Diversity helps Kroger weather tough climate: marketplace concept expanding.(Cover Story)

An increasingly tough market for conventional grocers, market share gains made by supercenters and strikes in California have left many of the biggest supermarket chains battle-scarred. In Kroger's case, however, a thicker skin has helped the supermarket operator maintain determination to innovate by expanding into multiple formats that meet various customer segment needs.

Kroger's food formats may be the most diverse in the supermarket industry, and new ceo David Dillon said recently that Kroger will rely on that diversity to compete going forward. The nation's largest supermarket retailer, with $53.7 billion in annual sales, operates more than 2,500 supermarkets and …