Understanding Kroger’s Sale of Vitacost.com to iHerb
In a strategic move, Kroger has decided to sell its online health and wellness subsidiary, Vitacost.com, to iHerb. This sale reflects Kroger’s ongoing effort to focus more on its core grocery business and streamline its operations. The terms of the deal, which closed recently, were not disclosed.
Industry Insights
- Kroger’s decision to sell Vitacost.com to iHerb highlights the company’s commitment to reviewing and optimizing its non-core assets to enhance its central grocery business.
- This move is part of Kroger’s broader strategy to scale back its e-commerce operations and place more emphasis on its store operations.
- iHerb’s acquisition of Vitacost.com positions the latter to reach its full potential outside of Kroger, offering a wide range of health and wellness products to customers globally.
- Kroger’s sale of Vitacost.com is part of its larger restructuring efforts, including reducing investments in automated fulfillment networks and focusing on leveraging its store network for digital orders.
FAQ
Q: When did Kroger acquire Vitacost.com?
A: Kroger acquired Vitacost.com in mid-August 2014 for $280 million.
Q: What products does iHerb offer?
A: iHerb provides vitamins, minerals, supplements, and other health and wellness products from nearly 2,000 brands to customers in 180 countries.
Q: Why did Kroger decide to sell Vitacost.com?
A: Kroger’s decision to sell Vitacost.com is part of its strategy to refocus on its core grocery business and streamline its operations by divesting non-core assets.
Related Analysis: View Previous Industry Report
Author: Robert Gultig in conjunction with ESS Research Team
Robert Gultig is a veteran Managing Director and International Trade Consultant with over 20 years of experience in global trading and market research. Robert leverages his deep industry knowledge and strategic marketing background (BBA) to provide authoritative market insights in conjunction with the ESS Research Team.
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