Kroger Technology has Increased Earnings

The Kroger Co. (Cincinnati), America’s largest supermarket chain, announced this week that earnings jumped 9.6 percent for its quarter ending May 25, 2013.

It credited, among other things, new technology that allows it to track which times shopper traffic is the most dense and open and staff checkout lanes in response. The result, it reported: a wait of just 26 seconds to enter the checkout lane, down from 4 minutes a few years ago.

“Nobody likes to wait in line,” said Marnette Perry, Kroger’s senior vp, operations and strategic initiatives. “If we wanted to develop loyalty from our customers, we really had to respect their time and improve the checkout experience.”

The technology, called Que Vision, uses overhead sensors to track and measure shopper traffic. It was first tested in stores in Toledo, Ohio, in 2009, to see if Kroger could time typical shopping visits by store to better schedule workers during busy periods. Kroger officials said the results were almost immediate – transactions and sales both quickly climbed.

Customers can see the results changing constantly on light boards at the front of stores. They show the number of checkout lanes in service now, the number needed and the number projected to be needed in 30 minutes.

The technology also has allowed Kroger to beef up its checkout operation without adding to the cost of staffing. The technology was so smart, the retailer said, it made scheduling more efficient.

Kroger said it expects to complete the installation of overhead infrared sensors in all its 2424 supermarkets by the end of the year.

“There are 7 million shoppers at Kroger stores today,” said Perry. “We will save them 25 million minutes a day.”

She said the technology has particularly helped boost sales at smaller urban stores with limited space by getting customers in and out more quickly, thus freeing up parking spaces,

“It makes small parking lots bigger,” she said.