Wednesday February 12th, 2014 - 1:44PM
The Kroger Co. has purchased the assets of YOU Technology Brand Services, Inc., the Silicon Valley-based leader in digital coupons and promotions, the retailer announced. YOU Tech developed its cloud-based technology platform to bridge the gap between online engagement and in-store purchases, and so create a measurable way for retailers and brands to drive consumer purchase decisions online, in-store and on the go, according to Kroger.
YOU Tech’s network, which includes www.kroger.com/digitalcoupons, has grown dramatically, and it now covers 10,000 retail stores representing over $100 billion in sales and 100 million households across the United States, Kroger asserted. The company added that YOU Tech would continue to serve existing retail customers and take on others.
Kroger noted that it is operating under an accelerated growth strategy that includes targeted capital investments to increase its store base and square footage in both new and existing markets, as well as to strengthen its connection with customers through the expanding digital and mobile channels.
Kroger asserted that customer use of digital coupons has accelerated exponentially over the past several years. The retailer began offering digital coupons in late 2009, it pointed out, and reached 500 million digital coupon downloads about three years later. Customers have downloaded more than 400 million more digital coupons in just the last 12 months, Kroger noted, demonstrating their growing popularity and frequency of use.
Based in South San Francisco, CA, YOU Technology, LLC will operate as an independent company as part of the Kroger operational portfolio, the retailer related.
Kroger did not disclose financial terms of the transaction, which closed yesterday.