Dive Brief:

• Kroger has added Georgia Motor Vehicle Division self-service kiosks to 11 more stores in the southern state, according to The Shelby Report.
• The kiosks, which are manufactured by Intellectual Technology, allow Georgia vehicle owners to renew vehicle tags through an interface similar to an ATM. The kiosks also let shoppers renew their tags on weekends and after hours at the Kroger stores.
• “Kroger is always looking for ways to enhance our customers’ shopping experience, and providing these self-serve kiosks will allow them to save time by completing two tasks in one trip," Felix Turner, public relations manager for Kroger’s Atlanta division, said in a release.

Dive Insight:

Grocery retailers are constantly looking for new ways to bring in new customers through added services and strategic partnerships. Retailers have a history of co-locating with banks and parcel delivery companies, and often house coin-exchange machines, stamp dispensers and other automated kiosks. The common thread is these are all services shoppers regularly use, and they could drive incremental sales without having to sacrifice too much in-store space.

This appears to be Kroger's aim in offering DMV tag renewal kiosks in these Georgia stores. As anyone who has ever been inside a DMV knows, the process can be inconvenient, frustrating and time consuming. Convenient kiosks could potentially draw lots of time-starved individuals who also may want to pick up a meal or grocery shop. For loyal Kroger customers, it's an added convenience that could boost the retailer's image in their minds.

Location and promotion are key components here. It's unclear where Kroger places the kiosks in its stores, but the retailer and others offering similar services should take care not to place the machines in a corner where customers can't find it. Grocers should also take care to promote these offerings, and even consider profitable cross promotions. 

For Kroger, this is yet another initiative geared towards driving store traffic and deterring customers from online grocery delivery services such as AmazonFresh and Instacart. In recent years, the nation's leading supermarket has beefed up its private label offerings, rapidly expanded its e-commerce platform, enhanced its digital promotions and customer tracking, and rolled out diversified formats, from its large Marketplace stores to new convenience concepts. The company's earnings recently slipped, but analysts agree Kroger is well positioned for future growth.