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Mimran adds that like the food product, Dip is designed to be a grab-and-go collection. As competition between supermarkets intensifies and grocers feel threatened by Amazon, retailers are looking for new ways to attract customers. Kroger, which is arguably under more pressure than any major chain, has turned to restaurants, meal kits and online shopping, among other outlets. Now it's turning to apparel. The company has previously sold some basic clothing at its Fred Meyers stores but nothing deemed to be fashionable or premium quality. But Kroger is trying to change that. The company has partnered with experienced fashion designer Joe Mimran, whose Joe Fresh label at Loblaws quickly expanded into everything from children’s clothing to sunglasses and cosmetics. The brand became so popular that Loblaws opened free-standing Joe Fresh stores in Vancouver and New York City. Mimran has since left the company. Mimran took Loblaws clothing brand to the next level, and Kroger no doubt hopes for the same result as it looks to re-brand its apparel assortment. The company will likely find a receptive audience at banners like Fred Meyer, which already sell a wide selection of apparel. However, moving the line into its grocery-focused brands will likely be more difficult. It's easy to see why Kroger is focusing on apparel. While grocers earn around a 2% margin, apparel brings in profit margins of as high as 13%, according to industry analysts interviewed by the San Francisco Chronicle .
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