StrengthsWeaknesses

1. Strong commitment to innovation and customer service. Partnership with self-checkout system QueVision has reduced customer checkout wait times from 4 minutes to 30 seconds on average. 1. 53% of Krogers stores do not contain fuel centers. Fuel sales account for approximately 20% of Krogers total sales.

2. Possesses a diverse portfolio through its ownership of fine jewelry stores, traditional supermarkets, convenience stores, pharmacies, and food processing plants.2. Kroger has failed to respond to the emerging online market. Kroger does not possess an online retail outlet.

3. Kroger completed a stock acquisition of Harris Teeter on January 28, 2014. This acquisition allows Kroger to further reach new markets such as Washington D.C., the Southeastern, and the Mid-Atlantic regions3. Low market share in the pharmacy segment as Kroger only has approximately 1,500 locations nationwide

OpportunitiesSO StrategiesWO Strategies

1. Statistics have shown that qualities such as convenience and fast checkouts account for 28% and 30% of overall sales, respectively1. Expand the presence of time saving technologies such as QueVision into all store formats in order to increase customer satisfaction through reduced wait times (S1, O1)1. Create a new online pre-order and in store pickup program that allows consumers to shop from work or home in order to save time for busy customers. (W2, O2)

2. Increasing trend towards online shopping. 75% of consumers say that they shop online for products and services.2. Further diversify Krogers portfolio by creating an online marketplace that allows customers to pre-order groceries (S2, O2)2. Increase the location frequency of Krogers fuel stations in order to enhance quicker, one stop shopping for customers (W1, O1)

3. Due to the implementation of Obama Care, an additional 25 million Americans are expected to receive health insurance for the first time in 2014. This has the potential to boost Kroger pharmacy sales.3. Capitalize upon the emerging pharmaceutical market by installing Kroger pharmacies in the newly acquired Harris Teeter locations (S3, O3)3. Develop and attach more pharmacies to existing Kroger locations in order to take advantage of the increased customer base due to Obama Care (W3, O3)

ThreatsST StrategiesWT Strategies

1. Amazon recently created a division entitled AmazonFresh. This segment specializes in online grocery shopping and individual delivery systems to markets such as Seattle, Los Angeles, and San Francisco.1. Capitalize upon the acquisition of Harris Teeter, a more upscale grocer, and maintain higher prices in these locations in order to offset lower margins in Krogers current supermarkets (S3, T2)1. Develop an online program to rival that of AmazonFresh. Allow customers to pre order, prepay, and then pick up in store (W2, T1)

2. The USDA predicts grocery store food costs to increase from 2.5% to 3.5% in 20142. Continue to implement innovative, customer first technologies in Kroger locations in order to provide a unique customer experience that other retailers do not offer (S1, T3)2. Expand the presence of fuel marts in order to further differentiate Kroger from fierce competitors and market the company as a one-stop shopping experience (W1, T3)

3. Wal-Mart has achieved a ranking of the most popular retailer in the United States3. Further diversify Krogers portfolio into the online world by creating a preorder program that rivals that of Amazon by allowing customers to pre purchase and then pick up in store (S2, T1)3. Build more pharmacies, as they produce greater margins, in order to offset lower margins in the food segment (W3, T2)