The move deepens the partnership between the two companies, which is partly a response to Amazon's move into grocery stories with its 2017 acquisition of Whole Foods. As Amazon's retail business pushes into more industries, Amazon Web Services is starting to experience a backlash. Kroger is joining the likes of Wal-Mart and Target in finding other vendors to handle their massive workloads for their digital and e-commerce offerings.
The two outfitted Kroger locations, in Monroe, Ohio and Redmond, Wash., will feature digital shelving displays with real-time price updates and product information, as well as digital advertisements personalized to each shopper.
Video analytics systems will alert store associates to low inventories. Location-specific data will be stored and processed on Microsoft's Azure cloud infrastructure.
Microsoft and Kroger will jointly market the technology to other retailers, the companies said.
"Our partnership brings together Kroger's world-class expertise in the grocery industry with the power of Azure and Azure AI," Microsoft CEO Satya Nadella said in a statement. "Together, we will redefine the shopping experience for millions of customers at both Kroger and other retailers around the world, setting a new standard for innovation in the industry."
The pilot is reminiscent of Amazon's new age Amazon Go pilot, which detects the items a shopper has picked up and scans them automatically as the shopper leaves, eliminating the need for traditional cashiers. Amazon is reportedly planning a broad expansion of Go, including in Whole Foods stores, putting pressure on traditional grocers to offer similarly innovative shopping experiences.