Kroger Gets Lucky’s as “Fresh” Learning Lab

Earlier this month, Kroger and Boulder, Colorado-based natural & organics foods retailer Lucky’s Market announced a “strategic partnership.” As stated in the press release, the partnership:

“…will benefit customers and accelerate growth in new and existing markets by combining Kroger’s scale and experience with Lucky’s best products, practices and techniques.”

The press release also reveals that Kroger made a “meaningful” investment in Lucky’s, which is intended to significantly accelerate Lucky’s Market growth in existing and new markets. Lucky’s, known for featuring many local items and locally grown produce, currently operates 17 stores in 13 states primarily throughout the Midwest and Southeast.

With the backing of Kroger’s deep pockets, watch for an increasing number of Lucky’s Markets to crop up in rather rapid fashion. This should put it on solid footing to compete against the likes of Sprout’s Farmers Market and fast-growing Fresh Thyme. (For more, see Fresh Thyme: Gluten Free Retail Tour.)

Lucky’s Market: What to Expect

• The Lucky’s Market featured here opened in 2014 and is located in the Clintonville area of Columbus, Ohio.

• Lucky’s stores average about 30,000 square feet. The store layout is intended to resemble a farmer’s market. Fresh fruits & vegetables take center stage. Merchandising displays make use of barrels, bins and wooden crates.

• Signs covering the back wall of the produce department make shoppers aware of the retailer’s philosophy: a clear focus on natural, seasonal and locally grown.

• The prepared foods section features restaurant-quality meal solutions for busy, on-the-go shoppers.

• A variety of “scratch-made” grab-and-go sides are available. Color-coded shelf tags highlight items that are vegan (green stickers), gluten free (yellow) and dairy free (red).

• Lucky’s carries a broad range of grocery items that have no artificial colors, flavors or preservatives. Shelf tags call out verified non-GMO products as well as home-grown items.

• Again, the mantra in the bakery is on home grown. A host of gluten-free baked goods are available, like those from Eban’s Bakehouse of Grove City, Ohio, a Columbus suburb.

Key Takeaways

No doubt about it, Kroger’s investment should be chalked up as a learning lab. We expect Kroger seeks to gain knowledge in multiple areas:

• Running a successful small-box fresh-oriented grocery format

• Providing customers with affordable natural & organic foods

• Harvesting “locally grown” relationships

• Leveraging Lucky’s restaurant-quality prepared foods operation on a market-by-market basis