News Feature

Which Grocers Use Which IT Products

October 15, 2002 — CIO — Kroger
Based in: Cincinnati
Annual sales: $50.1 billion
Stores owned: 2,392
I.T. highlight: Experimenting with biometrics. Kroger has started pilots in three of its Texas stores in which registered shoppers can pay for groceries using a biometric finger scan.

Albertsons
Based in: Boise, Idaho
Annual sales: $37.9 billion
Stores owned: 2,541
I.T. highlight: Expanding its loyalty card program from 100 Illinois area stores to other states. Albertsons uses the data to create personalized special offers.

Ahold USA
Based in: Chantilly, Va.
Annual sales: $23.2 billion
Stores owned: 1,600
I.T. highlight: Company’s Stop & Shop chain, based in Quincy, Mass., is testing a wireless Internet tablet that is attached to shopping carts. Shoppers can order items from the deli or surf the Net while they stroll the aisles.

Hannaford Bros.
Based in: Scarborough, Maine
Annual sales: NA; (parent company, Delhaize Group of Brussels, Belgium, sales were $21 billion in 2001)
Stores owned: 115
I.T. highlight: Using wireless technology to improve ordering practices. Stores use wireless devices that connect to a mainframe-based inventory system to order grocery items. Some stores are starting to use the system for perishables.

A&P
Based in: Montvale, N.J.
Annual sales: $11 billion
Stores owned: 797
I.T. highlight: Company is in the midst of a $250 million systems and supply chain overhaul.

Giant Eagle
Based in: Pittsburgh
Annual sales: $4.5 billion
Stores owned: 216
I.T. highlight: Company is rolling out a knowledge management system to 35,000 employees who will be able to share best practices online.

Pathmark
Based in: Carteret, N.J.
Annual sales: $4 billion
Stores owned: 144
I.T. highlight: Company is in the midst of a $31 million across-the-board IT overhaul that includes replacing infrastructure such as frame-relay systems, data warehouse and procurement systems, as well as in-store technology such as point-of-sale systems and self-checkout.

Penn Traffic
Based in: Syracuse, N.Y.
Annual sales: $2.4 billion
Stores owned: 216
I.T. highlight: Has internet kiosks in six of its stores to allow shoppers to order hard-to-find items.

Price Chopper
Based in: Schenectady, N.Y.
Annual sales: $2 billion (estimated 2002)
Stores owned: 102
I.T. highlight: Uses retail software from Industri-Matematik International to manage store replenishment for all of its stores with the goal of reducing out-of-stock product levels.

D’Agostino Supermarkets
Based in: Larchmont, N.Y.
Annual sales: $175 million (estimated 2001)
Stores owned: 23
I.T. highlight: Implemented price optimization software from DemandTec in order to match prices to demand, thus increasing sales. As a result, the chain could lower prices on high-volume items and offset the loss with slightly higher prices on items customers perceived as specialty.

Sources: Interviews, company websites and Supermarket News