Much has been written about the sales decline in many core center-store categories within traditional supermarkets, as they lose customers to clubs, mass merchants, dollar stores, and online alternatives. However, there is far less evidence that supermarkets have effectively responded to this competitive challenge.

A notable exception can be found in Kroger stores, particularly in the frequently purchased, non-perishable categories such as paper products, detergents, and household cleaners.

It seems Kroger is leveraging its industry-leading data analytics to identify shopper behavior patterns, including how customers tend to purchase certain items from various categories in clusters. These compatible categories are those that frequently appear together in shopping baskets during the same trip. Identifying these categories is critical because losing a shopper’s loyalty in one area often results in losses across related categories.

While some retailers have experimented with new fixtures, lower pricing, or increased promotions, Kroger has taken a more transformative approach. They’ve elevated their Paper Products category by giving it elements of departmental status in its presentation. By widening the aisle and improving access, Kroger has created space to feature palletized deal products. Additionally, the messaging within this newly formatted section emphasizes that there’s no need to shop elsewhere for these items.

Paper Products have been a particularly challenging category for traditional supermarkets to defend. Clubs, mass merchants, dollar stores, and now online subscription services have taken market share by offering a combination of lower prices and added convenience. However, research consistently shows that time-conscious shoppers prefer to consolidate their grocery shopping at a single retailer if given the option. Kroger’s strategy addresses both price and convenience, making it better positioned to compete for these shoppers.

Winning back shoppers in high-frequency categories like Paper Products also enables supermarkets to recover sales in compatible categories that often appear in the same shopping baskets. Basket analysis can help identify these related categories and guide strategic efforts.

Kroger’s initiatives also align with key insights into shopping behavior, making the category easier to access, navigate, and shop. These principles are supported by the work of experts like Dr. Neale Martin, author of “Habit: The 95% of Shopping Behavior Marketers Ignore,” and Dr. Herb Sorensen, author of “Inside the Mind of the Shopper.” Both books provide valuable insights for retail space planners and merchandisers looking to revitalize sales in the supermarket center store.