It is reported this morning that Canadian retailer Sobey’s has agreed to supply Grocery Gateway, the Canadian e-grocer, with national brand items and private label products.
The deal, according to Grocery Gateway executives, allows them to increase the online grocery selection by a third, to more than 10,000 SKUs. It also will allow the e-grocery to reduce costs by using Sobey’s buying infrastructure.
Sobey’s, on the other hand, gets access to an e-grocery operation that seems to be gaining momentum and popularity in the markets it serves.
The deal, according to Grocery Gateway executives, allows them to increase the online grocery selection by a third, to more than 10,000 SKUs. It also will allow the e-grocery to reduce costs by using Sobey’s buying infrastructure.
Sobey’s, on the other hand, gets access to an e-grocery operation that seems to be gaining momentum and popularity in the markets it serves.
- KC's View:
- Our natural cynicism (or is it optimism?) makes us wonder if this deal suggests the possibility of a more permanent pairing down the road, in the form of a merger/acquisition of the two companies.
