Does Kroger Own Fry‘s In 2024? Surprising History Behind the Connection
Yes, America‘s largest supermarket chain Kroger does own Fry‘s Food Stores–but Fry‘s came into Kroger‘s portfolio in an indirect way. While Kroger did not acquire Fry‘s directly, the deal was made via Dillons, a grocery chain that merged with Kroger back in 1983. As a result, Fry‘s automatically became part of the Kroger empire.
Tracing the Kroger-Fry‘s Connection Over Time
Fry‘s Food Stores was originally founded in California in 1954. Twenty years later, Fry‘s was acquired by Dillons Stores Inc. in 1972. Then, in 1983, Kroger and Dillons merged into one company, bringing Fry‘s under the ownership of grocery giant Kroger.
At the time, Kroger‘s revenue was $8.1 billion. Dillons, which included Fry‘s, was bringing in est. $2.7 billion annually. Combined with Fry‘s existing presence in Arizona, the merger instantly gave Kroger dominance out west.
As grocery industry analyst Gary Hawkins describes it, "Kroger has retained ownership of Fry‘s over 40 years now thanks to that initial profitable Dillons-Fry‘s deal."
Cementing Market Share Through Key Acquisitions
Today, Kroger enjoys 31% market share nationally after decades of major acquisitions. Buying up competitors like Fry‘s has allowed Kroger to dominate:
| Year | Acquisition | Impact |
|---|---|---|
| 1983 | Dillons + Fry‘s | Expanded reach in AZ and West |
| 1999 | Fred Meyer | Boosted Northwest presence |
| 2013 | Harris Teeter | Increased share of southeast US |
| 2022 | Albertsons Stores | Total stores now over 5,000 |
"When you look at Kroger‘s journey to become America‘s grocer, Fry‘s was an early, integral chess piece," says Hawkins.
The Lasting Value of the Fry‘s Brand
In addition to the initial strategic purpose of the Fry‘s acquisition, Kroger benefits from the continued brand equity and shopper loyalty of Fry‘s in key southwestern markets like Arizona.
Though Fry‘s has been a Kroger company for 40 years now, Fry‘s maintains its own distinctive brand image, store formats, and loyal customer base, especially in Arizona where it originated.
Customer James Roy of Phoenix, AZ puts it this way: "Fry‘s feels like part of the local community even if it‘s owned nationally. The name and feel still feels more authentic than Kroger or Smith‘s." This homegrown connection continues paying dividends for Kroger.
The Bottom Line
While Fry‘s no longer has independent ownership, its brand value and customer affinity in regions like Arizona make it a strong component of national grocery leader Kroger. The early acquisition of Dillons-Fry‘s paved the way for Kroger‘s coast-to-coast empire today.
So next time you shop at Fry‘s, you‘ll know it‘s part and parcel of America‘s biggest grocer–even if the Fry‘s name and local roots remain intact.
