Kroger Co KR spiked as high as 5.2 percent pre-market Thursday on a New York Post report citing an explored alliance with Alibaba Group Holding Ltd BABA’s senior management.
The article suggests Kroger’s interest in leveraging Alibaba’s cashierless supermarket technology to compete with Amazon.com, Inc. AMZN, which opened its cashierless Go store to the public this week.
The inferences drawn by New York Post may be an “overstatement,” a source tells Benzinga.
An Alibaba official could only confirm management meetings around Alipay, which Alibaba wants to expand in the U.S. The e-commerce facilitator has been pitching the payment platform to businesses for stateside use, and Kroger has already integrated the technology in its China stores.
At the same time, the source confirmed Alibaba commonly hosts Fortune 500 visitors interested in penetrating the Chinese market through the firm’s e-commerce model. Kroger may or may not be among those who have met to discuss strategy.
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While the companies have the makings of a partnership, each positioned to sate the needs of the other, the conditions aren’t necessarily indicative of deeper talks.
A Kroger spokesperson said the company generally doesn’t comment on rumor or speculation.
At time of publication, Kroger's stock was trading higher by 3 percent at $30.43.
Taylor Cox contributed reporting.
Related Links:
Analyst: Kroger Shows 'Continued Experimentation And Learning' With In-Store Food Service
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