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Kroger Ramps Up Direct Sourcing Push Amid Port Congestion

Kroger is accelerating its direct procurement strategy, targeting first-party sourcing volumes exceeding 10%. The grocer works toward a fully owned import and distribution network while strengthening cost control and supply chain visibility across operations. The move comes as import demand surges across major U.S. gateways. Port Houston container volumes jumped 11% in September amid rising imports, while nearly 35,700 containers awaited rail service at Los Angeles-Long Beach, signaling continued congestion on inland routes. Trans-Pacific shipping rates have climbed with elevated import activity. Kroger is also deploying advanced inventory management tools, including radio frequency identification pilots at 1,500 store bakeries and machine learning insights shared with suppliers to improve product availability.