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Dunnhumby

Tesco’s dunnhumby breaks exclusive relationship with Kroger ahead of potential sale

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By Minda Smiley, Reporter

April 27, 2015 | 2 min read

Customer science and data company dunnhumby has announced that it will end its exclusive partnership with supermarket chain Kroger in order to work with other US retailers and fast-moving consumer goods clients.

The move comes as Tesco tries to make dunnhumby more appealing as it considers selling the data branch in an effort to reduce costs. The company announced a review of strategic options for dunnhumby earlier this year.

The new agreement will replace the 12-year exclusive joint venture with a more flexible long-term license and service agreements.

Up until now, Kroger has exclusively used dunnhumby’s customer science and insight products as part of its growth strategy.

Simon Hay, CEO of dunnhumby, said: “The wider US market is a fantastic opportunity for dunnhumby to help more retailers and brands undertake a similar journey using data-driven insights and media to delight their customers and earn their loyalty.”

As part of the agreement, Kroger will acquire dunnhumbyUSA’s data-mining technology and more than 500 of its employees to form a new company called 84.51°.

Stuart Aitken, who previously led dunnhumby USA, will now serve as CEO of 84.51°.

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