Most people know Kroger as a local neighborhood grocery store that has prioritized family values in its business since its inception in 1883.
Although Kroger is a beloved go-to, it's also one of the world's largest supermarket chains, ranked fifth by Food & Drink Digital.
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However, with the economy rebuilding after the pandemic, higher interest rates, and the effect of inflation, customers' ability to spend has been significantly reduced, and many retailers have suffered the consequences.
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During its latest earnings call, Kroger said it has always led its business with innovation and value, and with the holiday season at its peak, it will continue to do so.
The company has recently expanded its product assortment to promote more affordable prices and feature promotions on high-quality products.
As for innovation, Kroger has thrived in the e-commerce sector, but this latest announcement goes beyond what the company has done in the past, emphasizing connection even further.
Kroger faces a major setback in its Albertsons merger
In October 2022, Kroger (KR) announced it planned to acquire Albertsons (ACI) for $24.6 billion and expected to seal the deal by the beginning of this year.
However, the Federal Trade Commission (FTC) filed an antitrust lawsuit to block the merger in favor of the public interest, claiming it promoted anti-competitive practices and harmed workers.
Although Kroger said that the halt posed financial implications for the company, claiming that if the merger had been allowed, the companies would've generated over $208 billion in combined sales as of May 2024, it still profited from its e-commerce investments.
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According to Kroger's second-quarter earnings report for 2024, total sales were almost flat but slightly increased compared to the same quarter last year.
However, the company's digital sales grew 11% in the quarter, with delivery sales up 17%, and e-commerce households increasing by 14% compared to last year's second quarter.
Kroger joins the multimedia train with its new holiday campaigns
Due to Kroger's profitability in its e-commerce sector, the company decided to dive into multimedia for the holidays to promote both innovation and value.
On Nov. 13, Kroger showcased its holiday film, "The Case of the Disappearing Food," in collaboration with the creative company adam&eveDDB New York. The film is about a woman who loses her holiday spirit and rediscovers her love for it through food.
To appeal to the Hispanic market, Kroger is also unveiling a holiday ad called "The Gift of Teaching," which features Hispanic multi-generational traditions by sharing family recipes.
The holiday campaign is now available for viewing on Netflix (NFLX) , YouTube (GOOGL) , cable, and on Kroger's platform through Jan. 1.
"What we love about this film is how it so acutely illustrates the power of food to bring people together and express kindness. We hope this message — share your food, share your heart — inspires families, friends and neighbors to pull up an extra seat at their table this holiday season and revel in the simple joy of being together," said Kroger Senior VP and Chief Merchant & Marketing Officer Stuart Aitken.
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Additionally, Kroger announced it has joined forces with Hulu to create an experience called "Shop the Scene."
Hulu subscribers and Kroger customers in select locations will be able to shop the food on the Christmas dinner scene featured in the classic Christmas movie National Lampoon's Christmas Vacation by scanning a QR code displayed on the screen with their mobile camera.
The QR code will direct customers to Kroger's website so they can easily add the items from the movie to the cart for Pickup or Delivery. On this website, customers can also find easy-to-follow recipes to recreate the meals from the Christmas movie.
The movie and immersive experience are now available to stream on Hulu until Dec. 29.
"Kroger has always understood the power of food to bring people together. But this holiday season, we wanted to invite people to share more than just a meal," said Paulo Junger, executive creative director at adam&eveDDB.
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