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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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