She hands them business cards with delivery service details. ![]() At traffic lights, drivers sometimes honk at the delivery van, roll down their windows and ask for the location of the nearest store. Thornton said she realizes that part of her job is getting the word out about Kroger. Other grocers, including Aldi, Sprouts Farmers Market and Amazon -owned Whole Foods Market, see opportunity in Florida, too, and are opening new locations there. And it doesn't include Costco and dollar store retailers. That excludes categories that IRI does not track, such as prescription medications, apparel and fuel. ![]() Publix rings up 37% of Florida's grocery sales, while Walmart has a 26% market share, according to IRI. "Competition makes us all better, and our customers benefit the most," she said, when asked about Kroger's expansion. She said it will keep "evolving with our customers and meeting them where they are, in-store or online." ![]() Publix spokeswoman Maria Brous said the grocer has built a loyal following for more than 90 years. The Sunshine State is dotted with numerous Publix locations, a privately held grocery chain with deep roots and the largest share of the state's market, according to market research firm IRI, which tracks sales of consumer packaged goods. 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. 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. 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. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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