Dive Brief:

• Safeway and Target are working with Google to display weekly grocery discounts in the Google Pay mobile app, according to a blog post on Thursday by Josh Woodward, director of product management for the technology company.
• The app will provide notifications about promotions when a user who has allowed location-based services on their mobile device is close to a store operated by one of the chains.
• The addition of grocery promotions on Google Pay comes as retailers are stepping up their efforts to use digital tools to connect with customers.

Dive Insight:

Google's latest announcement continues efforts by the tech giant to align itself with the grocery industry.

Under the arrangements Google struck with the retailers, Google Pay will provide details about "deals on thousands of items" at more than 500 Safeway stores and Target stores across the country. The company did not say if it intends to add information from other grocery chains to the app in the future.

In addition to showing promotions from Safeway and Target in Google Pay, Google also said it has added new capabilities to its app that allow people to pay for public transportation in more cities and to more closely monitor their spending. 

In March, Safeway's parent company Albertsons unveiled a deal with Google that lets shoppers order groceries through Google's search engine and online map service. Albertsons also said it is offering predictive list-building and chatbots in cooperation with Google and making it easier for people to pay for orders with Google Pay.

In addition, Google said it is working with Instacart to provide information to customers. Later this year, Google plans to work with Kroger's Fred Meyer banner on a test of a Google Maps-based service that will track and provide updates to customers who place pickup orders. 

As it continues to blend online technology into its operations, Albertsons said last week that it hired Danielle Crop, who formerly served as chief data officer at American Express, as its first chief data officer. She will be responsible for leading the grocer's efforts to use data to benefit customers whether they shop in stores or online, Albertsons said. 

Earlier this week, Adobe announced it has partnered with Albertsons to help the retailer use data to better understand shopping behavior and personalize services for consumers.