Kroger adopts online marketplace model similar to Amazon, Walmart

The Kroger Co. is integrating digital marketplace platform Mirakl into its Kroger Ship ship-to-home program.

The leading supermarket retailer will offer Kroger Ship customers an extended aisle with more than 50,000 additional products. The new products will be made available through marketplace partners via Mirakl, a software platform enabling B2C and B2B digital marketplaces.

Kroger launched Kroger Ship in August 2018. The service delivers private-label and center-aisle groceries, household essentials and bulk merchandise through third-party carriers. With this partner-based expansion, the retailer is taking a significant step toward offering the type of extended digital marketplace offered by Amazon and Walmart.

Kroger, which grew its digital sales in the first quarter of 2020 by 92%, has been bolstering its e-commerce infrastructure for the past two-and-a-half years under a program called “Restock Kroger.” Investments include automated warehouse facilities called Customer Fulfillment Centers (CFCs) which the retailer is developing with UK-based grocery retailer Ocado. 

The retailer expects to start making the additional items available in fall 2020. Goods will be offered across multiple categories, including natural and organic, international food, specialty items, housewares and toys. More items may be added to the extended assortment over time. Eligible Kroger.com orders earn loyalty rewards like fuel points.  

"Our customers are increasingly turning to our e-commerce solutions provided at Kroger.com for their grocery and household essential needs. To better serve our customers, we're continuing to invest in technology that enables us to expand our digital services to deliver anything, anytime, anywhere," said Jody Kalmbach, Kroger's group VP of product experience. "Leveraging Mirakl's best-in-class marketplace solution, we are broadening Kroger's ship-to-home capabilities by offering more relevant products for our customers through exciting new partnerships with reputable third-party sellers."

"Kroger has long been a retail giant, and by integrating an online marketplace into its leading e-commerce experience, Kroger is continuing to lead from the front," said Adrien Nussenbaum, CEO and co-founder of Mirakl. "It's clearer than ever that digital marketplaces are the foundation of the next generation of commerce, and we look forward to supporting Kroger as it takes advantage of this opportunity."