Market research company Numerator says the Kroger and Albertsons merger will eventually mean Kroger will be reaching 2 in 3 shoppers in the U.S.
In an analysis of the merger, Numerator said the implications of the announced $24.6 billion deal also include:
- The combined Kroger-Albertsons entity will surface as being the second retailer (behind Walmart) as having double-digit market share within CPG (pre-divestiture);
- By acquiring Albertsons, which operates heavily in the West and New England regions, Kroger will now have a more national presence, the analysis said;
- Kroger captured nearly 65 million shoppers; post-acquisition, Kroger’s shopper base will grow by over 21 million households, according to Numerator.
“There are three main themes among the new shoppers that Kroger will gain: ethnicity, urbanicity and sustainability,” Numerator said in the analysis. “Kroger’s new shopper base will now include 14% Hispanic consumers and 13% Asian consumers.”
The new shopper under Kroger’s portfolio is 25% more likely to be living in urban locations, according to the study. Over 1 in 4 of these new shoppers are willing to pay a premium for a more sustainable product, Numerator said.
Kroger could benefit from Albertsons’ e-commerce business growth, which has nearly tripled year over year for the latest 12 months ending Sept. 30, according to the analysis.
