Please ensure Javascript is enabled for purposes of website accessibility Takes Aim at Amazon, Walmart With Expanded Ship-to-Home Marketplace

By James Brumley – Aug 11, 2020 at 12:36PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The nation's biggest dedicated grocery name will widen its reach by using third-party sellers, gathering data.

Online shopping king (AMZN -0.11%) and the fast-growing e-commerce arm of Walmart (WMT -0.40%) will soon face competition from a surprising source. Grocery chain Kroger (KR -0.54%), which currently sells a relatively modest number of consumer goods online that can be shipped to customers' homes, is diving deeper into the third-party marketplace business.

On Tuesday, Kroger announced its Kroger Ship platform will add an additional 50,000 items to its selection by this fall. Third-party vendors will populate the shopping platform and handle fulfillment in the same manner that Amazon and Walmart's third-party sellers do.

Online shopping cart button on a computer keyboard

Image source: Getty Images.

Kroger's expanded assortment could prove at least somewhat disruptive to Amazon's dominance and Walmart's growing share of the United States' online shopping market. In addition to certain grocery items and consumables, Kroger Ship will introduce goods including toys, housewares, and some Kroger exclusives.

Users of Kroger's online shopping venue will also enjoy membership perks like earning loyalty rewards or fuel points, which encourage repeat business. This program is not membership-based in the same sense that Amazon Prime is, nor like the one Walmart is reportedly planning to launch. But it has the potential to siphon off some current and prospective users of those services; some consumers may opt to shop with a retailer with a local presence as well as an online presence that also offers cost-effective gasoline fill-ups.

Less obvious to consumers will be the power of the data that Kroger is able to collect about consumers using their shopping history and shipping address. Amazon is arguably one of the digital world's most effective platforms in terms of leveraging information. Rivals like Walmart and now Kroger, however, are catching up.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Kroger Stock Quote
$49.09 (-0.54%) $0.27
Amazon Stock Quote
$92.31 (-0.11%) $0.10
Walmart Inc. Stock Quote
Walmart Inc.
$152.35 (-0.40%) $0.61

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.