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September 1, 2023
Kroger Sushi Is America’s No. 1 Importer of This Japanese Food Genre
Have you had your fill of Kroger sushi yet? The Wall Street Journal reported that “the nation’s biggest grocery-store operator sells more than 40 million pieces of sushi in a typical year.” As the Cincinnati-based retailer continues to expand, it’s become apparent how Kroger is using sushi as a catalyst to branch out and stay competitive as Walmart and Target remain critical grocery competitors.
In addition to consumers’ grocery dollars, buying Kroger sushi means consumers are tapping into their budget for eating out or dining in restaurants. According to Kroger’s team of executives, their collected data shows that “the rolls bring new customers to its stores and encourage existing shoppers to visit more often. The grocery operator says it noticed in 2020 when it was reviewing data from consumer-research firm Circana Group that it was the nation’s biggest sushi retailer.”
This has a tremendous impact on multiple sectors. According to Axios, “When chains like Kroger — which has some 2,700 stores all over the U.S. and sells sushi at two-thirds of them — turn foods from other countries, like sushi, into big business, they become dining table staples and change the national palate.”
Stuart Aitken, Kroger’s chief marketing officer and chief merchant, stated, “When customers think of sushi, we want them to think of Kroger.” Other grocery retailers have been offering comparable options with their in-house delis, food bars, bakeries, and prepared meals. Additionally, the WSJ noted that “sales volumes of sushi sold at U.S. retailers are up more than 50% over the past year, and dollar sales are up roughly 72%, according to Circana.”
Such a lofty goal clues consumers in on how Kroger might be shifting its strategy to become a destination not just for groceries, but also for dining. If this is the case, then supermarkets might begin blurring the lines between places that sell fresh food, places that offer fully prepared meals, and places with full-service in-house dining. Although not exactly groundbreaking, since Asian grocers such as H Mart have been offering sushi items to go and for dine-in, it signals how the supermarket landscape might be evolving.
Kroger’s sushi prides itself on quality ingredients outsourced from Yummi Sushi and Snowfox, with the latter being a franchise sushi bar run inside the grocery store. Kroger also mentioned how they follow strict guidelines for quality sushi and food safety requirements, with regular inspections performed routinely.
Whether sushi restaurants feel threatened or will be negatively impacted remains to be seen. The WSJ interviewed shoppers and one sushi restaurant chef. The chef mentioned how he sees no competition with his restaurant. He respects Kroger’s sushi offerings, but he’s confident in his high clientele niche and specialized menu offerings. Shoppers commented how they found it convenient to be able to buy quality sushi on the go and at locations that are much closer than sushi restaurants in their particular area.
Discussion Questions
DISCUSSION QUESTIONS: With Kroger nearly dominating the market of this food genre, how do you think grocers and restaurants will evolve? Will other grocery brands try to corner the market with other types of food to gain an advantage over their competitors?
Poll
BrainTrust
Jenn McMillen
Chief Accelerant at Incendio & Forbes Contributing Writer
Shelley E. Kohan
Associate Professor, Fashion Institute of Technology
Dick Seesel
Principal, Retailing In Focus LLC
Recent Discussions







Given that Kroger is the biggest specialist supermarket chain, it is not really surprising that it sells so much sushi. Kroger’s sales have grown with the market as Americans look for healthier meals and snacks. Sushi has also been a part of Kroger’s strategy to move into meal solutions and food-to-go, which is a growing area. That said, I don’t agree that Kroger is a massive threat to others selling sushi – there are plenty of restaurants and other options out there!
If anything, Kroger is educating diners about the basics of sushi, so that when they are curious about other flavors or textures, they’ll be open to trying more from the menu at their neighborhood Asian restaurants.
Freshness still matters of course: most anything from a grocer in the Midwest has a ‘spicy’ sauce to mask the faded flavor of the fish – while the packaged sets from a cooler at a San Francisco Walgreen’s are almost as good as restaurant quality in the middle of the country…
Well said Neil! Even if you’re the biggest fish, it’s a mighty large ocean out there.
You know, sometimes you see statistics that you just don’t believe. Here is one: “…sales volumes of sushi sold at U.S. retailers are up more than 50% over the past year, and dollar sales are up roughly 72%”. Various reports on the U.S. sushi market for 2022 say sushi growth is a robust 3% or 4%. Now that makes sense.
My local Whole Foods has had equal deli space dedicated to sushi, pizza, and sandwiches. Observing checkout lines, it strikes me that that sushi is a big lunch item, competing more with sandwiches and pizza as a healthier alternative. In addition to WF, the neighborhood Trader Joe’s and conventional supermarket also carry sushi. Maybe we should identify which supermarkets don’t offer sushi?
Whether Kroger is as dominant as the WSJ article suggests (there is plenty of competition from other grocers and Japanese restaurants), the more interesting story is the mainstreaming of a food category once considered exotic and hard to find. This is really a narrative about how quickly American consumers have broadened their palates in the past 25 years or so.
To Kroger’s credit, the company is finding ways to push this category without requiring a store visit. My neighborhood Kroger store (branded as Metro Market in Milwaukee) sells its sushi offerings for home delivery on DoorDash, perhaps offering more competition than that Japanese chef quoted in the article is willing to acknowledge.
We’ve become a convenience nation. While there was a huge spike in people cooking at home during the pandemic–out of necessity–it’s no surprise that we’ve returned to our convenience-loving ways. Kroger would be wise to keep expanding all of its prepared offerings to capitalize on the perception that the grocery store is cheaper than restaurant meals.
This “trend” of grocers wanting to be a prepared food destination is not new. At all. Sushi lends itself to ease of delivery in take out mode, and other grocery chains offer sushi. Whole Foods for example. Publix. And on it goes. While the volumes Kroger drives are impressive, there is nothing differentiating about this take out category.
$5 sushi on Wednesday, matched by Publix ( who make better rolls imho). Game changer in terms of one meal a week, but due to price, not taste or quality.
Kroger sushi is an excellent way for the company to increase its frequency of shopping. Sushi is something that most people do not make at home so it is a great option for shoppers. The critical factors for consumers buying sushi are high quality and safe food practices, which Kroger is able to deliver. The U.S. market is way behind in terms of healthy ready-made foods to go. Japan has cornered the market with its convenient stores like Lawson offering a plethora of great goods for pick up and go. More grocery stores should start offering easy, simple, inexpensive ready-made food options. The model allows for lower costs to produce ready-made foods as compared to restaurant take-out which can be pricey. This will not heavily impact restaurants as people have different motivations when they go out, like socialization or changing their environment (especially if they work from home frequently).
A few decades ago, I worked for a chain that originally offered Sushi that was made everyday from a restaurant . They found out that it was a better cost proposition to learn to make it in house with the experts who were selling us the product.
Smart idea. Continues strong today, with expansions in hot Asian dishes and poke bowls.
In general, food to go areas have expanded greatly over the past few years. We all remember when carnival foods were the only options.
During the pandemic, I saw local restaurants selling their meals in large grocery chains.
This was a great idea. The grocery stores broadened their assortment, and it gave those restaurants a new audience to experience their foods.
Hold on Retailwire-san, how does “being the No 1 importer” equate to “nearly dominating the market”? They’re the No 1 grocer, or close to it, so of course they figure prominently…in every type of food, I’d imagine. But as has often, and correctly, been pointed out, grocery is highly un-concentrated; the idea of someone cornering the market – except perhaps in some esoteric regional specialty – is a fantasy.
Kroger may hold the mantle as largest volume national grocery buyer of sushi seafood, but that’s quite different than being dominant in a trade area or posing as a threat to restaurants. Regional grocers and independents have been doing quite well in sushi sales in most larger markets for over 20 years now. Many of these grocers already have really good quality sushi, on par with or better than Krogers offering.
Where Kroger could innovate it’s fresh food better, is boosting the offering of more contemporary fresh meals and flavors where many independents and regional grocers are thriving. Some it its banners do well here, some not, especially on operational execution keeping the food under a warming light looking fresh, appetizing.