ECR- Dublin, Ireland The Kroger Company About Kroger + 500k - - PowerPoint PPT Presentation

ECR- Dublin, Ireland

The Kroger Company

About Kroger

• + 500k Employees
• 11 million customers daily
• 2,759 retail food stores
• $ 100B sales (70% Center Store, 30% Fresh)
• 44 Distribution Centers
• 38 Manufacturing Plants

Supermarkets Multi-Department Price-Impact Warehouse Marketplace Fuel Centers (1423) Fine Jewelry (251)

Kroger is Evolving LP to AP

• Loss Prevention and Shrink

were 2 teams

• Combined to 1 team =

Asset Protection

• Identified where shrink

comes from

• Aligned AP efforts
• One way of working
• Leverage field AP for

support

Fresh Departments – Root Cause of Shrink

Partnership Collaboration AP & Merchandising

• Struggled creating

synergies with Merchants

• Identified a Leadership

Gap

• Focus on culture of

collaboration

• AP partners with

Merchandizing on shrink (sales too!)

Drive Sales Sell Fresh Reduce Shrink

Grocery Shrink Task Force Needle Moving Projects

• Dairy Excellence Guide
• FCB Inventory Guide
• Markdown Guide
• Bread Excellence Guide
• DSD Exception Reporting
• Walk them to the bulls eye

Grocery Shrink Trend

Last Year This Year

Buyer Distributions Measuring & Accountability

• Buyers distributing product

when warehouse is long

• Excessive buyer distros

impact shrink

• Minimal reporting or

accountability

• Development of weekly

reporting

• Established goals by Division

and Buyer

• Means to measure and

accountability

Fresh Produce Distributions Period 8 Produce WK1 WK2 WK3 WK4 PD 8 2019 0.89% 0.78% 0.93% 1.00% 0.90% Goal 1.02% 1.02% 1.02% 1.02% 1.02% Difference

• 0.13%
• 0.24%
• 0.09%
• 0.02%
• 0.12%

% Chg vs. Goal

• 12.8%
• 23.5%
• 8.8%
• 2%
• 11.8%

*Note: Distributions is a % of total cases shipped Fresh Meat Distributions Period 8 Meat WK1 WK2 WK3 WK4 PD 8 2019 0.32% 0.41% 0.41% 0.49% 0.38% Goal 0.99% 0.99% 0.99% 0.99% 0.99% Difference

• 0.67%
• 0.58%
• 0.58%
• 0.50%
• 0.61%

% Chg vs. Goal

• 67.7%
• 58.9%
• 58.6%
• 50.5%
• 61.6%

*Note: Distributions is a % of total cases shipped

Produce Meat

Deli Fresh Prepared Space/Sales & SKU Rationalization

• Shrink is an opportunity
• Conducted a review
• Divisions provided

feedback

• Space to sales updated
• SKU rationalization

completed in all stores

• Improved shrink

Day’s of Supply Last Year This Year

Produce Case Pack Sizes Shrink, Sales, and Freshness

• Analyzed by item data
• Reviewed sales, shrink,

and day’s supply

• Identified qualified items
• Partnered with Produce

Merchandising

• Produce working with

growers

• Reduce case packs

Sell More, Sell Fresh, Shrink Less

Evigence Pilot Floral Department

• Piloting in January 2020
• Testing on Tulips
• Heightened awareness
• Freshness and quality
• Impact on sales (more)
• Impact on shrink (less)
• Freshness sensor on the package
• Sensors change color as temperature changes
• Higher the temp, faster it changes
• Sensors can be calibrated to match the perishability of product
• Will indicate an action of “pull the product” – regardless of pull date
• Identifies opportunities with behaviors