Kroger is usually said to consider buying online wholesaler Boxed for up to $500 million

An employee bags a customer's purchases at a Kroger store in Peoria, Illinois.

Daniel Acker | Bloomberg | Getty Images

An employee bags a customer’s purchases at a Kroger store in Peoria, Illinois.

Grocery chain Kroger has considered buying online wholesaler Boxed, according to a person familiar with the matter, as more shoppers place food orders online as well as also also as competition with Amazon.com Inc heats up.

The potential deal, which arose as the brand-new York-based start-up was seeking funding, likely values Boxed at between $325 million as well as also also $500 million, said the person, who spoke on condition of anonymity.

Amazon’s $13.7 billion acquisition of Whole Foods Market last year to crack the U.S. grocery market heightened a sense of urgency among rivals looking for ways to counter competition by the globe’s largest online retailer.

Target, for instance, said last month the item agreed to buy same-day delivery platform Shipt for $550 million.

Boxed, which sells bulk staples like toilet paper as well as also also pet food to shoppers’ doorsteps, expects the item may receive takeover offers by some other retailers besides Kroger in coming weeks, the person said. Morgan Stanley is usually advising the start-up.

Boxed Chief Executive Chieh Huang did not respond to an emailed request for comment. A Kroger spokeswoman said the company in general does not comment on rumor or speculation.

Forbes reported the news earlier on Friday.

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