An analysis of regions where Cincinnati-based grocer Kroger went head-to-head with Wal-Mart last year shows it usually came out with a marginally greater slice of the market. The results indicate that
a recent building binge of supercenters by Wal-Mart not only failed to garner it more market share, but may have led a growing number of shoppers to seek out Kroger's neighborhood shopping
approach.
In addition to emphasizing convenience, Kroger is closing the price gap. Bank of America analyst Scott Mushkin found that Kroger's prices were 7.5% higher last fall than
nearby Wal-Mart supercenters, compared to 20% to 25% five years ago.
Kroger has done a good job in trying to update its stores, and that has helped with shoppers, says Britt Beemer,
chairman and founder of consulting firm America's Research Group. One challenge for Wal-Mart may be customer service.
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