Lidl Forms New Partnership with Boxed
NEW YORK and GEORGIA - Lidl and Boxed have officially teamed up to bring consumers in New York and Georgia a new grocery delivery option, with an emphasis on fresh produce. While Forbes noted the two are currently testing out the partnership, both Lidl and Boxed have made major strides in the past year, which could foreshadow positive results of the union.
“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.
Late last year, Boxed announced $111 million in new funds for its online-only storefront. The news hit the wires as the industry speculated on whether Kroger and Boxed would create their own partnership—only for Boxed to ultimately reject Kroger’s $400 million offer—a move that helped better position Boxed to scoop Costco shoppers and establish itself as a serious competitor.
“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 Huang also revealed to Forbes that the startup is not quite yet profitable, he believes Boxed is on track thanks to its new partnership with Lidl.
While Boxed has grown in the last year, so has Lidl. Specifically, the retailer has charged into new markets and expanded its brick-and-mortar footprint with little abandon. Long Island, Pennsylvania, and Georgia were but a few 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.
Will Lidl and Boxed present the next grocery partnership that’s one to watch? AndNowUKnow will continue to keep an eye on the latest in retail.