Kroger to automate inventory management with RFID
The Kroger Co. is aiming for item-level digital identification in its stores.
The grocery conglomerate is working with Avery Dennison to deploy the vendor’s RFID-based inventory automation technology in its stores. Rollout is slated to begin in the bakery department, where RFID-embedded labels will be implemented on each individual product.
As a result, Kroger hopes to achieve significant time savings, as well as collect data that will enable it to identify each bakery item utilizing RFID technology. In turn, the grocer intends this capability to let it develop a more seamless customer and associate experience across all fresh categories in the long term.
"Kroger’s customers and associates are at the heart of everything we do," said Jordan Poff, VP of retail operations at Kroger. "Our work with Avery Dennison will improve inventory visibility, which means products will be on the shelves when our customers want them, while enabling our associates to spend more time with our customers."
Kroger also expects RFID-enabled, item-level digital identification to produce more frequent and accurate inventory information which will maximize product freshness and reduce waste.
[Editor’s Note: Kroger is in the midst of legal proceedings regarding a proposed $25 billion merger with fellow grocery giant Albertsons Companies. Kroger recently filed a motion for a preliminary injunction against a Federal Trade Commission (FTC) challenge to the merger proposal.]
"For decades, Avery Dennison has been the driving force behind connecting physical products with a digital identity to unlock data accuracy and efficiency in retail and supply chain operations," said Julie Vargas, VP and G of identification solutions, Avery Dennison. "With this collaboration, we are committed to Kroger’s initiatives to optimize associate time, reduce waste from overproduction and ultimately deliver a uniquely valuable customer experience."
[READ MORE: From Mandate to Mainstream: The Role of RFID in Retail Innovation]
Based in Cincinnati, The Kroger Co. operates nearly 2,800 stores under a variety of banners that include Kroger, Ralphs, Dillons, Smith’s, King Soopers, Floors 4 Less, Fry’s, Harris Teeter, Fred Meyer and others.
