Kroger + Albertsons
ROLE
Lead Design Strategist
Creating clarity
Developing insights
Relationship-building
Strategic thinking
Design thinking
Storytelling
User Research
Stakeholder Interviews
TEAM
1 Design Strategist (Me)
Project Overview
BACKGROUND
In 2022, Kroger and Albertsons entered into a definitive merger agreement, initiating a series of strategic integration workstreams to evaluate operational alignment across both organizations. One critical focus area was the development of a unified Householding model—an approach to grouping related customer accounts based on shared attributes and relationships.
This initiative aimed to define a scalable and customer-centric householding framework that would support seamless experiences across both brands. The workstream involved evaluating existing approaches, identifying opportunities for alignment, and designing a framework that would support a seamless and customer-centric experience across both brands.
Currently, Kroger manages approximately 63 million households, while Albertsons maintains around 45 million loyalty accounts.
ASK
How might we created a unified householding model that supports the customers of both Kroger and Albertsons
*this assessment was done internally to Kroger in preparation for conversations with Albertsons post merger close
CUSTOMER OPPORTUNITY
Empower customers with self-service tools to manage and customize their household
Enable seamless sharing of benefits and rewards within households
BUSINESS OPPORTUNITY
Develop a unified householding framework to enhance customer relationship management
Implement standardized customer data protocols to ensure consistency, accuracy, and operational efficiency
Nearly double the current amount of households with the close of the merger
Design Process
Note: Due to the sensitively of this work I am unable to show any images and have had to redact some information
UNDERSTANDING CURRENT STATE
To make informed decisions about the future, integrated state of the householding model, it was essential to first understand its origins and evolution. I began by researching the history of Kroger’s householding model, tracing its development from its inception in 1994 to its current form. Kroger is the leader in grocery loyalty and this analysis revealed that as the industry shifts the model also needs to adjust.
I then conducted a thorough review of Kroger’s history and industry data to uncover key insights:
Customer Expectations: Customers value efficiency and autonomy. They want to feel in control of their experience and avoid processes that feel like a waste of time.
Generational Preferences: While different generations have varying expectations from loyalty programs, a common thread is the desire for simplicity and ease of use.
Privacy: Online privacy is increasingly viewed as a fundamental right as the privacy landscape is quickly shifting, with consumers expecting transparency and control over how their personal information is collected, used, and shared.
STAKEHOLDER INTERVIEWS
To gain a comprehensive understanding of the current householding model and its impact across the organization, I conducted interviews with over 20 cross-functional teams from Kroger and 84.51°, Kroger’s retail data science, insights, and media subsidiary. Participants included product managers, engineers, data scientists, marketers, finance professionals, business strategists, customer researchers, architects, reporting analysts, and teams focused on alternative profit, monetization, personalization, and sales.
The interviews were structured around four key areas of inquiry:
Current Usage: How is the householding model being used today?
Pain Points: What challenges or limitations are associated with the current model?
Impact of Change: What potential effects would a revised model have on their domain?
Value Opportunities: What benefits could be realized through improvements to the model?
Following synthesis of the insights, four major themes emerged, providing a clear direction for future-state design and strategic alignment.
Beyond the research findings, this process also strengthened my capabilities in stakeholder engagement, confidentiality management, and interview facilitation. Given the sensitive nature of the initiative, I prioritized transparency around data limitations and confidentiality constraints. I began each interview by building rapport and trust, which proved essential in navigating conversations where certain information could not be disclosed. I encouraged open dialogue, documented stakeholder concerns, and ensured follow-up with relevant teams when deeper insights were requested.
To maximize the value of each session, I employed open-ended questioning and allowed stakeholders to guide the conversation based on their expertise. This approach fostered richer insights and enabled me to identify nuanced opportunities for improvement without compromising confidentiality.
SOLUTION PROPOSAL
Leveraging insights from the current state analysis and stakeholder interviews, I developed and presented three strategic solution paths for the future of householding at Kroger. Each option was designed to address key business and customer needs, and included:
Core Benefits: A clear articulation of the primary advantages associated with each approach, emphasizing both customer experience enhancements and business value creation.
Value Analysis: A deeper exploration of how each solution would deliver measurable impact to customers and drive operational or financial benefits for the organization.
Risk & Trade-Offs: Identification of potential challenges to ensure informed decision-making.
Following a comparative evaluation of the options, I provided a recommendation for the most viable path forward—based on strategic alignment with company goals, technical feasibility, and stakeholder input gathered during the interview process.
Final Proposal
Although the proposed merger was ultimately halted in December 2024 due to legal proceedings, the work conducted throughout this initiative proved to be highly valuable. The research, stakeholder interviews, and solution recommendations were successfully transitioned to internal Kroger teams specializing in data and householding strategy. These teams were able to leverage the insights to inform a future roadmap of enhancements.