Boxed.com Rejects Kroger's Acquisition Offer
Online retailer Boxed.com has spurned an acquisition bid from The Kroger Co. and is instead sending out feelers to Amazon.com, according to news reports. Kroger’s bid was believed to be in the neighborhood of $300 million to $400 million. Industry observers said the Cincinnati-based chain was interested in Boxed to help it boost delivery capabilities, attract more millennial customers and better compete against Costco. New York-based Boxed.com has been described as the “Costco for Millennials,” offering consumers and businesses club-sized packages with free two-day delivery in the lower 48 states on purchases of over $49, without the membership fees and hassles of visiting a club store.
Total Retail's Take: Boxed realizes its disruptive business is in demand, and is leveraging that fact to its advantage as is seeks to start a bidding war between the major grocery players. With Amazon in the picture, it would be foolish for Boxed to agree to any deals till it hears from the online retail giant, which has clearly targeted grocery as a growth opportunity, its acquisition of Whole Foods proof of that. The other potential entrant into the Boxed sweepstakes could be Walmart, as it looks to solidify its digital business in its fight with Amazon. Analysts expect that Boxed will be acquired this year, so we'll have to wait and see.