Report: Kroger Considering Acquiring Boxed
Grocery store chain Kroger is considering acquiring Boxed, a grocery wholesale delivery company. According to CNBC the potential deal, which arose as the New York-based startup was seeking funding, likely values Boxed at between $325 million and $500 million, said the person, who spoke on condition of anonymity. Boxed, which sells bulk staples like toilet paper and pet food to shoppers’ doorsteps, expects it may receive takeover offers from other retailers besides Kroger in coming weeks, reports CNBC.
Total Retail's Take: Kroger has been making moves to be more onmichannel, and the acquisition of digital-native Boxed would continue that trend. With Amazon.com's $13.7 billion acquisition of Whole Foods and the rise of subscription grocery models (e.g., Blue Apron), the grocery vertical has been disrupted, forcing traditional grocers to rethink their business models, Kroger among them. For example, Kroger recently announced it will offer cashier-less technology to a mass market, beating its larger competitors — Amazon and Wal-Mart — to the punch.