With other large supermarkets, such as Amazon and Wal-Mart, expanding their target audience with its own apparel, Kroger, the largest US supermarket chain, decides its time for them to jump on the experiment. Kroger is said to be planning on releasing the clothing line in fall 2018.
The launch of the apparel line is set to make the collection available in 300 stores, including the Fred Meyer and Kroger Marketplace locations. The US supermarket says it will be “playful, simple, and uplifting”.
The collection is set to sell “modern lifestyle” clothes that are intended for kids and adults. The fashion line will be called “Our Brands”. The line will focus on activewear and basic essentials. Kroger’s says they are “clothes to truly live life in, and look good doing it.”
Robert Clark, the vice president of merchandising, said, according to a statement released, the brand “gives Kroger a chance to inspire and connect with our customers, offering effortless style every day.”
“This launch of Our Brands fashion will re-invigorate Kroger’s apparel line,” Robert Clark said in Friday’s release. “We will be able to serve our customers across the country, the inspiration they are looking for, which translates into an immense opportunity for growth in sales, share, and loyalty.”
Competition has become even more intense since Amazon.com Inc has started to expand into Kroger territory forcing the brand to find new ideas to keep up to date. It is said that most new Whole Foods customers were once former Kroger loyalist. This increase began after Amazon took over Whole Foods. Even European grocers like Aldi and Lidl plan to open more stores in the United States which will add even more pressure to supermarket chains that are affiliated with Amazon. Lidl itself has launched an exclusive line with celebrity designer Heidi Klum that will more than likely expand Lidl even more across the United States than it already has begun to.
Kroger has already been under enough pressure giving the fact that share values have dropped almost 40 percent this year. But the shares climbed 2 percent after this clothing apparel was announced. Food deflation and discounts has made the sales decrease and the profit margins to be almost nonexistent.
Opening their own clothing line could be the boost Kroger needs. Private labels have sometimes proven to be a money maker. A report on October 27 on Investor’s Business Daily addressed the private label trend, calling it “a bounty waiting to be innocently discovered online as modern shoppers ditch old-school name brands and seek out stuff that’s cool but cheap.” The fashion line is part of the company’s “Restock Kroger” plan.
“As part of our Restock Kroger Plan, having Our Brands be a strong, vibrant growth vehicle for Kroger is a top strategic priority,” said company spokeswoman Kari Armbruster.
Kroger is investing into more technology as more and more shoppers are doing their purchases online. The company has even opened up a restaurant as well. Kroger is even considering selling their convenience stores that generate around $4 billion in sales.
Kroger soon might be the go-to place for your daily groceries and clothes for your average days of the week.