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Kroger and Walgreens Join Forces to Thwart Amazon

October 2, 2018 By Jeremy Jones, CFA

By Amnaj Khetsamtip @ Shutterstock.com

With Amazon diving deeper into drugs and grocery delivery, it makes some sense that grocery giant Kroger and pharmacy giant Walgreens, would work together to fight back against the online retailer. Pan Kwan Yuk reports on the tie-up in the Financial Times:

Under a new pilot programme that will be launched, Kroger customers will be able to place their grocery orders online and pick up their orders at participating Walgreens stores. In addition, products from Kroger’s private-label Our Brands will also be stocked in the participating Walgreens as well.

“This exciting collaboration aligns with Kroger’s vision of serving America through food inspiration and uplift,” said Rodney McMullen, Kroger’s chairman and chief executive. “This concept brings together the best of two great brands to rethink convenience and redefine the way America shops for food.”

While the scope of the pilot is limited, with only 13 stores in Northern Kentucky participating and the trial lasting just several months, the move underscores how retailers across different industries are looking for ways to safeguard their businesses from the rising threat of online competitors like Amazon.

Read more here.

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Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #10 in CNBC's 2019 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
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