Kroger Shifts E-commerce Strategy With Instacart And DoorDash Partnerships

Benzinga

Kroger will close three automated fulfillment centers and take a $2.6B charge after the network underperformed. The company is shifting to a store-based and third-party delivery model with Instacart, DoorDash, and Uber Eats to improve e-commerce profitability and boost retail media revenue.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Kroger will close three automated fulfillment centers in Florida, Maryland, and Wisconsin

00:07and book a $2.6 billion charge tied to the closures and the underperformance of its automated network,

00:13according to the Wall Street Journal.

00:15The company said the move will improve e-commerce profitability by about $400 million next year

00:20and have a neutral effect on same-store sales, excluding fuel.

00:24Kroger will shift its e-commerce strategy by relying more on stores and third-party delivery partners,

00:29expanding ties with Instacart and DoorDash, and preparing to launch on Uber Eats next year.

00:34CEO Ron Sargent said faster delivery, simpler shopping, and profitable sales growth

00:39are the goals as the company expects customer traffic from delivery partners to boost retail media revenue.

00:44For all things money, visit Benzinga.com.

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