How Does Kroger Make its Money?
Kroger is the largest supermarket chain in the United States and the second-largest general retailer by revenue (behind Walmart), operating approximately 2,700 grocery stores under banners including Kroger, Ralphs, Fred Meyer, Harris Teeter, King Soopers, and others across 35 states. The company also operates 2,200+ pharmacies within its stores, 1,600+ fuel centers, and 35 food production plants that manufacture store-brand products. Kroger’s private-label program (Our Brands) generates over $30 billion in sales, rivaling some of the largest CPG companies. The company has been investing heavily in digital commerce, delivery, and automated fulfillment centers through its partnership with Ocado.
Kroger (KR) Business Model
Kroger operates in the retail sector. Below is a summary of Kroger’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Kroger’s 2024 fiscal year filings with the SEC.
Kroger Competitors
Kroger’s key competitors and comparable public companies in the retail sector include Costco, Walmart, Target, and Dollar General. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Kroger stacks up by comparing their revenue breakdown, margins, and growth metrics.
Kroger Competitors
Kroger’s key competitors and comparable public companies in the retail sector include Costco, Walmart, Target, and Dollar General. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Kroger stacks up by comparing their revenue breakdown, margins, and growth metrics.
Kroger Competitors
Kroger’s key competitors and comparable public companies in the retail sector include Costco, Walmart, Target, and Dollar General. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Kroger stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Grocery (Supermarkets & Multi-Department Stores) | $142,000 | $141,000 | +0.7% |
| Fuel Centers | $10,500 | $11,500 | -8.7% |
| Pharmacy | $17,000 | $15,500 | +9.7% |
| Other (Digital, Third-Party Sales) | $1,500 | $1,200 | +25.0% |
| Total Revenue | $150,000 | $148,300 | +1.1% |
Grocery (Supermarkets & Multi-Department Stores) — 95% of Revenue
Fuel Centers — 7% of Revenue
Pharmacy — 11% of Revenue
Other (Digital, Third-Party Sales) — 1% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $150,000 | $148,300 |
| Cost of Revenue | $118,000 | $116,600 |
| Gross Profit | $32,000 | $31,700 |
| Operating Expenses | $27,800 | $27,500 |
| Operating Income | $4,200 | $4,200 |
| Net Income | $2,200 | $2,200 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 21.3%
- Operating Margin: 2.8%
- Revenue Growth: 1.1%
Is Kroger Profitable?
Yes, Kroger is profitable. The company reported net income of $2,200 on total revenue of $150,000. With an operating margin of 2.8%, Kroger demonstrates solid profitability for the retail sector. The gross margin of 21.3% reflects Kroger’s pricing power and cost structure.
What to Watch
- Identical store sales growth excluding fuel in a deflationary food environment
- Ocado automated fulfillment center rollout and digital delivery profitability
- Private-label (Our Brands) penetration growth driving margin expansion
- Alternative profit streams from Kroger Precision Marketing (retail media) and data analytics
Kroger (KR) Financial Summary
Kroger (KR) is a retail company that generated $150,000 in total revenue in fiscal year 2024. Revenue grew 1.1% year-over-year. The company earned $2,200 in net income, making it profitable. For a deeper look at Kroger’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.