Milk, eggs, bread, and … a new pair of jeans? Kroger is ready to break out of the grocery business and make a new name for itself with a private-label fashion brand called “Our Brand.” Hoping to join the ranks of other big box retailers such as Target and become the new go-to place for more than just pantry staples, Kroger is reworking its existing clothing brand to expand selection and elevate the quality. The chain hopes for an initial rollout of the redesigned line at 300 of its stores nationwide, with the potential to incorporate fashion into its more than 2,700 stores in the future.
The move is one more option among the various strategies that retailers have adopted to appeal to consumers and remain competitive. For example, Target was one of the first retailers to bring in big-name designers for collaborations on low-priced clothing collections. The smashing success of its 2011 Missoni line caused many similar retailers to sit up and take notice: Shoppers are hungry for that high-end feeling at an affordable price point. Walmart also has been trying to assert itself more prominently in the fashion and clothing space, such as with its recent acquisition of the popular e-tailer ModCloth. With such competition in mind, along with the recent threat posed by Amazon’s acquisition of Whole Foods, it appears that Kroger is doing its best to stay relevant in the evolving grocery marketplace, by finding new ways to compete.
Discussion Questions:
- What do you think are the factors behind Kroger’s decision to launch its “Our Brands” clothing lineup?
- What will determine whether Kroger succeeds or fails in this endeavor?
- Would you shop for apparel at Kroger?
Source: Matthew Stern, “Can Kroger Make a Name for Itself in Fashion?” Retail Wire, November 6, 2017