Baker's Supermarkets

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Baker's Supermarkets, Inc.
Subsidiary
Industry Retail
Founded 1927 (91 years ago) (1927)
Products supermarkets/food-drug stores
Parent Fleming Companies, Inc
(1992–2001)
Kroger (2001–present)
Website BakersPlus.com

Baker's is a supermarket chain operating primarily in the metro area of Omaha, Nebraska. It is owned by Kroger. Baker's supermarket has an annual revenue of $325,000,000.

History[edit]

Abraham Baker opened his first grocery store in Walnut, Iowa in 1927. His first Omaha-area store opened in Bellevue, Nebraska in 1947, and his first in Omaha itself at 73rd and Maple Streets opened in 1957.

In 1971, Abraham's two sons, Jack and Bob, took on more management responsibility. In 1972, The Jewel Companies, Inc. made a deal with Baker's to open a Turn Style/Baker's Family Center in Omaha. As revenue's began to decline, The Baker family sold the chain to food wholesaler Fleming Companies, Inc in 1992. The Kroger Company purchased the Baker's stores from Fleming in 2001, after Fleming ran into financial problems.

In 2004, three former Albertsons supermarkets in Omaha were purchased and turned into Baker's stores after Albertsons withdrew from the Omaha market. Baker's today is run under the Dillons division, which includes Baker's, Dillons, and Gerbes.

Competitive Edge[edit]

In an aggressive industry such as retail, companies are always finding ways to gain competitive edge and become a more convenient "one stop shop" kind of environment. Baker's achieves this through offering several goods and services, and emphasizing value through savings programs and promotions.

Free Friday Download- Download the digital coupon on Bakersplus.com to receive a free item every Friday! You can sign up for reminders for Free Friday Downloads by texting PROMO to 99894.

Fuel Program- Shop at Baker’s Supermarket and earn money saving rewards for fuel! For every one dollar you spend, you receive 1 gas point. These points accumulate to earn you up to one dollar per gallon of gas! Points are doubled for gift card purchases.

Baker’s Community Rewards- Through shopping and swiping a membership card, customers can support local churches, schools and other organizations. This program accounts for millions of dollars in donations annually.

Order Online- Now you can order groceries online and have them delivered right to your house through the ClickList service! The Kroger brand implemented this new program in August 2016 to compete with Walmart and Amazon Fresh. In 2016, the Chief Executive for Kroger said the new program was not yet profitable, and says it adds extra costs to the stores to fill the orders. Tony Salinas, the e-commerce manager, said that there has been “overwhelmingly positive” feedback to the service. He described it as a convenient service enjoyed by “Senior Citizens, parents with young children and busy professionals”.

Baker’s Brands- Baker’s Supermarkets offer a variety of their own brands, including food, drink, baby, pet supplies and many more. The Baker’s Company states, “At over 40 manufacturing facilities here in the U.S., we're able to ensure that every single one of our brands is made to the highest standards, so that they're perfect for your family and your home.”

Additional Services- Coinstar, Western Union, Ticketmaster, Redbox

Market History- How Baker's fits in[edit]

The First Self Service grocery store was established in 1916, it was the Piggly Wiggly. This new system, in which consumers could enter and pick up their own items to checkout, replaced the old way where customers told the grocer what they needed from behind the counter. In the 1920s grocery stores began to dominate the market, and Kroger (Baker’s owner) got in on the action. Back then, Kroger and Baker’s were separate entities when Baker’s opened in 1927. The 1930s spawned the nation’s first Supermarkets. Along with the self-service aspect, customers were now able to buy all their groceries at one place. This replaced the hassle of travelling to a butcher, grocer, and greengrocer separately.  Baker’s has continued to grow with the industry, especially through Kroger’s entrance. There are many modern conveniences that were unheard of before, including online shopping, and free food downloads. As the markets became more competitive recently, there was a surge in the market for amenities like gas rewards, which Baker’s offers.  Another competitive edge in the grocery retail business is to include extra services, such as coffee shops and money services. Baker’s has a Starbucks, Coinstar, Western Union, Redbox, and even a Ticketmaster outlet to make it more of a “one stop shop” environment.

Kroger[edit]

Kroger, now the parent company of Baker’s Supermarket, deems themselves “America’s Grocer” in their 2017 Letter to the Shareholders, and serves over 8.5 million customers across over 2,700 Supermarkets. However, Baker’s accounts for only of these locations. This exemplifies the much bigger machine that Baker’s is a part of. CEO Rodney McMullin states “We always build our business plan assuming the environment is going to get more competitive next year not less.” This can be seen in the competitive nature of the services Baker’s offers, including gas rewards, online shopping, and even a Starbucks. With Kroger running the show, Baker’s will likely remain a dominant force in the Omaha Grocery market.

Competition[edit]

While Baker’s offers many deals and promotions that keep customers coming back, their area is loaded with competition. Their competitors in Omaha include Whole Foods, Wohlner’s and Fareway Grocery. Each of these retail spots poses a threat to the Baker’s market, so it is important for Kroger to remain diligent with their Baker’s division. These three competitors all close their doors between 9 and 10 PM, while Baker’s remains open 24 hours. This means more business for them while the other stores are resting. This provides significant competitive edge to Baker’s, because consumers know where they can always go to have their needs met. Still, with over 1000 reviews of the four entities listed, Bakers scores 4.3 stars while the others have 4.4 or 4.5 stars. This stiff neck to neck competition should encourage Baker’s to always exceed their customer’s expectations.

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