Kruger Case

• Kroger


  Largest U.S. supermarket chain by revenue, second-largest general retailer after Walmart, operates 2,800 supermarkets and multi-department stores in 34 states
• Kroger


  • Leading-edge user of information systems
• Customer tracking at Kroger stores

  1. Infrared sensors note customer arrival

  2. Data on customer shopping patterns, purchase transactions, staffing levels, and store layouts fed into analytics software

  3. Predict when long lines will pop up

  4. Allocate cashiers to prevent pileups
• QueVision


  Kroger's system that has cut the average wait time at a Kroger store from four minutes to less than 30 seconds
• Kroger's sensors do not photograph or identify shoppers, and they are only located at checkout lines and store entrances—not throughout the entire store
• Temperature monitoring at Kroger stores

  1. Temperature sensors monitor cold food storage temperature changes

  2. Sensors check temperatures every 30 minutes and alert store managers and facilities engineers if temperatures hit unsafe levels

  3. Replaced manual temperature checks twice a day
• Benefits of Kroger's temperature monitoring system

  • Cuts down on the number of cold products that go bad and have to be thrown out
  • Reduces labor
  • Saves energy
• Click List


  Kroger's online ordering service that allows customers to order groceries online, then pay for and collect their goods at a pickup window at an appointed time without having to leave their car
• Kroger mobile app


  Features localized shopping lists, targeted ads, and the ability to scan and bag items while shopping
• Kroger's mobile app has been downloaded 9 million times
• Kroger's key business metric

  Higher customer satisfaction levels
• Grocery business is extremely competitive and low-margin, with profits of only a few cents per dollar
• Customer loyalty is especially critical for Kroger
• Kroger's systems for making shopping easier and more pleasant are a major source of competitive advantage
• Experts feel that grocery stores won't disappear, but expect more stores to follow Kroger's lead and more technology innovation from Krogers to keep ahead of the pack
• Challenges facing Kroger


  • Limited facility capacity
  • High customer expectations
  • Intense competition
  • Low profit margins
• Information systems used by Kroger

  • QueVision
  • Food temperature monitoring system
  • ClickList
  • Mobile apps
• How Kroger's information systems address its business challenges


  • Predict number of customers
  • Open additional cash registers
  • Reduce wait time
  • Issue alerts when cold food temperatures unsafe
  • Allow online ordering and in-store pickup
  • Increase customer loyalty and revenue through mobile apps
• Deploying new information systems has changed the way Kroger runs its business, requiring redesign of jobs and procedures