Kroger broadens its services

Keshia Beadle
Senior Retail Analyst

Date : 31 October 2019

Kroger has launched a parcel delivery test program, in partnership with FedEx, UPS and USPS.

What will the service offer?

The program will be called Kroger Package Services (KPS) and will enable customers to have parcels delivered to store, which they can then pick up at their convenience. It will include packages that require a signature, saving customers the hassle of having to wait in for deliveries. Shoppers will also be able to drop off packages to be posted and automated kiosks will allow them to print or purchase shipping labels if required.

The new service is being trialed at 220 stores, with the learnings being used to determine whether wider roll out of the program should occur. Benefits exist for both the shoppers and the store, with added convenience for the customer and increased footfall for the store, which should hopefully translate to higher sales.

Expanding non-retail revenue streams

As part of its Restock Kroger strategic plan, Kroger has outlined a plan to develop alternative profit streams and change its profit model. The additional operating profit will then be used to invest further in redefining the customer experience and this latest trial offers Kroger both the opportunity to increase alternative revenue and enhance the customer experience. The retailer continues to test a number of services, adding to its portfolio with the aim of creating a seamless shopping experience for customers.


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