Walmart and Kroger – what is one thing that makes them identical? Both are American multinational retail giants.
- When Sam Walton founded Walmart in 1962, Kroger had already been in business for around 80 years.
- Founded by Barney Kroger in the year 1883, Kroger sure had the advantage of age.
The Kroger vs. Walmart battle has always been interesting. But as we look now, Walmart stands giant with an aspiring market cap of 392.01 billion USD before Kroger’s tiny and yet-not-tiny 31.13 billion USD. But Walmart’s Herculean stature should not imply its excellence. In business, neither age nor market cap indicates potential. In fact, there are other factors that measure and thus suggest which retailer is best. As a consumer, you look at retailers in a whole different way.
So, which retail company should you choose? Walmart or Kroger?
Walmart vs. Kroger: Comparison Based on Different Factors
Both these gargantuan retail companies deal in almost the same things. The similarity in their products is so high that if we remove their names’ signboards from their stores’ front, we won’t be able to tell who is who. But as consumers, we contemplate many factors to adjudge a company as the best choice for us.
When we talk about the retail sector, these two companies are no more alone after decades of dominance. This is the beauty of capitalism that age doesn’t define the present situation of a company. We see similar retail giants like Costco, Amazon, Walgreens, etc., sneering at them with plans in their minds. How do these retail corporations work? We’ll discuss all besides a comprehensive comparison between Kroger and Walmart.
1. Delivery Time
In the modern world, where everything seems to be in a hurry, time becomes the most valued thing. Such is the value of time that companies even use it as their USP – “we deliver within 10 minutes.”, “get it under 30 minutes or get it free.” etc.
Walmart and Kroger both these companies offer same-day delivery at an added cost. Walmart’s same-day delivery is done within 8-10 hours for $7.95, whereas its express delivery, which delivers to you within 2 hours, will cost you $10. These are approximate prices and keep changing depending on the change in its delivery strategies. Walmart’s curb pickup is free after the minimum cart value is met. However, one must understand how does Walmart pickup work in order to perceive the free delivery system. In actuality, free delivery doesn’t cost the company.
On the other hand, Kroger offers two options: 2-hour (or same-day) delivery and 30-minute delivery. The first option requires you to pay a $9.95 delivery fee. The ‘Now Delivery’ feature, which promises you a 30-minute delivery time, requires a minimum cart value of $10. So, in terms of delivery time, there is no clear winner in the Kroger vs Walmart battle. Both companies offer quick delivery.
2. Quality
Both Kroger and Walmart deal in numerous brands. The product quality usually depends upon the brand name under which it is sold. For example, if you buy Velveeta Cheese, you buy it because you trust this brand. However, you may compare the price of this product in these two companies.
“Kroger offers better brand options in their stores”
When it comes to natural produce and meat, quality becomes a factor. Walmart tries to keep the price of meat and produce lower than other retail companies. This sometimes means compromising on quality. People have sometimes complained about the quality of their meat and produce. Kroger’s meat quality has been claimed to be better by buyers. So, in terms of the quality of brands and natural produce, Kroger takes the upper hand.
3. Price
Pricing is one vital factor that most people consider during their purchase. Price and quality often relate to each other. The higher the price, the better the quality. However, it is only sometimes the case.
After comparing the prices of numerous items on both platforms, it was found that Walmart offered a price advantage on many items. But how and why do prices vary?
One big reason behind price differences between retail companies is the operating costs. These big companies spend billions on operating expenses.
“Walmart reported $546.812B as Operating Expenses in 2022”
Despite peaking operating expenses, it reported a net profit of $8.967B in 2022. One of the reasons behind the higher operating expenses is increasing competition. Many startups have come up recently in the retail sector. These startups use instacart clone apps to keep their development cost low while working at the same efficiency.
Walmart’s lower pricing is what gives it the winning title of ‘low-price leader’ in the Kroger vs. Walmart battle.
4. Long-term benefits (Coupons, Offers, Loyalty Programs, etc.)
As consumers, we love companies valuing us. Among many ways of retaining customers, one prominent way is having loyalty programs.
“Customer Satisfaction is worthless. Customer loyalty is priceless.”
– Jeffrey Gitomer
According to a research report by InMarket, Walmart reigns the market at the top with a score of 3.22 in terms of customer loyalty. People have reported Walmart to be offering better discounts and coupons. And this is one big reason why Walmart has lower prices.
5. Size
Although coming into existence around 80 years later than Kroger, Walmart is a giant in almost every dynamic. In the year 2022, Walmart reported sales of $600.112B. This speaks about the efforts that Walmart put into expansion.
“Walmart has 10,500 stores; Kroger has 2,849”
But when it comes to the size of stores, both Walmart and Kroger allow sufficient store space to the shoppers.
6. Future Plans
The majority prefer Walmart over Kroger for its lower prices. This is one prominent reason why Walmart succeeded in capturing the global market. To counter, Kroger has recently planned to invest $25 Billion in an attempt to bring its prices down.
7. Customer Service
For a business, customer service directly impacts its success. No company can grow its customer base with poor customer service. Customers have rated Walmart a little over Kroger for its customer service; where Kroger scored 5 in NPS, Walmart scored 12.
Walmart has cleaner stores. Also, it offers better after-sales services.
How to Know Which is Good for You?
Choosing a retail company can be confusing because retail giants keep changing their strategies. Someday your go-to company can please you, while at other times, it may worry you. But when it comes to Kroger vs. Walmart, things are not so misty because of their deep history. Price-wise, people prefer Walmart because of its effort to reduce costs. However, the price might also change industry-wise. For example, people have complained about expensive baby care products at Walmart.
As a buyer, your priorities could be different. You first have to decide what you prefer. If you are looking for customer loyalty or price, go for Walmart. However, if the brand is your concern, Kroger might be the thing for you.
Conclusion
The retail industry is complex and competitive. The global retail trade is projected to reach a mighty figure of 31.7 trillion USD by 2025. One of the reasons behind this is the rise of technology and the startup culture. Every day an increasing number of startups are setting their step in the retail sector in order to reap the overflowing benefits. These startups use technology to create a digital platform (a website or an app) that mediates between buyers and sellers. These startups are being helped by some of the excellent app development companies like aPurple by providing them with a customized app or clone. This keeps their initial costs low and helps these businesses compete with the giants.