Kroger Co. on Tuesday said it had acquired the company that runs its digital coupon program, YOU Technology Brand Services.

You Tech, founded in San Francisco in 2008, serves digital coupons for more than 20 retail clients including Kroger. Its 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, Kroger said. Its network includes more than 10,000 retail stores representing over $100 billion in retail sales and 100 million U.S. households. You Tech will continue to serve existing and future retail customers.


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Financial terms of the transaction were not disclosed.

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

Kroger's accelerated growth strategy includes targeted capital investments to increase its store base and square footage in both new and existing markets, and to strengthen its connection with customers through the growing digital and mobile channels.

Customer use of digital coupons has accelerated exponentially over the past several years. Kroger began offering digital coupons in late 2009 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, demonstrating their growing popularity and frequency of use.

You Technology will operate as an independent company within the Kroger family.

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