Kroger Customer Service Essay

Consumers are the driving force in the economy due to everyday consumer needs and wants. As a result, outstanding customer service is imperative to a company’s success. Customer service is the act of taking care of the customer's needs by providing and delivering professional, helpful, high quality service and assistance before, during, and after the customer's requirements are met. The objective of this report is to provide insight into how The Kroger Co, America’s first grocery store continues to remain prominent in American history.

The Kroger Co has had an intensive background in retail customer services throughout American Culture. The moving force behind the company has been contributed to Bernard Henry Barney, who invested $372 and

founded the first store The Great Western Tea Company in 1883. “The son of a merchant, he ran his business with a simple motto be particular, never sells anything you would not want yourself” (Kroger Fact Book, 2016) Bernard Kroger’s philosophy is equally important today, and most desirable to most. As a frequent Harris Teeter shopper, one of the affiliated stores under the chain, services and products are high quality, which I believe creates a better shopping experience to the consumer base.
The company expanded outside the Cincinnati Ohio area by 1902 and acquired 60 additional stores and adopted the name The Kroger Grocery and Baking Company. The grocery chain was the first grocery supermarket to merge a bakery within the grocery establishment. In the same year, the company became incorporated in the Cincinnati Stock Exchange. During the next few years, the company merged the Nagle Meat Markets and Packing House the Kroger Company and Baking Company chain in 1904. (GALE ENCYCLOPEDIA OF U.S. ECONOMIC HISTORY, 2ND EDITION)
Within the last ten years, the chained acquired the 20 Framer Jack Stores from the Great Atlantic and Pacific Tea Company, and 18 Scott Food and Pharmacy Stores, from Supervalu northeast Indiana in the United States in 2007, they acquired eight Memphis area Schnucks stores in 2011; and in 2014 the chain acquired and merged with Harris Teeter Supermarkets, and Vitacost.com, Inc. and You Technology Brand Services Inc., based in South San Francisco, California. (Canadean)
Besides acquiring these major acquisitions, the company successfully operates and manages 10 bakeries plants, five grocery plants, two beverage plants, two meat plants, and two cheese plants and 17 dairy plants under the chain. (Hoover) According to John Carpenter, in addition to the plants, the Baker's, Harris Teeter, Kroger, Dillons, Fry's, Fred Meyer, Ralphs, Smith's City Market, Food 4 Less, Gerbes, Jay C, Pay Less and King Soopers, Little Clinic, Foods Co, Owen’s, QuikStop, Loaf N Jug, Turkey Hill, and Kwik Shop falls under the 2,796 grocery supermarkets, and 784 convenience stores throughout 35 states and the District of Columbia. Also, the company manages, 319 jewelry stores which, includes Littman and Fred Meyer Jewelers (Carpenter, John). Also there are 2,255 pharmacies making it the fifth largest pharmacy business in the nation, 1,455 fuel centers within a few of the grocery stores, (Merchant Online) The company recently acquired and merged a deal with ModernHealth in 2016. Under this merger, the customer’s base would expand to provide more medication its customers than normally. PR Newswire New York (New York) 20 July 2016
The company piloted new store infrastructure designs and deployed the latest IT technology resources to revamp the company customer base and shopping experience. For example, the commencement of The Main and Vine Store in Seattle Washington in 2016, which piloted a designed format that placed produces front and center, launched aisle eliminations, and deployed natural illumination skylines and LED lighting to make an emotional connection with patrons. (Robin Enright Designretailonline.com) With this in mind, I recently utilized the Harris Teeter’s online services for the first time this past Thanksgiving. I was very impressed. The personal shopper was very polite and gracious. She confirmed my order upon arrival, and brought my groceries to my vehicle roadside. Furthermore, the produce and meats were fresh and cool. Because of this experience, I will continue to utilize the online service indefinitely and share my shopping experience with friends and family.
The chain operates as a tall business structure.

The key executives, are Chairman and CEO, Rodney McMullen, Chief Operating Officer, Executive Vice President, Michael Donnelly, Chief Financial Officer, Executive Vice President, J Schlotman, Executive Vice President, Chief Information Officer Christopher Hielm, and Senior Vice President Mark Tuffin.(Mergent Online by FTSE Russell) Rodney McMullen has been Chairman and CEO since 2009. McMullen joined the company while in college in 1978 performing various duties. “McMullen played a critical role in Kroger’s restructuring - "beating off corporate raiders from Wall Street attempting to take over the company in a leveraged buyout.” (Copyright Boardroom Insiders, Inc. May 24,

2016).
Presently, under the company’s 366 collective bargaining agreements, there are 443 thousand full-time and part-time associates that make up the company’s workforce for the local and international unions.

The Human Resource Department “objective in every negotiation is to find a fair and reasonable balance between competitive costs and compensation packages that provide solid wages, good quality, affordable health care, and retirement benefits for our associates”. (Kroger Fact Book) In January 2016, the Human Rights Campaign rated Kroger 85 out of 100 in the Corporate Equality Index because the company did not cover transgender reassignment and medication therapy, with this in mind; the company implemented a health insurance policy extended services for transgender reassignments and drug therapy benefits up to $100K under Anthem Blue Cross Blue Shields (Saker, 2015). In my opinion, transgender reassignment is a choice; therefore, the company should not be responsible for any associated expenses for transgender reassignment surgery or medication. I feel the company health benefits obligation lies with cancer, diabetes or any of other medical conditions. To further my point, I believe that transgender reassignment is wrong, God created us as man and

woman
The company’s marketing strategy is lesser than its competitors Wegmans and Trader Joes. The majority of the marketing strategy for sales and services are performed in-house geared to existing customers. Throughout the last past 10 years, the chain promotes marketing through its loyalty-card program providing savings to customers and joint marketing programs with supplies (Neff, 2013).
The annual income statement for 2017 shows the company’s total revenue sales increased to $115337.00 Million compared previous years, the stock per share market price was $23.16, and profits were $1,975.00, Kroger’s mission is ending hunger in the communities we call home and eliminate waste across Kroger’s company by 2025.
Over the years, The Kroger Co. has utilized different methodologies to revamp, which has contribute to the company success to remain prominent in America. To demonstrate, the company deployed new stores designs formats, and lighting to help enhance the shopping experience of its patrons, which has contributed to the chain success since 1883. The company offers accurate employee’s benefits. Other methodologies the company has adopted to remain prominent are the creation and utilization of new ideas, technology, purchasing various resources and acquisitions to remain fresh in the retail industry. The company delivers on rewards and loyal programs savings for customers. Lastly, the company ensures that every effort is made to effectively communicate, customer service and knowing what the customer desired that has contributed to their prominent role in the United States.