Kroger is taking on Publix in Florida without opening a single grocery store — and building a blueprint for its future

GROVELAND, Fla.— Kroger wants to attract tens of thousands of new customers in Florida — and it plans to do that without opening a single grocery store.

Instead, the supermarket operator is relying on a giant warehouse of robots that help retrieve such products as bananas, milk and meat, and a fleet of delivery drivers that drop off online grocery orders at people’s doors. The automated warehouse — big enough to fit nearly eight football fields — is a pricey bet for the grocer and an illustration of its e-commerce ambitions.

  • Kroger is using a giant, robot-powered warehouse — instead of opening stores — to break into Florida, a new market for the country’s largest supermarket operator.

  • It plans to use the same strategy in the Northeast, where it will deliver online orders to homes and serve customers in New York, New Jersey and Connecticut for the first time.

  • The automated sheds are a key piece of the company’s growth strategy and an effort to turn e-commerce into a bigger, more profitable business in a notoriously low-margin industry.

RSK: They may not be opening store real estate but they will be consuming a huge warehouse space. Will be interesting to see how this online only works out. Will pave the way for others to expand without opening retail stores if it works....which I think it just might.

Ken Notes: This is going to become a trust issue, when I call Millers and ask for two ribeyes I know I will be very happy, when I call Walmart I KNOW I will be very disappointed...

- - Volume: 9 - WEEK: 46 Date: 11/9/2021 10:36:13 AM -