Where is the Kroger/Walgreens relationship headed?
The relationship between Kroger and Walgreens is going to the next level. The two retail giants have announced plans to expand a pilot program announced last October that places Kroger Express store-within-a-store shops inside Walgreens to 35 more locations in the Knoxville, TN market. Walgreens will also sell select health and beauty care private labels, including its Boots No7 and Soap & Glory, in 17 Kroger stores in the market.
The Kroger shops inside of Walgreens, as before, will feature select private labels such as the organic Simple Truth line from the supermarket chain. The locations will stock between 2,300 and 2,700 items from Kroger in dairy, fresh meat and produce, frozen foods and shelf-stable categories.
Most of the pilot locations will also give customers the option of placing their orders online at kroger.com and picking up their purchases outside the stores using Kroger Pickup.
“Our growing relationship with Walgreens is just one more way Kroger is making life easier and better for even more customers — because everyone deserves to have affordable, easy-to-enjoy, fresh food,” said Jeff Talbot, Kroger’s vice president of new business development, in a statement.
The two retailers are taking a slow and steady approach to the pilot program with an eye towards future expansion.
“Expanding our pilot to Knoxville demonstrates the ongoing success and future potential of bringing together the best of Kroger’s food authority with Walgreens’ global expertise in health and beauty,” said Mr. Talbot.
“Walgreens customers have responded very favorably to the Kroger Express pilot in Northern Kentucky. As a result, we’re exploring more ways to offer customers an enhanced, more convenient shopping experience,” said Richard Ashworth, Walgreens president of operations. “Working with Kroger, we’re continuing to re-invent our customer offer to meet shoppers’ evolving needs, which includes offering private-label grocery and health products at a great value, through an integrated omnichannel experience.”
- Kroger and Walgreens to Expand Exploratory Pilot to Knoxville, Tennessee – The Kroger Co.
- Drugstore/grocery pilot is two-thirds Walgreens and one-third Kroger – RetailWire
- Will the Kroger/Walgreens pilot lead to something really big? – RetailWire
DISCUSSION QUESTIONS: Where do you see the Kroger/Walgreens pilot program going? Do you expect other food/drug store collaborations among retail chains?