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Kroger CEO Credits Tracking System For Its Trend-Bucking Gains

As other supermarkets watched their customers defect to Wal-Mart, Costco and other discounters, Cincinnati-based Kroger, which also owns Ralphs and a couple of dozen other local chains, posted same-store sales growth of 5% in its last fiscal year. It has made a concerted effort to attract bargain hunters and to market its house brands, Lawrence K. Ho reports.

Kroger CEO David B. Dillon credits much of the success to a tracking system developed by Dunnhumby, a British marketing company, that identifies how often shoppers visit the store and provides the company with detailed information about what types of promotions and specials will draw people back into its stores.

"We send our very best customers coupon books specifically targeted at what they actually buy," Dillon says. "The redemption rate of these coupons is significantly higher than other coupons."

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