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Kroger Edge: Don't underestimate the benefit of cost savings + improved experience



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Kroger Edge: Don't underestimate the benefit of cost savings + improved experience

Kroger will roll out its new digital shelf system Edge to nearly 200 stores by the end of 2018, and the big news is that this system could be a powerful differentiator for two reasons: It improves the shopping environment AND it decreases costs. This technology isn’t about making the in-store shopping experience more like shopping online, it’s about making in-store/in-aisle shopping easier and more contemporary.

While electronic shelf labels are not new, Kroger’s Edge offers a wider range of benefits. Not only will its supermarkets get a way to post and change prices on the shelf, but most importantly, it delivers a way to draw attention to promoted items without using any store labor. Doing these two functions electronically saves hundreds of hours of labor per week, which can help cover the investment in the system.

Here’s where the shelf edge system helps in the short term. Shoppers get a brighter and more stimulating shopping experience when:

  • All the shelf edges light up with bright colors and prices that are easier to read.
  • End displays also include eye-catching videos that draw attention, even from shoppers who aren’t looking for the product on display.

Longer term, Kroger’s Edge will be a more active source of value. When combined with a mobile app, the system lights up the shelf under the specific product, making it easier for shoppers (and/or in-store pickers of online orders) to find products on their list – especially when a large number of similar products are displayed together. In addition, it will enable retailers to deliver targeted promotions right to the shopper’s phone.

BMC POV

As this technology rolls out, the stores that have it will stand out dramatically from those that don’t. It will very likely attract more shoppers, especially those who find the traditional supermarket aisle to be an underwhelming and dated experience. This will likely prompt other retailers to step up and invest in similar systems.

Once again, Kroger shows that it knows where to place bets on technology that strengthens its competitive position. It will be interesting to see how fast other retailers follow.

Image credit: Kroger

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Why Brick Meets Click? We are a strategic advisory firm that works with organizations to find and evaluate the right path forward in today’s integrated physical/digital food retail business. Learn more our services.

 

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