Kroger Expanded Private Label Brand to Lower Costs
The grocer is scaling its house brand to exert pricing leverage against national suppliers for shoppers.
Updated on Oct. 7, 2026 in Consumer Goods
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On September 11, 2026, Kroger announced plans to expand its Smart Way private-label brand from 130 to 1,000 items over the next year. The move aims to attract cost-conscious shoppers while pressuring national brand suppliers to lower their prices.
Why it matters
By leveraging a growing catalog of house-branded goods, the retailer aims to improve margins and offer competitive pricing amid ongoing economic uncertainty. This strategy allows the company to use its own products as viable, lower-cost alternatives to national names during procurement negotiations.
Kroger generated $39 billion in private-label sales last year, a 28% increase that represents a significant portion of its $148 billion in total annual revenue. The company currently manages 13,000 house-branded items and operates 33 manufacturing plants to produce 20% of its own inventory.
The players
Kroger
A national grocery retailer operating nearly 2,700 stores across 35 states with a focus on private-label manufacturing.
Greg Foran
The current CEO of Kroger who is overseeing the expansion of the company's private-label strategy.
The details
Kroger utilizes its network of 33 manufacturing plants to produce 20% of its house brands internally, providing the operational flexibility to bypass external supply chains. By offering 1,000 Smart Way items, the retailer creates a consistent price-anchor strategy that forces national brand suppliers to compete directly on cost. This leverage is particularly effective across the company's 2,700 stores, where the scale of its inventory footprint serves as a deterrent to price hikes from major suppliers.
Timeline
September 11, 2026: CEO Greg Foran announced the Smart Way expansion.
Next year: The Smart Way brand will reach 1,000 items.
Market Landscape
This strategy follows the broader retail industry trend of using private-label expansion as a primary hedge against inflation to drive store traffic. It marks a push to consolidate shelf space at the expense of national brands that have historically resisted retail-side price cuts.
Operators should monitor the product categories where house brands gain significant shelf space, as these segments often experience the most aggressive downward pricing pressure. Reviewing supplier contracts for exclusivity or minimum-price clauses may be necessary if a primary vendor faces new competition from a retailer's internal brand.
The takeaway
The successful use of house brands as a negotiation tool requires deep manufacturing integration and high store density. Operators should evaluate their product mix to identify which items are most vulnerable to being swapped for private-label alternatives during the next supply contract renewal.
Further reading
For more on industry shifts, see Consumer Goods.
Source note: This article includes information reported by Cincinnati.
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