"From grocery company to growth company" - how Kroger pitches its omni-channel transformation objectives

US supermarket pureplay Kroger has been making some savvy moves in omni-channel transformation.


By Stuart Lauchlan, Diginomica

July 8, 2019


With Walmart reported to be looking at a big e-commerce hit, but still tapping online groceries as a future growth driver, itís worth remembering that this is a retail sector in the US thatís still in its early stages - and there are other competitors than just Amazon or Walmart.


Of course, Amazon is the gorilla in the market in dollar terms. According to recent data from Edge by Ascential, Amazonís 2018 online groceries revenues came in at $8.2 billion, well ahead of second-placed Walmart on $2.84 billion. There are other factors to be built in here in terms of future prospects, not the least of which being Walmartís physical proximity to 90% of US consumers.


Itís interesting to note growth rates in this space. Amazon is up 12.5% year-on-year, again beating Walmart on 10%. But look to third-placed - in dollar terms - Kroger and its 2018 online grocery revenues of $1.51 billion are up a massive 66% year-on-year. Thatís an upward trajectory that leads CEO Rodney McMullen to boast:


††† Our efforts are positioning Kroger to be the leading omni-channel retailer in the food industry. Since 2014, we've gone from no digital sales dollars to a 2018 annual run rate of about $1.5 billion, which will trend toward a $9 billion digital sales run rate in the futureÖwhile we are only in the middle of our transformation, it's important to frame up the magnitude of the progress that we have made.


Kroger is the USís largest pure-play supermarket chain...


Transition ...


My take ...


more, including links