The automated warehouses are a key part of Kroger's strategy as it tries to turn e-commerce into a larger and more profitable part of its business.
-owned Whole Foods Market, see opportunity in Florida, too, and are opening new locations there.
New customers tend to order fewer items initially, McMullen said. Over time, the home delivery orders resemble curbside pickup, he said, with baskets about "three times the size of somebody going into a store." That changed in June when Zausner read a Facebook post from a neighbor, who tried and liked Kroger Delivery. Zausner knew of Kroger from her sister-in-law who shops at its stores in Tennessee.
Then, there are labor costs. Despite the help from automation, Kroger must employ hundreds of pickers and delivery drivers, who are employees rather than gig economy workers. Driver pay starts at $19 an hour.The grocer is banking on the premise that online grocery shopping will drive a larger and larger percentage of total grocery sales — and that customers will embrace home delivery.
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