Kroger has announced in a press release that it will be selling products on Alibaba.According to the company it's new online store will introduce "Our Brands" to international customers for the first time. Kroger's online store test will start with select Simple Truth® items, providing Alibaba's more than half a billion Chinese consumers with easy access to America's largest natural and organic brand.
"E-commerce enables Kroger to quickly scale to reach new customers and markets where we don't operate physical stores, starting with China," said Yael Cosset, Kroger's chief digital officer. "We anticipate Chinese consumers will love Our Brands – starting with Simple Truth® products – just like our American customers do. Kroger is proud to continue to lead the way in making natural, organic and free-from products more mainstream and accessible. Sharing Kroger's exclusive brands and status as a food authority the world over is exciting."
"This strategic move supports two key Restock Kroger pillars – redefine the grocery customer experience by elevating Our Brands and partner to create customer value by driving top line growth through alternative revenue streams to create both customer value and shareholder value."
Launched in 2014, Alibaba's Tmall Global platform is China's largest business-to-consumer marketplace, providing a premium shopping experience for China's consumers. The platform provides brands and retailers without operations in China to build virtual storefronts and ship products into China.
Simple Truth has quickly become the second-largest brand sold in Kroger stores since launching five years ago. In 2018, Simple Truth reached more than $2 billion in annual sales, making it the largest natural and organic brand in America.
"Kroger is the world's third largest retailer by revenue—$122.7 billion in sales in 2017. We are creating the grocery retail model of the future by focusing on digital and technology," added Cosset.