Kroger, one of the nation’s largest supermarket chains, has selected McCann as its new creative agency of record, ending a five-year run with DDB New York. The move, confirmed by both agencies, signals a shift in marketing strategy for the grocery giant as it navigates a competitive landscape and evolving consumer preferences. This change in Kroger’s advertising comes as the company continues to invest in its brand and customer experience.
The decision follows a competitive pitch process, according to a source familiar with the matter. McCann will be responsible for developing creative campaigns for Kroger, aiming to elevate the brand and drive business growth across its more than 2,700 stores operating under banners including Ralphs, Dillons, and Pay-Less Supermarket. While it remains unclear whether McCann will handle creative function for all of Kroger’s brands and banners, the partnership represents a significant opportunity for the agency.
“We are proud to be named U.S. Creative Agency of Record for Kroger, an iconic brand known for its deep commitment to its people, customers and communities,” said Amber Guild, CEO of McCann New York, in a statement. “We look forward to leveraging our ‘Truth Well Told’ philosophy to develop meaningful, impactful work that elevates Kroger in the hearts and minds of its customers, while driving enduring brand value and strong business growth.”
A Shift Within the Omnicom Network
Kroger’s selection of McCann maintains its advertising business within the Omnicom network. This is a direct result of Omnicom’s $13.5 billion acquisition of Interpublic Group (IPG), McCann’s former parent company, in December. Following the acquisition, Omnicom retired the DDB brand and integrated it into the TBWA network. This consolidation streamlines operations and leverages the combined resources of the holding company.
DDB New York had served as Kroger’s creative agency of record since 2019, leading a rebrand for the company that debuted at the end of that year. The agency’s work focused on modernizing Kroger’s image and highlighting its commitment to fresh food and customer convenience. While the rebrand was well-received, Kroger evidently sought a new creative direction to further strengthen its market position.
Kroger’s Advertising Investment
The move comes as Kroger continues to invest heavily in advertising. According to COMvergence, The Kroger Company’s total ad spend is roughly $391 million. This substantial investment reflects the importance of brand building and customer engagement in the highly competitive grocery industry. Kroger faces increasing pressure from rivals like Walmart, Amazon, and Aldi, all vying for market share.
A Kroger spokesperson stated, “Our ambition was to find a collaborator who could aid us articulate the distinct advantage of the Kroger brand while inspiring associates and customers.” They added that McCann “brought both a powerful strategic foundation and wonderful energy from the very beginning,” expressing excitement about launching a new brand platform and creative work to drive business goals.
Expanding Digital Reach
Beyond traditional advertising, Kroger has been actively expanding its digital reach and data capabilities. The company has forged partnerships to enhance its targeted advertising efforts. For example, Kroger has collaborated with Yahoo to allow advertisers to target Kroger audiences through Yahoo’s demand-side platform (DSP). This partnership, highlighted in an Adweek report, underscores Kroger’s commitment to commerce media and data-driven marketing.
What’s Next for Kroger and McCann
The immediate next steps involve McCann developing a new brand platform and creative work for Kroger. The agency will likely focus on showcasing Kroger’s strengths in areas such as fresh produce, private label brands, and customer loyalty programs. The success of this partnership will depend on McCann’s ability to connect with Kroger’s diverse customer base and differentiate the brand in a crowded marketplace.
Kroger’s ongoing investment in its brand and marketing capabilities signals its commitment to long-term growth and market leadership. The company will continue to monitor consumer trends and adapt its strategies to meet evolving needs. The next major update regarding Kroger’s marketing initiatives is expected during the company’s first-quarter earnings call in May.
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