The Kroger Co.
American supermarket chain operating supermarkets, multi-department stores, and jewelry stores, one of the largest grocery retailers in the United States.
Company Type
public
Founded
1883
Headquarters
Cincinnati, Ohio, USA
Stock
NYSE: KR
Revenue
approximately $147.1 billion (FY2025, year ended February 2025)
Employees
Approximately 420,000
Primary Market
United States
zero wastezero hungersustainable packaging
About The Kroger Co.
Kroger delivered mixed Q4 2025 results, exceeding earnings expectations while navigating a significant leadership transition. The company reported EPS of $1.15, surpassing analyst expectations, with revenue reaching $34.8 billion for the quarter.
CEO Transition: In March 2025, Rodney McMullen unexpectedly resigned as Chairman and CEO, ending a tenure that began in 2009 when he became president. Under McMullen's leadership, Kroger's stock price grew from an average of $8.15 in 2009 to $62.27 by 2025, positioning the company as a formidable competitor to Walmart and Amazon in the grocery sector.
Leadership Search: Kroger has been deliberately taking time to appoint a successor, looking for someone with "a deep understanding of retail transformation" who is "very close to the customer" and reflects Kroger's culture and values. The company intends to bring in someone from outside the organization to serve as its next chief executive.
Operational Performance: Despite the leadership transition, Kroger executives remain upbeat about growth plans for 2025. The company is operating from a position of strength, delivering fourth quarter results that came in ahead of expectations and maintaining momentum across key business segments.
History of The Kroger Co.
Kroger was founded in 1883 by Bernard Kroger in Cincinnati, Ohio. The first store, called The Great Western Tea and Coffee Company, was located in downtown Cincinnati. Kroger's innovative approach included buying directly from wholesalers and selling goods at lower prices than competitors.
Throughout the late 19th and early 20th centuries, Kroger expanded rapidly through organic growth and acquisitions. The company pioneered many retail innovations, including in-store bakeries, meat departments, and self-service shopping. Kroger was also an early adopter of private label brands, introducing its own products to provide customers with value alternatives.
In the 1920s and 1930s, Kroger expanded beyond groceries into other retail areas, including drug stores and jewelry stores. The company also developed one of the first supermarket formats, combining various departments under one roof.
Throughout the latter half of the 20th century, Kroger continued to grow through strategic acquisitions, including the purchase of regional supermarket chains like Dillons, King Soopers, and Fred Meyer. These acquisitions expanded Kroger's geographic footprint and market presence.
In the 21st century, Kroger has focused on digital innovation, launching online grocery services, mobile apps, and loyalty programs. The company has also invested heavily in private label brands, particularly its Simple Truth and Simple Truth Organic lines, which have become major growth drivers.
The Kroger Co. Sustainability & Ethics
Kroger has established comprehensive sustainability initiatives through its Zero Hunger | Zero Waste program, focusing on food waste reduction, community hunger relief, and environmental responsibility. The company has committed to achieving zero waste company-wide and zero retail food waste to landfills by 2025, while addressing food insecurity through community partnerships and donations.
The company's Zero Hunger initiative focuses on expanding access to affordable, fresh, and healthy food across the communities it serves. Kroger partners with local food banks and hunger relief organizations to rescue surplus food and distribute it to those in need. The company's efforts include donating perishable and non-perishable food items, supporting nutrition education programs, and providing disaster relief assistance during emergencies.
In environmental sustainability, Kroger has committed to incorporating more sustainable packaging, including 100% recyclable, compostable, and reusable Our Brands packaging by 2030. The company provides suppliers with updated guidance and resources covering human rights, animal welfare, greenhouse gas emissions reduction, sustainable packaging, food waste, and agricultural production methods.
Kroger addresses ethical considerations through its commitment to responsible sourcing, animal welfare standards, and community engagement. The company's private label brands participate in sustainability initiatives like the Sustainable Coffee Challenge through commitments such as Private Select coffee offerings. Kroger's annual Environmental, Social & Governance reports provide transparency on progress toward its sustainability goals.
Awards & Recognition
Kroger has received recognition for its sustainability leadership, community engagement, and retail innovation in the grocery industry.
- Sustainability Leadership Awards: Recognition for Zero Hunger | Zero Waste program achievements and food waste reduction initiatives.
- Community Impact Recognition: Awards for hunger relief efforts and community partnership programs addressing food insecurity.
- Retail Innovation Awards: Multiple years of recognition for digital transformation, e-commerce initiatives, and customer experience improvements.
- Environmental Stewardship Awards: Acknowledgment for sustainable packaging commitments and waste reduction achievements.
- Private Label Excellence: Recognition for Our Brands product quality and sustainability initiatives including the Sustainable Coffee Challenge participation.
- Workplace Culture Recognition: Awards for employee development programs and workplace diversity and inclusion initiatives.
- Supply Chain Excellence Awards: Recognition for responsible sourcing practices and supplier partnership programs.
Controversy, Regulation & Public Scrutiny
Kroger faces regulatory scrutiny and public controversy related to food pricing, labor practices, supply chain ethics, and the competitive dynamics of the grocery retail industry, reflecting its position as one of America's largest grocery retailers with significant market influence.
Food pricing controversies involve ongoing scrutiny regarding grocery pricing practices, profit margins, and the affordability of essential food items, particularly during periods of economic stress and inflation. Kroger faces questions about pricing transparency, competitive pricing practices, and the balance between profitability and food accessibility for consumers.
Labor practices controversies include ongoing scrutiny regarding employee compensation, union relationships, workplace safety, and labor law compliance across Kroger's extensive retail operations. The company faces questions about wage levels, employee benefits, working conditions, and unionization resistance in its stores and distribution centers.
Supply chain ethics controversies include concerns about supplier labor practices, agricultural sourcing standards, and environmental compliance in Kroger's extensive global supply chain. The company maintains supplier responsibility programs but faces ongoing questions about supply chain transparency, fair trade practices, and ethical sourcing requirements.
Competition and market concentration controversies involve questions about Kroger's market position in the grocery retail industry and relationships with competitors like Walmart, Albertsons, and emerging online grocery platforms. The company faces scrutiny about market concentration, competitive behavior, and the impact of its size on market competition and consumer choice.
Regulatory compliance includes oversight from food safety agencies regarding product safety standards, labeling requirements, and compliance with grocery industry regulations across multiple jurisdictions. Kroger must navigate complex regulatory requirements while maintaining its market leadership position and competitive advantage in the highly regulated food retail industry.
Kroger has managed multiple food product recalls and quality incidents throughout its extensive retail operations, maintaining comprehensive food safety protocols and consumer protection systems across its thousands of stores and distribution centers.
**Notable Product Recalls:**
- **2024 Ground Beef Recall:** Kroger recalled ground beef products from multiple suppliers due to potential E. coli contamination, implementing store-level notifications and consumer refunds while working closely with USDA and FDA authorities
- **2023 Baby Formula Supply Issues:** Coordinated with manufacturers during national baby formula shortages, implementing purchase limits and alternative sourcing while maintaining consumer communication about availability
- **2022 Fresh Produce Contamination:** Recalled fresh produce items including lettuce and berries due to potential salmonella contamination, demonstrating proactive food safety management
- **2021 Private Label Product Recalls:** Multiple recalls of Kroger private label products including snacks, dairy items, and frozen foods due to various quality control issues and potential allergen concerns
Quality Management Response:
Kroger maintains comprehensive food safety systems across its retail network, including temperature monitoring, product testing, supplier verification programs, and rapid response protocols for potential food safety issues. The company operates 24/7 food safety monitoring systems and maintains close relationships with food safety authorities.
Kroger maintains comprehensive food safety systems across its retail network, including temperature monitoring, product testing, supplier verification programs, and rapid response protocols for potential food safety issues. The company operates 24/7 food safety monitoring systems and maintains close relationships with food safety authorities.
Regulatory Compliance:
All product recalls have been conducted in cooperation with relevant food safety authorities including the US Food and Drug Administration (FDA), US Department of Agriculture (USDA), and equivalent state-level regulatory agencies. Kroger maintains comprehensive food safety programs and conducts regular quality audits across its retail facilities and distribution centers.
All product recalls have been conducted in cooperation with relevant food safety authorities including the US Food and Drug Administration (FDA), US Department of Agriculture (USDA), and equivalent state-level regulatory agencies. Kroger maintains comprehensive food safety programs and conducts regular quality audits across its retail facilities and distribution centers.
Consumer Communication:
The company has established communication protocols for recall situations, including in-store notifications, email communications to loyalty program members, mobile app alerts, and public information dissemination through company websites and press releases. Kroger leverages its extensive customer data systems for targeted consumer outreach during recall situations.
The company has established communication protocols for recall situations, including in-store notifications, email communications to loyalty program members, mobile app alerts, and public information dissemination through company websites and press releases. Kroger leverages its extensive customer data systems for targeted consumer outreach during recall situations.
Brands Owned by The Kroger Co.
The Kroger Co. owns 0 brands in our database.
Stock Information
The Kroger Co. Ownership: Pros & Cons
Advantages
- +Market leadership position as second-largest U.S. grocery retailer
- +Strong private label portfolio providing higher margins and customer loyalty
- +Diversified revenue streams across food, pharmacy, and fuel segments
- +Significant scale and purchasing power enabling competitive pricing
- +Growing digital commerce capabilities with expected 2026 profitability
- +Strong operational performance with Q4 2025 EPS of $1.15 exceeding expectations
- +Comprehensive store network with over 2,700 locations across 35 states
- +Successful leadership transition strategy with deliberate CEO search process
Considerations
- -Intense competition from Walmart, Amazon, and other discount retailers
- -CEO transition creating uncertainty during leadership change period
- -Pressure on food prices and margins affecting profitability
- -Competition from online retailers and delivery services
- -Supply chain vulnerabilities affecting inventory and pricing stability
- -Balance between physical store investments and digital commerce expansion
- -Regulatory scrutiny in grocery retail and antitrust considerations
- -Need to maintain innovation pace with rapidly evolving retail technology
Sources & Further Reading
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