Kroger Store Closures
Using the 23,000+ store locations we have mapped in DecaSIM: Compete , we ran an analysis using our data to see if we can work out which stores will be closed.
There are a number of different avenues we can take:
- Select stores that are facing more intense competition and are operating at a close-to-loss position, or are at least in the lower quartile of performance. Given this would require internal data we are not in a position to run this analysis.
- Select stores that are potentially cannibalizing one another. Closing one of the stores and migrating customers to the open store will increase operating margins.
To arrive at a list of potential closures, we took the second approach and identified the 30 pairs of stores that are potentially cannibalizing one another, based on proximity.
The closest pairing of Kroger stores we found in our data is Food4Less in Santa Clarita and a Ralphs just 900 ft away in Canyon Country:
From a customer perspective both are on the same side of the highway, so it would seem feasible to close one store down and migrate sales to the other.
Below is a table of the top 30 pairs.
| Zip Code | Banner (City) | Nearest Banner (City) | Distance (miles) |
|---|---|---|---|
| 91351 | Food4Less (Santa Clarita) | Ralphs (Canyon Country) | 0.17 |
| 92108 | Ralphs (San Diego) | Food4Less (San Diego) | 0.29 |
| 23451 | Harris Teeter (Virginia Beach) | Kroger (Virginia Beach) | 0.31 |
| 53202 | Metro (Market Milwaukee) | PickNSave (Milwaukee) | 0.39 |
| 92627 | Ralphs (Costa Mesa) | Ralphs (Newport Beach) | 0.44 |
| 90292 | Ralphs (Marina Del Rey) | Ralphs (Marina Del Rey) | 0.48 |
| 90038 | Ralphs (West Hollywood) | Ralphs (Los Angeles) | 0.51 |
| 98052 | QFC (Redmond) | QFC (Redmond) | 0.53 |
| 38117 | Kroger (Memphis) | Kroger (Memphis) | 0.55 |
| 27103 | Harris Teeter (Winston Salem) | Harris Teeter (Winston Salem) | 0.66 |
| 98034 | QFC (Kirkland) | Fred Meyer (Kirkland) | 0.67 |
| 40208 | Kroger (Louisville) | Kroger (Louisville) | 0.71 |
| 91352 | Ralphs (Sun Valley) | Food4Less (North Hollywood) | 0.77 |
| 90036 | Ralphs (Los Angeles) | Ralphs (Los Angeles) | 0.78 |
| 80246 | King Soopers (Denver) | King Soopers (Glendale) | 0.8 |
| 24018 | Kroger (Roanoke) | Kroger (Roanoke) | 0.81 |
| 67501 | Dillons (Hutchinson) | Dillons (Hutchinson) | 0.82 |
| 41071 | Kroger (Newport) | Kroger (Bellevue) | 0.84 |
| 90804 | Food4Less (Long Beach) | Ralphs (Long Beach) | 0.85 |
| 85258 | Frys Food (Scottsdale) | Frys Food (Scottsdale) | 0.86 |
| 97215 | QFC (Portland) | Fred Meyer (Portland) | 0.87 |
| 98122 | QFC (Seattle) | QFC (Seattle) | 0.9 |
| 43220 | Kroger (Upper Arlington) | Kroger (Columbus) | 1.03 |
| 90045 | Ralphs (Los Angeles) | Ralphs (Inglewood) | 1.05 |
| 90302 | Ralphs (Inglewood) | Ralphs (Los Angeles) | 1.05 |
| 98117 | QFC (Seattle) | Fred Meyer (Seattle) | 1.08 |
| 53212 | PickNSave (Milwaukee) | PickNSave (Milwaukee) | 1.1 |
| 90006 | Food4Less (Los Angeles) | Food4Less (Los Angeles) | 1.1 |
| 38104 | Kroger (Memphis) | Kroger (Memphis) | 1.15 |
| 91406 | Ralphs (Van Nuys) | Food4Less (Van Nuys) | 1.15 |
| 91701 | Ralphs (Cucamonga) | Ralphs (Cucamonga) | 1.15 |
| 90015 | Ralphs (Los Angeles) | Food4Less (Los Angeles) | 1.16 |
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