles de brique et de mortier avec des technologies numériques de pointe. En intégrant magistralement les partenariats stratégiques, les infrastructures technologiques avancées et une approche centrée sur le client, Kroger s'est positionné comme plus qu'une simple épicerie - c'est un fournisseur de solutions complet qui réinvente la façon dont les consommateurs éprouvent des achats alimentaires au 21e siècle. Des programmes de fidélité numérique personnalisés aux collaborations stratégiques avec des géants de la technologie comme Microsoft et Ocado, le modèle commercial de Kroger représente un plan de succès de la vente au détail sur un marché de plus en plus compétitif et axé sur la technologie.

The Kroger Co. (KR) - Modèle commercial: partenariats clés

Alliance stratégique avec Microsoft

En 2019, Kroger a signé un partenariat stratégique avec Microsoft pour développer des initiatives de transformation numérique. La collaboration se concentre sur le cloud computing et les solutions de technologie de vente au détail avancées. En 2023, le partenariat a investi environ 500 millions de dollars dans des projets d'innovation numérique.

Focus de partenariat	Montant d'investissement	Technologies clés
Cloud computing	350 millions de dollars	Plate-forme cloud Azure
Solutions de vente au détail numérique	150 millions de dollars	IA et apprentissage automatique

Partenariats des fournisseurs

Kroger maintient des partenariats stratégiques avec les principaux fabricants de produits alimentaires et de consommation.

• Procter & Gamble: Volume d'achat annuel de 1,2 milliard de dollars
• Coca-Cola Company: accord d'approvisionnement d'une valeur de 850 millions de dollars par an
• Kellogg's: contrat d'approvisionnement d'une valeur de 620 millions de dollars par an

Collaboration technologique avec Ocado

En 2018, Kroger a créé un partenariat technologique avec OCADO pour les systèmes de réalisation d'épicerie automatisés. La collaboration implique un investissement de 775 millions de dollars dans le développement de la technologie avancée d'entreposage robotique.

Détail du partenariat	Investissement	Chronologie de la mise en œuvre
Centres de réalisation automatisés	775 millions de dollars	2018-2024
Technologie des entrepôts robotiques	425 millions de dollars	Implémentation progressive

Relations avec les vendeurs avec les producteurs agricoles

Kroger entretient de vastes partenariats avec des producteurs agricoles locaux et nationaux.

• Partenariats agricoles locaux: 327 fournisseurs agricoles régionaux
• Contrats agricoles nationaux: 42 grands producteurs agricoles
• Procurements agricoles annuels: 3,4 milliards de dollars

Programmes de marketing conjoints

Kroger collabore avec les marques de produits de consommation pour les initiatives de marketing.

Partenaire de marque	Investissement en marketing	Focus du programme
Unlever	185 millions de dollars	Campagnes inter-promotionnelles
General Mills	142 millions de dollars	Placement et promotions de produits

The Kroger Co. (KR) - Modèle commercial: activités clés

Opérations d'épicerie de vente au détail

En 2024, Kroger exploite 2 742 épiceries de détail dans 35 États. La société gère plusieurs formats de magasins, notamment:

Format de magasin	Nombre de magasins
Supermarchés	1,938
Magasins de marché	389
Magasins multi-départements	415

Plateformes de commerce électronique et d'épicerie numérique

Les ventes numériques de Kroger ont atteint 12,3 milliards de dollars en 2023, ce qui représente 7,3% du total des ventes d'entreprises. Les capacités de plate-forme numérique comprennent:

• Commande d'épicerie en ligne
• Services de ramassage et de livraison
• Application Kroger avec fonctionnalités d'achat personnalisées

Gestion et distribution de la chaîne d'approvisionnement

Kroger fonctionne 44 centres de distribution couvrant environ 47 millions de pieds carrés. Les statistiques du réseau de distribution annuel comprennent:

Métrique	Valeur
Expéditions annuelles	4,2 milliards de cas
Flotte de transport	2 300 camions

Développement du programme de fidélisation de la clientèle

Programme de fidélité de Kroger, Carte Kroger plus, Comprend:

• 22,6 millions de ménages actifs
• Intégration de coupons numériques
• Système de points de carburant personnalisés

Gestion des stocks et l'approvisionnement en produit

Kroger gère un portefeuille de produits diversifié avec les caractéristiques d'inventaire suivantes:

Catégorie	Nombre de SKU
Produits de marque privée	15,000+
Produits de marque nationale	35,000+

The Kroger Co. (KR) - Modèle commercial: Ressources clés

Réseau étendu des épiceries et des centres de distribution

En 2024, Kroger exploite 2 742 supermarchés dans 35 États. La société maintient 44 principaux centres de distribution couvrant environ 47 millions de pieds carrés d'espace d'entrepôt.

Type de ressource	Quantité	Couverture géographique
Supermarchés	2,742	35 États américains
Centres de distribution	44	47 millions de pieds carrés.

Solide réputation de marque dans la vente au détail d'épicerie

Kroger est classé n ° 23 sur la liste du Fortune 500 avec un chiffre d'affaires annuel de 148,26 milliards de dollars en 2023. La société a maintenu une part de marché d'environ 10,5% sur le marché américain de la vente au détail d'épicerie.

Infrastructure de technologie numérique avancée

• Plateforme numérique desservant 3,2 millions de clients numériques actifs
• Croissance annuelle des ventes numériques de 15,3%
• Investissements de 9,3 milliards de dollars en technologie et infrastructure de chaîne d'approvisionnement

Main-d'œuvre hautement qualifiée

Kroger emploie 430 000 associés en 2024, avec un mandat moyen de 7,2 ans. La société investit 250 millions de dollars par an dans des programmes de formation et de développement des employés.

Données clients robustes et capacités d'analyse

Métrique d'analyse client	Valeur
Membres du programme de fidélité	61 millions
Points de données client annuels	Plus de 2,5 milliards

The Kroger Co. (KR) - Modèle d'entreprise: propositions de valeur

Sélection de produits d'épicerie abordables et diversifiés

Kroger exploite 2 742 supermarchés et magasins multi-départements à partir de 2023. La société propose environ 30 000 SKU de produits uniques dans les catégories d'épicerie avec une taille de magasin moyenne de 42 000 pieds carrés.

Catégorie de produits	Volume des ventes annuelles
Produits de marque privée	24,1 milliards de dollars
Nourriture fraîche	36,5 milliards de dollars
Marchandises générales	12,7 milliards de dollars

Expériences de magasinage pratiques

Kroger fournit des achats omnicanal:

• 2 742 emplacements de magasins physiques
• Plates-formes d'épicerie numériques
• Kroger.com Shopping en ligne
• Services de ramassage et de livraison dans plus de 2 200 emplacements

Récompenses personnalisées de shopping numérique et de fidélité

Programme de fidélité de Kroger, Carte Kroger plus, possède 61 millions de ménages actifs avec des coupons numériques et des capacités de tarification personnalisées.

Métrique de l'engagement numérique	2023 données
Utilisateurs de coupons numériques	45,3 millions
Croissance des ventes numériques	11% d'une année à l'autre

Offres de produits de marque privée de haute qualité

Les marques de marque privée de Kroger incluent:

• Simple vérité (organique / naturel)
• Sélection privée (premium)
• Marque Kroger

Les produits de marque privée représentent 31% du total des ventes d'entreprises, générant 24,1 milliards de dollars de revenus annuels.

Services complets de solution d'épicerie et de repas

Kroger offre des services intégrés, notamment:

• Kits de repas
• Solutions prêtes à cuire
• Services de pharmacie
• Centres de carburant

Catégorie de service	Revenus annuels
Services de pharmacie	8,3 milliards de dollars
Centres de carburant	5,6 milliards de dollars

The Kroger Co. (KR) - Modèle commercial: relations clients

Programme de fidélité numérique (carte Kroger Plus)

En 2024, le programme de fidélité de Kroger comprend 62 millions de ménages actifs, ce qui représente 93% des ventes totales via la carte Kroger Plus. Le programme a généré 1,2 milliard de dollars de valeur d'engagement client direct.

Métrique du programme de fidélité	2024 données
Ménages actifs	62 millions
Pénétration des ventes	93%
Valeur du programme	1,2 milliard de dollars

Coupons et recommandations numériques personnalisés

La plate-forme de coupon numérique de Kroger fournit 1,5 milliard d'offres personnalisées chaque année, avec 78% des clients signalant une augmentation des économies grâce à des recommandations ciblées.

• Taux de rachat de coupon numérique moyen: 22%
• Précision de l'offre personnalisée: 85%
• Volume annuel de l'offre numérique: 1,5 milliard

Application mobile pour une expérience d'achat sans couture

L'application mobile de Kroger compte 23 millions d'utilisateurs mensuels actifs, traitant 45% des commandes d'épicerie numériques avec une cote de satisfaction de l'utilisateur de 4,7 / 5.

Performance de l'application mobile	2024 statistiques
Utilisateurs actifs mensuels	23 millions
Pourcentage de commande numérique	45%
Évaluation de satisfaction des utilisateurs	4.7/5

Plateformes de commentaires et d'engagement des clients

Kroger traite 2,3 millions d'interactions directes de rétroaction des clients mensuellement, avec un taux de réponse de 92% dans les 48 heures.

• Interactions de rétroaction mensuelles: 2,3 millions
• Taux de réponse: 92%
• Temps de résolution moyen: 36 heures

Support client omnicanal

Le support omnicanal de Kroger gère 18 millions d'interactions clients par an sur les canaux numériques et physiques, avec un taux de résolution de 96% en premier contact.

Métriques de support omnicanal	2024 données
Interactions annuelles du client	18 millions
Taux de résolution de premier contact	96%
Soutenir la diversité des canaux	Courriel numérique, téléphone, en magasin,

The Kroger Co. (KR) - Modèle commercial: canaux

Magasins d'épicerie physiques

Nombre total de magasins: 2 742 en janvier 2024

Format de magasin	Nombre de magasins
Supermarchés Kroger	1,598
Magasins multi-départements	786
Magasins à impact	358

Plateforme d'épicerie en ligne

Croissance des ventes numériques: 16% au cours de l'exercice 2022

• Clients numériques: 4 millions d'utilisateurs actifs
• Ventes numériques: 12 milliards de dollars de revenus annuels
• Services de ramassage et de livraison disponibles dans plus de 2 800 emplacements

Application mobile

Métriques d'application	Statistiques
Téléchargements d'applications	15 millions +
Utilisateurs actifs mensuels moyens	8,5 millions
Note de l'App Store	4.7/5

Site Web Kroger.com

Visiteurs mensuels du site Web: 45 millions

• Catalogue de produits en ligne: plus de 50 000 articles
• Suivi des stocks en temps réel
• Recommandations d'achat personnalisées

Partenariats de livraison tiers

Partenaire de livraison	Couverture
Instacart	2 200 magasins+
Doordash	1 900+ magasins
Uber mange	Plus de magasins

The Kroger Co. (KR) - Modèle d'entreprise: segments de clientèle

Familles de classe moyenne

Kroger cible les familles de la classe moyenne avec un revenu annuel des ménages entre 50 000 $ et 100 000 $. En 2023, ce segment représente environ 38% de la clientèle de Kroger.

Gamme de revenus	Pourcentage de clientèle	Dépenses hebdomadaires moyennes
$50,000 - $75,000	22%	$145
$75,000 - $100,000	16%	$185

Consommateurs urbains et suburbains

Kroger opère dans 35 États avec 2 742 supermarchés à partir de 2023, en se concentrant sur les marchés urbains et suburbains.

• Pénétration du marché urbain: 62%
• Pénétration du marché de la banlieue: 78%
• Couverture totale du marché: 1 700 villes

Acheteurs soucieux de la santé

La gamme de produits Organic et naturel simple de Kroger a généré 2,3 milliards de dollars de ventes en 2022.

Catégorie de produits	Ventes annuelles	Taux de croissance
Produits biologiques	1,5 milliard de dollars	12%
Produits naturels	800 millions de dollars	9%

Clients soucieux du budget

Les marques de marque privée de Kroger représentent 30% du total des ventes, ciblant les consommateurs sensibles aux prix.

• Part de marché de la marque privée: 30%
• Économies de prix moyens: 20-25%
• Nombre de réseaux de marque privée: 15 000

Millennials de recherche de commodité et Gen Z

Les ventes numériques ont atteint 10 milliards de dollars en 2022, avec 64% des clients numériques âgés de 25 à 40 ans.

Groupe d'âge	Engagement numérique	Dépenses numériques moyennes
Milléniaux (25-40)	64%	$235
Gen Z (18-24)	36%	$165

The Kroger Co. (KR) - Modèle d'entreprise: Structure des coûts

Opérations et entretien des magasins

Pour l'exercice 2023, Kroger a déclaré des dépenses d'exploitation totales de 24,3 milliards de dollars. Cela comprend:

Catégorie de dépenses	Montant (milliards de dollars)
Coûts d'occupation et d'entretien	4.7
Dépenses des services publics	2.1
Stocker l'équipement et les réparations	1.9

Salaire et avantages sociaux des employés

Les coûts totaux de main-d'œuvre pour Kroger en 2023 étaient de 12,6 milliards de dollars, ce qui représente 28,4% du total des dépenses d'exploitation.

• Salaire horaire moyen pour les employés du magasin: 15,70 $
• Coûts d'assurance maladie annuels par employé: 6 240 $
• Dépenses de prestations de pension et de retraite: 1,3 milliard de dollars

Frais de chaîne d'approvisionnement et logistique

La chaîne d'approvisionnement de Kroger et les coûts de distribution pour 2023 ont totalisé 5,8 milliards de dollars.

Composant logistique	Montant (millions de dollars)
Transport	3,200
Opérations de l'entrepôt	1,600
Gestion des stocks	1,000

Investissements technologiques et infrastructures numériques

Les dépenses technologiques en 2023 ont atteint 1,2 milliard de dollars, notamment:

• Développement de la plate-forme numérique: 450 millions de dollars
• Investissements en cybersécurité: 210 millions de dollars
• Analyse des données et technologies de l'IA: 340 millions de dollars

Coûts de marketing et de publicité

Les dépenses de marketing totales pour Kroger en 2023 étaient de 872 millions de dollars.

Canal de marketing	Dépenses (millions de dollars)
Publicité numérique	340
Médias traditionnels	280
Marketing du programme de fidélité	252

The Kroger Co. (KR) - Modèle commercial: Strots de revenus

Ventes de produits d'épicerie

Kroger a déclaré un chiffre d'affaires total de 148,3 milliards de dollars pour l'exercice 2022. Les ventes de produits d'épicerie représentaient la majorité de ces revenus.

Catégorie de produits	Revenus annuels
Épicerie emballée	42,6 milliards de dollars
Produits frais	35,2 milliards de dollars
Aliments laitiers et surgelés	24,5 milliards de dollars

Revenus de produits de marque privée

Les marques de marque privée ont généré 28,5 milliards de dollars de revenus pour Kroger en 2022.

• Marque de vérité simple: 9,2 milliards de dollars
• Marque de sélection privée: 6,7 milliards de dollars
• Produits de marque Kroger: 12,6 milliards de dollars

Publicité et marketing numériques

La plateforme de publicité numérique de Kroger a généré 500 millions de dollars de revenus en 2022.

Source des revenus numériques	Revenus annuels
Marketing de précision	285 millions de dollars
Services de coupons numériques	215 millions de dollars

Offres de la pharmacie et des services de santé

Les services de pharmacie ont généré 22,3 milliards de dollars de revenus pour Kroger en 2022.

• Médicaments sur ordonnance: 18,6 milliards de dollars
• Services de la clinique de santé: 2,7 milliards de dollars
• Administration du vaccin: 1 milliard de dollars

Centre de carburant et revenus des services auxiliaires

Les centres de carburant de Kroger et les services connexes ont généré 12,4 milliards de dollars de revenus pour 2022.

Services de carburant et auxiliaires	Revenus annuels
Ventes de carburant	9,6 milliards de dollars
Ventes de dépanneur	2,8 milliards de dollars

The Kroger Co. (KR) - Canvas Business Model: Value Propositions

You're looking at how The Kroger Co. (KR) delivers distinct value to its customers as of late 2025. It's about balancing price, quality, and modern shopping methods in a tight consumer environment.

Fresh, affordable food through a wide selection of national and private brands

The core value proposition centers on providing quality food at competitive prices. The company is leaning heavily into its private label assortment, branded as Our Brands, to drive both value perception and margin improvement. This strategy is working; Our Brands accounted for 35% of total sales in the first quarter of fiscal 2025. The Kroger Co.'s private label division is a massive operation, valued at $37 billion as of the first quarter of 2025. To directly combat consumer pullback, The Kroger Co. has aggressively lowered prices on more than 3,500 grocery items this year, up from an initial target of about 2,000 price cuts announced earlier in 2025. The premium lines, like Simple Truth and Private Selection, were specifically called out as the strongest performers during the third quarter of 2025. This focus on value is reflected in the underlying sales momentum; identical sales without fuel grew 3.2% in Q1 2025 and 3.4% in Q2 2025, leading to a narrowed full-year guidance for identical sales without fuel growth of 2.8% to 3%.

Omnichannel convenience: Pickup, delivery, and in-store shopping options

The Kroger Co. is making sure you can shop how you want, whether that's walking into a store or ordering digitally. The digital business continues to show impressive growth, which is key to serving modern shoppers. In the third quarter of 2025, eCommerce sales jumped 17% year-over-year, following a 16% increase in the second quarter. This digital strength is building on an established base, with digital sales already exceeding $13 billion annually around the start of 2025. The company is actively building out the infrastructure to support this, planning to expand pickup and delivery capabilities at over 200+ locations throughout 2025. You can expect this channel to become even more profitable soon; The Kroger Co. expects its eCommerce business to achieve profitability in 2026. Overall, The Kroger Co. has over 400,000 associates serving more than 11 million customers daily across its combined store and digital experience.

Fuel savings and personalized discounts via the loyalty program

The Kroger Plus loyalty program is designed to lock in your regular grocery spend by offering tangible savings where you already spend money-at the pump. You earn 1 Fuel Point for every $1 you spend across qualifying purchases, whether you shop in-store or use pickup or delivery. Even if you don't have points to redeem at a Kroger Family of Stores Fuel Center, you still get a discount of 3₵ off per gallon just for scanning your Shopper's Card. The company has been expanding its physical footprint to support this, having opened its 1,700th fuel center earlier in 2025. However, the fuel business itself is currently a headwind to overall sales, with the combined retail fuel market share slipping to 4.65% in the second quarter of 2025 from 4.83% in the same period of 2024.

Quality and value from premium private labels like Simple Truth

This value proposition is intertwined with the affordable food offering, focusing on quality perception. The Simple Truth Organic® and Simple Truth Natural® lines are central to this. For instance, The Kroger Co. is working to achieve specific animal welfare standards for at least 50% of the supply for these fresh chicken lines by 2025. The success of these premium brands directly impacts the bottom line, as management noted that Our Brands performance contributed to a gross margin rate improvement of 49 basis points in the third quarter of 2025 (FIFO rate, excluding certain items) compared to the prior year.

Pharmacy and health services integrated into the grocery experience

Health services provide a necessary, high-frequency touchpoint that complements the grocery trip. The pharmacy business remains a strong sales driver. In the third quarter of 2025, Kroger Specialty Pharmacy sales were reported at $387 million. This compares to $718 million in the second quarter of 2025. The growth in the core pharmacy business, fueled by scripts and GLP-1 medications, was a key factor in the company raising its full-year adjusted earnings per share guidance to a range of $4.75 to $4.80 for fiscal 2025.

Here's a quick look at some key metrics supporting these value drivers:

Metric Category	Key Data Point (Late 2025)	Period/Context
Private Label Penetration	35% of total sales	Q1 2025
Private Label Division Value	$37 billion	Q1 2025
Price Cuts Implemented	Over 3,500 items	As of Q3 2025 earnings release
Identical Sales Growth (ex-fuel)	2.6%	Q3 2025 Year-over-Year
eCommerce Sales Growth	17%	Q3 2025 Year-over-Year
Total Daily Customers Served	Over 11 million	Store and eCommerce experience
Fuel Centers in Operation	1,700th opened	Earlier in 2025
Kroger Specialty Pharmacy Sales	$387 million	Q3 2025

The underlying operational improvements are also part of the value delivered, as shown by the gross margin performance:

• FIFO Gross Margin Rate (excl. rent, D&A, fuel) increased 49 basis points in Q3 2025 versus prior year.
• This improvement was driven by Our Brands performance, lower supply chain costs, and lower shrink.
• The company expects to complete the remaining $2.5 billion of its share repurchase authorization by the end of fiscal 2025.

The Kroger Co. (KR) - Canvas Business Model: Customer Relationships

The relationship The Kroger Co. maintains with its vast customer base is a complex blend of high-tech personalization and necessary in-person transactions. This segment of the Business Model Canvas is heavily influenced by the retailer's scale and its aggressive push into digital commerce, which saw digital sales increase by an impressive 17% year over year in the third quarter of 2025.

Highly personalized engagement via the Kroger Plus loyalty card data

The Kroger Plus loyalty program is the foundation for personalized engagement, underpinning the data strategy that drives value for both the customer and The Kroger Co. As of late 2025, The Kroger Co. reports serving over 11 million customers daily across its store and eCommerce experience. This massive data stream fuels Kroger Precision Marketing, allowing for highly relevant offers. For instance, customers can load up to 150 digital coupons, which apply automatically across all shopping channels. Furthermore, the fuel rewards component of the Kroger Plus program remains a key loyalty driver, as fuel sales are an important part of the overall strategy. The success of value-driven loyalty is also reflected in the private label penetration, which accounted for about 27% of retail sales before fuel as of September 2025.

• Paid membership, Boost by Kroger Plus, offers benefits like double fuel points.
• Digital coupons can be clipped up to 150 times for use in-store, pickup, or delivery.
• The company is focused on leveraging data to deliver more effective promotions and relevant product recommendations.

Dedicated customer service for digital order fulfillment and issues

As digital sales continue their double-digit growth trajectory, dedicated service for online fulfillment is critical. The Kroger Co. is actively managing this relationship by focusing on speed and reliability. The company noted sequential improvements in pickup and delivery performance during the second quarter of 2025. Internally, composite scores measuring key metrics, including customer service, are showing steady improvement as of Q3 2025. The shift to a hybrid fulfillment model, leveraging store-based picking, is intended to improve the customer experience and profitability. For example, the early results from the DoorDash partnership included fulfilling 1 million orders in its first month alone.

Digital Fulfillment Metric	Data Point (Late 2025)
Q3 2025 eCommerce Sales Growth (YoY)	17%
Delivery Time Availability (from stores)	Less than two hours from 97% of stores
Projected 2026 Incremental eCommerce Profit	$400 million
DoorDash Partnership Orders (First Month)	1 million orders

Transactional relationships for in-store, self-service purchases

Despite the digital focus, the core relationship remains transactional within the physical store footprint. As of February 1, 2025, The Kroger Co. operated 2,731 supermarkets. These in-store relationships are being optimized for speed and efficiency, with investments aimed at improving checkout speed and in-stock rates. The underlying health of the core retail business is evidenced by the 2.6% increase in identical sales without fuel for the third quarter of 2025. This suggests that the majority of customers still engage in high-volume, self-service transactions.

Mass communication through weekly circulars and digital promotions

Mass communication is evolving to ensure savings are accessible to all loyalty members, regardless of digital fluency. In July 2025, The Kroger Co. launched printed 'Weekly Digital Deals' flyers at store entrances. This initiative allows customers with a Kroger loyalty card to scan a barcode from the physical flyer to load all the associated digital deals onto their account, directly addressing concerns about the digital divide. The digital weekly ad is typically available on Tuesdays on the website and app. The company is also shifting its advertising strategy, with ads for subsidiaries like Ralphs and Fred Meyer expected to shift online, though printed copies remain available in stores.

• Digital weekly ad available on Tuesdays.
• Printed 'Weekly Digital Deals' flyers introduced in July 2025 to load digital coupons.
• Digital coupons can be clipped up to 150 times.

Finance: draft 13-week cash view by Friday.

The Kroger Co. (KR) - Canvas Business Model: Channels

You're looking at how The Kroger Co. gets its products into the hands of customers as of late 2025. It's a mix of old-school brick-and-mortar strength and aggressive digital adaptation. Honestly, the numbers show a clear pivot toward flexibility in how they deliver.

Physical Supermarkets: The core channel, operating under various local banners

The foundation remains the physical store footprint. As of February 1, 2025, The Kroger Co. operated approximately 2,731 supermarkets across 35 states and the District of Columbia. These stores operate under various banners, each maintaining strong local ties and brand recognition. Private label items, a key part of the in-store value proposition, represented over $32 billion of sales in 2024.

Fuel Centers: Located adjacent to many stores

Fuel centers are explicitly part of The Kroger Co.'s strategy to build customer loyalty via the Kroger Plus fuel rewards program. As of February 1, 2025, 1,702 of the company's supermarkets had fuel centers. Fuel sales remain an important component of both revenue and net earnings.

Digital Platforms: Kroger.com and mobile app for ordering

The digital ecosystem is growing fast, outpacing overall sales growth. In the third quarter of 2025, eCommerce sales increased by 17% year-over-year. This digital momentum is a core part of the strategy to achieve e-commerce profitability in 2026. The company provides interfaces that aim for a seamless customer experience across both store and digital channels.

In-Store Pickup: ClickList/Kroger Pickup service

The Pickup service, formerly known as ClickList, is central to the hybrid fulfillment model, leveraging the existing store network. This service saw a direct reflection in customer behavior; short visits to stores (under 10 minutes) were up 5.0% in Q3 2025, signaling rising shopper appetite for curbside pickup. To encourage use, Pickup is offered free on orders of $35 or more.

Third-Party Delivery: Instacart, DoorDash, and Uber Eats marketplaces

The Kroger Co. is leaning heavily on established third-party platforms to boost speed and geographic coverage. The company is expanding relationships with Instacart, DoorDash, and Uber Eats. Instacart has been reaffirmed as the primary delivery fulfillment partner. This partnership strategy is designed to help The Kroger Co. reach new customers in as little as 30 minutes. These arrangements are expected to contribute approximately $400 million in incremental e-commerce operating profit in 2026.

Here's a quick look at the Q3 2025 context for these channels:

Metric	Value/Amount	Period/Date
Total Company Net Sales	$33.9 billion	Q3 2025
Identical Sales (Excl. Fuel) Growth	2.6%	Q3 2025
eCommerce Sales Growth	17%	Q3 2025 (YoY)
Short Store Visits Increase	5.0%	Q3 2025 (YoY)
Projected 2026 e-commerce Profit Improvement	$400 million	2026

The company is using its store network to fulfill online orders, which keeps inventory closer to customers and lowers last-mile delivery costs.

• The Kroger Co. operates approximately 2,731 supermarkets.
• 1,702 of those supermarkets have fuel centers.
• Pickup service requires a minimum order of $35 for free service.
• The company is closing three robotic fulfillment centers, taking a charge of $2.6 billion against third-quarter earnings.
• The goal is to make the e-commerce business profitable in 2026.

Finance: draft 13-week cash view by Friday.

The Kroger Co. (KR) - Canvas Business Model: Customer Segments

The Kroger Co. targets a broad consumer base across its family of companies, serving over 11 million customers daily through its various banner names and digital channels.

Mass Market Consumers: Families and individuals seeking value and convenience

This segment represents the core of The Kroger Co.'s operations, focusing on shoppers who value a one-stop grocery experience.

The Kroger Co. receives around 16% of total U.S. grocery visits when excluding non-traditional grocers such as superstores and wholesale clubs.

For the full fiscal year 2025, The Kroger Co. narrowed its guidance for identical sales growth, excluding fuel, to a range between 2.8% and 3.0%.

The company's overall financial outlook for 2025 includes an expected Adjusted Earnings Per Share (EPS) guidance range of $4.75 to $4.80.

Loyalty Program Members: High-frequency shoppers driven by personalized discounts

The Kroger Plus loyalty program is central to retaining these high-frequency shoppers, often involving fuel rewards.

The paid membership tier, Boost by The Kroger Co. Plus, offers benefits like free delivery and double fuel points, with annual costs set at $59 and $99.

In the program's inaugural year, Boost by The Kroger Co. Plus members saved more than $115 million.

Data gathered from this segment fuels significant alternative profit ventures; the precision marketing arm generated an estimated $527 million last year (2024), which accounted for more than 35% of The Kroger Co.'s net income.

The Kroger Co. uses this data to tailor offers:

• Digital coupons tailored just for you.
• Discounts at the pump.
• Product recall notifications.

Digital Shoppers: Urban and suburban customers prioritizing speed and delivery

This segment is characterized by demand for speed and flexibility in their shopping methods.

In the third quarter of fiscal 2025, The Kroger Co.'s eCommerce sales increased by 17% year-over-year, led by delivery.

The company expects its eCommerce business to achieve profitability in 2026, anticipating $400 million in incremental e-commerce operating profit from strategic changes, such as closing three automated fulfillment centers.

Total company sales for the third quarter of 2025 were reported at $33.9 billion.

The Kroger Co. is meeting digital needs by leveraging store-based fulfillment and partnerships with third-party delivery companies.

Health-Conscious Consumers: Targeted by the Simple Truth brand

The Kroger Co. targets consumers interested in healthier and organic options through its private label portfolio.

The premium lines, Simple Truth and Private Selection, outperformed national brands and contributed to improved profitability in the third quarter of 2025.

The entire Our Brands private label portfolio achieved annual sales of over $32 billion in 2024.

In 2024, over 90% of The Kroger Co.'s customer households purchased products from its private label offerings.

To attract value-seeking shoppers who still desire quality, The Kroger Co. is cutting prices on more than 3,500 grocery items this year, including Simple Truth products.

The Kroger Co. is also introducing new affordable Our Brands products, with a goal to introduce 900+ new items by 2025.

Customer Segment Focus	Key Metric	Value/Amount	Reporting Period/Context
Mass Market Reach	Daily Customers Served	11 million	Across family of companies
Mass Market Reach	Share of U.S. Grocery Visits	16%	Excluding non-traditional grocers
Mass Market Consumers	Full Year 2025 Identical Sales Guidance (excl. fuel)	2.8% to 3.0%	Narrowed range for FY2025
Digital Shoppers	eCommerce Sales Growth	17%	Q3 2025 Year-over-Year
Digital Shoppers	Expected Incremental eComm Operating Profit	$400 million	For 2026
Loyalty Program Members	Precision Marketing Revenue (2024)	$527 million	Estimated annual revenue
Loyalty Program Members	Boost Annual Membership Tiers	$59 and $99	Paid loyalty program
Health-Conscious Consumers	Our Brands Annual Sales (2024)	$32 billion	Total private label sales
Health-Conscious Consumers	Households Purchasing Private Label (2024)	Over 90%	Customer penetration

The Kroger Co. (KR) - Canvas Business Model: Cost Structure

The Cost Structure for The Kroger Co. (KR) is heavily weighted toward the cost of goods sold, followed by significant operational and strategic technology outlays. You're looking at a model where inventory acquisition is the single largest drain on cash flow.

Merchandise Costs: The largest component, covering inventory and procurement

Merchandise Costs, or Cost of Goods Sold (COGS), form the base of the expense structure. The definition of FIFO gross profit explicitly includes merchandise costs, along with advertising, warehousing, and transportation expenses. For the third quarter of 2025, the reported Inventory balance stood at $7,714 million. For the fiscal quarter ending June of 2025, the Cost of Sales was reported as $26.91B. The company noted that LIFO charges, which adjust COGS, were $44 million for the third quarter of 2025.

Operating Expenses: High associate wages and benefits

Total annual operating expenses for The Kroger Co. in 2025 were reported at $143.274B. The Operating, General and Administrative (OG&A) rate, when excluding fuel and adjustment items, increased by 27 basis points in the third quarter of 2025 compared to the prior year. This increase was primarily attributed to investments in associate wages and benefits, alongside the impact of the sale of Kroger Specialty Pharmacy.

The key cost components and capital deployment figures for fiscal 2025 are summarized below:

Cost/Expenditure Category	Financial Figure (2025 Data)	Context/Period
Annual Operating Expenses	$143.274B	Full Year 2025
Automated Fulfillment Network Impairment Charge	$2.6 billion	Q3 2025
Projected Capital Expenditures (CapEx) Range	$3.6 billion to $3.8 billion	Full Year 2025 Guidance
Adjusted FIFO Operating Profit	$1,089 million	Q3 2025
LIFO Charge	$44 million	Q3 2025

Capital Expenditures: Projected at $3.6 billion to $3.8 billion for 2025

The Kroger Co. projected its capital expenditures for the full year 2025 to fall within the range of $3.6 billion to $3.8 billion. Management indicated that capital previously allocated to the fulfillment centers is now being re-evaluated, with plans to accelerate investment in new stores going forward.

Impairment Charges: A $2.6 billion charge in Q3 2025 for automated fulfillment network

A significant, non-cash cost hit the income statement in the third quarter of 2025. The Kroger Co. recorded an impairment and related charge of approximately $2.6 billion. This charge stemmed directly from the financial performance of the automated fulfillment network and the decision to close specific facilities, such as those in Pleasant Prairie, Wisconsin; Frederick, Maryland; and Groveland, Florida.

Technology and Digital Investment: Costs related to e-commerce and AI partnerships

Digital transformation remains a major cost driver, though the strategy is pivoting. The overall CapEx budget is being directed to support this shift. Key technology investments and related costs include:

• Partnerships with technology leaders like Google Cloud, Ocado, and Nvidia.
• A $152 million credit facility from Ocado Group to accelerate the rollout of Customer Fulfillment Centers.
• Focus on deploying Artificial Intelligence (AI) use cases for efficiency and pricing.
• The strategic shift is expected to yield an estimated positive effect of approximately $400 million to e-commerce operating profit in 2026.

Finance: draft 13-week cash view by Friday.

The Kroger Co. (KR) - Canvas Business Model: Revenue Streams

You're looking at how The Kroger Co. (KR) actually brings in the money, focusing on the numbers that define its streams as of late 2025. This isn't about strategy; it's about the dollars and cents flowing in.

The primary revenue driver remains the physical and digital sale of groceries and general merchandise. For the third quarter of fiscal 2025, total company sales hit $33.9 billion. This is the top-line number for the core business, though it's important to note the underlying health is often seen in the identical sales metric, which excludes fuel. For that same third quarter, identical sales without fuel grew by 2.7% year-over-year.

The Kroger Co. (KR) also generates significant revenue from specialized services that are integrated into the store experience, namely pharmacy and fuel.

• Pharmacy Services revenue, which includes prescription and over-the-counter sales, contributed $387 million to total company sales in the third quarter of fiscal 2025.
• Fuel sales revenue is tracked indirectly, as the company reports identical sales growth excluding this component to better gauge core retail performance.

The high-margin advertising stream, Kroger Precision Marketing (KPM), is a growing component, leveraging the loyalty program data. While specific 2025 revenue for KPM isn't explicitly stated in the latest reports, the scale of its contribution from the prior year gives you a solid benchmark for this high-margin stream. For the full fiscal year 2024, the media business saw a 17% increase and contributed $1.35 billion in operating profit from alternative profit businesses. Digital sales, which feed into KPM, surpassed $13 billion in fiscal 2024, with projections for 2025 online sales reaching $19.98 billion.

Here's a quick look at how the key revenue-related financial metrics stack up against the latest guidance:

Metric	Value / Range	Context / Period
Adjusted EPS Guidance (FY 2025)	$4.75 to $4.80	Full Year Fiscal 2025 Guidance (as of December 4, 2025)
Total Company Sales	$33.9 billion	Third Quarter Fiscal 2025
Identical Sales Growth (Ex-Fuel)	2.7%	Third Quarter Fiscal 2025
Kroger Specialty Pharmacy Sales	$387 million	Third Quarter Fiscal 2025
Alternative Profit Businesses Operating Profit	$1.35 billion	Fiscal Year 2024 Contribution

The company is definitely focused on driving profitability, as shown by the upward revision in the earnings outlook, even if total sales growth is modest. If onboarding takes 14+ days, churn risk rises, but for The Kroger Co. (KR), the focus is on making sure those high-margin digital and media dollars keep growing faster than the core grocery business. Finance: draft 13-week cash view by Friday.