Boxed's failed almost-partnership with Kroger is officially behind the online startup. Now the company is joining forces with discount grocer Lidl as both dawn a new era of growth. According to a Forbes report, the two are trialling a grocery delivery partnership in New York and Georgia
“This is just the first test,” Chieh Huang, CEO and Co-Founder of Boxed, told Forbes. “But as the partnership gets deeper, we can bring a lot more to the table.”
On Boxed’s end, this could include any of its end-to-end platform solutions, which could result in a new custom-built Lidl website and expanded warehouse capacities, according to Forbes. While Huang also revealed to the news source that the startup is not quite yet profitable, he believes Boxed is on track thanks to its new partnership with Lidl.
“Partnering with Lidl certainly would not have happened if we had merged with anyone a year ago. Food retail across the globe is probably even more in flux than it was,” Huang continued. “The opportunities for us are even larger today. I don’t think we would’ve maximized them if we had merged with someone.”
While Boxed has grown in the last year—particularly after a $111 million funding round, as we reported on our sister site—Lidl has grown, too. Specifically, the retailer has charged into new markets and expanded its brick-and-mortar footprint with little abandon. New Jersey and Pennsylvania were but two of the markets the discount chain established its presence in, on top of upping its store count with its acquisition of 27 Best Market Stores in November of 2018. Lidl also debuted a new convenience store format to compete with others making headway in that market.
Will Lidl and Boxed present the next grocery partnership that’s one to watch? Deli Market News will continue to keep an eye on the latest in retail.