Kroger seeks e-commerce boss as it turbo charges operations
Kroger is on the hunt for a Head of E-commerce as it looks to build “the best online grocery shopping experience in the industry”.
A job spec says: “The Head of E-commerce will work with Merchandising, Product Experience and Enterprise Leadership teams to develop a robust e-commerce growth strategy, drive profitable growth and scale the business leveraging all Kroger assets and underlying technology.”
It adds: “You'll define, establish and communicate operational best practices and ensure adherence to digital and merchandising guidelines. You'll also be asked to drive and manage a team of high performing associates to achieve digital objectives while demonstrating the company’s core values of respect, honesty, integrity, diversity, inclusion and safety.”
Ocado
Kroger, America’s second biggest supermarket chain, has partnered with Ocado, with the two planning to open a series of automated warehouses that will help the former turbo charge its e-commerce operations.
The deal has not been without its critics, however. Last year, we reported that Kroger stock had been downgraded from a buy to a hold by analysts at equity research firm Jefferies.
It cited the Ocado tie up as a concern and a "misstep when compared to micro-fulfilment," according to a note emailed to investors. Jefferies believed that each Ocado shed could take about four years to turn a profit and return limited market share gains.
"Unfortunately, details are lacking from [Kroger] concerning this agreement, including minimum capacity requirements, fee structure, and other assumptions that drive [management’s] expectation of a positive ROI by [year three]," analysts wrote.
Speedy delivery will be an issue with the Ocado sheds, given their location outside major metro areas. With a price tag of around $55 million each and a two-to-three-year buildout timeframe, this is an expensive, time-consuming model that could run into roadblocks in a rapidly changing e-commerce space, Jefferies argued.
