CINCINNATI, Jan. 15, 2019 /PRNewswire/ -- The Kroger Co.
(NYSE: KR) Chairman and CEO Rodney
McMullen provided his outlook on the future of retail at the
NRF 2019: Retail's Big Show in New
York City during a dynamic keynote presentation themed
Restocking the future: Kroger's insatiable appetite to play and
win the long game. CNBC "Squawk on the Street" and "Closing
Bell" Anchor Sara Eisen moderated the 30-minute conversation on
Sunday.
Here are Mr. McMullen's five predictions for the future of
retail. You can view the full-length keynote presentation
here.
- Retail Won't Go Away
The industry experiences
disruption and transformation every few years, but it's happening
at a more rapid speed than ever before. Leaders in the industry
must be willing to not only accept and react to change, but also
transform their growth model.
- Retail Will be Digital and Physical
Technology
and digital are already mainstays of today's retail; however, in
the future of retail, customers will not spend meaningful time
thinking about physical vs. digital. Customers will always choose
the shopping modality – whether physical or digital – that
will deliver anything, anytime and anywhere.
- Retail will Offer New Solutions to Customers
Retailers will create solutions on customers' terms. That is why
Kroger is building an ecosystem that offers a variety of
modalities, including brick and mortar, delivery, pick up and
ship.
- Retail will be Purpose-Driven
Retail will
solve problems not only for customers, but also for communities and
the planet. Stakeholders are increasingly deciding which businesses
to support based on shared values and clarity of purpose. Because
of Kroger's Zero Hunger | Zero Waste commitments by 2025, the
company decided to phase out use-once, throw-it-away plastic
bags and transition to reusable bags in its stores on the same
timeline.
- Retail will Disrupt the Ad Industry
Advertisers spend $100 billion
annually today, and retailers are uniquely positioned to know how
customers behave and react to those marketing messages. That is why
Kroger introduced Kroger Precision Marketing, powered by 84.51°.
Kroger Precision Marketing provides consumer packaged goods (CPG)
advertisers the ability to reach Kroger's more than 60 million
customers through its ecosystem more precisely with measurable
results.
While on stage, Mr. McMullen also emphasized Kroger's Our
Brands portfolio, which continues to perform exceptionally well
with customers and is one of the most profitable parts of its
supermarket business. Kroger recognizes there is an appetite for
its Our Brands products like Simple Truth® in markets where
the retailer doesn't have a physical footprint, illustrations
include its relationships with Alibaba and Walgreens. Six
years ago, Simple Truth didn't exist, and it's now the largest
natural and organic brand in the country, topping more than
$2 billion in sales annually. The
retailer's latest Simple Truth television commercial is now
airing in major U.S. media markets.
Mr. McMullen also discussed how the company is at the forefront
of shaping the national discussion around the disparity between
food waste and hunger in America through Zero Hunger | Zero Waste,
Kroger's ambitious social impact plan designed to end hunger in its
communities and to eliminate waste across the entire company by
2025. He acknowledged achieving Zero Hunger | Zero Waste requires
partnerships, creative ideas and scalable solutions to help change
the food system. He announced Kroger has established a public
charity to encourage this kind of innovative thinking. In February,
the retailer will issue its inaugural open call and will award up
$1 million to for-profit and
non-profit innovators developing solutions for food waste
prevention to test and scale solutions.
NRF 2019: Retail's Big Show is a three-day retail event that
attracts more than 35,000 attendees. Its 2019 focus is traditional
retailers that need non-traditional solutions, online sellers that
need a physical presence, and tech start-ups that need scale. With
three full-day workshops and 50 exhibitor sessions, it's the
largest retail conference in the world.
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose:
to Feed the Human Spirit™. We are nearly half a million
associates who serve over nine million customers daily through a
seamless digital shopping experience and 2,800 retail food stores
under a variety of banner names, serving America through food
inspiration and uplift, and creating #ZeroHungerZeroWaste
communities by 2025. To learn more about us, visit our
newsroom and investor relations site.
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SOURCE The Kroger Co.