Kroger Co. is adding recent artificial intelligence (AI) capabilities for sellers to its online marketplace. The grocery retailer will partner with retail analytics firm Intelligence Node on the brand new technology, it announced Feb. 8.
AI will give Kroger customers a greater experience through clearer and more informative product listings, the grocery store said in a press release. Meanwhile, third-party sellers on the marketplace will give you the option to make use of AI for content management and replica optimizations to enhance Search Engine Results Pages (SERPs).
“The Kroger Marketplace involves a fancy matrix of elements that have to be effectively managed to deliver a seamless customer experience online,” Michael Murphy, group vp of analytics and execution at Kroger, said in an announcement. “From product copy and rankings to reviews and taxonomy, customers are looking for more information than ever before and providing what they need, after they need it can be crucial. We sit up for working with Intelligence Node to deliver a tremendous customer experience while empowering our sellers to enhance their business performance.”
Kroger ranks No. 8 within the Top 1000, Digital Commerce 360’s rating of North America’s leading retailers by online sales.
Integrating AI with Kroger’s other tech providers
Intelligence Node’s technology will work with Mirakl, which provides the platform for Kroger’s marketplace.
“We sit up for supporting Kroger’s growth plans with our ability to supply content audit, optimization, and execution directly throughout the Mirakl platform to assist improve shopper conversion and seller recruitment and retention,” Intelligence Node cofounder and CEO Sanjeev Sularia said.
Mirakl also provides ecommerce platforms for Best Buy, Macy’s and Saks Fifth Avenue.
Best Buy, Macy’s and Saks rank No. 7, No. 17 and No. 28, respectively.
Kroger online marketplace
Kroger launched its marketplace in 2020 as a bid to compete with Amazon and Walmart.
Walmart ranks No. 2 within the Top 1000. Amazon ranks No. 1 within the Top 1000. Walmart can also be No. 9 within the Global Online Marketplaces Database, Digital Commerce 360’s rating of the highest 100 online marketplaces. Amazon is No. 3 in marketplaces. Kroger doesn’t rank within the marketplace database.
Kroger’s marketplace began as an extension of Kroger Ship, launched in 2018. Kroger Ship is an ecommerce platform for non-perishable grocery items from third-party sellers. The marketplace added an extra 50,000 items. Those were mostly non-grocery products across categories including specialty items, toys and housewares.
The net grocery retailer has reported digital sales growth for several quarters in a row. Most recently in its third fiscal quarter of 2023 ended Nov. 4, Kroger digital sales grew 11% 12 months over 12 months. Delivery sales grew 11% over the identical period. Digital engaged households grew 13%, Kroger said.
Kroger chief financial officer Rodney Millerchip called digital sales a “growth engine” for the grocery retailer. “All the things we proceed to see gives us that belief it can proceed to be a chance to drive deeper customer engagement and growth,” he told investors in November.
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