In a recent interview with The Shelby Report of the Southwest, Rudy DiPietro, incoming president of Kroger’s Dallas Division, shared his insights on the shifting market dynamics and competitive landscape in North Texas.
How does Kroger differentiate itself from its competitors in North Texas?
There are many factors shoppers look for, including location, pricing, product availability, freshness, friendliness of staff, ability to purchase groceries online versus in-store, pickup and delivery options, etc.
Ultimately, our 13,000 Kroger associates in North Texas are the key differentiator that sets us apart from the competition and our main connection to the communities we serve.
What are the challenges in the Dallas grocery market, and how are they being addressed?
North Texas is one of the fastest growing areas of the country and is also the most competitive, with more than two dozen major competitors and hundreds of independent grocers fighting to stand out.
The competition makes us better, as it helps Kroger maintain our focus on giving the customer the best overall grocery shopping experience – where our shelves are full, everything is fresh and our people are friendly.
How has the influx of new residents to Dallas impacted Kroger’s market strategy?
As the Metroplex continues to expand, so will Kroger. New communities will need access to fresh, affordable groceries, and Kroger will reach those communities through a combination of existing stores, new construction or through our Kroger Delivery service from our dedicated fulfillment center in southern Dallas.
Beyond mere growth, Kroger is closely following the expanding diversity of the population in North Texas and our strategic response – with more multicultural product offerings – provides shoppers a taste of home right here in Texas.
What role do private label brands play in Kroger’s strategy in Dallas?
Kroger’s Our Brands portfolio includes more than 13,000 items that families know they can trust. These are products you can only find at Kroger stores, which offer the same great quality of national brands at a more affordable price.
What role do local products and suppliers play in your Dallas stores?
Fresh is local. That’s why Kroger emphasizes partnerships with local suppliers throughout Texas.
We take pride in all things Texas and feature hundreds of products that are sourced, produced and loved right here in the Lone Star State.
The products we produce from our own facilities – including American Beverage Co. in Irving and Vandervoort’s Dairy in Fort Worth – ensure that we are delivering products that are extremely fresh, unique and local.
These are products that Texans are proud to purchase and enjoy.
Given Dallas’ size and traffic, how does Kroger manage its supply chain to ensure goods are delivered efficiently?
In North Texas, we operate a distribution center in Keller that services all 110 stores in our Dallas Division and have a fulfillment center in southern Dallas that picks and fulfills orders for delivery.
How does Kroger tailor its store formats and layouts to the specific demographics and needs of different neighborhoods in Dallas?
Kroger is focused on delivering more Marketplace format stores, which typically feature 120,000-plus square feet of display space to provide a more comfortable shopping experience while delivering greater access to apparel, household goods, toys, pet food and essentials and more.
What investments is Kroger making in its existing Dallas stores to enhance the customer experience?
As North Texas continues to expand, so does its demographics. In anticipation, we are introducing our new Hispanic and Asian Experience concepts in stores where the demographics of the community align.
For example, the new Kroger Marketplace store in Plano – which opened in January in an area with a 42 percent Asian demographic – features an enhanced selection of products for shoppers who crave Asian flavors, with an increased variety of current selections and new products.
How does Kroger address staffing and labor challenges in the Dallas market?
As the only unionized grocer in North Texas, Kroger has increased wages across the board to ensure our associates have continuous access to competitive wages, world-class medical benefits and a pension for retirement. As such, our associate retention levels are at an all-time high.
How does Kroger engage with and support the Dallas community through charitable initiatives and partnerships?
Our Dallas Division is focused on delivering communities that are free from hunger through our Zero Hunger Zero Waste social and environmental impact plan.
Each year, the company donates cash and resources, including more than four million pounds of nutritious food from our stores through Feeding America food banks to feed those in our communities that are experiencing food insecurity.
Kroger has donated more than 127 million meals throughout Texas. Last year, the Dallas Division donated nearly a million dollars more through fundraisers, cash donations and gift cards.
The division also helped raise more than $500,000 to support the Leukemia & Lymphoma Society’s Dare to Dream campaign and also equipped more than 42,000 school kids in North Texas with back-to-school kits.
What trends are Kroger monitoring in the Dallas grocery market, and how will they shape the company’s future strategies?
We are driving a multicultural approach, [as with] our Asian and Hispanic Experience stores, to appeal to a broader audience. In Texas, we’ll continue expansion of our brick-and-mortar stores to meet the ever-growing demand for fresh, affordable groceries throughout North Texas, East Texas and Louisiana.
With so many ways to shop for groceries in-store and online through pickup and delivery, Kroger’s seamless approach can meet the customer whenever and wherever it is most convenient for them. And we’ll continue to provide our assortment of local products from companies that are throughout Texas and right in our own neighborhoods.
In addition to our recently opened store in Plano, our plans are on track to remodel about 12 stores each year.
[RELATED: DiPietro To Succeed Shoemaker As Kroger’s Dallas Division President]