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Kroger Launches Dollar Store Pilot in Houston

HOUSTON -- The Houston Business Journal reports that the Kroger Co. has chosen Houston as the test market for its new Kroger Dollar Store concept. The Cincinnati, Ohio-based retailer, which is the market leader in the Houston area, already has converted approximately 500 square feet of space into dollar store domains in two of its stores there.

Kroger spokesman Gary Huddleston told the paper the company does not have immediate plans to open additional dollar stores in the area, but noted that the chain will consider expanding the concept in the future if it is successful at the initial locations.

The dollar stores are located within the Kroger retail space, but have separate signage and entrances. Huddleston said the new concept will offer between 10,000 and 15,000 items -- including food, clothing, greeting cards and party supplies -- priced at $1.

Kroger's dollar concept is also being offered in two former Albertsons stores that Kroger purchased after Albertsons exited the Houston market last year.

Huddleston said Kroger chose Houston as a target market for these stores because the grocer sees it as a growth market for the new concept as well as for its traditional grocery stores.
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