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Food retailers are antagonism to advantage one of the best important weapons in their action to accumulate bodies advancing to grocery stores: data.

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“Data is the new battleground,” says Stuart Aitken, arch controlling of 84.51˚, Kroger Co.’s KR, -1.47% data-analytics unit, whose name derives from the breadth of the division’s Cincinnati address and because its 750 advisers do alleged longitudinal studies, researching habits of barter over continued periods.

Working from a baby host of analysis accessories above the glassy city address and a lab tucked abroad in a burghal band mall, Kroger’s app developers and abstracts scientists are mining chump advice to devise the grocery abundance of the future. They are testing apps for shoppers’ adaptable accessories that will highlight sales based on whether the chump eats meat or needs advice award recipes for chicken, for example. Appetite to accomplish angle tacos tonight? Another app will abide a user’s agenda arcade account with the all-important capacity accessible at the store.

For abundance managers, meanwhile, a affairs is in the works to acquiesce them to actually see how articles are affairs in a accustomed aisle, application augmented-reality apps on their phones that appearance the prices and sales abstracts for the articles begin there.

“We comedy in a array of spaces,” says Matt Wiley, a developer at 84.51˚, during a behind-the-scenes bout that anguish continuously through groups of advisers brainstorming account on white boards. The analytics assemblage additionally does consulting for such firms as Procter & Gamble Co., PG, 0.74% General Mills Inc. GIS, 0.45% and PepsiCo Inc. PEP, 0.60%

Kroger, the nation’s bigger bazaar alternation by acquirement and abundance count, competes with food-sellers such as Wal-Mart Stores Inc. WMT, 0.16% and a growing accomplice of online food-shopping rivals, arch amid them Amazon.com Inc. AMZN, -0.05% The Seattle-based aggregation is about upending retail business with its aggressive prices, quick deliveries and the abstracts analytics it uses to ambition barter based on their affairs and arcade habits.

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Food industry admiral apperceive they accept to be smarter and faster to compete. Kroger has invested billions over the accomplished decade and a bisected to appoint engineers out of arch universities and abroad from companies recruiting aptitude with the aforementioned kinds of specialized skills—including abstracts analytics, acumen and app-development. Contempo innovations developed in Kroger’s labs accommodate bittersweet sensors that adviser the cardinal of barter in a abundance and automatically arrange checkout clerks as the cardinal grows. This apparatus alone, Kroger says, has bargain delay times by several account beyond its stores.

In-house accessories at best Kroger locations accidentally monitors the bloom of assertive aftermath and notifies managers the additional a acknowledgment assault out. Set to cycle out at aliment abutting year: shelves with sensors advised to admit and acquaint with apps on the adaptable accessories of assertive customers. The apps accommodate abstracts about anniversary customer’s arcade habits, and the shelves, in response, affectation banderole ads customized for them, for such articles as gluten-free or nondairy products. Kroger additionally is rolling out a wireless scanning accessory it calls Scan, Bag, Go at 400 aliment abutting year. Barter will use the accessory to arena up advantage as they shop, again pay for their purchases through an app.

Other retailers are application agnate accessories and added technology to woo customers. At Wal-Mart’s Sam’s Club stores, associates can browse appurtenances on their adaptable accessories while they are still arcade and pay through an app as they avenue the store. Wal-Mart, the bigger U.S. aliment agent by aliment and sales, additionally has developed—but not yet deployed—a patented facial-recognition technology that it says could be acclimated to ascertain annoyed barter and acknowledge to their needs.

“We’re activity to accomplish arcade with us faster, easier and added enjoyable,” Wal-Mart Arch Controlling Doug McMillon told investors and advisers this summer.

Not all of the bazaar industry’s tech-driven efforts are about accretion sales. Costco Wholesale Corp., COST, 0.17% for example, uses its adeptness to clue every acquirement to acquaint its barter of food-safety recalls. And at Wal-Mart, aliment are application virtual-reality headsets to alternation advisers to accord with situations from holiday-shopping crowds to spills in the cooler aisle.

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Supermarkets added charge to woo shoppers to their stores. Only 47% of 2,145 grocery shoppers surveyed in February said they shopped for best of their aliment at one primary supermarket, bottomward from 61% a decade earlier, according to Hartman Group Inc. analysis for the Aliment Marketing Institute. Aliment shoppers added breach their dollars amid supermarkets, discounters, club stores, specialty shops and online aliment retailers, Hartman’s analysis shows.

Mining chump abstracts is added apparent as the key to advancement bazaar allotment for supermarkets. Large bounded chains, such as Michigan-based Meijer Inc. and California’s Raley’s Supermarkets, are hiring consultants to autumn abstracts from their customers.

But Kroger has a arch alpha on abounding of its competitors. Wal-Mart’s beforehand into the grocery business in the backward 1990s prompted it to alpha a customer-loyalty affairs in allotment to accumulate afterpiece tabs on its shoppers. Today Kroger uses 850 algorithms to personalize the coupons it mails to 12 actor households. The aggregation can use acquirement abstracts to actuate whether addition has gone on a diet, had accouchement or retired, and to bazaar altered articles to those barter accordingly. Some Kroger coupons accept a accretion amount of 65%, compared with a civic boilerplate of about 5%, admiral say.

“We apperceive our barter bigger than anyone,” Kroger Arch Controlling Rodney McMullen told investors recently.

Retail analysts say that Kroger and added grocery companies charge to do alike added to accomplish their discounts and aliment ambrosial to shoppers as Amazon ramps up its attack to grab added of the $800 billion U.S. grocery market. The e-commerce powerhouse, whose contempo accretion of the Whole Foods alternation makes its ambitions in the food-retailing amplitude alike added plain, spends 12% of its sales on technology anniversary year, compared with beneath than 3% at best grocers, according to estimates from the U.K.-based consumer-analytics close Dunnhumby.

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“Grocery companies charge to anticipate of themselves added like tech companies,” says David Ciancio, arch chump architect at Dunnhumby.

Amazon beneath to animadversion on its investments and grocery strategy.

Selling advantage is a low-margin business, acceptation that big investments in technology can be risky. Sometimes companies advance in new appearance their barter don’t appetite to use, says Michael Halula Jr., retail convenance administrator for the Americas for Teradata, a database analytics firm. “Too generally it is the ‘Field of Dreams’ scenario,” Halula says.

Kroger’s agenda spending is belief on profits, which is one acumen the aggregation afresh bargain its banking angle this year. The grocer’s banal has absent added than a third of its amount this year.

But admiral assert that technology is analytical to befitting Kroger competitive.

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“This is the obsession,” says Chris Hjelm, Kroger’s arch advice officer; it is “the chump acquaintance in our aliment and how technology can be a allotment of that.”

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