Kroger Acquires Harris Teeter

The Kroger Co. Inc. (Cincinnati) has acquired the upscale regional grocery chain Harris Teeter (Matthews, N.C.) for $2.5 billion.

Harris Teeter, known for its luxe store design and fresh foods and produce, operates 212 stores in the Mid-Atlantic states. It had sales in 2012 of $4.5 billion and unusually high margins in a sector known for slim margins.

Kroger ceo David Dillon explained that Kroger hopes to learn from Harris Teeter’s expertise in fresh foods and private-label goods, “among other things.”

Kroger said it will not change Harris Teeter’s brands or name. Most of the Harris Teeter management will also remain in place.