Kroger is venturing into the international market – specifically China – with the launch of Our Brands through Alibaba’s Tmall platform.
The company will be testing the new initiative by initially offering selected ‘Simply Truth’ brand items such as nuts, dietary supplements, and other products. This allows Chinese customers to access the nations largest natural and organic brand that recorded more than $2 billion in annual sales in 2018. More importantly, it feeds Chinese consumers’ ever-growing demand for high-quality, organic food products.
This move also supports the company’s Restock Kroger initiative that aims at refurbishing its supermarkets, reducing prices and enhancing store technology to provide a hassle-free shopping experience to its customers.
Kroger is deeply entrenched in the $800 billion grocery wars with Walmart and Amazon, who have recently made huge moves on their own. Walmart has finalized its investment in Flipkart, and Amazon with their acquisition of Whole Foods and the expansion of their Prime grocery delivery service.
Kroger is staying abreast by making its own moves. It has recently, inked in a deal with British grocer Ocado, acquiring meal kit provider Home Chef, and launching Kroger Ship, their online shopping services that mimic the Amazon Prime Pantry and Target Restock services.
Kroger’s arrangement with Alibaba raises the stakes for rival U.S. grocery seller Walmart which along with its Chinese partner JD.com, is already fighting Alibaba for dominance in the world’s second-biggest economy, where the share of online business is expected to more than double to 6.6 percent by 2020, according to research firm IGD.