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Grocery giant Kroger tries on a new outfit with apparel line

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 . The apparel industry as a whole is worth around $220 billion, per NPD numbers , and has grown 3% or less the past several years. There are, however, pockets of considerable growth, including athleisure, which grew dollar sales 11% last year and is a $46 billion market.  The launch of Dip is part of the grocer's Restock plan which hopes to generate more sales through rigorous e-commerce initiatives and by focusing on high-impact products. Late last year, the retailer rolled out its private-label meal kits Prep+pared, and in May the company acquired meal kit company Home Chef for $300 million . Earlier this year, it partnered with grocery delivery service Instacart, and in April opened its own restaurant, Kitchen 1883.  Kroger also is ramping up its R&D efforts by testing out driverless delivery and digital shelf display options. More retailers are trying to be one-stop shops like big box stores Walmart or Target. Lidl, a German-based grocer expanding to the U.S., is known for selling clothing and other household goods. The company partnered with celebrity designer Heidi Klum and used influencer marketing to drive growth.

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