Retailers to Watch in 2023: Kroger & Albertsons
Each year brings with it a new set of challenges to the nation’s retailers, and 2022 was no exception. Consumers evolving their shopping habits while also facing inflation rates not seen in a generation required retailers to be nimble to meet the needs of their customers.
As 2022 comes to a close, Store Brands has put together a list of 10 retailers we
think are worth watching closely in the New Year. From leading grocery chains
to growing e-commerce players, the coming 12 months will see retailers face new challenges, revamp product assortments and provide consumers with new options to meet their ever changing demands.
The profiles of the 10 retailers Store Brands has selected will provide you an overview along with our thoughts on why each is worth watching in 2023.
Overview
In putting together our Top-10 Retailers to Watch for 2023, including Kroger and Albertsons on the list as a pair was the biggest no-brainer of all time. In mid-October, the two grocery behemoths shook the retail world when announcing they would be merging.
The combination as-is would create a retailer with more than 5,000 stores spanning the U.S. By comparison, Walmart stores in the U.S. number about 4,800 locations. Clearly, everyone will be watching the outcome of this rather intriguing retail marriage.
What to Watch
Well, a lot. From a macro perspective, the impending merger that is likely to get an extensive review from federal officials, will be a major talking point in the New Year and could have significant implications going forward.
But until the merger gets its review, both chains continue their normal daily operations, and private label products are playing an ever-increasing role on their respective shelves.
When announcing mid-year financial results, Kroger officials highlighted the success of its own-brand assortments, with sales in the second quarter up more than 10%. Driving that growth was its namesake Kroger brand along with the Home Chef brand and the addition of 170 new items under its Our Brands portfolio.
Unwilling to rest on its laurels, Kroger then launched Smart Way that combined 16 of its legacy brands in an effort to “ensure customers searching for opening price point items will be able to easily find what they are looking for on the shelves.”
We’ll also be watching Kroger’s Our Brand Innovation Summit that will be held in January. Announced in September, the initiative gives product suppliers the opportunity to meet with Kroger merchants through a virtual platform to showcase new product ideas. It will be interesting to see which new items end up on store shelves as a result of this initiative.
Albertsons, too, has been active with its private label assortment. The grocer had several items included in Store Brands’ annual Editors’ Picks competition, and also launched several new collections. Most notably, the company debuted the Vinafore Collection, a private label assortment of wine that includes several highly rated selections. The assortment is being offered at banners across the company.
Additionally, Albertsons relaunched its Waterfront Bistro private label seafood brand. Launched in 2009, the brand is approved by the third party group Responsible Seafood Policy. How Albertsons builds off these private label launches will also be watched in the New Year.