Shopper Marketing - June 2017 - 36
out local companies using shelf tags and
uses signage to highlight sourcing of ingredients from local farmers and their
families. In addition, Kroger continues to
roll out storewide events (e.g., Taste of
Italy) to introduce shoppers to new cuisines and ingredients.
Some of this content now appears
online at the recently launched website,
KrogerStories.com. The idea is to provide
a digital outlet with background and insights into the retailer's operation, one
that helps create an emotional connection
to the Kroger brand and gives shoppers
more reason to come back to the store.
"It is an interesting way to highlight their
employees online and to try to make that
emotional connection for those shoppers
who may not be visiting the stores as
much as they used to," notes Abdo.
Apparently, all of these efforts have
begun to pay off. According to a March
report from investment firm Barclays,
Kroger's renewed push behind its natural and organic ingredients is one of the
main culprits behind the recent traffic
y SHOPPER MARKETING JUNE 2017
declines at Whole Foods. The report
estimated that Whole Foods lost between 9 million and 14 million transactions over the last six quarters and stated that Kroger is "a direct beneficiary"
of those losses. Kroger's natural and organic product sales in fiscal 2016, which
ended in January, hit $16 billion. That
topped Whole Foods' sales of $15.8 billion over the past 12 months, according
to figures from both companies.
Kroger cannot rest on its laurels, however, particularly with Amazon's encroachment into grocery set to widen
with the rollout of Amazon Go this year.
[Editor's note: A retail intimacy feature
on Amazon.com is planned for the August issue of Shopper Marketing.] Going forward, Kroger will rely heavily on
its strengths - building shopper loyalty
and creating a satisfying in-store experience - as it continues to advance
its e-commerce program, says Abdo.
"They're aiming for success at a higher
level than we've seen at any time in the
recent past," he says.
Catapult is a conversion marketing agency, where
branding and buying are part of a total solution. Catapult's
data-driven approach identifies the core, actionable insights
that inspire brilliant creative with the power to convert
consumers into shoppers, shoppers into buyers, and buyers
into loyal advocates. Catapult delivers channel-agnostic
solutions that are brand savvy, retailer smart, and digitally
enabled. Catapult is an Epsilon brand. Visit them at
www.catapultmarketing.com and on Twitter @catapultmktg.