Kroger and dunnhumby have ended their joint venture (JV), which will now be replaced with a new long-term license and service agreement.
In addition, Kroger has formed a new business called 84.51°, as well as acquired certain assets from the JV dunnhumbyUSA. The acquired assets will be used to operate 84.51°, which will employ dunnhumbyUSA’s 500 associates.
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84.51° will also have the license to use dunnhumby’s analytical tools to gain customer insights in Kroger’s data.
dunnhumby will provide service and maintenance on those tools for a period of five years, but will not have access to Kroger’s data.
Under the new arrangements with Kroger, dunnhumby will continue to operate in the US as dunnhumby, by expanding its client base and accelerating the growth of its business.
Kroger chairman and CEO Rodney McMullen said: "Kroger and dunnhumby revolutionized retailing in the US by focusing on the customer, and we intend to do it again with 84.51°. We are launching 84.51° with a powerful foundation, including a decade of experience and a team of incredibly talented associates from both dunnhumbyUSA and Kroger.
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By GlobalData"We will continue to utilize data science for the benefit of the customer and to deliver a personalized experience, both in store and online. Doing so will continue to differentiate Kroger and create value for our shareholders."
The financial terms of the new arrangements were not disclosed.
