Kroger Invests in Coupons

Supermarket chain acquires YOU Technology Brand Services, a provider of digital coupon programs for more than 10,000 stores.

February 13, 2014

CINCINNATI – Kroger Co. announced earlier this week that it acquired YOU Technology Brand Services, the company that runs its current digital coupon program, Supermarket News reports.

You Tech serves digital coupons for more than 20 retail clients and a network of more than 10,000 stores representing over $100 billion in sales and 100 million U.S. households. According to Kroger, YT’s product is a retailer-centric, cloud-based platform that bridges the gap between online engagement and in-store purchases, and it is accessible online, in-store and on-the-go. You Tech will continue to serve existing and future retail customers.

"You Tech's nimble and innovative digital coupon platform has enabled Kroger to deliver hundreds of millions of digital coupons to Kroger customers," said Jeff Talbot, Kroger's VP 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."

Enhancing its digital and mobile channels has been a strong focus for Kroger as it pursues a strategic growth strategy. Kroger began offering digital coupons in 2009. Three years later, its customers had downloaded more than 500 million digital coupons, and in the last 12 months, they have downloaded more than 400 million digital coupons.

You Technology will operate independently within Kroger.

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