Harris Teeter, a decade post-merger
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It's been a decade since the retail giant Kroger bought Harris Teeter. Since then, Kroger's implemented subtle shifts to maximize its investment and enhance the local brand's competitiveness.
Why it matters: Harris Teeter, which began as a family business more than 60 years ago, is a household name in North Carolina. Shoppers tend to have fierce loyalties to and strong opinions about their grocery stores — whether it's because of prices, selection, location or service.
- Harris Teeter is a preferred grocer in large markets like Charlotte and Raleigh, consistently ranking among the top in terms of market share.
The latest: Kroger, based in Cincinnati, continues to try to grow. It's now fighting to push forward a $24.6 billion merger with the grocery giant Albertsons, a deal that's embroiled in several legal challenges.
Flashback: For years, Kroger-branded stores experienced flat sales in North Carolina, a highly competitive market.
- Instead of fighting the headwinds, the retailer acquired Harris Teeter in 2014 for $2.4 billion and convert many of its North Carolina Kroger-branded locations to Harris Teeter. It saw buying Harris Teeter as a way to tap into a known brand with a loyal following.
- In 2018, Kroger announced plans to leave the state, closing 14 stores in the Triangle, though eight of those were turned into Harris Teeters, ABC11 reported.
What they're saying: "Rather than try to push water uphill, [Kroger] decided to go ahead and make the acquisition ... and make that conversion of Harris Teeter[s] their strategy in this area," says Roger Beahm, a marketing professor at Wake Forest University.
Between the lines: After the purchase, one priority for Kroger was to not change too much, he adds.
- Some key features that made Harris Teeter so attractive were its solid business performance, dedicated customer base and good loyalty programs. Kroger didn't want to disrupt those things.
Zoom in: Kroger introduced a few of its own private label brands that have higher profit margins than national brands, including the Simple Truth organic line, to Harris Teeter post-merger.
- Kroger, known for its data analytics, also has worked to enhance its marketing and customized promotion to loyal Harris Teeter customers by tapping into data it collects about their shopping habits, Beahm says.
- Still, you won't find any "Kroger"-specific branded products at Harris Teeter stores.