First Tennessee Bank Expands into Kroger Stores in Memphis and Beyond

Strategic Insights -

First Tennessee Bank has announced plans to open six more branches in Kroger stores this year, including two in Shelby County, three in Nashville, and one in Franklin, near Nashville. This move marks a significant expansion into grocery store banking, a space traditionally dominated by National Bank of Commerce.

First Tennessee's senior vice president, Greg Paule, expressed enthusiasm for the opportunity, stating that it's a "very positive thing for us, and we hope for them." The bank has already opened four "financial centers" in Kroger stores in the past 14 months, with plans to open two more in local Albertson's or Seessels' stores this year.

National Bank of Commerce, which has had an exclusive hold on Kroger's local supermarkets since the 1980s, is now losing its grip on the market. NBC developed exclusive rights to Kroger's Memphis-area stores after transforming in-store banks into profitable, full-service branches. However, the bank has decided to close two of its branches in local Kroger stores, citing underperformance.

Key Takeaways:

  • First Tennessee Bank plans to open six more branches in Kroger stores this year, including two in Shelby County, three in Nashville, and one in Franklin, near Nashville.
  • The bank has already opened four "financial centers" in Kroger stores in the past 14 months, with plans to open two more in local Albertson's or Seessels' stores this year.
  • National Bank of Commerce, which has had an exclusive hold on Kroger's local supermarkets since the 1980s, is now losing its grip on the market.
  • NBC developed exclusive rights to Kroger's Memphis-area stores after transforming in-store banks into profitable, full-service branches.
  • The bank has 116 in-store branches in Kroger, Wal-Mart, and Ukrops stores in its national operations, vs. 32 traditional branches.
  • First Tennessee Bank has approximately 48 branches and drive-through teller offices in the Memphis area, with a dozen of them in supermarkets.

Statistics:

  • 4 "financial centers" opened in Kroger stores by First Tennessee in the past 14 months
  • 6 more branches planned to be opened in Kroger stores this year by First Tennessee
  • 2 in-store branches to be opened in local Albertson's or Seessels' stores this year
  • 116 in-store branches in Kroger, Wal-Mart, and Ukrops stores in NBC's national operations
  • 32 traditional branches in NBC's national operations
  • 12 supermarket branches in the Memphis area run by First Tennessee
  • 48 branches and drive-through teller offices in the Memphis area run by First Tennessee

Sources:

  • Russell Grantham, "First Tennessee Bank Expands into Kroger Stores", The Commercial Appeal, [No date provided]
  • Greg Paule, quoted in Russell Grantham, "First Tennessee Bank Expands into Kroger Stores", The Commercial Appeal, [No date provided]
  • Bill Platten, quoted in Russell Grantham, "First Tennessee Bank Expands into Kroger Stores", The Commercial Appeal, [No date provided]
  • William R. Reed Jr., quoted in Russell Grantham, "First Tennessee Bank Expands into Kroger Stores", The Commercial Appeal, [No date provided]