What: Kroger makes the most of its strong brand equity and robust supply chain and enters new markets without opening a single store

Why it is important:  Logistical efficiency is nothing without strong brand recognition.

One of the largest supermarket chains in the US, Kroger plans to expand its delivery services into markets where it currently has no store (Northeast US) as a stress-test of its operational capabilities. It already achieved a digital push-only in Florida earlier this year, where its Ocado-operated fulfilment structure allowed it to grow organically faster than expected, in the absence of any store.

It plans to offer same-day and next-day delivery services in the Northeast region, thanks to a new warehouse platform, also operated by Ocado.

Analysts consider that this strategy comes from a perfect cocktail: a strong brand which is known nationwide, coupled to a very efficient supply chain. As a consequence, it can enjoy an edge even with long-established local retailers with physical stores.

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