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Friday, February 1, 2013

Let's Go Krogering...

...the happy way to shop!

Having lived in Cincinnati all my life I've taken "going Krogering" for granted. Kroger has always been around with a store in every Cincinnati neighborhood and suburb. So I was more than a little "Cincinnati Proud" when I found out the first Kroger store originated right here in our Queen City. 

Bernard Henry Kroger was born in 1860 to German immigrants living in Covington, Kentucky. When Barney was 16 he took a job selling tea and coffee door to door in Cincinnati. A couple of years later he took a job at the struggling Imperial Tea Company. The owners offered him 10% of the profits if he could turn the company around. After successfully moving from clerk to manager and turning the unimpressive company for a profit, Kroger wanted to invest his share of the profits in one-third of the company. The owners refused so Kroger struck out on his own.

In 1883 Barney Kroger, with $350 borrowed from a friend and $372 of his own money, opened his first store on Pearl Street in Cincinnati. The Great American Western Tea Company was 17 feet wide and three blocks from the river. He also bought a horse and shiny red wagon, for back then groceries were delivered to the customer. He ran his business with a simple motto: “Be particular. Never sell anything you would not want yourself.”

Despite a couple of setbacks; losing his horse and wagon in a train wreck two weeks after opening and then a few weeks after that, losing his entire stock of groceries in a flood; Kroger persevered. Within a year Kroger was doing so well he bought out his partner and within two years he owned four stores.Today with nearly 2,500 stores in 31 states under two dozen banners and annual sales of more than $70 billion, Kroger ranks as one of the nation’s largest retailers.

Barney Kroger not only started a chain of grocery stores he was an innovator of the times. He advertised more regularly in the newspaper than any other grocery in town. By 1902, the Kroger Grocery and Baking Company was organized and was the first grocery in the nation to bake its own bread. He was also the first to sell meats and groceries in the same store.

Kroger saw an opportunity to increase his income by manufacturing some of the products he sold. When farmers came to town with their produce, he bought far more cabbage than he could expect his customers to buy. He took the cabbage home to his mother who, following her favorite recipe, turned it into tangy sauerkraut that proved hugely popular with his German customers. Today Kroger operates 40 food processing plants producing over 14,000 private-label items.

The company introduced another innovation in 1916 with the beginnings of self-service shopping. Like today, customers went to the grocery store, chose their own merchandise, and brought it home themselves. Many customers appreciated having the opportunity to select their own items. Other stores quickly adopted Kroger's innovation. In 1972, Kroger became the first grocery retailer in America to test an electronic scanner.

Sources:
Cincinnati Then and Now - Iola silberstein
Pleasant Family Shopping
Kroger Website
Ohio History Central