Kroger Drives Growth with Customer First Strategy

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Kroger Drives Growth with Customer First Strategy

By Nicole Giannopoulos - 07/01/2014
The staying power of Kroger's customer first strategy and accelerated growth plan are generating strong momentum. The strong first quarter results sets the retailer up to deliver 12% to 15% net earnings per share for the year, "we continue to lower our costs of doing business and to invest those savings both for today's customers and for future growth," said Kroger CEO Rodney McMullen.
 
Through the retailer's customer first strategy it is able to drive growth and improve its perception of its customers. "We are connecting better with our customers, showing them we care, and making sure they have a great shopping experience every time," said president and COO Mike Ellis. "Keeping cost down allowed us to invest strategically and increase customer loyalty."
 
The customer first innovation has been a key driver of sustainable growth. Each quarter, the retailer highlights one or more of its innovations that are improving connections with customers and growing market share. This quarter, the highlight is the Kroger Technology teams.
 
Kroger Technology is a team of technology innovators and inventors. They are implementing a fundamental foundational technology that the retailer can leverage to create the Internet of Things in the retail environment. One example of this is real-time temperature monitoring in supermarkets.
 
Today, temperature checks are performed manually by associates, but by using interactive sensors that are connected through an in-store network, it can better ensure the freshest foods by allowing for more frequent, real-time temperature checks of meat, produce, deli and frozen food products.

"We love these kinds of initiatives because they save money and they free up time for our associates to engage with customers," said Ellis. "And most importantly, this technology will help improve our already vigorous food safety efforts. We plan to continue leading the adoption of the Internet of Things in our stores."