Kroger Expands Number of Express Units in Walgreens Stores

Kroger Expands Number of Express Units in Walgreens Stores

Kroger Expands Number of Express Units in Walgreens Stores: Kroger expands the pilot units in Express format to 35 additional points in stores Walgreens in Tennessee this fall, according to a press release. The stores in Knoxville, Tennessee, will feature around 2,300 fresh, frozen and off-the-shelf products, including private label products, such as Kroger’s Simple Truth and Home Chef solutions. The assortment varies by store and can include up to 2,700 products.

Most Walgreens stores will also serve as collection points for customers using Kroger’s click & collect service. Buyers place their order online, select a store, and then park in reserved spaces at the selected time.

Kroger expands number of Express units in Walgreens stores

Also this fall, 17 Kroger stores in the Knoxville area will offer a variety of health and beauty products under Walgreens’ own brands. This includes over-the-counter medications and personal care items at brands like No7 and Soap & Glory by Walgreens.

Kroger’s main grocery business is struggling, but it can find new life as a service for other retailers.

The supermarket chain launched the partnership with Walgreens in October last year, with about a dozen drug retailer stores serving as pick-up points for Kroger online orders. Two months later, these same locations added 4,000 square feet of grocery space under the name Kroger Express.

Sixty-five Walgreens stores in Chicago began offering Home Chef branded meal kits at the same time that both companies were looking to increase traffic and push customers out of their traditional businesses.

With the most recent expansion, Kroger is building its brand strength in supermarkets, in particular with its own brands, which now span multiple lines and account for more than 30% of the company’s sales. Simple Truth is now a $ 2.3 billion brand and a highlight in the growing private label health and wellness movement.

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An important metric for Kroger will be whether Express outlets generate engagement with its stores and e-commerce offers. The locations also offer additional collection points, while Kroger faces Walmart and Target at the click & collect.

Grocery stores are finding withdrawal a popular choice for consumers, and additional access points are crucial to increasing convenience. Other retailers are experimenting with dedicated collection points, including Walmart and Amazon, which operate exclusive collection points, and Hy-Vee, which has launched grocery pickup lockers.

Just as Kroger’s grocery offerings add authority and brand awareness to Walgreens’ product range, the inclusion of Walgreen’s health and beauty products within Kroger offers well-known brands for a growing category.

According to data from Nielsen , sales of health and beauty products in food and medicine stores grew 1.5% in 2018, while goods, in general, fell 1.6%.

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Indications are that the partnership has performed well so far. Walgreens CEO Stefano Pessina noted in April that he sees future expansion opportunities for the Express concept, as his company has been focusing more on its non-pharmaceutical businesses. Walgreens has invested additional resources in its own development of its own food and beverage brands, including Nice! and Finest Nutrition.

Could Kroger Express become a revenue generator for the company? The grocery segment has been making profits in recent years, with everyone from hardware stores to consumer goods stores, snacks, drinks, meals, and more.

The Kroger micro store could be a creative way for the merchant to join this movement instead of fighting it. However, it has to convince other retailers to leave it in its aisles. The company also needs to be careful not to cannibalize sales from its own stores.

Still, there are countless possibilities here. Kroger could lease portions of its assortment, such as Simple Truth products and Home Chef meal kits, depending on the retailer and the market. It could also explore micro-markets in cities and inside office buildings and other establishments. Emerging retailers like Green Zebra Grocery are implementing automated mini-markets with a variety of fresh and off-the-shelf products. Stay Tuned to Krogerfeedback.pro for more latest and updated news on Kroger.

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