Why Kroger Is Testing Same-Day Furniture Delivery
Grocery chain Kroger Co (NYSE: KR) is teaming up with on-demand shipping company Frayt to experiment with same-day delivery of outdoor furnishing products to consumers, Grocery Dive reported.
What Happened
Several Kroger Marketplaces stores in Cincinnati and Dayton, Ohio and Northern Kentucky will soon ship outdoor furnishing products like patio dining sets, BBQs and more to consumers. The brand's Marketplace stores are known for carrying a selection of non-food products and groceries.
Frayt, which normally facilitates business-to-business deliveries, has seen a 250% increase in interest in its services since it started to deliver to consumers, according to Grocery Dive.
Why It's Important
Kroger's expansion to furniture is a way to sell outdoor dining items to consumers when many of its competitors are closed due to the COVID-19 pandemic, according to Grocery Dive.
Partnering with Frayt gives the grocer a better chance of competing against retailers like Target Corporation (NYSE: TGT) and Walmart Inc (NYSE: WMT).
What's Next
If Kroger's initial trial proves to be successful, it could expand to many additional locations. Out of the total 2,757 stores under Kroger's umbrella, 183 are a Marketplace.
Kroger also owns more than 100 Fred Meyer stores in the Northwest region that carry similar furniture items and could potentially be tapped as well to deliver direct to the consumer.
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Public domain photo via Wikimedia.
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