Kroger might have a solution. If customers can’t come to the store … why not take the store to them?
In 2016, the city of Dallas offered an incentive of at least $3 million to any grocery retailer willing to set up a store in south Dallas, but no one stepped up. The retail grocery industry often perceives putting a grocery store in a lower-income community as a risky business venture. The result is that these communities are underserved when it comes to the ease and convenience of something many of us take for granted – a local grocery store that’s just a short walk or car ride away.
Kroger might have a solution. If customers can’t come to the store … why not take the store to them? Kroger is bringing the Zero Hunger Mobile Market to neighborhoods in Louisville, KY, that don’t have nearby grocery stores. The largest supermarket chain in the United States is adding to its nearly 2,800 conventional stores with a single-aisle mobile grocery store in the form of a 50-foot refrigerated trailer stocking almost 200 products, including meats, dairy products, fresh produce and more.
Kroger is building on the success of a similar program, Milwaukee’s Fresh Picks Mobile Market, which is a partnership between the Hunger Task Force and Pick ‘n Save, which is owned by Kroger. According to a comment in the Louisville Courier Journal from Erin Grant, a Kroger spokesperson, this is part of Kroger’s Zero Hunger, Zero Waste initiative. Kroger partnered with Dare to Care, the local food bank, and Louisville Forward, the city’s economic development organization, to purchase the truck and trailer. Kroger outfits the truck and provides the employees needed to run the mobile store.
This is where convenience meets cause. The concept is to create a convenient, healthy solution for those who may be prevented from visiting a grocery store by lack of transportation, physical disability or other obstacles. The mobile customer experience is similar to that of a conventional store, only smaller. Customers board the trailer, choose what they want and check out using debit/credit cards or EBT (electronic benefit transfer). Cash is not accepted in the mobile stores.
Convenience is a great marketing strategy, and delivery is one of its key principles. Taking the product to the customer makes it easy. The grocery delivery business is expanding through companies like Instacart, Shipt, Boxed and others. Walmart, Amazon and other well-known retail/grocery brands are reaping the benefits of the convenience revolution, which includes grocery delivery. Customers like ease and convenience, and many are willing to pay for it.
But, traditional grocery delivery options are expensive. The customers Kroger is targeting with this convenient solution are very price-sensitive. The typical premium some customers might be willing to pay for the convenience of delivery is not an option for this segment of the community, so they had to come up with another idea. According to Deli Market News, the Mobile Marketplace will make 35 stops at 29 locations. It will visit lower-income areas, community centers, senior living centers and more locations selected by Dare to Care.
A number of retail experts commented on this concept in Retail Wire. Rich Kizer of Kizer and Bender states, “There is nothing better than a company with a social conscience to help others.” Lee Kent of Your Retail Authority, LLC, said, “It may not add great profits, but will surely lead to gold stars for Kroger.” And Bethany Allee, EVP marketing at Cybera, said, “Kroger continues to innovate in a way that shows they listen to their consumers and do what’s right for their community.”
This is all about finding a need in an underserved part of the population and solving it. Annette Ball, chief programs officer of Dare to Care, said, “You may not find 100% of what’s on your grocery list, but you sure are going to be able to make great, nutritious meals for your family.” At the end of the day, that’s convenience in action, serving the community in new ways that may just end up disrupting the industry – for good.In 2016, the city of Dallas offered an incentive of at least $3 million to any grocery retailer willing to set up a store in south Dallas, but no one stepped up. The retail grocery industry often perceives putting a grocery store in a lower-income community as a risky business venture. The result is that these communities are underserved when it comes to the ease and convenience of something many of us take for granted – a local grocery store that’s just a short walk or car ride away.
