Kroger Closes Fresno and Wenatchee Offices
CINCINNATI, OH - Kroger seems to be shifting its focus and making moves away from its former buying tactics, now closing both its Wenatchee, WA, and Fresno, CA, buying offices, sources have informed AndNowUKnow.
It’s no secret Kroger has been reevaluating its strategy and upping the stakes on its digital involvement. Since the introduction of its Restock Kroger plan last year, the retailer has continuously cited the outline for moves it is making in its approach to “create value for shareholders focuses on redefining the food and customer experience through digital and technology, expanding partnerships to create customer value, developing talent, and creating social impact.” At the same time, it has also been slowly consolidating operations across all categories, with produce lagging behind, as one longtime industry veteran, who asked to remain anonymous, pointed out.
“Over the past decade, Kroger has played quite a bit of ‘musical chairs’ with [produce] category managers, and buyers, too. Is Kroger losing valuable insight, knowledge, and relationships within the most dynamic department in the store? Is this move a sign of more changes and a larger gap to come, between suppliers and Kroger?” they said. “Fewer and larger shippers and more contracts and technology has shrunk our world, and perhaps reduced the perceived value of regional buying offices. This is a debatable point, and in this case someone lost and someone won.”
Kroger has certainly rocked the fresh produce boat as of late. Still fresh in all our minds is the move to enact a new Net 90 Payment Policy for suppliers across all sectors of the store, effectively asking all fresh produce providers to waive their rights under PACA, which it effectively dropped weeks later in regards to our industry after growers and associations made their plight. While the ANUK team certainly breathed a unanimous sigh of relief, experts raise concern that this was a sign of the retailer’s further withdrawal from key fresh produce insights, furthered by moves to close remote buyer offices.
“My concerns are bigger picture. Is this a sign of Kroger furthering themselves from suppliers in both a geographic, relationship and knowledge, or understanding sense?” another source shared in relation to the developments.
A number of contributors still reserve optimism of this new direction, observing that the closure of these offices could lead to a more centralized approach and vision that might be a better direction for the industry, suppliers, and beyond.
The retailer is offering current employees the opportunity to stay on its team, requiring them to relocate from their current locations to its homestead of Cincinnati, OH. Those who choose not to relocate but remain in their positions through October may reportedly be offered a severance, according to one source, but specified details have yet to be released.
Kroger did not immediately respond to a request for comment.
Ever looking to follow the pulse of this industry and all the sides that ensure its movement, AndNowUKnow will continue to report the latest.