business news in context, analysis with attitude

The Cincinnati Enquirer reports that "Kroger is aggressively expanding its ClickList service across markets in the U.S., allowing customers to order groceries online and pick them up at stores.

"The move stakes Kroger's claim in the volatile, but rapidly growing e-commerce market for groceries. It also comes as a non-traditional rival has elbowed its way into the industry: Amazon. The Seattle-based e-commerce giant is growing its Prime Now service – now available in 27 U.S. cities, including Cincinnati."

While Kroger CEO Rodney McMullen says that the company is going "all-in" on the technology, he is not specific about how many of Kroger's markets will have ClickList by the end of the year.

The story goes on: "McMullen downplayed Kroger's growing rivalry with Amazon, but analysts say the Seattle behemoth has Wal-Mart and traditional grocers scrambling. Last fall, Wal-Mart slashed its profit outlook, citing a need to heavily reinvest in e-commerce and other initiatives."

In a related story, the Hutchinson News in Kansas reports that "Dillon Stores announced last week the launch of its new online grocery-ordering system, ClickList, at its Dillons Marketplace store at 21st and Maize in Wichita."
KC's View:
There's a line from Fast Company that I'm fond of quoting...

“The companies that fail to reinvent their business models can quickly become vulnerable to commoditization, obsolescence, or business failure."

Kroger knows this. Amazon, by the way, knows this. The companies that don't know this ... and don't act on it ... are facing a long (or maybe short) slide into irrelevance and eventual nonexistence.