Kroger and Walgreens are teaming up to bring customers better deals.
The two companies have formed a new group purchasing organization, aimed at lowering store costs, increasing purchasing efficiency for customers and combing resources to help drive future innovation at their stores, according to a press statement.
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“This collaboration is an extension of the strategic collaboration announced last year to create value for customers and shareholders of both companies,” Kroger Chief Financial Officer Gary Millerchip said in the memo. “Kroger and Walgreens share a commitment to finding value and efficiency improvements by increasing innovation and competition.”
The venture, called Retail Procurement Alliance, will build on a previous project the grocery chain and retail giant launched in 2018 to develop a one-stop shopping experience, which led to the Kroger Express concept in 13 Walgreens stores in Northern Kentucky.
Kroger Express is a store that offers a curated assortment of grocery times.
In August 2019, the two brands announced an expansion of that pilot to 35 Walgreens locations in Tennessee and further introduced a new curated assortment of Walgreens health and beauty products available at 17 Kroger stores in the same area.
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Kroger’s stock is down nearly 6 percent on the year. Walgreens Boots Alliance’s stock is down 30 percent on the year. WBA owns Walgreens, Boots and other wholesale brands.