Kroger CEO Greg Foran says the grocery chain doesn't need to be more like Aldi or a warehouse club to win shoppers.
During a June earnings call, Foran compared the Cincinnati-based chain with other discount grocers, warehouse clubs and supercenters. He said Kroger can attract shoppers with its selection, convenience and competitive prices without becoming the industry's "lowest-priced retailer."
The comments come as Kroger faces growing competition from grocers such as Aldi, Costco, Walmart and other retailers known for low prices and convenience. Foran said Kroger doesn't need to be the cheapest grocer, but shoppers need to feel they're getting a good value.
"We do not need to be the lowest-priced retailer," he said. "We need to be more competitive,
more consistent and easier for customers to understand."
Here's how he sees Kroger's position against its rivals.
Why Kroger isn't trying to be Aldi or Costco
Speaking about Aldi, Foran said Kroger's mix of national brands and store brands helps it stand out from discount grocery chains that offer fewer choices.
"Not everyone wants to go into a store with 2,500 to 3,000 own-brand SKUs. They want to be able to buy national brands," Foran said. "We're well positioned. We've got the assets. We've got enough scale."
As for warehouse clubs, Foran said some shoppers prefer smaller stores and don't want to buy groceries in bulk. "There is no doubt that clubs are a powerful format and perform extremely well. But not everyone wants to go into a store that size and have to deal with pack sizes that big," he said.
He argued that Kroger's traditional supermarket format offers a more convenient option for many customers' everyday grocery visits.
Why Kroger isn't chasing the lowest prices
Foran argued Kroger can still compete without being either the cheapest grocer or a warehouse club.
"We're outperforming many traditional grocery competitors, and we're proud of that, but beating other grocers isn't the same as leading the industry," he said.
Foran said Kroger's goal is to offer shoppers a balance of lower prices, broader selection and convenience without becoming a discount chain or a warehouse club.
How many Kroger stores are in Ohio?
Kroger, headquartered in Cincinnati, operates 197 stores across 114 Ohio cities, according to the official store count. This includes 26 grocery stores in Cincinnati, 16 stores in Columbus and 6 locations in Dayton.
This article originally appeared on Cincinnati Enquirer: Kroger CEO says chain doesn't need prices as low as Aldi to compete
