Kroger sees e-commerce as future profit engine

I actually read this and came out more impressed with Kroger than before. Listen to this quote:

“If you look at CPGs, they’re spending $100 to $120 billion a year on media. Our share of that is just a fraction of what we think we should get or can get,” said McMullen. “We’re just now learning the space and I’m more excited about it now than it was three or four years ago when we started … overall alternative profit last year was worth over $1.2 billion. And we would expect to continue to grow that.”

1 Like

Grocery stores currently can charge “slotting” fees for shelf space (and I have also seen distribution fees for logistics from factory to store), so why not charge for an online version of slotting and last mile delivery to the customer.

Different fleas, same dog.

And there has been a spate of branded product delisting in the UK linked to retailer demands for cost price reductions, commercial income “gimmes” and so on. Some of which was flying close to the edges of what was allowable under UK grocery code (GSCOP).

Same as Amazon CRP process., though.