Kroger is Launching an E-Commerce Marketplace to Compete With Amazon
Kroger is launching an e-commerce marketplace to compete with giants like Amazon.com and Walmart, Fox Business reported. The largest grocery store chain in the U.S. is partnering with Mirakl, a French e-commerce company, to launch the online marketplace. It plans to offer thousands of products to consumers from third-party sellers.
Kroger is adding on to Kroger Ship, the company's digital delivery service that launched in 2018. The platform will now offer customers an additional 50,000 products across different categories, ranging from international food and specialty items, to housewares and toys. Fox Business reported that the expansion of Kroger Ship will include staples available in Kroger's brick-and-mortar stores, as well as products that are exclusive to Kroger.com.
The supermarket chain reportedly built a 350,000-square-foot distribution center in Frederick, Md. last month for its grocery delivery expansion. According to Fox Business, Kroger also partnered with automated warehouse tech company Ocado Solutions to assist with online order fulfillment that will supply communities in Baltimore, Philadelphia, and Washington, D.C., since Kroger doesn't have physical stores in those areas.
Total Retail's Take: Kroger couldn't have picked a better time to launch an e-commerce marketplace, especially one that plans to feature groceries and other essential goods, to compete with Amazon. In addition to logistics and volume issues at the start of the pandemic that delayed order deliveries, some consumers haven't been happy with Amazon CEO Jeff Bezos recently as reports have come out that the e-commerce giant has poor working conditions, among other issues. Some consumers have even gone as far as to boycott Amazon because of how unhappy they are with the company's reputation, opening the door for competitors such as Kroger to fill the void. With Kroger's e-commerce marketplace a new option, it could steal consumers away from Amazon.
Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.