Kroger in new tactic to keep pace with Amazon, Walmart

11/3/2017
The Kroger Co. is diving into fashion.

The Kroger Co. on Friday announced it was launching its own "modern lifestyle" apparel brand for children, young men, juniors, men and women. The "active-inspired" Our Brands private-label line will debut at Fred Meyer and Kroger Marketplace stores, totaling 300 locations across the country, starting in fall 2018.

"This new brand gives Kroger a chance to inspire and connect with our customers, offering effortless style every day – from elevated basics to fashionable highlights," said Robert Clark, Kroger's senior VP of merchandising. "This new offering is on-trend, convenient, and right in line with our customers' needs. This launch of Our Brands fashion will re-invigorate Kroger's apparel line."

Kroger currently sells clothes, shoes and accessories in 123 of its Fred Meyer and Smith’s multi-department stores, along with 167 Marketplace locations around the country. It also carries some seasonal apparel in its food stores.

"Our current customers alone present a huge opportunity for growth in apparel," said Kari Armbruster, corporate affairs communications manager, The Kroger Co. "Designing a new brand will give Kroger a chance to inspire and connect with our customers around apparel in a new way."

The company also believes it can generate cost savings from our existing apparel business.

"We are looking at all points along the complex supply line of apparel – from manufacturing through logistics – and we feel that there are multiple opportunities to reduce costs and streamline the supply chain," said Armbruster

Kroger's expansion in private-label comes after Amazon has stepped up its own private-label fashion offerings. Walmart had increased its fashion offerings through acquiring such online start-ups as Bonobos. And German discount grocer Lidl recently launched its own exclusive line, with model Heidi Klum.
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