Kroger, based in Cincinnati, Ohio, is the largest U.S. chain focused primarily on supermarkets. It operates stores under banners including Kroger, Ralphs, Fred Meyer, King Soopers, Harris Teeter, Fry's, Smith's, Dillons, QFC, Mariano's, and Pick 'n Save, plus in-store pharmacies and fuel centers. Unlike Walmart or Costco, food and everyday essentials are the whole business, so execution on fresh food, pricing, and labor matters more than general merchandise.
Kroger makes money by selling food and household goods at high volume and low margin, then layering higher-margin businesses on top of the store traffic. The core is supermarket retail across roughly two dozen regional banners. Our Brands private labels such as Kroger, Simple Truth, and Private Selection, many made in Kroger-owned food plants, earn better margins than national brands. In-store pharmacies and fuel centers add visit frequency, with Fuel Points tying grocery spending to gas discounts. On top of that sit the Alternative Profit Businesses, led by Kroger Precision Marketing and the 84.51° data science unit, which sell targeted advertising and insights to consumer brands using loyalty-card purchase data. Those businesses produced $1.5 billion of operating profit in fiscal 2025.