The Kroger Co. (KR) recently announced the acquisition of assets of leading digital coupons and promotions company, YOU Technology Brand Services, Inc.
Based in Silicon Valley and founded in 2008, YOU Tech has been linking in-store and online operations. Though the financial terms of the acquisition have not been revealed yet, the digital retailer will serve independently within Kroger.
Kroger is already benefiting from YOU Tech’s efficient and creative digital vouchers platform, as it facilitated the company to send across millions of coupons to its consumers.
This acquisition was in sync with Kroger’s digital growth plan and also helped the company strengthen its foothold in Silicon Valley. The company has been focusing on digital growth by investing capital to expand its store base and area covered in existing and new markets and reaching out to its customers via mobile and other digital networks.
Kroger has been offering digital coupons since 4 years, over which it has successfully reached 500 million downloads. The company believes that the acquisition of YOU Tech will position it well on the digital growth trajectory.
Apart from YOU Tech, Kroger’s expansion strategy is evident from its merger with Harris Teeter Supermarkets Inc.. The deal was befitting for Kroger as it provided the company with an opportunity to expand its footprint in several attractive and high-growth markets including Delaware, Florida, Maryland and Washington, DC.
Currently, this grocery retailer holds a Zacks Rank #4 (Sell). However, other better-ranked stocks in the industry include Carrefour SA (CRRFY), Etablissements Delhaize Fr (DEG) and Natural Grocers by Vitamin Cottage, Inc. (NGVC), all sporting a Zacks Rank #2 (Buy).
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