The Kroger Co. is a diversified retailer operating supermarkets, pharmacies, and fuel centers across 35 states and the District of Columbia. The company's strategy focuses on growing customer loyalty through value, convenience, and investments in fresh products, its private label brands (Our Brands), data and personalization, and seamless shopping experiences. Kroger also leverages its retail business data to create alternative profit streams, such as data analytics and third-party media revenue. The company operates through various store formats, including combo stores, multi-department stores, marketplace stores, and price impact warehouses.

• Employees: 414,000 (as of February 3, 2024)
• Geographic Footprint: 35 states and the District of Columbia
• Headquarters: Cincinnati, OH
• Founded: 1883
• Number of locations/facilities: 2,722 supermarkets, 2,257 with pharmacies, 1,665 with fuel centers (as of February 3, 2024)
• Revenue: $150.04 billion (FY2023)
• Key Subsidiaries/Brands: Private Selection, Kroger, Big K, Smart Way, Heritage Farm, Simple Truth, Simple Truth Organic

• CEO: W. Rodney McMullen
• Interim CFO: Todd A. Foley
• Chief Merchant and Marketing Officer: Stuart W. Aitken
• Senior Vice President of Supply Chain: Gabriel Arreaga
• Chief Information Officer: Yael Cosset
• Senior Vice President and Treasurer: Carin L. Fike
• Senior Vice President, General Counsel, and Secretary: Christine S. Wheatley
• Chief People Officer: Timothy A. Massa
• Other Key Executives: Valerie L. Jabbar, Kenneth C. Kimball

Key leaders have extensive experience in retail, marketing, supply chain, technology, and finance. Many have been with Kroger for several years and have held various leadership positions within the company.

• Annual Revenue: $150.04 billion (FY2023)
• Net Income: $2.16 billion (FY2023)
• Total Assets: $50.5 billion (as of February 3, 2024)
• Employees: 414,000 (as of February 3, 2024)
• Key Financial Highlights: Identical sales excluding fuel increased by 0.9% (FY2023), digital sales grew to $12 billion, and alternative profit streams contributed $1.3 billion in operating profit (FY2023).

Kroger offers a wide array of products and services across its retail formats:

• Grocery: Includes fresh produce, meat, seafood, deli, bakery, and other grocery items.
• Pharmacy: Operates pharmacies within its supermarkets.
• Fuel: Offers fuel centers at many of its supermarket locations.
• Our Brands: A portfolio of private label products across three tiers: Private Selection, Kroger, and value brands like Big K, Smart Way, and Heritage Farm.
• Digital Services: Provides Pickup, Delivery, and Ship options through its online platforms and third-party partnerships.

Kroger operates primarily through one reportable segment: Retail Operations, which includes supermarkets, multi-department stores, and fulfillment centers. The company does not provide a revenue breakdown by segments.

Kroger's strategy is centered on growing customer loyalty by delivering great value and convenience, and investing in four strategic pillars: Fresh, Our Brands, Data & Personalization, and Seamless. Key initiatives include:

• Expanding the store network and improving digital capabilities.
• Enhancing the customer experience through a seamless omnichannel ecosystem.
• Growing alternative profit businesses, such as data analytics and media services.
• Maintaining a disciplined approach to capital deployment, focusing on high-return opportunities.
• Continuing to invest in associates through wages, benefits, training, and development.

The company is also focused on cost savings, productivity improvements, and the integration of new technologies to enhance operational efficiency.

Kroger operates in the highly competitive food retail industry, facing competition from local, regional, and national retailers, including both brick-and-mortar and online formats. Major competitors include mass merchants, club stores, regional chains, deep discounters, dollar stores, and specialty food stores. The industry is shaped by e-commerce, cooking at home, and prepared foods to go. Kroger aims to differentiate itself through its seamless ecosystem and strategic investments in its four strategic pillars. The company also faces risks related to changing consumer preferences, supply chain disruptions, and increasing competition.

• Market Risks: Intense competition from various retailers, changing consumer preferences, and the impact of economic conditions on consumer spending.
• Operational Risks: Supply chain disruptions, labor negotiations, potential work stoppages, and the ability to manage costs effectively.
• Financial Risks: Exposure to interest rate fluctuations, changes in credit ratings, and the risk of not meeting debt obligations.
• Regulatory Risks: Compliance with various laws and regulations, including those related to data privacy, environmental issues, and healthcare.
• Strategic Risks: The success of the proposed merger with Albertsons, the integration of new businesses, and the ability to execute on strategic initiatives.