Kroger pushes its tech advantage
You may be familiar with the adage that all businesses are selling organizations. Something similar can be said today of all companies being tech firms. Examples abound across retailing. In grocery, it would be hard to identify any company that has an edge over Kroger. Last week’s announcement that Kroger’s 84.51° division had acquired the predictive analytics firm Market6 is just another indication that the company sees technology-driven consumer insights as its edge in the marketplace.
“Every decision we make focuses on engaging customers where, when and how it matters most to them. Market6’s technology and people will be key to further enhancing how we communicate with Kroger customers in the most personalized and relevant ways,” said Stuart Aitken, CEO, 84.51°, in a statement.
In making the deal to acquire Market6, 84.51° had the advantage of seeing what the firm could do through its association with Roundy’s, acquired by Kroger in December of last year.
Market6 had an exclusive deal to develop a collaborative portal between Roundy’s and its consumer packaged goods suppliers to focus on optimized assortment and inventory levels, reducing out-of-stocks, and more effectively executing promotional programs and new products launches.
“Our company vision has always been about enabling collaboration between retailers and suppliers in order for them to better serve their customers. We believe that the combination of Market6’s collaboration platform and 84.51°’s customer insights will be a catalyst to help Kroger and its suppliers to realize this vision,” said Dave McLean, executive chairman, Market6.
Kroger created 84.51° in April 2015 after it purchased the remaining fifty percent of its joint venture with dunnhumby/Tesco PLC. The tech firm, which is operated independently, is a wholly owned subsidiary of Kroger.
- 84.51° and Market6 Merge –84.51°/Business Wire
- Kroger’s 84.51° acquires firm –The Cincinnati Enquirer
DISCUSSION QUESTIONS: How critical has the use of technology become in coordinating collaborative efforts between CPG suppliers and grocery accounts? How do you think Kroger’s retail businesses plan to use the technology acquired in the Market6 deal and combine it with existing capabilities to achieve higher levels of performance?