Kroger is taking new steps to grow its business amid declining sales, with plans to sell grocery items in branded sections of Walgreens Boots Alliance, an opportunity billed as a one-stop shopping destination.
By early 2019, the first “Kroger Express” sections will open in 13 Walgreens stores located in Kentucky, close to the brand’s headquarters in Cincinnati, according to a report from The Wall Street Journal, which first reported the news.
The sections -- which will take up about one-third of the average Walgreens store -- will include 4,000-square-foot displays of produce, Home Chef meal kits and “other products if customers take to them.”
Shares stayed mostly steady during premarket trading, rising less than one percent.
|KR||THE KROGER CO.||48.14||+0.81||+1.71%|
Like other grocers in the U.S., Kroger has struggled to compete with an influx of new competition, like low-cost brands including Aldi and the now Amazon-owned Whole Foods.
In the latest quarter, Kroger shares tumbled more than 9 percent after reporting lower-than-expected sales. And in June, the supermarket chain laid off about 1,500 employees and sold 14 of its store locations in the Raleigh-Durham area in North Carolina.
Kroger is scheduled to report third-quarter earnings on Thursday