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Kroger's (KR) Indianapolis Fulfillment Network to Aid E-commerce

Kroger (KR) is expanding its fulfillment centers to ensure efficient deliveries. Management announces the expansion of KR's fulfillment network in the Indianapolis area.

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This story originally appeared on Zacks

The Kroger Co. KR is consistently expanding its Customer Fulfillment Centers (CFCs) to new geographies for enriching customers’ shopping experience amid a dynamic retail landscape.

In latest developments, management announced the expansion of Kroger fulfillment network to the Indianapolis area. This network is likely to enrich customers’ shopping experience with advanced digital services and delivery capabilities.

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Further Details

This 48,000-square-feet facility, situated at 9222 E. 33rd Street in Indianapolis, is likely to collaborate with the hub in Monroe, OH. Richmond, which is close to the hub in Ohio, will be part of the coverage area. Customers can easily avail groceries via placing an order on Kroger.com or the Kroger app, which will efficiently get delivered by a Kroger Delivery associate. Also, customers will be aware of the loyalty membership benefits, including earned fuel points and digital coupon savings.

We note that the delivery network will be leveraging stores and third-party partners to deliver some orders. The Indianapolis fulfillment center will support the retailer’s e-commerce operations and further compliment the launch of the Boost by Kroger Plus annual membership program. Via this program, customers can avail benefits, such as free delivery and a chance to earn up to $1 off per gallon of fuel twice as often for $59 or $99 per year.

The Indianapolis fulfillment center is expected to create nearly 150 job positions. This expansion further extends Kroger’s partnership with Ocado, a renowned technology firm providing online grocery fulfilment solutions.

What’s More?

Of late, Kroger also announced to set up a CFC in North Carolina, which will be powered by Ocado Group. Via this CFC, KR looks forward to serving the state’s communities with a more efficient e-commerce delivery service coupled with vertical integration, machine learning and robotics offering quick, economical and fresh food delivery.

Management had also informed about the Monroe fulfillment center this year in April, followed by the Groveland, FL facility. Kroger remains committed to open sites in California, Dallas, TX, Forest Park, GA (Atlanta), Frederick, MD, Phoenix, AZ, Pleasant Prairie, WI, Romulus, MI (Detroit), South Florida, the Northeast, Pacific Northwest and the West.

KR is steadily expanding its fulfillment network to ensure efficient deliveries. We believe that this process of availing fresh food via interconnected, automated and innovative expedite deliveries will tap incremental sales for Kroger.

Zacks Investment ResearchImage Source: Zacks Investment Research

This currently Zacks Rank #3 (Hold) player’s shares have increased 44.5% so far this year compared with the industry’s 3.4% growth.

Hot Stocks in Retail

Some better-ranked stocks are Boot Barn Holdings BOOT, Tractor Supply Company TSCO and Target TGT.

Boot Barn Holdings, a lifestyle retailer of western and work-related footwear, apparel and accessories, sports a Zacks Rank #1 (Strong Buy) at present. The stock has jumped 196.3% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and earnings per share (EPS) suggests growth of 54.6% and 188%, respectively, from the year-ago period’s corresponding figures. BOOT has a trailing four-quarter earnings surprise of 161.5%, on average.

Tractor Supply Company, a rural lifestyle retailer in the United States, currently flaunts a Zacks Rank of 1. TSCO has a trailing four-quarter earnings surprise of 22.8%, on average. Shares of TSCO have surged 65.8% year to date.

The Zacks Consensus Estimate for Tractor Supply Company’s current-year sales and EPS suggests growth of 19% and 23.9%, respectively, from the year-ago period’s corresponding readings. TSCO has an expected EPS growth rate of 10.2% for three-five years.

Target, a renowned omni-channel retailer, presently carries a Zacks Rank #2 (Buy). TGT has a trailing four-quarter earnings surprise of 19.7%, on average. The stock has rallied 27.3% in the year-to-date period.

The Zacks Consensus Estimate for Target’s current-year sales and EPS suggests growth of 13.9% and 40.1%, respectively, from the corresponding year-ago period’s levels. TGT has an expected EPS growth rate of 14.4% for three-five years.



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