I had a wonderful retro futuristic dream about an automated Costco warehouse a few weeks ago. It was one of the less weird dreams so I still remember it clearly. Basically, each section is like a closed areas with some windows. Customers order at the computers by the windows and flash their membership cards. Robots glide left and right to move 10 samples to the customer, in an arm with rotating clips. Customers can p…
That was Best store in the 1980s https://en.wikipedia.org/wiki/Best_Products
Kroger acknowledges that its bet on robotics went too far
101–110 of 342 posts
Re: Kroger acknowledges that its bet on robotics went too far
#102Earlier quoted context omitted.
Had a large-format (for its time) chain store in Canada like that until 1996: https://www.tvo.org/article/what-happened-to-consumers-distr... Basically a catalogue store without shipping to your door.
Argos in the UK was similar. You would go into the store and look up the product in a catalog. Then go to counter and order it, wait 2-5 minutes and they give you the product. I found it quite convenient.
Re: Kroger acknowledges that its bet on robotics went too far
#103Kroger should have pulled a Wal-Mart and turned to their shrink-heavy stores in urban centers to online fulfillment only -- basically only their delivery drivers can retrieve items for an order, and everything's shopped by an associate (Look south of the MicroCenter in Dallas if you want to see what one looks like: it still has the Murphy USA in the parking lot and is basically an unbranded walmart building with 'driver' and 'associate' entrances -- and then deployed the robotics there: less retail space, more online/fulfillment capacity (have humans grab produce and custom sliced/packed items, robots pick the dry goods), and while you lose some cashier jobs, you'll probably have net improvement in terms of time waiting to be picked.
Re: Kroger acknowledges that its bet on robotics went too far
#104Sounds like they just put them in the wrong places. > Fenyo added that Kroger’s decision to locate the Ocado centers outside of cities turned out to be a key flaw. > “Ultimately those were hard places to make this model work,” said Fenyo. “You didn’t have enough people ordering, and you had a fair amount of distance to drive to get the orders to them. And so ultimately, these large centers were just not processing en…
“Never underestimate the bandwidth of a station wagon full of tapes hurtling down the highway” In the AI analogy, never underestimate the productivity of a human when dealing with a giant pile of groceries. You can throw all the AI and robots you can at something but sometimes a $20 an hour human picking from stacks of goods and produce simply destroys it in raw economics
Re: Kroger acknowledges that its bet on robotics went too far
#105I've always said that in the back of my mind, the most successful grocery store would be the 'walls' of the store -- bakery, deli, produce, meats, floral, cheeses, dairy and having a little selection of store brands in the middle where consumers can pick up (and vendors can pay a premium for endcap space, because they're the only non-branded products out there), with the rest of the SKU's behind the walls of the groc…
Re: Kroger acknowledges that its bet on robotics went too far
#106I had a wonderful retro futuristic dream about an automated Costco warehouse a few weeks ago. It was one of the less weird dreams so I still remember it clearly. Basically, each section is like a closed areas with some windows. Customers order at the computers by the windows and flash their membership cards. Robots glide left and right to move 10 samples to the customer, in an arm with rotating clips. Customers can p…
What you've re-invented is Keydoozle, from 1937.[1] This was the first automated grocery store. Three stores were opened, but there were enough mechanical problems that it didn't work well. [1] https://rarehistoricalphotos.com/keedoozle-automated-store-p...
Re: Kroger acknowledges that its bet on robotics went too far
#107I've always said that in the back of my mind, the most successful grocery store would be the 'walls' of the store -- bakery, deli, produce, meats, floral, cheeses, dairy and having a little selection of store brands in the middle where consumers can pick up (and vendors can pay a premium for endcap space, because they're the only non-branded products out there), with the rest of the SKU's behind the walls of the groc…
So what grocery stores used to be ~90 years ago, when the norm was you would give the clerk a list and they would grab your items from the back? The only stores I'm still aware of that are setup like this are auto parts stores, where 90% of the inventory is in the back.
You could also count shoe stores and high-end jewelry and watch stores in that the clerk has to go in the back to fetch the non-display model.
Re: Kroger acknowledges that its bet on robotics went too far
#108Earlier quoted context omitted.
It depends on your business model. If a basket of groceries brought online costs $15 more than the in-store prices, then you can pick in-store profitably, very easy. That's the instacart model. But if a basket of groceries brought online costs about the same as buying in-store? With the retailer bearing the costs of picking, packing and delivery instead of the customer? Well then you need something more efficient tha…
And how about charging more in store than online? On two separate occasions, I stopped by Walmart recently and spent $0.50 extra and $1.50 extra by walking in, going to the aisle, and picking up the item myself. The Walmart app even tells you that the price on the app is only for online orders. But I didn’t want to wait for an unknown amount of time for a Walmart employee to bring it out to my car (been more than 10…
And I'm glad to stay outside.
Re: Kroger acknowledges that its bet on robotics went too far
#109Earlier quoted context omitted.
Even $15 more isn’t enough on account of delivery time, transpo costs, driver time, picking items, and bagging. Current model is for drivers to subsidize by being tricked into taking unprofitable orders.
From what I've seen, for grocery the model is they'll give you the least desirable or near expired stock that the walk-in customers won't grab. So they're basically saving spoilage. This happens so reliably I'm absolutely convinced this is how they 'pay' for it without raising prices. I've also noticed this with hardware stores like Lowes. If I place a pickup order they more often than not will pawn off on me their b…
Re: Kroger acknowledges that its bet on robotics went too far
#110Or their online groceries didnt succeed because people can p4ice shop. I am of the belief Kroger does well because they obfuscate their prices and their tags which make it seems like they are sales truely are not. Unlike Publix if I see a discount I know it is a discount. Every other item in Kroger has a yellow tag and a red price to make you think you are getting a deal when in fact the red number is higher than reg…
Ocado does just fine though, and are rarely the cheapest choice.