Boxed rejects Kroger’s $400 million buyout offer

Online retailer Boxed Wholesale has reportedly rejected Kroger’s $400 million buyout offer.

The online retailer Boxed, which sells household products like paper towels and some food items, rejected an offer of acquisition from Kroger, according to multiple reports. Boxed.com is an U.S.-based online and mobile membership-free wholesale retailer that offers delivery of bulk-sized packages through the Boxed app or the website.

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The startup has had talks with Amazon.com, Target Corp., Costco Wholesale Corp. and Kroger. The company has a $470 valuation, according to Bloomberg.

Grocers have been interested in partnering with digital companies after Amazon.com purchased Whole Foods for $13.7 billion last year. Online grocery shopping is making major gains, according to the Food Marketing Institute’s U.S. Grocery Shopper Trends 2017 report. The number of shoppers buying some of their groceries online jumped to 11 percent in the first quarter compared to 5 percent in 2016, according to the report.

Kroger has also considered teaming up with Overstock.com Inc. in an effort to compete with online retailersThe New York Post reported the Cincinnati-based grocer may be eyeing a deal with Overstock.com, according to sources. Overstock CEO Patrick Byrne said last year that he plans to sell or reorganize the e-commerce business to focus on blockchain technology. Kroger did not comment on the possible deal.

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