According to the reports, Kroger is doing good in terms of the business which has been doing well for Kroger in more ways than one. During the pandemic, more than 30% of restaurants have been closed but if we look at Kroger’s sales reached $132.5 billion during the 12-month period ending Jan. 31, 2021, an 8% increase over the preceding fiscal year.
Digital revenue increased 116% to more than $10 billion in the same period. Making it one of the top 10 e-commerce retailers in the country, according to eMarketer estimates.
Amid all this activity, the grocer’s retail media unit, Kroger Precision Marketing (KPM), has experienced a growth spurt of its own. With millions of loyalty card members, Kroger’s ability to connect campaigns with sales has proven attractive to brands.
“We want to set standards in terms of media accountability,” Kara Pratt, vice president at KPM. While if we look back in October 2017 KPM was within Kroger’s 84.51-degree data analytics arm, saw revenue surge 135% last year. This helped contribute $150 million to the company’s incremental operating profit. KPM has also worked with more than 1,300 brands, which spent an average of 200% more compared to Kroger’s fiscal year 2019.
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With nearly 2,800 locations in 35 states operating under local names like Ralphs, Mariano, Fred Meyer and Pick n’ Save, Kroger claims to have loyalty card members in 60 million homes nearly half of all American households. Target, by comparison, has 1,900 brick-and-mortar stores across the country. This access provides Kroger with a range of first-party sales data, both in-store and across all of its owned and operated online sites. A retailer can use these numbers to measure the performance of its ad inventory, whether it’s search, email, display advertising, or push notifications.
“We don’t need to model behaviours or outcomes to the degree that many other organizations do,” said Pratt, who explained that loyalty card members account for 96% of all purchases at Kroger. She also noted that 85% of brands that worked with KPM in 2019 continued to do so in 2020. “They love what they see,” she added.