Kroger Co. is adding new artificial intelligence (AI) capabilities for sellers to its online marketplace. The grocery retailer will partner with retail analytics firm Intelligence Node on the new technology, it announced Feb. 8.
AI will give Kroger customers a better experience through clearer and more informative product listings, the grocer said in a press release. Meanwhile, third-party sellers on the marketplace will be able to use AI for content management and copy optimizations to improve Search Engine Results Pages (SERPs).
“The Kroger Marketplace involves a complex matrix of elements that need to be effectively managed to deliver a seamless customer experience online,” Michael Murphy, group vice president of analytics and execution at Kroger, said in a statement. “From product copy and ratings to reviews and taxonomy, customers are searching out more information than ever before and providing what they need, when they need it is important. We look forward to working with Intelligence Node to deliver an amazing customer experience while empowering our sellers to improve their business performance.”
Kroger ranks No. 8 in the Top 1000, Digital Commerce 360’s ranking 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 look forward to supporting Kroger’s growth plans with our ability to provide content audit, optimization, and execution directly within the Mirakl platform to help 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 in the Top 1000. Amazon ranks No. 1 in the Top 1000. Walmart is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the top 100 online marketplaces. Amazon is No. 3 in marketplaces. Kroger does not rank in 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 additional 50,000 items. Those were mostly non-grocery products across categories including specialty items, toys and housewares.
The online 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% year over year. Delivery sales grew 11% over the same period. Digital engaged households grew 13%, Kroger said.
Kroger chief financial officer Rodney Millerchip called digital sales a “growth engine” for the grocery retailer. “Everything we continue to see gives us that belief it will continue to be an opportunity to drive deeper customer engagement and growth,” he told investors in November.
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