Kroger Becomes an e_commerce Powerhouse. Passes Costco.

Big hand hits intense and breaks a crass stonewall

It’s time to rethink Kroger. Consider this headline from MarketWatch:Kroger edges out Costco to land in the top 10 among U.S. e-commerce companies.” Kroger has created a major online e-commerce platform and, yes, they do carry toys. As the article by Tonya Garcia puts it:

Kroger’s digital sales are expected to reach $11.28 billion in sales in 2020, up 79% year-over-year. Costco is expected to come in at $11.18 billion.

Here is a list of the Top 10 e-commerce providers in billions of dollars as compiled by eMarketer:

1. Amazon: $309.58

2. Walmart: $46.20

3. eBay: $38.61

4. Apple: $27.51

5. The Home Depot: $16.71

6. Best Buy: $15.70

7. Target: $13.82

8. Wayfair: $11.66

9. Kroger: $11.28

10. Costco: $11.18

That puts Kroger in shouting distance of Target. I checked the Target and Kroger websites and found that Target lists 34,383 toys on its website. Kroger says that it carries 9,134. That means that Kroger only has one-quarter the number of toys carried by Target.

That gap is a significant opportunity for Kroger and the toy industry. With the absence of Toys R Us and many of our toy stores’ closing, Kroger would greatly benefit by increasing its toy footprint. An expanded toy selection appears to me to be a win-win for Kroger, the toy industry, and the consumer.

Bottom line, all of us need to take a step back, and begin thinking of Kroger in the same opportunistic way we think of Walmart, Target and, yes, Costco.

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