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Kroger teams up with Alibaba to sell groceries in China


image credit : Home Chef

U.S.'s largest grocery chain Kroger is now making moves into the international market for the first time ever partnering with Alibaba on a pilot online store test in China launching a store on the Chinese e-commerce giant Tmall's global site offering initial products including organic goods, dietary supplements and private-label products.

Kroger has made long and vast efforts partnering with several technology firms to expand its grocery services having taken actions on autonomous delivery along with collaborations with startups to offer digital integrations for its brick-and-mortar grocery service.

The grocery chain is making these moves to boost growth and keep up with rapidly increasing competition from new ventures with Amazon's Whole Foods being a major contender.

In an interview with the Wall Street Journal, The company's chief digital officer Yael Cosset stated “Growing into the Chinese market is a huge opportunity for Kroger and we are really excited,”. An Alibaba spokesperson also stated it was “pleased to work with Kroger” on its entry into the Chinese market as it takes its products to the region with a focus on its Simple Truth natural and organic foods brand.





Kroger's shares rose 2.35% on the public market in reactions to this move as investors bet on international expansion to increase sales.

The grocery chain's several partnerships with tech firms and startups for services including home delivery and automated warehouses has led to a better familiarity with millennial and tech-savvy users which gives the brand a good base for its future growth and stability as more services go fully digital.

March this year, Kroger acquired meal kit startup Home Chef for $200 million with an additional $500 million to be paid over 5 years on conditions of several milestones being met with the grocery chain taking its meal kits to more supermarkets in a bid for more growth.

“You should continue to see us doing partnerships and relationships with multiple people across the world,” its CEO Rodney McMullen stated in an interview earlier this year with WSJ.



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