Kroger’s new shoppers will be more diverse, more urban, and focused on sustainability, says Numerator analysis
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.
