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Kroger to Reach New Customers with Walgreens Partnership

December 4, 2018 By Jeremy Jones, CFA

By Dean Drobot @ Shutterstock.com

In the race to reach new customers, mega-grocer Kroger has signed a partnership with Walgreens to embed mini grocery stores in the pharmacy chain’s locations. Heather Haddon reports at The Wall Street Journal:

Kroger and Walgreens executives wouldn’t say how the companies would share sales revenue or provide financial details of the deal. Kroger and Walgreens will supply and operate the Kroger-branded sections together, officials said.

Kroger won’t sell store-brand items that compete with Walgreens’s private-label products, but it will take over its supply for branded goods, the companies said. Deerfield, Ill.-based Walgreens has struck a number of deals recently, such as taking a minority stake in the Birchbox Inc. cosmetics company and offering parcel services at stores through FedExCorp.

“This is consistent with our broader partnership strategy,” said Adam Holyk, Walgreens senior vice president and chief marketing officer.’

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. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
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