The Kroger Co. (NYSE: KR) operates over 3,000 supermarkets and convenience stores in the United States. For the period ending January 31^st, 2015, it generated revenues of $108.47 billion and net income of $1.728 billion. Kroger has an investment grade rating (BBB) from Standard and Poor's.

In addition to the Kroger brand, the company also operates a number of other well-known retail brands, including Harris Teeter, Fred Meyer, and Food4Less. Kroger's business strategy involves actively diversifying the demographics that constitute its customers. It operates large multi-department “one-stop” locations to compete with supercenters, medium size combination stores to compete with grocery chains, and smaller price centric stores to target low-income earners. It also owns the third largest jeweler in the United States (Fred Meyer Jewelers).

Most of Kroger's stores serve as anchor tenants in neighborhood strip centers. Based largely on the success of Kroger's stores and ability to attract customers, its presence allows developers to charge higher rents from other tenants. Depending on location and tenant mix, these centers sell at cap rates in the low 6% to low 7% range. For standalone locations with long lease terms, cap rates for new leases are also in the low 6% range and increase from there.