The nation’s largest traditional grocer Kroger and the second largest drugstore Walgreens today announced that the two are collaborating on an exploratory pilot with a new format and concept that combines Kroger’s role as grocery expertise Walgreens pharmacy, health and beauty authority.
The retailers have selected 13 Walgreens stores in Northern Kentucky, near Kroger’s Cincinnati headquarters, to pilot the format. The two will conduct this pilot over the next several months, listening closely to customer feedback.
“This exciting collaboration aligns with Kroger’s vision of serving America through food inspiration and uplift,” said Rodney McMullen, Kroger’s chairman and CEO. “This concept brings together the best of two great brands to rethink convenience and redefine the way America shops for food.”
Initially, Kroger and Walgreens will develop and test a one-stop shopping experience where customers can access products and services from both companies. Customers will be able to order Kroger grocery items online and pickup orders at the participating Walgreens locations. Kroger’s private brands including America’s largest natural and organic brand, Simple Truth, will also be available in-store at participating Walgreens locations. The diversified shopping assortment will complement Walgreens products and services across health and wellness, pharmacy and beauty.
“This innovative new concept is an opportunity to test and learn, as we determine how we can best work together to further elevate our customer offering,” said Stefano Pessina, executive vice chairman and CEO of Walgreens Boots Alliance, Inc. “We continue to evolve our offerings to meet the changing needs of our customers and provide a more differentiated shopping experience. We’ve been implementing new approaches to promotions, product selection and other areas to deliver greater value in our stores.”