Is Kroger Going the Way of A&P? Historical Parallels, Strategic Pitfalls, and a Question of Relevance in the Modern Grocery Era

 

In the annals of American grocery retail, few stories are as instructive—and cautionary—as that of the Great Atlantic & Pacific Tea Company, better known as A&P. Once the undisputed king of American supermarkets, A&P’s spectacular fall from grace offers a blueprint for how even giants can crumble under the weight of complacency, outdated strategy, and an evolving consumer landscape.

Now, as Kroger Co.—currently the largest traditional supermarket chain in the U.S.—announces plans to close 60 underperforming stores, the industry is left to ask: Is Kroger going the way of A&P?

 

A&P and Kroger: Titans from Different Times

In its heyday, A&P was the Amazon of food retail. By the 1930s, it operated over 16,000 stores and pioneered the self-service grocery format. But by the 1970s and 1980s, its lack of innovation, poor real estate strategy, and failure to adapt to emerging consumer trends (like big-box and discount formats) led to a slow, painful decline. A&P filed for bankruptcy not once, but twice—first in 2010, and again in 2015—before disappearing completely.

Kroger, meanwhile, has been a 21st-century survivor. With 2,731 stores across 35 states and Washington D.C., it has outlasted many peers through acquisitions, data-driven loyalty programs, and strategic investments in private label and ecommerce. But recent developments, store closures, leadership changes, and stalled national ambitions—suggest troubling echoes of A&P’s demise.

 

A House of Brands or a House Divided?

Kroger operates under a portfolio of 18 regional banners, including Ralphs, Fred Meyer, Fry’s, King Soopers, Harris Teeter, Smith’s, Mariano’s, and others. While each banner retains local equity, this fragmented structure has become a liability in today’s era of unified, brand-driven storytelling and national scale branding.

From Steven Johnson, the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® perspective, this “shallow brand vision” lacks the clarity and cohesion modern consumers expect. “Kroger has too many names and not enough identity,” Steven Johnson explains. “They’re trying to sell yesterday’s brand to today’s customer—and in the process, losing relevance. Each banner competes for attention in overlapping markets, muddying the message, duplicating operational costs, and leaving customers confused about what Kroger stands for.”

This regional patchwork may have made sense in a brick-and-mortar past. But in a digital-first, convenience-driven world where food discovery, value, and brand trust are national—and increasingly, personalized—Kroger appears out of sync.

 

The A&P Syndrome: Are the Signs Emerging at Kroger?

Kroger’s planned closure of 60 underperforming stores in the next 18 months is not just a cost-cutting move, it’s a wake-up call. These closures, combined with the $100 million impairment charge, come after its failed merger with Albertsons and the abrupt departure of its long-time CEO.

The parallels to A&P’s decline are too close for comfort:

Metric	A&P (pre-decline)	Kroger (2025)
Store Count	>16,000 in 1930s → under 300 at end	2,731 now, with 60 planned closures
Brand Strategy	National name, but stale execution	18 disjointed banners with no unified national brand
Consumer Connection	Faded relevance, no innovation	Over-reliance on legacy formats, slow to embrace grocerant trends
Ecommerce	Never evolved	15% growth but still unprofitable
Innovation	Underinvested in format and tech	Behind on customer-facing digital and meal solution trends

 

Kroger by the Numbers: Strong Sales, Shaky Focus

Kroger’s Q1 2025 performance paints a mixed picture:

·       Sales: $45.12 billion, up 3.7% YoY

·       Identical-store sales (ex-fuel): +3.2%

·       Net income: Down 8.6%, to $866 million

·       Gross margin: Improved to 23% (from 22%), thanks to divestitures and supply chain gains

·       Ecommerce: +15% growth but remains a loss leader

·       Store closures: $100 million impairment tied to shuttering 60 stores

These results reflect some operational discipline but also highlight a brand that’s focused more on spreadsheets than shoppers.

 

The Grocerant Guru® Speaks: “They’ve Lost the Plot”

Steven Johnson, the Grocerant Guru®, is blunt: “Kroger has lost focus on the customer. They’re optimizing stores while customers are optimizing Time. Convenience, Prepared meals, Digital engagement, and Brand trust drive growth today—not simply store count.”

He continues, “Kroger is operating like a holding company of legacy names, not an integrated brand with forward-looking consumer relevance. While competitors like Costco build national loyalty and Aldi cultivates discovery and simplicity, Kroger is running 18 micro-strategies in 35 states.”

Johnson argues that Kroger has failed to lean into food as experience. “Their private label expansion is solid. But they need more meal solution stations, better mix-and-match bundling, improved fresh offerings, and grocerant zones. Otherwise, they’re letting Wawa, Amazon Fresh, and even Dollar General eat their lunch.”

 

Today’s Consumer Isn’t Waiting

Modern grocery shoppers:

·       Shop more frequently, but spend less per trip

·       Buy private label and bulk formats

·       Avoid discretionary purchases

·       Crave convenience, flavor variety, and digital-first options

·       Migrate to brands with strong unified messaging

Kroger’s response—more Simple Truth SKUs, some ecommerce consolidation, and 30 remodels—may not be enough.

 

Final Thought: A&P Redux or Kroger Reinvented?

Kroger isn’t A&P—yet. But the seeds of similarity are undeniable: overextended branding, internal complexity, stale vision, and a dangerous disconnect from today’s customer.

As Johnson concludes, “Kroger has scale, history, and talent. But if it keeps managing the past instead of innovating for the future, it won’t be tomorrow’s grocery leader—it’ll be a case study in what went wrong.”

Kroger’s fractured banner strategy, leadership void, and outdated market-by-market model are haunting echoes of A&P’s demise. To avoid history repeating itself, Kroger must unify its brand, modernize its experience, and refocus relentlessly on what today’s food shopper really wants.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter