Kroger and Walgreens to collaborate on exploratory pilot 

Daniel Acker | Bloomberg | Getty Images

A shopper outside a Kroger supermarket in Peoria, Illinois.

Kroger and Walgreens are experimenting with a new pilot program that would allow Walgreen’s shoppers to pick up online orders of Kroger’s groceries at some of the pharmacy’s locations, the retailers announced on Tuesday.

Walgreens will also start selling some of Kroger’s private-label brands, they said. The two are testing the concept at 13 Walgreens stores.

“This concept brings together the best of two great brands to rethink convenience and redefine the way America shops for food,” said Kroger CEO Rodney McMullen in a statement on Tuesday.

The deal is the latest in series of partnerships and combinations in which retailers have sought to offer new products and services as shopping habits change. Pharmacies like Walgreens have been losing sales of household products like shampoo that they can buy at conveniences stores or online.

Grocers like Kroger are looking to add service and distinction as they compete against the powerful union of Amazon and Whole Foods.

As example, pharmacy CVS Health has announced its $69 billion acquisition of health insurer Aetna and Walmart is partnering with health insurer Anthem.

This story is developing. Please check back for updates.