Kroger testing new strategies at Fred Meyer

Kroger Co. is testing a new go-to-market strategy at select Fred Meyer stores in Spokane, Wash., and Coure d'Alene, Idaho, including a greater emphasis on food, and the introduction this month of a new rewards loyalty program called "My Freddy's."

Known internally as the "Spokane Project," the changes include the addition of more than 1,000 new grocery items, expanded natural and organic foods, new store layouts and the removal of some general merchandise including dedicated electronics departments. They are intended to test, among other things, Fred Meyer's ability to serve as a "food destination" and tackle different trip missions than the large weekly shop Fred Meyer typically draws, spokesman Zach Stratton told SN Tuesday.

Fred Meyer, based in Portland, Ore., operates large multi-department stores that influenced Kroger's development of its Marketplace concept rolling out in Kroger markets elsewhere in the country. The Spokane test includes integration of several initiatives being rolled out elsewhere throughout Kroger, including its Clicklist Internet shopping option at two of the locations; digital shopper marketing built around a customer's buying habits through Kroger's analytics arm, 84'.51; and in one store, a Cork & Tap in-store tavern.

Stratton said the Spokane-area stores were chosen because each serves a different demographic market, adding that the stores were testing different elements of the strategy. For example, one of the stores is studying an integrated natural and organics grocery offering as opposed to a separate set. "We're still in the process of finding the best mix," Stratton said.

The "My Freddy's" rewards program requires that shoppers use the card or associated mobile app to receive store discounts, a switch from the rebate-based rewards program currently in other Fred Meyer stores. The card still provides fuel point discounts, the company said.