The Kroger Co., Cincinnati, purchased the assets of YOU Technology Brand Services, Inc., a digital coupon provider based in Brisbane, Calif.
Founded in 2008, YOU Tech's retailer-centric, cloud-based platform bridges the gap between online engagement and in-store purchases, creating a measurable way for retailers and brands to drive consumer purchase decisions online, in-store and on-the-go. Its network, which includes www.kroger.com/digitalcoupons, has grown dramatically and now includes over 10,000 retail stores representing over $100 billion in retail sales and 100 million U.S households.
"YOU Tech's nimble and innovative digital coupon platform has enabled Kroger to deliver hundreds of millions of digital coupons to Kroger customers," says Jeff Talbot, Kroger's vice president of customer loyalty. "This is a good strategic fit for both Kroger and YOU Tech. This transaction is consistent with our digital customer growth plan, and provides Kroger a significant opportunity to expand our presence in Silicon Valley, enhancing our exposure to new technologies. YOU Tech will benefit from Kroger's strong balance sheet, as it continues to expand its digital platform to many other retailers and CPG partners."
"We intend to build and grow the premier retailer and customer-centric digital coupon platform in the industry, while continuing to deliver for our broad base of retail customers," says Cheryl Black, YOU Tech's chief executive officer. "We look forward to partnering with Kroger and other retailers and CPG companies to continue driving growth."
Digital growth opportunity
Kroger's accelerated growth strategy includes targeted capital investments to increase store base and square footage in both new and existing markets, and to strengthen its connection with customers through the digital and mobile channels.
Kroger began offering digital coupons in late 2009, and reached 500 million digital coupon downloads about 3 years later.
YOU Technology will operate as an independent company within the Kroger family. The company currently serves approximately 2 dozen retailer clients operating 65 store banners.
"We are very excited to welcome YOU Tech's leadership team and current associates to the Kroger family," adds Talbot. "Cheryl and her team have built an innovative company that is positioned to grow."