Daily Insights

Grocery’s Digital Draw

By: Mackenzie Baker | Aug 24, 2020

Kroger is going digital with a revamped i grocery haul that puts it head to head with competitors like Walmart and Amazon. 

Kroger Ship, the grocer’s e-commerce site for nonperishable food products, is expanding to include 50,000 new goods. The new additions will be available beginning in the fall and include international foods, fresh organic goods, and specialty items. As part of the marketplace renovation, Kroger is opening up the platform to third-party vendors who can bring new and bulk items not currently found in store to online customers. By working with outside sources, Kroger could elevate its grocery presence to play with digital leaders like Walmart and Amazon, potentially gripping a larger portion of e-commerce grocery sales. 

With the Coronavirus pandemic driving up digital grocery demand, Kroger’s marketplace makeover could help it sustain its rise in sales. Since the pandemic began, Kroger has seen a 92% increase in digital sales. Kroger could now capitalize on the increased demand by digitally displaying its thousands of new products. Though Kroger’s product number still falls far below Amazon’s supply, the grocer could take advantage of the audience of consumers looking beyond typical digital dominators for their grocery shopping. With Kroger Ship’s one-day delivery capabilities and free shipping discount, it could also appeal to a wide array of homebound grocery shoppers looking to stock up during the pandemic. The brand’s recently remodeled mobile app, which offers both Ship ordering and traditional store pick-up selections, could further help it scale its reach and promote a convenient shopping experience according to Gartner’s Digital IQ Index: Grocery report. 

Brick and mortar grocery stores remain popular, but the convenience and socially-distanced promise of online grocery shopping makes it the method to beat during the pandemic. By leveling up its online product offerings to meet those of digital marketplace titans, Kroger could equally elevate its image as a grocery giant and reach loyal customers beyond its traditional storefront.