The industry of warehouse clubs and superstores like Costco and Kroger is very competitive, there are a lot of big warehouse clubs like Sam’s and a lot of superstores like Walmart to mention some. …show more content…
Barney Kroger in Cincinnati, Ohio and it was built from the ground up to become one of the world’s largest retailers with more than 2,700 stores in 35 states under two dozen banners and annual sales of more than $109.8 billion (History of Kroger, 2016). Kroger is an American well established company with store formats that include supermarkets, superstores, department stores, 786 convenience stores, and 326 jewelry stores. Kroger-branded grocery stores are located throughout the Midwestern and Southern United States. Kroger operates 37 food processing or manufacturing facilities, 1,360 supermarket fuel centers and 2,122 pharmacies.
One of the main reasons Kroger will be an excellent acquisition for Costco is that this company is in accordance with Costco mission, values and strategies, which is focus on the customer and meeting their expectations. This acquisition will give Costco higher visibility and new opportunities. Opportunities like the advantage to compete with one of Costco’s big competitors; Walmart Superstores. In 1998 Walmart introduced the concept of neighborhood supermarkets, these are a small scale of what are the superstores (Walmart History, 2016). This acquisition will give Costco the supermarket