Kroger moving into Austin and San Antonio markets via delivery

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architect
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Kroger moving into Austin and San Antonio markets via delivery

Post by architect »

https://www.dallasnews.com/business/ret ... n-antonio/

This move is interesting to say the least, as Kroger previously operated in both markets years ago and got run out of town. These markets are also solid HEB territory, and San Antonio is HEB's home turf. I don't expect that this will be significantly successful, but maybe if the overhead costs are low enough, they will be able to sustain it.
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Re: Kroger moving into Austin and San Antonio markets via delivery

Post by pseudo3d »

I don't think Kroger opened any stores in Austin. The only one I know of is a single Family Center. They also operated in San Marcos as part of their San Antonio stores closed in 1993. From what it looks like, they want to build a 70k distribution center with 161 employees (who knows if they're part time or not) in both cities, effectively a dark store acting as a delivery hub.

From reading about Kroger's Florida "expansion", I can't find anywhere where they show off the numbers or market share from that venture, which puts questions as to how this is a financial win for the company or not.
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Re: Kroger moving into Austin and San Antonio markets via delivery

Post by storewanderer »

architect wrote: March 5th, 2022, 7:37 pm https://www.dallasnews.com/business/ret ... n-antonio/

This move is interesting to say the least, as Kroger previously operated in both markets years ago and got run out of town. These markets are also solid HEB territory, and San Antonio is HEB's home turf. I don't expect that this will be significantly successful, but maybe if the overhead costs are low enough, they will be able to sustain it.
These are the same sort of center they are opening in Oklahoma City and will be "fed" from Dallas.

What I find interesting is they say they will hire around 150 employees for each site. That is fewer employees than you would hire for the typical new store. I am not sure how much delivery volume they plan to have, or if they plan to use third party drivers (I thought these centers used drivers and vehicles that were owned by/employed by Kroger).

The Florida operation opened pretty recently.
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