Kroger shuts down popular home delivery option across the U.S.: How this affects your grocery orders
Kroger has unexpectedly shut down its Kroger Ship service, an online marketplace that allowed customers to buy groceries and other products from third-party sellers with home delivery.
Grocery shopping has drastically changed over the years, evolving from a time-consuming errand into a seamless online experience, now be done with just a few clicks, with groceries delivered straight to your doorstep or ready for pickup at your convenience.
Kroger embraced this shift by launching Kroger Ship in 2018, an online shopping and delivery service. However, despite the initial promise, Kroger recently made the unexpected decision to discontinue Kroger Ship without prior notice, leaving customers wondering about the future of the company’s online marketplace.
Kroger shuts down home delivery service
Kroger debuted Kroger Ship in 2018, an online shopping and delivery experience that offered customers a wider selection of shipped products to their doorsteps.
In 2020, Kroger opened the platform to third-party sellers in a bid to increase its product range beyond groceries and maintain a competitive edge against evolving consumer expectations and competition.
Despite its potential, Kroger Ship has been abruptly abandoned and withdrawn from Kroger's site without warning. It has not yet been disclosed by the company why this happened, or when precisely the decision was made, but the service stopped being functional as of March.
Kroger's decision was made due to Walmart's popularity increase sales. Photo: Kuow
However, Kroger's core grocery delivery and order-ahead services remain. Customers can still place orders online via Kroger's own site, but can no longer purchase items from third-party vendors.
While the marketplace venture may not have worked out as planned, Kroger's overall digital sales continue to grow, with 11% digital sales growth and 18% delivery sales growth during Q4 of fiscal 2024 compared to a year ago (excluding the 53rd week of 2023).
As a traditional grocery chain with nearly 2,800 stores in 35 states, Kroger is a relatively recent entrant to web sales. That might have encouraged some consumers to choose more seasoned rivals online.
Walmart, for instance, which also started out as a traditional retailer, has developed a robust online complement to its physical locations, with a feature-rich website, delivery and pickup functionality, and an active third-party marketplace.
