Whats in store for the indomitable and unbeatable The Kroger Co (NYSE:KR)?

Posted by Nathan Alexander July 3, 2013 0 Comment 865 views

The Kroger Co (NYSE:KR) the Cincinnati-based and Macy’s Inc who is based in the same city as well, have un-budgingly maintained their position on the list of the country’s largest-retailers for U.S. sales. The “STORES” magazine lists KR as the country’s No. 2 retailer. Last year, the company reported over $92B in sales while Macy’s was No.14 retailer and had sales of $26.3B . Kroger maintained its

No. 2 position on this list from last year while Macy’s climbed two rungs higher.

Kroger’s sales rose 6.6% and its store-count dipped 1% to 3,538 from the 2011 count. Macy’s sales rose 4.9% from 2011 while it added one store and the count now stands at 841.By 2013 projections, KR is expected to be steadfast in its No2 retailer position and the expectation is that Macy’s will rise to No. 13.

Whats on the retail horizon?

Companies such as Kroger are firmly rooted in the brick-and mortar mould and have been doing exceptionally well. But how does 2020 and beyond look for them?

By 2020, retailers have to  transform and adapt to a world that will be greatly polarized to channel fragmentation, smaller retail footprints and non-store retail growth. There is a distinct possibility that physical stores may almost be an exception. Apart from this, retailers will have to deal with a rise in fixed-income consumers. There will also be a new-wave of consumers who only follow brands via various social media.

The 2020 landscape

There are certain critical success factors that retailers will have to follow in order to manage the diverse and complex realities of the 2020 retail landscape. In order to optimize fragmented growth, they will have to adopt dynamic clustering tactics and compete on an increased global scale. They will have to be adept at managing data privacy and security and also manage the retail models. Today, consumers move around with stores in their hands, in their tablets and smartphones. Consistency and excellence demands from highly discerning and wallet-heavy consumers are challenging retailers to be on their toe with their multi-channel behaviors. But The Kroger Co (NYSE:KR) will undoubtedly diversify and intensify its efforts and evolve.

About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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