By now, Kroger (NYSE: KR) investors are used to panic caused by headlines from online juggernaut Amazon (Nasdaq: AMZN), owner of rival Whole Foods, but today the shoe was on the other foot.

According to reports in the New York Post and Reuters, Kroger and Chinese tech company Alibaba had early-stage discussions about working together. Talks don’t appear to involve a merger, but the two companies are said to be in talks for a deal that would help Kroger speed integration of online and off-line sales. The agreement would, in theory, help Kroger level the playing field with Amazon-owned Whole Foods.

In the view of Goldman Sachs analyst Christopher Prykull, considering these types of deals is the right path from Kroger, as it seeks to extend its reach beyond markets where it currently operates brick and mortar stores.

“We believe a potential partnership/deal that enables KR to have its own full-scale e-commerce platform that offers customers home delivery, via sophisticated fulfillment options, across multiple categories could help the company better compete with WMT and AMZN over the long-term,” wrote the analyst in a note to clients.

A deal is also seen providing Kroger with greater digital talent capabilities.

It’s too early to know if any deal will be enough to help Kroger fend off competition from Amazon, a company with a knack for crushing it competitors, but for once at least a headline didn’t cause KR shares to decline. Kroger gained 2.5 percent on the rumor.

StreetInsider Premium first published a variation of this article on at 12.47AM ET. Try StreetInsider Premium for two weeks free here.