Will acquisition of a mom and pop shop pay off big for Kroger?
Kroger is to Murray's as Walmart is to Moosejaw. In my latest Retail Wire weigh-in, I share three new standards driving retail acquisitions.
Kroger’s acquisition of Murray’s Cheese exemplifies several new retail realities:
- Test and learn – Kroger acquired Murray’s after testing the concept first. Retailers don’t have to go all-in from the start, but smart ones pull the trigger once the benefits of ownership become clear.
- Niche plays – Just as Walmart is following its big gulp of Jet.com with niche chasers like ShoeBuy and Moosejaw, Kroger is bolstering its early platform plays with category killers that bring instant category depth, relevance and fan/user bases with them.
- Talent grabs – Kroger got more than cheese and olives with its acquisition of Murray’s, it acquired, and leveraged, the talent, culture and processes that make Murray’s so special.