Kroger using online to expand to new areas

American supermarket giant Kroger is using the online channel (in partnership with Ocado) to expand the Kroger coverage to areas where the retailer does not have any stores.

First this was done with the Florida warehouse. Second case of expansion to new areas seems to be happening in Texas where Kroger has stores only in Dallas and Houston regions (according to ScrapeHero). Alongside the new Dallas warehouse, Kroger is building two spokes to San Antonio and Austin. They would be served from the Dallas warehouse.

This strategy of using online for expanding to new areas is an interesting approach. Something that many other retailers could follow suit.