Ocado - comment
Kroger’s review of its e-commerce strategy is driven by the need for e-commerce profitability as opposed to disenchantment with Ocado; E-commerce sales grew 16% YoY vs 3.4% overall (excluding fuel). The review announced yesterday will focus on increasing the use of the store footprint to pare e-commerce costs and get the platform to profitability. Kroger has already slowed its CFC rollout programme (in 2023), and may change where it locates future CFCs, but we expect the rollout to continue. Kroger doesn’t have the store footprint of its larger rival, Walmart, so a mix of e-commerce sales from Customer Fulfilment Centres (CFCs) and Stores is important. Kroger will provide an update at its next results announcement in early December.
https://www.grocerydive.com/news/kroger-grocery-ecommerce-profitability-delivery-pickup/752158/