Kroger has had a few definitive tactical struggles that set it behind competitors in the online grocery space:
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It's failed to partner with, invest in, or acquire startups that could have jolted its online business. Kroger was interested in three startups: online grocery delivery service Shipt, meal kit company Plated, and bulk e-tailer Boxed.com, but was unable to work with or buy any of them.
Kroger wasn't able to maximize the value of an e-tailer it acquired. Kroger picked up Vitacost, an online seller of natural foods and supplements, for $280 million in 2014. However, it was slow to integrate Vitacost's technology into its operations and balked when Vitacost employees suggested emailing promotions to customers instead of using paper circulars.
The grocer now sells with Instacart and is developing a new grocery platform for nonperishable items. Working with Instacart has allowed Kroger to make products from 1,600 stores available online quickly without having to set up and deploy online ordering capabilities itself. It's also been slowly rolling out a proprietary online platform, dubbed"Kroger Ship," that sells nonperishable items for delivery as fast as next-day.
Kroger is working with UK grocer Ocado to boost its fulfillment capabilities. Kroger's been working with Ocado, which it
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