Digital identification solutions company Avery Dennison has announced a game-changing partnership with The Kroger Co. aimed at enhancing both associate and customer experiences through RFID inventory automation technology. This innovative collaboration enables item-level digital identification within Kroger’s operations, thus facilitating more frequent and accurate inventory insights, ultimately maximizing product freshness, minimizing waste, and refining the overall experience for associates.
The collaboration begins in the bakery department, where Kroger will implement RFID-embedded labels on bakery items. This step not only aims to enhance the accuracy of inventory but also promises significant time savings and invaluable data collection for automating inventory management and freshness optimization. By equipping each item with an RFID label, data can be captured in real-time, transforming how inventory is managed.
Jordan Poff, Vice President of Retail Operations at Kroger, highlighted the significance of this partnership: “Kroger’s customers and associates are at the heart of everything we do. 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.” This focus on visibility and availability addresses a persistent challenge faced by grocery retailers: ensuring that the right products are accessible to customers at the right time.
This strategic move is just the start. According to Avery Dennison, it represents a foundational step toward delivering a more seamless customer and associate experience across all fresh categories in the long run. By investing in RFID technology, Kroger aims to address not just immediate inventory issues but also long-term operational efficiency.
RFID technology is proving to be a transformative force in the retail industry. In a study conducted by the University of Arkansas, it was found that RFID technology can boost inventory accuracy from an average of 63% to 95%. This dramatic improvement in accuracy contributes directly to better customer satisfaction. When customers can find their desired products in stock, their overall shopping experience is significantly enhanced.
Julie Vargas, Vice President and General Manager of Identification Solutions at Avery Dennison, explained the company’s long-standing commitment to linking physical products with a digital identity: “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.” The collaboration with Kroger reflects this dedication, targeting the dual goals of optimizing associate time and reducing waste from overproduction.
The implications of such technological advancements are vast. Avery Dennison operates in over 50 countries and caters to a wide range of industries, including e-commerce, logistics, and food retail. The company reported sales of $8.4 billion in 2023, underscoring its robust presence in the market. Kroger, too, boasts a significant customer base, serving more than 11 million shoppers daily through a variety of retail formats and digital shopping options. With a workforce of 420,000 associates, Kroger ranks fourth on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
The partnership between Kroger and Avery Dennison exemplifies a forward-thinking approach to retail. By focusing on technology that directly impacts inventory management, both companies are paving the way for enhanced operational efficiency, reduced waste, and an improved shopping experience for consumers.
In conclusion, the implementation of RFID technology in Kroger’s bakery department is not just another operational upgrade; it is a step toward integrating advanced technology within retail spaces to streamline processes and improve customer satisfaction. As retail continues to face challenges related to inventory management and customer experience, strategic partnerships such as this one highlight the importance of innovation in maintaining competitive advantage.