One of Kroger Co.’s divisions joins the home delivery game

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One of Kroger Co.’s divisions joins the home delivery game

By Deena M. Amato-McCoy - 11/08/2017
Ralphs Grocery Company is expanding its e-commerce offering.

Through a partnership with third-party grocery delivery service Instacart, Ralphs is getting ready to offer home delivery in select locations in Southern California. Called “Ralphs delivery powered by Instacart,” the service will enable customers to place orders online, and Instacart’s team of “personal shoppers” will pick and deliver groceries from local supermarkets.

The program will be piloted in Los Angeles, San Diego, Orange County, Pasadena, San Fernando Valley, Thousand Oaks and Beach communities by the end of November, according to Kroger.

"Offering home delivery powered by Instacart in Southern California is another way we are accelerating our digital and e-commerce efforts to create new, and highly-relevant customer experiences," said Rodney McMullen, Kroger's chairman and CEO.

The program also coincides with Kroger’s recently announced Kroger Restock Program, a strategy that leverages the company’s food expertise and data analytics to create new and highly-relevant customer experiences delivered both digitally and in stores.

"Restock Kroger builds on our strengths, including our incredibly convenient locations and platforms for pickup and delivery within one-to-two miles of our customers,” said McMullen.

For the past several years, Kroger has been actively experimenting with different digital and e-commerce models. It has also been applying its data and findings through its 84.51°customer insights division, with a focus on delivering a differentiated and personalized experience to its customers.

Including the new Ralphs pilot, Kroger now offers home delivery from nearly 200 store locations in partnership with service providers including Shipt, deliv, Roadie, Uber, and others.

These programs also augment the company's ClickList and Harris Teeter ExpressLane locations – Kroger's personalized, order-online service – which is available to customers in more than 900 stores. This service will be available in more than 1,000 locations by the end of the year. In Kroger's third quarter, reported on September 8, 2017, digital revenue was up 126%, driven by ClickList sales, according to Kroger.

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