Building on an exploratory pilot launched in October 2018, The Kroger Co. and Walgreens will launch a new test area for the retailers, featuring the expansion of Kroger Express and Kroger Pickup at select Walgreens stores, as well as the launch of Walgreens' owned-brand health and beauty products in 17 Kroger stores in Knoxville, Tennessee.
Starting this fall, 35 Walgreens stores in the area will feature a curated selection of Kroger's Our Brands products like Simple Truth, America's largest natural and organic brand, and national brand products. The assortment will vary by store and can include fresh meat, produce and dairy, frozen foods, shelf-stable products and Home Chef meal solutions to provide customers with a fill-in grocery shopping experience. Most locations will feature a full Kroger Express assortment, with up to 2,700 products, and other stores will offer 2,300 products on average.
Most of the Walgreens pilot stores will also provide customers with the convenience of Kroger Pickup, which allow shoppers to place a digital order on kroger.com or through the Kroger app for curbside pickup at a participating location.
The Knoxville expansion will also pilot a curated selection of Walgreens' owned-brand health and beauty products in 17 Kroger stores, also debuting in the fall. The destination will feature several categories, including beauty, personal care, over-the-counter medications and wellness. Walgreens Boots Alliance brands No7 and Soap & Glory will also be a part of the assortment.
The first pilot launched last year in Northern Kentucky allowed Kroger and Walgreens to test-and-learn in a retail setting and source customer feedback and insights, allowing the companies to create a more informed expansion decision. The pilot in Knoxville is a continuation of the test-and-learn approach, and both retailers will continue to assess customer response.