If you live in the Midwestern United States, chances are you‘re quite familiar with Meijer and Kroger – two of the largest and most prominent grocery store chains in the region. With their often similar store designs and product offerings, it‘s a common misconception among many shoppers that Meijer is actually owned by or part of Kroger.
However, the reality is that while these two retailers may be close competitors, they are in fact completely separate companies with distinct ownership structures. In this in-depth article, we‘ll explore the relationship between Kroger and Meijer, and clarify once and for all whether Kroger owns Meijer (spoiler alert: they don‘t!).
Meijer: A Privately-Owned Midwestern Staple
First, let‘s take a closer look at Meijer. Founded way back in 1934 by Dutch immigrant Hendrik Meijer in Greenville, Michigan, Meijer helped pioneer the "supercenter" concept now ubiquitous in retail. His stores were among the first to offer both groceries and department store merchandise under one roof.
From its humble beginnings during the Great Depression, Meijer has steadily grown to become one of the largest privately-owned companies in the United States. Today, the chain includes over 240 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois, Kentucky and Wisconsin.
One of the defining traits of Meijer is that it continues to be privately held and family-owned after all these years. The company is currently led by brothers Hank and Doug Meijer, the grandsons of founder Hendrik, who have a combined estimated net worth of $8.7 billion. This private ownership allows Meijer to be more nimble and plan for the long-term without facing pressure from public shareholders.
Kroger: The Largest Grocery Retailer in America
Then there‘s Kroger, an absolute behemoth in the grocery industry. Tracing its roots back to a single store opened by Bernard Kroger in Cincinnati in 1883, Kroger has grown to become the largest supermarket chain in the United States by revenue and the second largest retailer of any kind behind Walmart.
As of 2022, Kroger operates a staggering 2,800 stores in 35 states under a variety of local banner names. Chances are you‘ve shopped at a Kroger-owned store without even realizing it! In addition to Kroger stores, the company‘s brands include:
- Fred Meyer
- Ralphs
- Dillons
- Smith‘s
- King Soopers
- City Market
- Fry‘s
- QFC
- Harris Teeter
- and many more
Kroger rakes in over $110 billion a year in sales with its vast coast-to-coast empire of supermarkets, which range from upscale urban shops to massive suburban supercenters often combined with department stores, furniture stores and even jewelry stores.
Unlike Meijer, Kroger is a publicly-traded company, listed on the New York Stock Exchange under the ticker symbol KR. With a market capitalization of around $30 billion, Kroger is owned by a wide base of public shareholders. Major institutional investors in Kroger include mutual fund giants Vanguard and Blackrock, as well as Warren Buffett‘s Berkshire Hathaway which owns an 8% stake.
Meijer Is Not Owned by Kroger
So to return to our original question, the simple answer is no, Meijer is not owned by Kroger. While they compete in some of the same markets, Meijer and Kroger are independent competitors.
Why the frequent confusion on this topic? A big reason is that Kroger does in fact operate a chain of stores called Fred Meyer (note the different spelling) in the Western U.S., which can be mixed up with the Midwest-based Meijer chain. To be clear though, Meijer and Fred Meyer are completely separate companies.
Another factor is that Kroger, as the largest player in the industry, is often seen as representing grocery stores in general. So it‘s not uncommon for people to associate other major regional chains with Kroger whether or not there is an actual connection.
How Meijer and Kroger Stack Up
While Meijer and Kroger may not be under the same corporate umbrella, these two competitors share a lot in common in their efforts to attract customers. Let‘s examine how they compare in a few key areas:
Pricing
In general, Kroger has a reputation for lower prices compared to Meijer and many other grocery chains. This makes sense given Kroger‘s nationwide scale and purchasing power advantages. Several pricing analysis studies have found that a basket of goods at Kroger is typically cheaper than the same items at Meijer.
However, Meijer often runs very competitive promotions and sales that can undercut Kroger‘s everyday prices. And of course, prices can vary quite a bit by individual product and location. But on the whole, budget-conscious shoppers tend to find better deals at Kroger, which is one of the key reasons it has grown to be the market leader.
Selection
Both Meijer and Kroger offer a very wide selection that goes well beyond groceries, spanning clothing, home goods, electronics, pharmacy, toys and more. In general though, Meijer is regarded as having a somewhat deeper and more diverse assortment, partly because most Meijer locations are larger supercenters while Kroger has a bigger mix of store formats.
Meijer stores tend to range from 150,000 to over 200,000 square feet in size, with a massive variety of merchandise as well as features like in-store dining. Kroger stores are more varied but typically smaller on average, though of course Kroger operates many huge marketplace stores as well.
Geographic Reach
The geographic footprints of Meijer and Kroger are quite different. Meijer is a distinctly Midwestern chain, with stores located in six states: Michigan, Indiana, Ohio, Illinois, Kentucky and Wisconsin. Meijer has expanded into a few new states like Wisconsin in recent years but remains highly concentrated in the Great Lakes region where it began.
Kroger, in contrast, has a true nationwide presence with operations spanning 35 states and growing. Kroger stores can be found everywhere from Seattle to Atlanta to New England. However, Kroger actually does not have stores in some of Meijer‘s core markets like Michigan and Wisconsin, as Kroger tends to avoid areas where another major player like Meijer is already entrenched.
What the Future Holds for Meijer and Kroger
So while Meijer and Kroger may not be linked corporately, they do find themselves linked as competitors in an industry facing more disruption than ever before. From the continued growth of online grocery shopping to the rise of smaller-format stores to the ongoing push into groceries by giants like Amazon and Walmart, regional traditional chains like Meijer and Kroger have their work cut out for them to stay ahead of the curve.
Both companies are investing aggressively to meet these challenges. Kroger has bet big on its Ocado partnership for automated fulfillment centers that can efficiently fill a huge number of online orders. Kroger aims to double its digital sales to $20 billion by 2022. Meijer has kept pace with its Meijer Home Delivery service powered by Shipt and curbside pickup now available at most locations.
At the same time, Meijer continues to open new supercenters to expand its loyal customer base, while Kroger keeps growing its portfolio with acquisitions like that of specialty grocery chain Roundy‘s in 2015. Amid an uncertain future, both Meijer and Kroger are doing everything they can to maintain their long-held positions as leaders in the grocery business. The winner of their head-to-head battle in the Midwest and beyond remains to be seen.
The only thing we can say for sure is that Meijer and Kroger, no matter how similar they may seem to the everyday shopper, are and will remain very much separate entities. So next time a friend or family member claims with confidence that Kroger owns Meijer, you‘ll be able to set the record straight!
