Doing Business with Kroger
There are two categories of business opportunities with Kroger:
- Supplying merchandise for sale in Kroger stores; and
- Supplying services and not for resale goods.
Retail Sales
The grocery business is highly competitive. Kroger typically earns just 1-2 pennies per $1 of sales. These razor-sharp margins make the retail environment challenging for all suppliers.
Kroger stores typically carry 40,000-50,000 items. Competition for shelf
space is intense. Customer acceptance as demonstrated by sales is used
to measure product performance.
Our company has 17 retail divisions, which are organized on a geographic
basis. Kroger's Merchandising Group ("KMG") in Cincinnati directs and
coordinates most of the Company's retail buying process by bringing
together top merchants in almost every major category to develop
strategies and direct merchandise selection.
While most of the Company's merchandise selections are driven by KMG
teams, local retail divisions round out their merchandise by directly
buying items that reflect local preferences. This allows our retail
divisions to tailor their stores' offerings to meet local market
demographics and regional preferences. These items are purchased by
division buyers from suppliers that can offer quality and
outstanding service at a competitive price.
Minority- and women-owned businesses with resale goods receive guidance
and consultation from Kroger buyers and merchandisers both in Cincinnati
and in the retail divisions to help them become Kroger suppliers.
Whether or not they are able to supply our stores, Kroger's goal is to
help them develop their businesses.
Steps to Follow
- Complete the Supplier Diversity Program registration form (Please click on link at bottom of this page).
- Review the supplier questionnaire, which can be found by clicking on the link
"Answering Key Questions," and be prepared to answer these
questions.
- Contact Kroger's Director of Corporate Supplier Diversity, who can answer initial
questions and refer prospective suppliers to appropriate buyers within
our organization.
- Follow up with key contacts provided. Each buyer is responsible for
the final decision on whether to purchase a product.
Services and Not for Resale Goods and Supplies
It takes many services and products to support the day-to-day operation of more than 2,500 stores with 289,000 employees and 42 manufacturing plants. As a result, we seek companies that can provide goods and services that are high-quality, cost-effective and technologically advanced.
Not for Resale services and goods include:
- Facility construction and renovation
- Store supplies and services
- Distribution and transportation
- Information technology
- Financial services
Kroger's Corporate Supplies Procurement Group in Cincinnati purchases
the majority of
the retail divisions' operating supplies, including bags, cleaning
supplies, and uniforms. Services such as laundry, inventory management,
security, transportation, and technology also are procured and
coordinated through Kroger's headquarters in Cincinnati. Kroger's
equipment procurement group in Cincinnati oversees purchases of store
equipment. The financial services group in Cincinnati is responsible for
decisions about investments, cash handling, and financial services.
Kroger Manufacturing also uses a centralized purchasing group in
Cincinnati. This group is responsible for buying the raw materials,
supplies and services that we use in our plants.
Store construction and remodeling are handled in the retail division
headquarters. The facilities engineering groups located in the retail
division headquarters oversee the
construction and remodeling of stores in their geographic region.
Steps to Follow
- Complete the Supplier Diversity Program registration form (Please click on link at the bottom of this page).
- Review the supplier questionnaire, which can be found by clicking on the link "Answering Key Questions," and be prepared to answer these
questions.
- Contact Kroger's Director of Corporate Supplier Diversity, who can answer initial
questions and refer prospective suppliers to appropriate buyers within
Kroger.
- Follow up with key contacts provided. Each buyer is responsible for
the final decision on whether to purchase a product.
Established more than 25 years ago, Kroger's
Supplier Diversity Program has played an important role in helping
Kroger, MBEs and WBEs grow and develop. Being prepared for the
marketplace is a complex challenge. Kroger's Supplier Diversity Program
helps MBEs and WBEs analyze their business capabilities to determine
whether their products or services fit within Kroger's corporate
strategies and the market as a whole.
As Kroger continues to grow, we are committed to doing our part to
ensure that minority-owned and women-owned businesses are a part of the mainstream
of our Company and our nation's free enterprise system.
Printable Supplier Diversity Program Brochure
Online Supplier Diversity Program Form
The above documents requires that you have Acrobat Reader installed on your computer. You can
download Acrobat Reader for FREE at www.adobe.com.
Completed Supplier Diversity Program Forms should be sent to:
Ms. Denise Thomas
Director, Corporate Supplier Diversity - The Kroger Co.
1014 Vine Street
Cincinnati, OH 45202-1100.
|