UPDATED 13:46 EDT / JANUARY 07 2019

IOT

Microsoft teams up with Kroger to take on Amazon’s cashierless stores

Microsoft Corp. and Kroger Co. are teaming up to develop an answer to Amazon.com Inc.’s cashierless stores.

The partnership, announced today, will see the companies bring to market a retail automation platform powered by Microsoft’s Azure public cloud. Kroger is already piloting parts of the platform in a handful of its stores.

As part of the project, the test locations have been equipped with “smart shelves” that show prices and other product information on digital displays. These smart shelves are supported by a network of in-store sensors that, in turn, connect to an automated checkout app developed by Kroger.

Consumers can use the app to scan products with their phones and pay online instead of having to wait in the cashier line. Furthermore, it doubles as an in-store navigation assistant. The app shares items from users’ shopping lists with the smart shelves, which  display visual cues to help them find what they’re looking for. The shelves also can display nutritional and dietary information, along with in-store promotions.

Another use that Microsoft sees for the platform is streamlining the work of store staff. The company said that the smart shelves will make it possible to refresh product prices automatically, as well as help workers find items faster when processing online orders. It claims the platform’s visual cues can halve the amount of time it takes to assemble the requested goods.

The company’s retail automation vision also extends to other aspects of store management. At Kroger’s test locations, cameras connected to Azure’s video analytics services reportedly keep an eye on shelves to determine when items need to be restocked. In the meat aisle, temperature sensors monitor the fridges to make sure that they’re kept cool enough.

Microsoft and Kroger plan to sell their retail automation platform to brick-and-mortar retailers currently struggling to keep up with Amazon. Late last year, it was reported that the e-commerce giant intends to build 3,000 of its cashierless Go stores in the U.S. and the United Kingdom.  

Kroger itself also plans to deploy the platform. The company, which ranks as the largest supermarket chain in the U.S. by revenue, maintains about 2,800 stores around the country.

“Together, we will redefine the shopping experience for millions of customers at both Kroger and other retailers around the world, setting a new standard for innovation in the industry,” Microsoft Chief Executive Satya Nadella (pictured, right, next to Kroger counterpart Rodney McMullen) said in a prepared statement.

One potential customer for the platform is Wal-MartStores Inc., which last year was said to have been approached by Microsoft about a retail automation collaboration. The companies later struck a far-reaching cloud deal that saw Walmart migrate much of its core technology infrastructure to Azure.  

Photo: Microsoft

 


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