Kroger, as one of, if not the biggest market chain, is launching a Grocery Delivery Service in an effort to stay relevant in today’s competitively fierce grocery business sector. Kroger is seeking to stay ahead of other grocery giants like Amazon’s Whole Foods, Target, and Walmart who are all well-known for making product deliveries to customers’ homes and businesses.
Kroger actually already offers a Grocery Delivery Service through third parties and even curbside pickup, but this time it has decided to develop the service in-house and then work with Fed-Ex and the Postal Service to do next day deliveries. This new Grocery Delivery Service is known as Kroger Ship.
Kroger Ship will give the company the upper hand seeing as more customers shop online for groceries. It will also help it reach customers who don’t readily have access to Kroger’s grocery stores.
And according to a CNN article by Nathaniel Meyersohn titled “Kroger launches online grocery delivery service,” “The company is focusing on its private label collection with Ship by offering more than 4,500 of its own brands. These sales are valuable for Kroger since they come with higher profit margins, helping offset expensive online shipping costs.” This is a great way for Kroger to market not only its new service, but also its products.
Kroger Ship consists of offering free delivery for orders over $35. “During the launch phase, the company is offering shoppers free shipping and 15% off their orders using a promo code. Ship also features an order-and save- subscription, which Kroger believes can help convince customers to make repeat purchases,” says Meyersohn. This is indeed very similar to what Amazon already does and offers.
Kroger Ship is expected to pilot in Cincinnati, Houston, Louisville, and Nashville and it’s expected to expand across the US, even to places where Kroger has no actual, physical stores.
This new delivery service is sure to put Kroger on customers’ grocery service radar seeing as how many are opting for online grocery shopping and delivery. Kroger Ship will help the company and its stores expand its services as well.
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