Podcast Summary: Kroger's E-Commerce Identity Crisis? | Fast Five Shorts

Podcast: Omni Talk Retail
Episode Date: October 16, 2025
Hosts: Chris Walton (B), Anne Mezzenga (A)
Theme: Analysis of Kroger’s evolving e-commerce strategy, its increasing reliance on DoorDash and Instacart, the reevaluation of its Ocado partnership, and the future of grocery order fulfillment.

1. Episode Overview

This episode tackles Kroger’s latest moves in e-commerce, questioning whether the supermarket giant is facing an “identity crisis” as it partners more deeply with DoorDash’s DashMart service while rethinking its large investments in Ocado automated warehousing. The hosts analyze the implications of shifting between third-party partnerships and internal fulfillment strategies, and discuss broader trends impacting grocery retailers’ e-commerce operations.

2. Key Discussion Points & Insights

A. Kroger’s Partnership with DoorDash and DashMart

• Kroger will utilize DoorDash’s DashMart services, offering groceries and household goods via DoorDash’s delivery-focused stores.
• This aligns Kroger with other major retailers (e.g., CVS) using DashMart for fulfillment.
• Hosts highlight that this expansion comes after Kroger enabled DoorDash delivery at all 2,700 stores, illustrating its dependency on third-party delivery for e-commerce growth.
• Kroger’s moves coincide with executive statements about “reexamining” its Ocado automated warehousing strategy.

B. Concerns About E-Commerce Strategy Direction

• Chris Walton (B, 00:47): Expresses concern that Kroger’s strategy appears “lost” and reactionary, shifting between major tech/infrastructure investments.
  • Notable Quote [00:52]:
    “I worry, it tells me that Kroger's e-commerce strategy is a little bit lost and it's trying to grapple in the dark here, you know, trying to find its way in the dark here.”
• He explains the pendulum swing from Ocado automation (“old regime”) to outsourcing delivery via Instacart and DoorDash (“new regime”):
  • “Old regime makes a huge bet on Ocado. New regime comes in, they don't like how the results are playing out. So now they're swinging the pendulum… adding DoorDash to the mix… micro warehousing support with the DashMart concept.” [01:18]
• Walton emphasizes the importance of long-term vision for fulfillment infrastructure:
  • Notable Quote [01:58]:
    “Where do I want our network to really be in 10 years? Because I guarantee the answer… should not be running through DoorDash and Instacart's marketplaces at all. At best they should be white label delivery providers for you...”

C. Fulfillment From Stores and Automation Opportunities

• Anne Mezzenga (A, 02:48): Notes that more retailers consider fulfilling from stores to gain efficiency and avoid overreliance on third parties.
• She raises the prospect of Kroger pushing Ocado toward “Zoom micro fulfillment platforms,” and the need for automation to keep pace with rapid order demands.
  • Refers to the Save A Lot store example:
    “You could do a 50 item grocery order in six to eight minutes. You cannot do that with your human workforce or with… a third party coming in.” [03:45]
• Anne speculates this period may force investments in back-of-house automation that can support third-party delivery or even enable direct delivery by Kroger.

D. Balancing Third-Party Partnerships and Internal Capacity

• Chris Walton (B, 04:30): Clarifies that DashMart handles warehouse picking itself, removing in-store picking from the equation, yet in-store picking with DoorDash is still used elsewhere.
• He points out Kroger’s close relationship with Ocado may limit its willingness to explore alternative technology providers, even if competitive solutions exist.
• Strategic Insight:
  • Walton argues Kroger should maximize its investments in Ocado for markets where infrastructure exists and “pull back” reliance on Instacart and DoorDash in those regions.

3. Notable Quotes & Memorable Moments

• Chris Walton:

  • On the confusion in Kroger’s e-commerce direction:
    “I worry, it tells me that Kroger's e-commerce strategy is a little bit lost and it's trying to grapple in the dark here...” [00:52]
  • On the need for long-term network planning:
    “You have to start figuring out how to fulfill the demand yourselves and how to make it economical with the right technology and automation...” [01:43]
  • On the competitive threat from giants:
    “If you don't, Walmart and Amazon are going to figure that out and they're going to drive the volume towards e-commerce to them in the long run because they're going to know how to do it cheaper and more efficiently.” [02:29]

• Anne Mezzenga:

  • On the push toward automation:
    “I think that's what I'm really curious to see is, does this cause the retailers to invest more in automation in the back of house...” [03:37]
  • On operational changes needed to scale delivery:
    “You could do a 50 item grocery order in six to eight minutes. That's… you cannot do that with your human workforce or with… a third party coming in.” [03:45]

4. Important Timestamps

• 00:00 – 00:47: Introduction of Kroger’s DoorDash DashMart partnership and recent e-commerce moves.
• 00:47 – 02:48: Chris discusses strategic confusion, the psychology behind decision shifts, and the fundamental dilemma of fulfillment ownership.
• 02:48 – 04:30: Anne examines in-store fulfillment, growing automation needs, and the store operation consequences.
• 04:30 – 05:20: Chris provides clarifications on DashMart’s model, restates the importance of leveraging Ocado, and concludes on recalibrating third-party partnerships.

5. Summary & Takeaway

• Kroger faces a crossroads in e-commerce strategy—caught between large investments in in-house automation (Ocado) and rapid, pragmatic partnerships with third-party providers (DoorDash, Instacart).
• The hosts urge Kroger and similar retailers to clarify their long-range vision, warning that overdependence on third parties could jeopardize long-term competitiveness against industry titans like Walmart and Amazon.
• Both hosts agree that automation, network planning, and a balance between internal capability and external partnerships are essential for sustainable, efficient e-commerce order fulfillment in grocery retail.

This summary covers the core insights and debates from the episode, highlighting the uncertainty and high stakes in grocery e-commerce and drawing from expert analysis and memorable exchanges between the hosts.