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Kroger Downsizing To Focus On E-Commerce, Delivery Services

Kroger is considering the sale of almost 800 convenience stores across the U.S.

Like many other retailers, Kroger wants to focus on its online business in an attempt to compete against retail giants such as Amazon and Walmart. The sale will also free up cash to revamp its 2,800 brick-and-mortar supermarkets, Reuters reports.

Kroger Houston Retail

The chain will be lowering prices and improving in-store technology while simultaneously investing in online initiatives.

Kroger shares rose 1.2% to $20.78 following the announcement Wednesday. This comes after a year of challenges for the grocer, and concerns regarding its ability to survive Amazon's dominance in the industry following its Whole Foods Market acquisition.

Kroger was one of the first grocery chains to use shoppers' data to customize store offerings and promotions, and will now be investing in a system called ClickList, which is an online ordering and curbside pickup service, Reuters reports.

While Kroger will be testing grocery delivery services in approximately 200 stores by the end of 2017, most of the focus will be on online ordering, which is viewed as a less risky way for grocers to get into the e-commerce game.

The ClickList service is expected to be in more than 1,000 stores by the end of the year.