Kroger’s retail media profit rises 24% in Q2, best since 2021
Kroger reported that its Precision Marketing advertising business profit grew 24% in the second quarter, marking its strongest retail media profit growth since 2021. Media monetization increased by 88 basis points over the past year, according to CEO Greg Foran.
E‑commerce sales rose 20%, the second straight quarter of profitable online growth for the chain. Kroger also said it added advertising capabilities to its AI assistant on most grocery banner websites and apps this summer, letting shoppers build carts around budgets or dietary needs. The retailer expanded its digital screen network, having launched video screens in wine‑and‑spirits sections of nearly 600 stores last year and working with Barrows Connected Store to place screens on end caps earlier this year.
“Stronger collaboration between our merchandising and media teams expanded advertising inventory, and optimization efforts improved visibility and conversion for our brand partners,” Greg Foran, CEO said.
Earlier this year Kroger began integrating advertising into its AI assistant and expanded its in‑store digital screen network. In March the company partnered with Google to let advertisers use Kroger data in Display & Video 360 for YouTube and YouTube TV campaigns. In June it teamed up with TikTok so brands could reach Kroger shoppers through the platform’s self‑service ad tools.
What we know
Profit for the Kroger Precision Marketing advertising business grew 24% in the second quarter, according to Kroger’s latest financial earnings release.
Media monetization grew 88 basis points over the past year, Foran said.
Meanwhile, e-commerce sales grew 20%, marking the second consecutive quarter of profitable e-commerce growth, the company said.
In March, Kroger Precision Marketing announced it partnered with Google to allow advertising managers to use Kroger data to build campaigns across YouTube and YouTube TV in Google’s Display & Video 360 platform.
Last year, Kroger launched video screens in the wine-and-spirits departments of almost 600 stores nationwide.