Kroger Joint Venture with Walgreens


Kroger Company has established a joint venture with Walgreens Boots Alliance Inc. to install displays of produce and ready-to-eat foods and meal kits.  Kroger Express will assumed almost one-third of some existing Walgreens’ stores amounting to 4,000 square feet of display.


Kroger is taking advantage of the trend towards small outlets offering convenience although with limited selection.


According to a December 5th Wall Street Journal article, the agreement between Kroger and Walgreens is similar to the abandoned venture between Albertsons and Rite-Aid.


As a competitor with the Whole Foods subsidiary of Amazon, Kroger has become aggressive in evaluating alternatives to the conventional supermarket model.  Kroger has already designated Walgreens stores for click-and-collect delivery and has established and relationship with Alibaba Group Holdings in China.