The Webretailer News Digest for October 21, 2022
Explanation:
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Today’s news is 1027 words and takes 4 minutes to read.
Kroger acquires Albertsons creating online mega store
This week, the second largest grocer in the US, Kroger, announced it will acquire and merge with the fourth largest, Albertsons. Pending approval, they set the deal at $24.6 billion, which will create a brick-and-mortar grocery behemoth with nearly 5,000 stores and $200 billion in annual revenue.
Online implications
This is the Webretailer news after all, so we’re focusing on how this merger will reshape the world of online grocery stores — perhaps globally.
Key Facts
Kroger has made heavy investments in their eCommerce strategy over the past two years with a goal of doubling their digital sales by the end of 2023.
- August 2020 – Kroger Ship expands to include a marketplace for third-party sellers, competing directly with Amazon and Walmart.
- April 2021 – Kroger opens their first customer fulfillment center in collaboration with Ocado Group. They opened a second one in December 2021. And as of June 2022, they have five total throughout the US.
- In May 2021, they partnered with Drone Express to begin testing drone deliveries on online orders.
- In April 2022, we reported on their announcement to partner with Bed, Bath, and Beyond to offer home and baby products within their online store.
Online Store Merger Stats
The merger with Albersons will grow their product line and fulfillment network exponentially.
According to DC360, it will make them the second largest grocer in the US, and the third largest online grocery store by share, behind Amazon/Whole Foods and Walmart. However, their third place online share is 19.6% and fourth place is Costco at 4.5%. Statistically speaking, it has huge implications for the online marketplace.
Final Thoughts
With all the acquisitions and mergers this year during the economic downturn, it’s not surprising Kroger is purchasing Albertsons. In fact, Forbes stated it makes total sense.
Web retailers should focus efforts on seeing how this changes the online landscape for big retailers and look for opportunities within the Kroger Ship third-party marketplace.
What do you think about this mega merger, and its implications on the eCommerce world? Tell us below!
And sign up for our exclusive Tuesday newsletter to find tips on how you can sell more on large marketplaces like Kroger Ship, Walmart Marketplace, and Amazon.
Big Retailer News
PayPal launches new rewards program
Since acquiring Honey three years ago, PayPal has kept the platform relatively separate from PayPal’s other rewards. But this week the company announced a new rewards program that will bring the Honey Gold rewards program into the PayPal fold.
What’s included?
According to the announcement, PayPal Rewards creates a single, unified program across all of PayPal. Customers can combine their rewards from any PayPal purchase — including Honey browser extension purchases.
Users can track and redeem rewards via the PayPal app with ease, and they gain more ways to earn and redeem points — cash back, physical rewards, or extended rewards with a PayPal purchase.
Final Quote
“PayPal Rewards makes it easy to find sales, discounts, and great deals when making a purchase with PayPal — through cash back, discount codes, or other rewards.”
PayPal Vice President of Shopping and Global Pay Later, Greg Lisiewski
Bloomreach announces enormous integrations expansion
If you’re not familiar, Bloomreach markets itself as the world’s top Commerce Experience Cloud. Big names like Albertsons — now Kroger — Marks & Spencer, and Puma all use their platform for digital engagement and personalization.
This week, the company announced a slew of plug-and-play integrations with big eCommerce names like Shopify, BigCommerce, Salesforce Commerce Cloud, and Magento 2.
Industry factors
The platform makes a host of AI and data-driven solutions available for smaller web retailers. With Bloomreach, it’s possible to create and measure personalized campaigns within two weeks, and the platform comes with over 50 campaign templates for abandoned carts, loyalty programs, welcome flows.
Final Quote
“With a seamless integration between Bloomreach Engagement and Shopify, SFCC, BigCommerce, and Magento, businesses at any stage of growth will be able to easily access the tools they need to build real-time in-session personalized campaigns that attract customers, increase conversions, and build lasting customer loyalty.”
Michal Novovesky, Head of Product, Bloomreach Engagement
Also in the News:
- Dubai-based courier Aramex purchases Florida eCommerce marketplace MyUS for $265 billion. Reuters.
- OSARO and Sealed Air launch a high-speed bagging system for eCommerce fulfillment. BusinessWire.
International Retailer News
Shopify expanding its ERP Program in Europe
A year ago this month, Shopify announced the creation of a Global Enterprise Resource Planning (ERP) Program. The program allows partners like Microsoft, Oracle, and Netsuite to create direct integrations for the Shopify App Store.
This week, multiple news outlets reported that the program finally expanded to Europe.
Who are the partners?
At the moment, Actindo, Afterbuy, JTL, Pickware, plentymarkets and Xentral in Germany; Itsperfect in the Netherlands; and EV4 and Holded in Spain. They expect more additions to the program soon.
The Webretailer take
This enables eCommerce sellers already using services from these companies to connect with Shopify seamlessly. It could be a game changer for European retailers if they know how to leverage their tools.
ByteDance (TikTok) doubles down on eCommerce in China
As the Chinese economy slows, big businesses in China are looking for alternative income streams. Last week, we reported ByteDance is preparing to open fulfillment centers in the US to take on Amazon. But in China, the company is pushing eCommerce directly into Douyin — the country’s version of TikTok.
What’s the buzz?
According to the South China Morning Post, ByteDance added a shopping channel to its news aggregation app Toutiao hoping to convert their vast user-base on the platform into revenue.
And last month, a Douyin subsidiary applied for an advertising and entertainment trademark for “Douyin Movie Ticket”. Apparently, the company wants to sell movie tickets within its app. However, they’ll have some stiff competition as Alibaba and Tencent already have popular apps in the same space.
The Big Picture
ByteDance has heavy competition in the eCommerce space in the East, and the FCC Commissioner called for Google and Apple to remove TikTok from their stores in the US. The company has to make moves or it could lose relevance faster than Facebook is right now.
Also in the News
- Pakistan launches its first Smart Distribution Center with the help of a Chinese company. Shanghai Times.
- Alibaba is establishing an export pavilion on its platform in the UAE. Food Navigator Asia.
Webinars
For everyone
Various dates: Amazon advertising’s global webinar program continues with 20+ webinars scheduled, covering Prime Day Preparation, Sponsored Products, Sponsored Brands, reporting, optimization, and other tips. Amazon.
For US sellers
October 27: YouTube Measurement: Proving Out Performance on the World’s Second Most Visited Site. Tinuiti.
For UK sellers
Various dates: Amazon advertising’s global webinar program continues with 20+ webinars scheduled, covering Prime Day Preparation, Sponsored Products, Sponsored Brands, reporting, optimization, and other tips. Amazon.
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