Grocery and pharma team up in Kroger-Walgreens partnership
The Kroger Co. and Walgreens are launching an exploratory pilot and concept that combines Kroger’s groceries with Walgreens pharmacy, health and beauty services. Thirteen Walgreens stores in Northern Kentucky have been selected for the pilot, which will allow customers to order Kroger grocery items online and pick up their order from the participating Walgreens locations.
The concept underscores the growing interest to address social determinants of health, including providing healthy foods to adults with chronic conditions. Medicare Advantage plans, in particular, are looking at ways to deliver healthy foods to certain enrollees to improve health outcomes and reduce the likelihood of adverse health events related to chronic conditions, such as diabetes and hypertension.
"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."
The pilot will be conducted over the next several months, with the companies “listening closely” to customer feedback, according to a press release. The move could also be viewed as a means to thwart growing threats from Amazon, which continues to jump into the grocery and pharmacy spaces.
"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," Stefano Pessina, executive vice chairman and CEO of Walgreens Boots Alliance, said in a statement. "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."