Walgreens, Kroger partner to launch group purchasing organization

Walgreens and Kroger are building on their partnership that began with their Kroger Express pilot stores. The two companies once again are teaming up, this time on a joint-venture group purchasing organization called Retail Procurement Alliance, which Walgreens and Kroger said is aimed at driving purchasing efficiencies, lower costs and combined resources. 

“This collaboration is an extension of the strategic collaboration announced last year to create value for customers and shareholders of both companies,” said Gary Millerchip, Kroger’s CFO. “Kroger and Walgreens share a commitment to finding value and efficiency improvements by increasing innovation and competition through sourcing. This concept brings together the best of two great organizations to reinvent critical components of our sourcing practices.”

Kroger and Walgreens’ partnership began in October 2018 when they partnered to develop the Kroger Express pilot, which launched in December 2018 and was expanded in August to more stores and brought curated Walgreens health and beauty products to certain Kroger stores. 

“Through this unique joint venture, Walgreens and Kroger have the opportunity to use our collective resources to create efficiencies across our supply chains,” said Alex Gourlay, co-chief operating officer, Walgreens Boots Alliance. “This collaboration will also enhance our ability to drive innovation for customers, including both of our private-label brands, to further meet their evolving needs for value and convenience.”