Dive Brief:

• Hy-Vee announced Wednesday it has signed a multi-year deal with Google Cloud for a suite of digital services that will be implemented in stores and online.
• The services powered by Google Cloud will make Hy-Vee’s Aisles Online shopping platform easier for customers to use, integrate the grocer’s virtual dietitian services and help shoppers schedule vaccine appointments online.
• The ongoing integration of Google Cloud services will boost Hy-Vee’s digital offerings and help power future innovations, according to the announcement.

Dive Insight:

Speed, convenience and personalization: These are the key advantages Hy-Vee said it’s getting by linking up with Google Cloud. The retailer, which has staked its name on customer service and health offerings in the past, is now positioning itself for a more nimble digital future.

Along with the improved dietitian and vaccine services, the tie-up will make ordering pickup and delivery easier and more tailored to each shopper by offering tools like predictive shopping carts, Hy-Vee said. 

“Google Cloud is helping us provide a unique and more personalized experience as we work to integrate all our digital platforms and look to further simplify the customer’s interaction with our services — whether that be in our aisles in person or online,” Aaron Wiese, Hy-Vee’s president of digital growth and co-chief operating officer, said in a statement. 

The grocer said it’s been adding more digital tools lately as the pandemic has pushed more shoppers online. This includes distributing more personalized coupons and updating its app to provide a more integrated shopping experience. The company launched late last year its Hy-Vee Plus paid membership program, which offers free delivery and concierge service, among other perks.

Google introduced its retail cloud offering in 2019 in order to compete with Amazon Web Services, which has become a leading cloud provider, but has also raised concerns among retailers as it continues to scale and expand into brick-and-mortar stores. Google Cloud has tools to aid logistics, customer acquisition and online experience and includes artificial intelligence services. 

In January, Google Cloud launched a suite of tools aimed at boosting product discovery, including a search function that relies on product images rather than names and a recommendation tool.

The tech firm is rapidly expanding its partnerships with grocers. In March, Albertsons announced it had teamed up with the company to allow ordering through Google Search and Google Maps, offer predictive list-building, chatbots and payments through Google Pay. Google also plans to launch a pilot this summer with Kroger-owned Fred Meyer that offers pickup tracking through Google Maps.