Kroger is changing grocery shopping as we know it — and it's becoming a bigger threat to Amazon (K, AMZN)

Kroger is rolling out new technology to its stores that could change grocery shopping as we know it.

The technology, which digitally displays pricing and nutritional information, video ads, and coupons, is installed on store shelves where paper price tags hang. The digital shelving is being tested throughout two pilot stores and has been rolled out to about 100 Kroger stores’ end caps, an industry term for the space at the end of store aisles.

The digital price tags give Kroger the ability to instantly change prices and activate promotions across its stores, enabling it to undercut sales at other retailers and freeing up employees who would otherwise change prices by hand.

The technology also communicates with customers’ smartphones to help them complete their shopping lists.

Here’s how it works.

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