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Elsewhere in the state, there are none of its many banners, which include Fred Meyer, King Soopers and Ralphs. In Florida, though, it has only one store, which is near the Georgia border. Kroger has nearly 2,800 stores across 35 states. At least some of those new Floridians belong to wealthier households who moved to the state because of its low taxes - and they are an appealing customer base for grocers. population growth has slowed over the past decade, Florida has defied the trend with a more than 14% increase from 18.8 million in 2010 to 21.5 million in 2020, according to the U.S. Many Floridians have moved from other states where the grocer is already a household name, McMullen said, giving the company a quicker way to win business.Īs U.S. The migration of people to the Sun Belt is why Kroger decided to plant its flag in Florida. Nearby, construction cranes dot the landscape in new subdivisions with big banners that call out "New Homes Coming Soon." Publix, a Florida-based grocer, has billboards advertising its delivery service, which is powered by third-party delivery company Instacart. The vans keep groceries chilled in the Florida heat, even on long drives to far-flung rural communities with dirt roads.īut a short drive from Kroger's central Florida shed is all it takes for Thornton to see the company's competition - and its opportunity. Each work day, Latoya Thornton puts on her Kroger uniform and gets behind the wheel to shuttle orders to customers. Kroger's delivery vans serve as giant billboards, signaling the grocer's arrival in Florida. It has not shared its timetable for that project. Last month, it announced plans to build a shed to serve customers in New York, New Jersey and Connecticut for the first time. The playbook that the grocer is developing with Kroger Delivery in Florida will be useful as it expands the business to the Northeast. It may be the largest supermarket operator in the country, but in the state, Kroger is the newcomer and, at least initially, the underdog. With its Florida expansion, the grocer must not only prove the sheds can power a large, profitable e-commerce business in a notoriously low-margin industry, it must also win over customers in a brand-new market where some may not even know its name. Kroger has argued that the sheds will help it keep up with customers who are buying more food and household items online - while increasing the money it makes from each of those orders. And it has announced plans to use the state as a blueprint to break into new markets and take on grocery rivals, including entrenched regional players like Florida-based Publix and retail behemoths like Amazon and Walmart with market values that are about 54 times and 13 times larger than Kroger. It has hired 900 employees and counting across the state. It has invested at least $55 million just on construction of its shed alone.
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Kroger has opened two sheds so far, with plans for at least nine more over the next two years.įlorida is ground zero as Kroger rolls out a national strategy to become a more dominant e-commerce player. It chose Ocado because of its track record in the United Kingdom, where it's gained popularity with customers. In the process and through powerful success stories, my ambition is to showcase to the world, the power of unexplored talent pools often ignored due to lack of representation.Three years ago, Kroger struck a deal with British online grocer Ocado to build a network of customer fulfillment centers, which it calls sheds, across the U.S. As I work to create that strong ecosystem, my ultimate goal is to make Digital Inclusion an integral part of Capgemini’s DNA and backbone. With the digital gap deepening in the society, the need of the hour is a strong ecosystem to support the synergy between business leaders and state/non-state actors working towards social development. By sharing our skills, expertise and our vast network, we aim to strive for an inclusive and sustainable digital future. In my current role as the Global Head of Digital Inclusion, I see to it that Capgemini continues to be a truly responsible company through real and positive impact on society. One of the key lessons I learnt through my experience is that technology is a powerful and indispensable tool for progress and development. I have worked closely with the social sector for years, with my focus trained on employability and empowerment of under-served communities.