US grocery retailer Kroger has announced plans to combine its two retail divisions headquartered in Livonia, Michigan and Columbus, Ohio.
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The company said the consolidation will enable it to reduce operating costs, improve administrative efficiencies, and invest additional capital in the core grocery business to drive sales growth.
Kroger’s Michigan division operates 113 stores under the Kroger and Kessel Food Markets banners in Michigan, while the Columbus division operates 116 stores under the Kroger banner in central and northwestern Ohio and parts of West Virginia.
Jon Flora, currently president of Kroger’s Michigan division, is to lead the combined division of 229 stores and will relocate to Columbus. M. Marnette Perry, currently president of the Columbus division, has been promoted to group vice president of perishables merchandising and procurement for the company and will join Kroger’s senior management team as a corporate officer in Cincinnati.
Following an investment of US$160m over the last two years, Flora said Kroger plans to invest more than $185m over the next three years to build, expand and remodel its Michigan store base.
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By GlobalData
