Kroger invests in cross-channel customer experiences

Kroger sees digital sales as an important growth accelerator for the overall business, and the company is making investments that will increase the number of omnichannel customers.

Kroger is investing in cross-channel experiences to drive sales in the coming year, CEO Rodney McMullen said during a Q4 2023 earnings call. He noted customers who shop both in-store and online spend three to four times more than in-store only shoppers.

One of the key initiatives is ensuring digital customers can receive their orders however they want, whether through same-day pickup or next-day delivery, according to McMullen.

The grocer is piloting a slew of initiatives to improve pickup. Plans include testing customer pickup lockers and drive-thru lanes to make digital pickups easier, thus to keep up with customer demands according to interim CFO Todd Foley. Speed and convenience were two benefits of omnichannel shopping highlighted in a report released last month by 84.51°, Kroger’s data and analytics unit.

Kroger will also introduce AI-enabled store routing technology to help associates fulfill pickup orders more efficiently.

Kroger’s automated fulfillment centers, called sheds, are also playing a role in seamless digital options. Net promoter scores for deliveries made through these fulfillment centers reached their highest-ever level in Q4 2023, according to McMullen.

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