BALTIMORE — Kroger is planning to expand its footprint into Washington, D.C., and Baltimore under its Harris Teeter banner, according to a report in the Baltimore Business Journal published Thursday.
Harris Teeter has multiple locations across the Baltimore area, including a new store in Canton, the report noted.
Kroger also may soon be lowering prices across its Harris Teeter banner. According to the report, Kroger SVP and CFO Michael Schlotman told analysts earlier this week that Harris Teeter prices were actually higher than the consumer perception of those prices. "The actual pricing at Harris Teeter, going into the time of the merger, was a little worse than the customer’s perception of the pricing,” he said during the J.P. Morgan Consumer and Retail Conference in London earlier this week.
But lower prices will not necessarily translate into lower margins — Kroger has stated it expects to achieve between $40 million and $50 million in its acquisition of Harris Teeter, and those synergies will be used to reinvest into the franchise.