Kroger and the Future of Grocery
Kroger wants Ocado’s help because its revenues are shrinking. Specifically, Kroger reports revenues of $121.162 billion for 2018. That number is down from $122.662 billion in 2017.
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Market Mad House
In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
Search Results for: Kroger and Ocado
Is GrubHub a Threat to Kroger (KR)
GrubHub threatens Kroger (NYSE: KR) because of the size of its footprint and growth. For instance, GrubHub claims to serve over 1,700 American cities and 95,000 restaurants.
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Value Investing in Robots, Artificial Intelligence, Virtual Reality, and Self-Driving Vehicles at NVIDIA Corp (NVDA)
To explain, NVIDIA is not investing all the money and resources needed to commercialize pieces of a complex technology like automobiles, drones, and robots. Instead, NVIDIA is building the basic components; the processors and supercomputers and selling them to manufacturers.
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Kroger and Walgreens Team Up for Pickup
A Kroger/Walgreen hybrid is an obvious use of the capabilities provided by Ocado. A robotic fulfillment center could obviously support both Kroger supermarkets and Walgreen drugstores.
Moreover, a Walgreen drugstore is a logical addition to the 2,782 supermarkets Kroger operates. In addition, Kroger food brands like Simple Truth will be a logical addition to Walgreens inventory.
Importantly, Kroger operates 37 food manufacturing facilities across the United States. Therefore, Kroger offers Walgreens a source of low-priced food products to counter Amazon’s discounting.
Equally important is Kroger’s ability to provide hot takeout meals, meal kits, deli foods, and hot entrees to Walgreen. Markedly, Kroger has a good relationship with the delivery specialist Instacart.
Additionally, an obvious use for Instacart is delivery of Walgreens prescriptions. America’s growing legion of senior citizens will be obvious customers for prescription delivery.
Kroger Tests Self-Driving Vehicle
In addition, Nuro’s self-driving Toyota Prius cars will make some deliveries. Delivery reportedly costs $5.96 per order and is only available from one Fry’s store.
This is the second self-driving vehicle delivery effort associated with Kroger. The Ocado Group Group PLC (LON: OCDO) is reportedly testing a self-driving delivery van in London. Kroger purchased 6% of Ocado last year.
Can Kroger (NYSE: KR) Survive?
Normally nobody would ask if a company that reported $122.662 billion in revenues last year can survive. We are not
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Ocado tests Driverless Grocery Delivery, Supervalu Teams with Instacart
The driverless truck cruises down the street while a delivery person on foot takes the orders to the front door. The truck called the Cargo Pod was tested in London’s Royal Arsenal Riverside neighborhood, Endgadget reported. The vehicle is rather small and silly in appearance – it looks like a milk float to Brits and a large ATV to North Americans
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Is Ocado the Future of Groceries and does it Make Money?
Ocado claims to process 260,000 orders a week with an order accuracy rate of 99% and an on-time delivery rate of 95%. The company claims to reduce costs with a 0.7% rate of product waste, which sounds hard to believe.
What’s truly interesting is that Ocado might be ahead of Amazon in its use of robots to move groceries. Ocado claims to have 1,100 robots at work in its newest Customer Fulfillment Center (CFC3) in Andover, Hampshire. Pictures online show Ocado robots working in refrigerated warehouses and giant freezers.
Those robots can supposedly pick and pack an order of 50 items in just five minutes. That is amazing because the CFC3 is stocked with 50,000 items, and the center itself is the size of three football fields.
Is Kroger Losing Money?
Kroger also bought around 6% of the British online grocer Ocado, a press release indicates. Kroger and Ocado entered into a partnership and subscription agreement that will bring Ocado’s Smart’s Platform to the United States. That will give Kroger access to Ocado’s robotics and digital technology capabilities.
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Is Albertsons a Value Investment in Groceries?
Albertsons (ACI) generates some cash. It reported a quarterly operating cash flow of $275.20 million on 30 November 2020.
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