Kroger’s new online store will sell products from its natural and organic private label, Simple Truth through Tmall Global’s platform.
It will provide Alibaba’s over half a billion Chinese consumers with easy access to its natural and organic brand.
Kroger chief digital officer Yael Cosset said: “E-commerce enables Kroger to quickly scale to reach new customers and markets where we don’t operate physical stores, starting with China.
“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.”
With this strategic step, Kroger expects to redefine the grocery customer experience through the new online site and create customer and shareholder value by driving top-line growth through alternative revenue streams.
Launched in 2014, Alibaba’s Tmall Global platform provides a premium shopping experience for China’s consumers.
The platform provides brands and retailers without operations in China the opportunity to build virtual storefronts and ship products into China.
Simple Truth is the second-largest brand sold in Kroger stores. This year, it has achieved over $2bn in annual sales, making it the largest natural and organic brand in America.
Cosset added: “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.”