the Controversial Committee Report
“We don’t raise sacred cows...we just butcher them.”
“Kroger: Reality Meets Hype”©
As Kroger Stores was recently called out in a Dallas Morning News article (see link below) concerning their treatment and unprofessional handling of local small business vendors — especially one with M/WOB status — one has to wonder about the validity of other PR spin and fluffy rhetoric documented on the company’s web site.
With Kroger stock prices slipping and earnings reports not extremely favorable, Kroger apparently relied on new and untested store changes to achieve these financial potholes.
Staff of the CCR took a gander at some of the key hyperbola, which Kroger publicizes, to consider how some of the current issues — as noted in the Dallas Morning News article — might have created an impact on their operations.
The perspective of one local small business, Linthicum Specialties, will be the focal point for this review and report.
Kroger(dot)Com/WeAreLocal: As recent as September 2017, Kroger was crowing: “At Kroger, we make it a priority to source locally –- after all, it’s important to support our neighbors…”. Not only does this make good sense, but it allows local small businesses to not only supply products and services, but could assist in keeping Kroger purchasing prices lower. Having this as a corporate goal would be financially advantageous.
Reality In the Trenches: Without notice and with very unprofessional and verbal bullying actions, Kroger - Dallas Division booted at least three local small business vendors. The businesses were blindsided and not formally informed as to why they were no longer considered a vendor.
In the case of Linthicum Specialties, this ended a thirty-year relationship of supplying area Kroger stores with their floral department needs and requirements.
(Since July, 2017, Kroger officials have refused to respond to any letters or emails concerning being reinstated, or answering why Linthicum Specialties was even dropped as a vendor.)
Not only was Linthicum Specialties cost of supplies to Kroger floral departments low, there was no delivery or freight charges added. Additionally, Linthicum Specialties could make next day deliveries if necessary to satisfy floral department needs.
Instead of using local vendors, Kroger instituted a process of using an out-of-state vendor in Georgia for floral department supplies. Not only were freight charges now added for floral department shipments, but needed supplies lacked speedy delivery and availability for the stores. Additionally, some of the supplies, once necessary and utilized by floral departments, were also curtailed. This meant floral departments could no longer meet many customer needs…which they once provided.
With Kroger floral departments unable to meet customer needs and desires, one should not be surprised when — what was once a considerably high profit center for Kroger stores — the floral departments suddenly became skeletons for merchandise once demanded by customers.
This dismissal of small business vendors, of course, didn’t improve Kroger’s floral department bottom line. And Linthicum Specialties was not allowed to assist or supply merchandise which floral departments needed, requested, and wanted. Needless to say, even the morale of floral department personnel shrank as the floral department’s profitability waned.
It seems apparent, Kroger floral department customers soon ‘hit the bricks instead of clicks,’ thus causing a once lofty revenue stream to grow seriously shallow.
Kroger Diversity Supplier Program: The Kroger program goal, as noted on their web site material, states: “The goal of Kroger’s Supplier Diversity Program is to foster the promotion, growth, and development of minority, women and other diverse owned enterprises.”
While this is very admirable and important, the Kroger - Dallas Division apparently might not be aware of the company’s policy. If they were, then how would they explain the handling, verbal bullying, and treatment of dismissing a M/WOB small business vendor who was an approved member of the Kroger Diversity Supplier Program?
Reality In the Trenches: For nearly a year, Linthicum Specialties has been asking Kroger officials this same question. To date, not one Kroger official — even those in the Supplier Diversity Program — has responded to any inquiry from Linthicum Specialties.
Not only is Linthicum Specialties a member of the Kroger Supplier Diversity program, but is also a recognized M/WOB.
If having stated and required qualifications are important to Kroger — to promote their all inclusive goal — then what is the rationale for dismissing a vendor who met all the requirements? No complaints, or service issues have ever been raised — by Kroger officials or floral department personnel — during the thirty-years Linthicum Specialties was a vendor. In fact, the opposite is true. Floral department personnel could attest to Linthicum Specialties low prices, speedy delivery, friendly service and providing all the necessary and required supplies floral departments needed to meet customer needs.
Linthicum Specialties dedication to serving Kroger - Dallas Division stores never faltered. And if a Diversity Supplier Program and M/WOB vendor is treated in this fashion, one should wonder how many other diverse vendor-type groups are thrown under the Kroger bus without notice, documentation, or review…especially, veterans, LGBT, etc.?
Kroger Supports Women’s Health: Kroger’s support of this program recognizes “women’s health initiatives…especially breast cancer research, education and services.” While not only promoting the program, Kroger is also very generous with giving $3 million annually to breast cancer initiatives.
There can be no argument this program indirectly helps many individuals who may or may not even be Kroger customers. And this is good.
Reality In the Trenches: During a period of nearly one year, Linthicum Specialties has attempted to have Kroger officials respond to a request of informing why their vendor status was yanked and the rationale for why being a vendor cannot be restored. No correspondence has been received from any Kroger official.
During this time, the small business owner ,of Linthicum Specialties, who is a Kroger Diversity Supplier member and M/WOB, was undergoing chemo treatments and later surgery for breast cancer. A real fighter, the owner still managed to keep her business operation going —even with the loss of sales to Kroger.
As a small business owner, her fight was for better health and achieving a level/competitive playing field to conduct business with Kroger. The personal factor was not to seek sympathy.
Of course, Kroger officials and floral department personnel were not aware of this health issue as the owner did not inform them. The owner’s intent was to keep the focus on restoring the vendor status for her small business.
While there are other issues which the Kroger - Dallas Division created for Linthicum Specialties, the above clearly notes Kroger officials are probably more concerned when a customer registers a complaint over wilted lettuce in a store, than responding to legitimate issues involving a thirty-year supplier to their floral departments.
Do you think Kroger officials should review prior workable operations of satisfying customer needs (old school business practices) as opposed to chasing new “click” ideas a consultant might demonstrate on a PowerPoint presentation to corporate desk decision makers?
(Remember: Consultants are akin to Politicians in that they will tell individuals standing in front of them exactly what they want to hear.)
When one considers the effective and profitable operations of international grocery chain ALDI and their neighborhood brother, Trader Joe’s, these businesses seem to embrace the “old school” model of serving customers and remaining profitable at the same time.
And this gives staff of the CCR a ‘light bulb’ moment. We’ll set up a consulting firm to coach Kroger officials on how to return to “old school” business practices which are profitable. We’ll even do this review pro bono!
Kroger officials only need to contact click on the web site of Dylan Westie, the new founder of Reality Meets Hype©. He can take time from wordsmithing CCR reports and put all his paws on all Kroger’s current business and purchasing processes to bring customers back to the stores…especially the floral departments.
Should any dear readers of the CCR want to weigh-in with their thoughts regarding Kroger experiences, contact us. If you really want to weigh-in heavily, contact the following Kroger officials. This information is provided to save you Google search time:
Dana Zurcher
President, Kroger - Dallas Division
(502)741-9599
Rodney McMullen
Board Chairman and CEO, Kroger Stores
(513) 762-4000
Inform your friends and associates. The time is now to restore Irving and Dallas area Kroger stores to their previous ability to serve customers lost via the corporate bureaucracy of shrinking sales and floral department’s blooming.
Readers might also want to register their thoughts about standing in Kroger “self check-out” lines with comatose and not digitally experienced customers scraping all the frost off Blue Bell ice cream cartons in order to have the scanning machine ring up the cost!
The stand-in-line-scanning process is certainly detrimental to customers when ten cashier lines are vacant due to not having cashiers posted to serve customer needs.
The more staff of the CCR considers these issues, Kroger officials should immediately contact “Reality Meets Hype” and plot a course to satisfy customer demands, needs and wants.
Does ALDI have self-service scanners?
………………………………….Mark Holbrook
Judy Howard, owner of Linthicum Specialties, with
stock merchandise in her truck available for florist.
(Photographer: Lawrence Jenkins)
NOTES:
(1) The link for the May 11, 2018, Dallas Morning News Kroger article is:
(2) This CCR report was distributed to the established mailing list and select media contacts.
(3) Even after the May 11, 2018, Dallas Morning News article, no Kroger official has made any attempt to respond to Linthicum Specialties correspondence.
(4) Full Disclosure: Staff members of the CCR have a personal interest in the remarkably unfair and unprofessional actions taken by Kroger officials, which began July 2017.
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First “cat kicked” in 1984 Contact: markholbrook13@yahoo.com May 16, 2018
