Kroger to Invest $100 Million in Michigan Store Expansion and Renovation Plan

Mon. December 8th, 2014 - by Kyle Braver

MICHIGAN - Over the next several years, Kroger reports that it will be investing over $100 million annually in order to expand and renovate its Michigan retail operation.

Jayne Homco, President of Kroger's Novi-based division"The Michigan market is very, very important to Kroger Co.," shared Jayne Homco, President of Kroger's Novi-based division. "We have facilities we've outgrown here in Michigan, and we want to make sure we can continue to grow. When you look at some of the other players here, we have a lot of mass (product retailers) with Meijer and Wal-Mart...We fill a very nice niche with our traditional grocer status."

While Kroger itself declined to share what part of its $77 billion in total revenue (excluding fuel) the Michigan stores were responsible for, Morningstar Stock Analyst Ken Perkins extimated the number at around 5%, according to Crain's Detroit Business.

Kroger has already invested $10-$12 million in an expansion of its Rochester Hills location. These expansions increased the square footage of the store by 50%, from 60,000 square feet to 90,000 square feet, according to Crain's Detroit Business. A similar expansion is planned for Kroger's Canton Township store at Canton Center and Ford Rd.

Kroger is also in the process of completing a $40-$60 million renovation program for ten of its Michigan-based stores in:

  • Bloomfield Township
  • Troy
  • West Bloomfield Township
  • Farmington Hills
  • Springfield Township
  • Lansing
  • Flushing
  • Port Huron
  • Canton Township
  • Birmingham

The new stores boast redone floors, revamped food cases, new décor and rearranged department locations.

Key to Kroger's strategy will be increasing the presence of fresh locally-sourced food in its stores. For example, Homco explained that the cranberries Kroger offered during the previous Thanksgiving season were grown locally in Michigan.

"It's neat to be able to procure it locally," Homco said. "People want to support the local economy ... and I think you get a fresher product that way."

Be sure to stay tuned to AndNowUKnow for future updates on Kroger and the Michigan retail market.