The Kroger Co. and Walgreens Boots Alliance are highly regarded companies that operate vast retail networks throughout the United States. Kroger’s retail footprint, which includes 2,747 food retail stores, generated sales of $122 billion during its fiscal year ended Feb. 1. The Walgreens U.S. retail division’s 9,277 locations produced sales of $104.5 billion, with 26.2% of those sales coming from nonpharmacy categories, during its fiscal year ended Aug. 31, 2019.
We could see expansion involving 48 Kroger stores in the Davidson and Murfreesboro suburbs of Nashville, or the 126 Atlanta-area Kroger stores. There are also 15 to 21 Walgreens stronghold states with 200-plus Walgreens stores that could benefit from Kroger’s existing distribution. This would improve Kroger’s position in weaker markets, bolster Walgreens’ position relative to CVS Health and potentially address some food desert situations.