Kroger Co. has partnered with a high-powered tech firm to build an artificial intelligence lab in Cincinnati.
Nvidia Corp. and Cincinnati-based Kroger Co. (NYSE: KR), the nation’s largest operator of traditional supermarkets including Pick 'n Save and Metro Market stores in the Milwaukee area, are building the lab through a strategic collaboration.
Kroger plans to use the lab to enhance its fresh product initiatives, company officials said in a release. It also expects to improve shipping logistics and create a better shopping experience in stores by using findings from the lab.
The lab will be located at Kroger’s headquarters. Santa Clara, California-based Nvidia’s (Nasdaq: NVDA) software will be used to build digital twin simulations. Those simulations are essentially virtual models that reflect store layouts and other operations.
Kroger’s aim is to get actionable insights it can use to change and improve the shopper experience.
“Our collaboration with Nvidia supports Kroger’s ‘Fresh for Everyone’ commitment,” Wesley Rhodes, Kroger’s vice president of technology transformation and of research and development, said in a news release. “We look forward to learning more about how AI and data analytics will further our journey to provide our customers with anything, anytime, anywhere.”
The companies plan to jointly explore ways to use the lab’s technology to:
- Identify early signs of deteriorating product freshness through computer vision and analytics.
- Create more efficient routes for home delivery to ensure freshness.
- Optimize store efficiency and processes.
A major initiative for Kroger in recent years has been to improve its digital capabilities. Its digital sales more than doubled over the past two years, soaring 113% in that span.
Kroger will “further expand” its leadership in digital technology with the collaboration, Nvidia vice president and general manager of retail Azita Martin said in the release.
“Kroger already is delivering excellent customer experiences in stores and providing fast home delivery,” Martin said. “With Nvidia AI, shoppers gain more personalized experiences in physical stores and online.”
Kroger has gained acclaim across the industry for data insights generated by its 84.51 data gathering and analysis unit. It has also developed numerous technologies internally and through partnerships. For instance, Kroger has more than a dozen automated distribution centers developed through a partnership with British-based online grocery retailer Ocado planned.
Nvidia is a Fortune 500 company with revenue of $24 billion over the past year.
