In a clear effort to fend off Amazon’s new artificial intelligence-powered store, Kroger announced plans Wednesday to debut similar technology at its branded stores including Ralphs supermarkets in Southern California.

Dubbed “Scan, Bag, Go,” the technology allows customers to use a wireless handheld scanner or a Kroger-created app on their mobile devices to scan and bag groceries as they go from aisle to aisle.

The technology, created in-house, allows shoppers to download digital coupons, review weekly sales, and keep tabs on their grocery total.

Ralphs parent company, Kroger, challenges Amazon with ‘scan and go’ shopping technology. Roughly 30 Ralphs stores in Southern California will get the Scan, Bag and Go technology in 2018. (Courtesy Kroger/Ralphs)

Ralphs parent company, Kroger, challenges Amazon with ‘scan and go’ shopping technology. Roughly 30 Ralphs stores in Southern California will get the Scan, Bag and Go technology in 2018. (Courtesy Kroger/Ralphs)

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Ralphs parent company, Kroger, challenges Amazon with ‘scan and go’ shopping technology. Roughly 30 Ralphs stores in Southern California will get the Scan, Bag and Go technology in 2018. (Courtesy Kroger/Ralphs)

Ralphs parent company, Kroger, will launch a scan and go device in 400 stores. Shoppers can choose to use the hand-held scanner, or use an app on their personal device. (Courtesy Kroger/Ralphs)

Ralphs parent company, Kroger, will launch a scan and go device in 400 stores. Shoppers can choose to use the hand-held scanner, or use an app on their personal device. (Courtesy Kroger/Ralphs)



The process allows for a “seamless checkout experience,” Kroger said.

But seamless depends on the shoppers’ point of view.

Kroger said customers initially will still have pay for the groceries using one of the store’s self-checkout areas. Eventually, shoppers will be able to pay for the groceries directly through the app, allowing them to avoid waiting in a checkout lane, the company said.

Kroger said it plans to test Scan, Bag and Go in 400 stores. Of the 191 Ralphs stores in Southern California, about 30 markets are expected to take part in the initial roll out, Ralphs spokeswoman Myeisha Gamiño said.

A store in Studio City will be the first to get the technology in late February, followed by another in Redondo Beach in March. Some Orange County stores also will get Scan, Bag and Go, but the locations have not been revealed.

Kroger’s new scan and go service, not surprisingly, comes a week after the debut of Amazon Go. The e-commerce giant’s first brick-and-mortar store offers a similar self-serve experience.

However, Amazon Go shoppers don’t have to scan groceries. Shoppers, instead, scan their smartphone with the Amazon Go app at a turnstile when they walk in. As they select groceries, the app automatically keeps track of their virtual basket. No scanning.

As shoppers leave the store, which some have joked feels like shoplifting, the app automatically charges your Amazon account. No checkout necessary.

Scan, Bag, Go is part of the company’s overall strategy to “accelerate the adoption of new technologies in our stores,” Mary Ellen Adcock, Kroger’s group vice president of retail operations, said in a statement.

Kroger said Scan, Bag, Go will be available at select locations in Southern California (Ralphs), Atlanta, Ohio, Dallas, Houston, Kentucky, Michigan and Nashville.

Of the traditional markets in Southern California, which include Albertsons and Stater Bros., Ralphs has been one of the few to maintain self-checkout lanes. Ralphs has also stepped up its partnership with Instacart, offering one-day grocery delivery. Other Kroger-owned markets also offer curbside pickup through ClickList.

“With every new product, service and technology integration, Kroger is redefining the customer experience and reimagining the store of the future,” Chris Hjelm, Kroger’s executive vice president, said in a statement.

Providing grocery shoppers convenience and personalized experiences has become critical to survival in the age of Amazon, DoorDash and Postmates. Last summer, Walmart expanded its test of curbside pickup to more than two dozen stores in California, including a store in Foothill Ranch.

Amazon Go, combined with the company’s Amazon Fresh grocery delivery service, is a major disruptor in the supermarket industry.

In 2017, Amazon captured an industry-leading 18 percent of online food and beverage sales in the U.S., according to market research firm Packaged Facts. That is double the share of Walmart, which is the No. 2 “e-tail grocery market,” Packaged Facts said in the fall online grocery shopping report.

“Amazon is the 800 pound online retailing gorilla for virtually every category of consumer goods one might care to mention,” the report said.

Kroger operates 2,793 stores under a variety of local banners, including Ralphs and Food 4 Less, in 35 states.