Kroger Bootstraps To Win Omni-Channel Race
By Hannah Ash, contributing writer
Kroger Grocery Stores Double As Fulfillment Centers, Embrace Technology
As it expands its omni-channel strategy, The Kroger Co is using its own stores as technology exploration labs. King Soopers, a Colorado-based concept chain of leading grocer The Kroger Co, is becoming more than a grocery store. Today, the Bear Valley, CO location doubles as a fulfillment center for Home Shop, an online grocery ordering and delivery platform. Powered by tablets mounted atop grocery carts, Kroger employees shop their way down grocery aisles to fulfill online orders placed via the web platform. By using its grocery stores as fulfillment centers, Kroger has transformed its retail showrooms into a multi-channel shopping environment. This omni-channel initiative is just one innovative way the retailer is setting itself apart as a technology-savvy retailer.
In leveraging its grocery stores to fulfill online orders, Kroger saves itself the expense and time of building new fulfillment centers (as Amazon and Home Depot are currently embarking upon). In 2013, Kroger’s outgoing CEO Dave Dillon stated, “I wouldn’t be too quick to assume that the leap to home delivery ends up replacing everything.” The way in which Kroger is utilizing existing showrooms to meet online channel demands demonstrates the retailer is not putting all of its eggs in the digital basket. Still, the retailer is not technology-shy; this month, the retailer was awarded the place of number 3 for technology innovations by InformationWeek Elite 100 list. The retailer earned the recognition for QueVision, a tech-based solution that speeds up checkout times using sensors and advanced analytics.
As the retailer continues to innovate, its sales follow suit; the retailer posted an annual trailing revenue of 98.4 billion on January 31, 2014. Also this month, Kroger unveiled a new IT initiative called Retail Site Intelligence (RSI). RSI uses state-of-the-art technology to zoom in on improving analytics, loss prevention, POS, and hand-held sensors. According to Chris Hjelm, senior VP and CIO at Kroger, “Retail Site Intelligence is, above all, about Customer 1st innovation. We are leveraging technology to help customers have the best possible shopping experience in retail stores, whether by more easily finding the products they want or saving time at checkout.”