Kroger Steps Up and Partners with Microsoft to Compete with Amazon
Second only to Walmart, Kroger finds itself in a partnership with Microsoft to introduce advanced technology to remain competitive against the threat of Amazon. The goal of this partnership is to innovate the way customers shop and make their experience more convenient. The high-tech grocery store created to fulfil this purpose utilises technology such as digital displays and cloud computing.
The pilot stores for this endeavour will be based in Washington and Ohio. Microsoft and Kroger will be introducing technology such as digital shelves and price tags to the stores as part of their initiative. They’ve also introduced a self-checkout app called Scan, Bag, Go, which allows you to digitally create a shopping list. Once finalised, the cloud-based software will function as a guide and lead you through the store toward the areas which carry what you’re looking for.
The digital tools being installed can not only guide customers but also benefit retail employees by alerting them when stock for a product is running out and indicating which items are to be collected for delivery. Additionally, the sensors installed in the refrigerated parts of the store can inform employees when the temperature might be running too high, making it possible to prevent items from becoming spoilt.
While the Amazon Go stores are still leading, Kroger’s efforts do carry the potential to challenge them. For example, the Scan, Bag, Go app is going to help shoppers save time, which is sure to boost foot traffic.
Additionally, Kroger’s plans to license the technology behind its digital shelves could pose a threat to other areas of interest to Amazon. With the assistance of Microsoft Azure, if Kroger’s methods prove successful, they could even occupy a portion of the cloud computing industry, which is greatly relevant to Amazon’s interests.