An abrupt move by Rodney McMullen, CEO of Kroger, has left loyal shoppers questioning the future of online grocery shopping for America’s second-largest supermarket chain.

Kroger has quietly ended its nationwide e-commerce platform, Kroger Ship, after struggling to compete with retail giants Amazon and Walmart, according to a new report from the Daily Mail Online. Customers learned about the service’s shutdown in March through a FAQ posted on Kroger’s own website.

Launched in 2018, Kroger Ship promised to deliver orders over $35 directly to consumers’ doorsteps. The company hoped to ride the wave of growing online grocery demand by giving shoppers greater flexibility—allowing them to shop whenever and however they wanted, without ever setting foot in a store. Despite an expansion in 2020 that brought third-party sellers onto the platform and a high-profile partnership with Bed Bath & Beyond in 2022, Kroger Ship failed to make a lasting mark.

Online marketplace struggles prompt end to service

The closure of Kroger Ship signals a retreat from the ambitious strategy of battling Amazon and Walmart on their own turf. Those two retail behemoths continue to dominate e-commerce, with Amazon’s third-party marketplace alone generating $156.1 billion in sales last year, accounting for nearly a quarter of the company’s total revenue. Meanwhile, Walmart’s recent revamp of its delivery system has unlocked same-day drop-offs for 12 million additional American households.

Kroger, in contrast, found itself unable to convince enough shoppers to use its Ship service. Experts say that despite its status as the nation’s second-largest supermarket chain, Kroger was unable to distinguish itself in an increasingly crowded and competitive online marketplace.

Neil Saunders, an analyst with Global Data, told the Daily Mail, “I think the main reason for Kroger axing Ship is that the service just didn’t gain ground in the way Kroger was hoping it would. The idea of a marketplace with lots of products was conceived at a time when online was seeing great growth.”

Customers react to loss of delivery option

Some shoppers were left dismayed by the abrupt removal of the Ship service. A vocal minority even vowed to take their business elsewhere, claiming the loss of home delivery would push them toward competitors. Others, however, expressed little surprise, noting that the platform had never seemed to gain real traction.

Kroger’s announcement did not include a detailed explanation for the shutdown. Instead, the company simply updated its website and directed customers to alternative options it still offers—namely, its Pickup and Delivery services, which allow for online ordering but require either store pickup or a more limited delivery arrangement.

While some customers lamented the change, others pointed to the intense competition from Amazon and Walmart as a likely reason for Kroger’s decision. In the words of Neil Saunders:

Kroger was a bit part player and just didn’t do enough to convince shoppers to use the service. It will now focus on traditional grocery delivery which provides it with better prospects.

Investigation uncovers additional Kroger challenges

Complicating matters for Kroger, the company is facing negative press after a recent investigation alleged it was overcharging customers by listing expired sale prices on shelves. Secret shopper tests in March, April, and May reportedly found over 150 items labeled with outdated discounts that no longer applied at the register. On average, this produced an 18 percent markup, with some items rising as much as 60 percent above the shelf price.

Such allegations have only fueled customer frustration, with some consumers questioning Kroger’s commitment to fairness and transparency. The company has not commented in detail on the investigation, but the timing of these reports has added to the scrutiny surrounding its business decisions.

Kroger’s struggles come as other third-party delivery and online shopping platforms continue to thrive. Amazon and Walmart have managed to grow their e-commerce operations, while Kroger’s attempt to carve out a share of the market has ended in retreat.

Future plans and ongoing hiring efforts

Despite these setbacks, Kroger has announced plans to hire up to 15,000 employees this year. The company’s leadership appears focused on shoring up its core business—including traditional grocery delivery and in-store operations—rather than doubling down on the Ship platform.

Industry observers note that the end of Kroger Ship does not mean the company is abandoning e-commerce altogether. Instead, Kroger will continue to offer online ordering through its Pickup and Delivery services. Executives hope this approach will provide better long-term prospects, especially as consumers continue to expect convenient shopping options.

No official statement has been given regarding the precise reasoning behind the Ship shutdown, leaving room for speculation among analysts and shoppers alike. Social media users and market experts have offered various theories, from insufficient marketing to a lack of distinctive offerings compared to larger competitors.