Kroger Real Competitor Of Amazon and Walmart
Kroger Real Competitor Of Amazon and Walmart: People are increasingly buying groceries online. And many retail experts believe the digital supermarket battle will come down to Amazon versus Walmart.
Kroger (KR), the grocery giant that also owns supermarket chains Ralphs, Fry’s and Harris Teeter, reported solid sales and earnings topped forecasts.
What’s even more impressive is that Kroger said digital sales soared by 66% compared to a year ago.
That’s a clear sign that moves Kroger is making to court younger tech-savvy shoppers are working.
It also shows that Kroger is now a legitimate rival to Amazon (AMZN) and Walmart. Amazon now owns Whole Foods and Walmart (WMT) has made several acquisitions to boost its online shopping presence.
Kroger launched a program last year called #Restock Kroger that focuses on lower prices, more private label brands and an increase in its digital shopping initiatives.
The company’s ClickList service, which lets customers shop online for home delivery or curbside pickup at the store, also helped the company report surprisingly strong sales last November.
Kroger has increased its organic offerings through its Simple Truth brand. Sales hit $2 billion in 2017.
The company has also rolled out Prep+Pared Meal Kits, a move to compete with Blue Apron (APRN), HelloFresh and Plated, which was bought by the supermarket chain Albertsons last year.
Kroger has stepped up its online efforts even further this year. It recently bought meal-kit Company Home Chef in a deal that could eventually be worth up to $700 million.
And Kroger invested $250 million for a stake in the red hot British online supermarket delivery company Ocado to help manage automated warehouses.
It’s no wonder that Kroger CEO Rodney McMullen is excited about the future.
McMullen added that customers who are shopping online at Kroger and its other chains are spending more per week than those who just buy groceries at the physical stores.
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