August 21, 2019

Kroger and Walgreens Expand Exploratory Pilot

Kroger and Walgreens announced the introduction of new test area for retailers, featuring the expansion of Kroger Express and Kroger Pickup at select Walgreens stores, as well as the launch of Walgreens’ owned-brand health and beauty products in 17 Kroger stores in Knoxville, Tennessee. This new test area is the next step of an exploratory pilot which launched in October 2018.

Starting this fall, 35 Walgreens stores in the area will feature a curated selection of Koger’s private label Our Brands products. The assortment will vary by store and can include fresh meat, produce and dairy, frozen foods, shelf-stable products and Home Chef solutions to provide consumers with a fill-in grocery shopping experience. Most locations will feature a full Kroger Express assortment with up to 2,700 products and other stores, on average, will offer 2,300 products. 

Most of the Walgreens pilot stores will provide consumers with the convenience of Kroger Pickup, enabling shoppers to place a digital order online or through the Kroger mobile-app for curbside pickup at a participating location.

The Knoxville expansion will also pilot a curated selection of Walgreens’ own-brand health and beauty products in 17 Kroger stores, also debuting in the fall. The destination will feature several categories, including beauty, personal care, over-the-counter medications and wellness. 

“We continue to redefine the grocery consumer experience and partner for consumer value through our Restock Kroger transformation plan. Our growing relationship with Walgreens is just one more way Kroger is making life easier and better for even more consumers because everyone deserves to have affordable, easy-to-enjoy, fresh food,” said Kroger’s VP of New Business Development, Jeff Talbot. 

Launching the original pilot last year in Northern Kentucky allowed Kroger and Walgreens to test and learn in a retail setting and source consumer feedback with insights, allowing the companies to create a more informed expansion decision. The pilot in Knoxville is a continuation of the test and learn approach and both retailers continue to assess consumer response.

“Walgreens consumers have responded very favorably to the Kroger Express pilot in Northern Kentucky. As a result, we’re exploring more ways to offer consumers an enhanced, more convenient shopping experience,” commented Richard Ashworth, Walgreens president of operations. “Working with Kroger, we’re continuing to re-invent our consumer offer to meet shoppers’ evolving needs, which includes offering private-label grocery and health products at a great value, through an integrated omnichannel experience.”


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