After the Failed Kroger–Albertsons Merger: Looking Ahead Amid Store Closures, Market Pressures, and Strategic Reorientation

 

The collapse of the proposed $24.6 billion merger between Kroger and Albertsons exposed deep vulnerabilities in both companies’ strategies. But today, they’re shifting focus—pivoting toward cost discipline, digital transformation, and customer-centric innovation. Here’s how they intend to move forward.

 

Forward-Looking Strategy: Kroger

1. Reinvesting Closure Savings into Customer Experience
Kroger is closing 60 underperforming stores (~5% of its locations) and has taken a $100 million impairment charge. The company expects a “modest financial benefit” and is channeling these savings toward competitive pricing, targeted store remodels, new openings, and enhanced customer service—including private label and pharmacy growth.

2. Radical Store Transformation: The Marketplace Concept
Starting in 2025, Kroger is rolling out “Marketplace” stores—featuring diversified offerings like clothing, home goods, specialty foods, and drive-thru pharmacies. These modernized formats, tailored to local demographics, are designed to elevate in-store engagement and growth.

3. Corporate Restructuring and Operational Efficiency
Kroger is laying off fewer than 1,000 corporate staff to streamline operations. These savings are being reinvested into new openings, price improvement, and enhancing the customer experience, while investor sentiment remains stable.

4. Building Leadership and Digital Capabilities
New leadership is being installed Kroger brought in a new CFO and established a unified e-commerce business unit led by a chief digital officer. The company also accelerated private label expansion and optimized its analytics subsidiary (84.51°) to sharpen efficiency.

5. Refocusing Strategy from Within
With its big-ticket merger off the table, Kroger is recalibrating toward core competencies: operational stability, cost discipline, and customer loyalty. The board is steering the company through this pivot, while leadership remains in flux.

You Can't Build 

Share of Stomach

Looking Like Yesterdays Business 

 

Forward-Looking Strategy: Albertsons

1. New CEO and Reinforced Strategy
Susan Morris took over as CEO on May 1, 2025, succeeding Vivek Sankaran. She brings deep institutional experience. Her "Customers for Life" strategy emphasizes loyalty, personalized digital experiences, and private-label strength to build sustainable growth.

2. Loyalty Program Enhancement
Albertsons expanded its “Albertsons for U” loyalty program across 380 stores. Key features—like personalized deals, auto cash-off, and extended redemptions—aim to drive retention and basket growth. The company also highlighted that 90% of goods are sourced domestically, reinforcing price and supply stability.

3. Significant Productivity and Tech Investments
Albertsons announced a $1.5 billion productivity savings goal between FY2025–2027, fueled by technology modernization and automation (including automating 30% of distribution volume and upgrading warehouse management systems by end of 2025).

4. Digital, Media & Omnichannel Acceleration
Digital sales surged 25% in Q1; Albertsons is rolling out omnichannel, in-store digital tools, and the Albertsons Media Collective (retail media)—mirroring industry peers’ moves to monetize digital touchpoints.

5. Balanced Investment-Year Outlook & Long-Term Growth
Fiscal 2025 is positioned as an intensive investment phase—starting 2026, the company expects ≥2% annual same-store sales growth and Adjusted EBITDA to outpace sales, signaling a return to disciplined growth execution.

 

Summary Table: Strategic Pathways Forward

Kroger	Albertsons
Reinvests store closure savings into remodels, pricing, new formats (Marketplace)	Champions digital, loyalty-based customer personalization (“Customers for Life”)
Cuts ~1,000 corporate roles; focuses on internal efficiency	Targets $1.5B in cost savings via automation, tech, and logistics
Builds leadership in digital and operations post-merger disruption	Launches retail media and omnichannel tools to deepen engagement
Enhances private-label portfolio; centralizes e-commerce	Expanding loyalty program perks and promoting domestic sourcing
Refocused core strategy after failed merger for stability	Transitioning from investment phase to accelerated growth in 2026+

 

Bottom Line

While both Kroger and Albertsons continue to battle the aftermath of their failed merger, they are charting divergent but proactive futures. Kroger is closing underperforming assets and refocusing on operational core strengths, customer experience, and private-label leadership. Albertsons is doubling down on technology, loyalty, digital channels, and cost transformation—all under fresh leadership.

These forward-looking strategies could determine whether each player can reclaim footing amid accelerating competition from e-commerce giants, discounters, and digitally-native grocers.

 

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All Food Retailers Need to Focus on or Pay Attention to SNAP

At the intersection of What’s for Dinner and Food Sales is the United States Department of Agriculture SNAP Program.  So just what is SNAP: SNAP provides nutrition benefits to supplement the food budget of needy families so they can purchase healthy food and move towards self-sufficiency. Focus o

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, stated, “all food retailers need to understand how the SNAP program can or could help them drive top-line sales and bottom-line profits. That includes Restaurants, Convenience Stores, Grocery Stores, Dollar Stores, and Bodegas.”

First did you know that overall, SNAP consumers account for nearly one-quarter (24%) of total CPG spend, and are more likely to have children, live in urban areas and be in the bottom 30th percentile in purchasing power compared to non-SNAP consumers. 

In case you did not know, Numerator, a data and tech company serving the market research space, has released its latest report—Helping SNAP Consumers During Economic Headwinds—which examines the full impact of the Supplemental Nutrition Assistance Program (SNAP) on modern consumers through the analysis of verified purchases by SNAP recipients. Overall, SNAP consumers account for nearly one-quarter (24%) of total CPG spend, and are more likely to have children, live in urban areas and be in the bottom 30th percentile in purchasing power compared to non-SNAP consumers. Here are more findings:

Consumer Behavior & Sentiment Findings:

·         SNAP recipients represent a diverse group of consumers. 61% of SNAP recipients are in the bottom 30th percentile in terms of purchasing power, 45% have children (compared to 28% of non-SNAP households), 29% have 5+ members in their household, and 37% are Gen Z or Millennial. Compared to non-SNAP households, SNAP households are twice as likely to be Black/African-American or Hispanic/Latino. 

·         Economic uncertainty affects SNAP households more severely. 79% say their financial situation is the same or better compared to the prior year, but 1 in 5 SNAP households say they are overwhelmed with financial burdens and 56% are concerned about job stability (compared to 31% of non-SNAP recipients). 

·         Even with government assistance, SNAP recipients feel food insecurity. Over 1 in 4 SNAP consumers (26%) say they are unable to buy enough food to feed their family. 

·         Health issues and healthcare costs are significant concerns. SNAP consumers are 3.8x more likely to be disabled, and they are 56% more likely to be not actively managing their health, compared to non-SNAP consumers.

·         Utilization of SNAP during a shopping trip results in larger purchases. When SNAP consumers utilize their benefits during a shopping trip, basket size is $15 more, spend per trip on groceries is almost $18 more, and units per trip double (from 5.2 to 10.4).

·         SNAP recipients are disproportionately spending more per unit. In the latest quarter ending 12/31/2022 compared to YA, SNAP consumers are paying 13% more per unit, compared to 11% more for non-SNAP consumers – driven by increased inflation on baby and health & beauty products that SNAP consumers over-index on, as well as in the Dollar channel.

·         To save money, SNAP recipients are pulling back on snacks. Units purchased per household are down significantly in snack categories such as popcorn (-23.6% vs YA), meat snacks (-18%), and snack seeds, nuts & trail mixes (-15.9%).

·         Trading down to private label helps to reduce the sting of inflation.  Although unit sales are down, Walmart, Aldi and Kirkland private labels are outperforming branded CPG. For example, Great Value unit sales are down 4% vs YA, compared to branded unit sales dropping 20%.

·         Affordable luxuries like personal care items have not seen a pullback on spending. Categories such as toothbrushes (+6.3% units per household vs YA), beer (+4.6%) and face makeup (-0.5%) are holding their own or growing with SNAP consumers.

·         SNAP consumers vary their shopping locations. SNAP consumers are 56% more likely to spend their CPG dollars at Dollar stores, 24% more likely at Convenience stores, and 12% more likely at Mass retailers (compared to non-SNAP consumers). 

·         Regional and ethnic grocery stores are winning SNAP household trips because of their lower price increases. Among the retailers growing trips with SNAP households are H-Mart (42% of projected trips), Market Basket (42%), Whole Foods Market (36%), 99 Ranch Market (35%), and Wegmans (31%). 

·         SNAP consumers are 37% more likely to eat out four or more times per week, but they are moving food trips back to stores. As SNAP recipients pull back on dining out, Starbucks, KFC, Burger King and Little Caesars are seeing the most lost trips.

·         More inclusive grocery delivery services would benefit consumers and retailers. 20% of SNAP recipients say they wish that grocery delivery services made it easier to utilize their program benefits. Currently, 12.9% of SNAP consumers use Walmart+, followed by DoorDash DashPass (5%), and Albertsons Freshpass (4.3%). 

About Numerator:

Numerator is a data and tech company bringing speed and scale to market research.  Numerator blends first-party data from over 1 million US households with advanced technology to provide 360-degree consumer understanding for the market research industry that has been slow to change. Headquartered in Chicago, IL, Numerator has 2,000 employees worldwide; 80 of the top 100 CPG brands’ manufacturers are Numerator clients.

Who are you selling to today?  Where can you be selling food tomorrow and to whom?

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® 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 the following links: Facebook,  LinkedIn, or Twitter 

Curby’s Express Market is Just Like and Just for You and Me

 

Understanding the consumer is central to developing a valued brand that drives top line sales and bottom-line profits.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® Curby’s Express Market will do just that.

So, you don’t have to be a dog lover to recognize the friendly appeal of a happy canine with his head hanging out the window of a moving car. The logo of Curby’s Express Market, which opened its first store in Lubbock, Texas, in February says it all. If you have a dog, you know how they like to do that. There are two more Curby’s that are slated to open in Lubbock before the end of this year.

Tony Sparks, head of Customer Wow for Curby’s, stated, “We consider it the next generation of c-store retailing,”, …. “progressive” concept that had been in the works by its Dallas-based commercial developer parent company for three years.  In case you were wondering, Sparks recognizes that his job title “tells you right there, this is different.”

Regular readers of this blog know what most convenience store chains have in common, he said, is a half quick-service restaurant, half traditional consumer packaged goods approach. But this is not what Curby’s Express Market is modeled after.

“We wanted to go back to a small-format grocery idea, like how Wawa started — and with no fuel,” Sparks explained. “We’re also going for more of a progressive, innovative customer experience.”

He highlighted four elements that are “super important” to the Curby’s concept:

1.       A modern-market shopping experience;

2.       A protected drive-thru emphasizing speed of service;

3.       A fresh, made-to-order primary menu of melts and flatbreads; and

4.       Made-to-order beverages, including energy drinks and a tea bar.  

This core quad captures the changing nature of consumers today and speaks to what they are now demanding from convenience retail, according to Sparks. 

This is one think most of us are going to like, Curby’s double-lane, is covered, temperature-modified drive-thru — where anything in the store can be purchased without ever leaving the car — is “a big piece of what this concept is about,” according to Sparks, who admitted the goal was to replicate the customer experience at a Chick-fil-A drive-thru.

Yes, just like the popular fast-food chain, Curby’s drive-thru is staffed by order-takers who greet customers with a tablet and paper menus. Customers pull around the covered bay area and up to a window to receive their orders.

Now, inside the store, Curby’s doesn’t use linear gondolas. Instead, it uses four-sided shelving that Sparks refers to as “pods.” When customers enter the store, they see wine, produce, flowers and specialty bread in a unique freshness cube.

“They already know something is different from that of a typical c-store,” he said.

Working with an industry food consultant, Curby’s landed on its niche in the foodservice space: sandwich melts for all dayparts. “What’s great about them is we’re limited only by the imagination for melt ideas,” Sparks said.

The melts are made on toasted brioche bread, options include the Cinnamon Toast Sausage Egg & Cheese Melt, Grown Up Grilled Cheese Melt, Brisket Melt, Caprese Melt, and Buffalo Fried Chicken Melt. Curby’s also serves flatbread pizza and kolaches (flavored sausages wrapped in a bun).

Curby’s doesn’t offer “grab-and-go food.” Rather, the retailer features its menu items “very deli style,” where all the food is presented behind glass, and everything is made in front of the customers, Sparks explained. This approach helps fosters a personal connection between customers and employees.

On the beverage side, Curby’s considers itself a more modern Starbucks; a progressive coffeehouse “with a younger vibe that’s more fun and inviting,” he said.

While there are coffee classics on the menu, more exotic creations boast names such as Old Yeller (espresso blended with caramel, vanilla, breve, and topped with whipped cream) and White Fang (espresso blended with white chocolate, Irish cream, breve, and topped with whipped cream).

Zoomies, which refers to those frenetic explosions of energy that dogs have on occasion, is the name of Curby’s colorfully vibrant line of made-to-order energy drinks. Using stacked flavors/colors, as many as three in a beverage, makes for a “beautiful” presentation, Sparks said, pointing out that Zoomies provide the most stimulant per ounce of anything you can buy, and they are all natural and sugar-free.

They did not work with our Grocerant Guru® on this feature a 20-foot self-serve tea bar, with 18 flavors of tea in sugar and sugar-free versions served from fountain heads. Our team gives this about 20 months before it will evolve into something more productive per square foot.

Even though its first location has only been open since February, Curby’s has already taken note of some areas that can be tweaked. Once the concept has been finetuned, the company plans to acquire and revamp locations simultaneously, and is aiming to have a total of 10 stores in its first 24-36 months.

“The ambition is to make this the Shake Shack of convenience retailing. The expectation is for us to grow rapidly once we finish up proof of concept and work out the bugs,” said Sparks

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® 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 the following links: Facebook,  LinkedIn, or Twitter

Pieology’s Mix & Match Election Day Special is Good Marketing

 

Understanding the value of looking a customer ahead food, marketers must acknowledge and complement customer relevance according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Customer relevance is underpinning of keeping your brand fresh, growing, and profitable.

With the world watching the United States is having an election for President on November 3^rd and consumer awareness for the election is at an all-time high as is voter turnout. Pieology is celebrating everyone who votes in this upcoming election with a new national “You Vote, You Pie” Reward that celebrates individuality and freedom.

Pieology locations across the United States are now offering an Election Day 2020 Bundle deal: Two 11 inch ‘Create Your Own’ pizzas and a shareable dessert—all for just $20.20. Don’t cook, go vote, watch election results and enjoy you personalized, customized Pieology pizza.

Pieology is encouraging individuals to vote, Pieology is also kicking off the 2020 promotion on social by putting their Premium Crusts head to head and asking guests to vote in the comments section for their favorite Premium crust:  Original Thin, PieRise Thick, Cauliflower, Gluten-Free. Pieology will be rewarding all users who vote on their social with a special offer sent to their direct message. Pieology will also randomly select five winners from the comments to receive a free 2020 Bundle.

Regular readers of this blog know that in interactive and participatory food marketing with relevance. Success does leave clues and edifying your brand with a customer relevant branded marketing messages is a clue no one should over look.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter