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Kroger acknowledges that its bet on robotics went too far

grocerydive.com

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Re: Kroger acknowledges that its bet on robotics went too far

#151
post #70

Earlier quoted context omitted.

I like it, I order on my phone before I get to the place and just pick it up. Any reason to like the old way is just nostalgia in my head.

There are pros, but ultimately we’re all still apes, we need human interaction and contact. It can’t be completely replaced with technology.

Is ordering a burger really human interaction and contact?

Re: Kroger acknowledges that its bet on robotics went too far

#152
post #150

Earlier quoted context omitted.

Yes - groceries in a small shop are easily 2x the £/calorie in the UK compared to a big superstore.

Are you comparing the cost of strictly identical products or something else? I'd be very curious to have some sources if you have any

No - small shops tend to sell mostly expensive branded products in smaller packets, whereas superstores sell larger packs of unbranded products.

Re: Kroger acknowledges that its bet on robotics went too far

#153
post #136

I work in this exact space (online grocery retailer in Europe). We're profitable and one of the few companies to be so in the sector - many online divisions are losing money and being bankrolled by the parent company with physical stores. Alternatively, burning VC money. The thing that's wrong with Ocado's technology is that it's ridiculously expensive and tailored for huge FC's (fulfillment centers). The problem wit…

Where are you operating? I live in a dense European city and I don't know a single person who orders groceries online. Smallish shops with bike racks in front of the door are simply too convenient, seems hard to beat. Next few days shopping can easily be done in 15mn on the way back home.

I live in a dense European city and all I ever do is order groceries online. I can order larger amounts in one go, so, batch order once every two weeks or so.

Instead of having to fight with a machine to give back my empty cans/plastic bottles, I can just give the delivery person a crate and get my money back.

Doesn't capture all my groceries, I love biking or walking to a smaller shop on occasion, or if I have a specific craving, but 90% of my groceries is delivery.

Re: Kroger acknowledges that its bet on robotics went too far

#154
post #136

I work in this exact space (online grocery retailer in Europe). We're profitable and one of the few companies to be so in the sector - many online divisions are losing money and being bankrolled by the parent company with physical stores. Alternatively, burning VC money. The thing that's wrong with Ocado's technology is that it's ridiculously expensive and tailored for huge FC's (fulfillment centers). The problem wit…

Where are you operating? I live in a dense European city and I don't know a single person who orders groceries online. Smallish shops with bike racks in front of the door are simply too convenient, seems hard to beat. Next few days shopping can easily be done in 15mn on the way back home.

Berlin here, people order from bike delivery grocery stores all the time. Not necessarily to do your weekend shopping, but still.

Re: Kroger acknowledges that its bet on robotics went too far

#155
post #136

Earlier quoted context omitted.

Where are you operating? I live in a dense European city and I don't know a single person who orders groceries online. Smallish shops with bike racks in front of the door are simply too convenient, seems hard to beat. Next few days shopping can easily be done in 15mn on the way back home.

> Smallish shops with bike racks in front of the door are simply too convenient Most people don't live in city centers. Because they are the most expensive places to live in.

You don't always need to be a city center to have this convenience, but you can't be in an area that is car centric... And usually when people compare the cost of both of these places, they only account for the cost per square meter of accommodation.

Re: Kroger acknowledges that its bet on robotics went too far

#156
post #3

Sounds 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…

I idly wonder if what would actually make sense here is a hybrid model that combines a gigantic fulfillment center with tens of thousands of products located "far" from people, with a large physical footprint and near to road/rail arteries, but with a mid-bandwidth, high-granularity, low-latency physical link to "near" places. For example, imagine you had an upscaled pneumatic tube system (don't get hung up on the ex…

Buried anything is just horrendously expensive. Partly because of other things that are already buried.

Re: Kroger acknowledges that its bet on robotics went too far

#157

Earlier 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.

Screwfix do this too. Just a counter with a handful of staff who go and get your items.

If you pre-order it's waiting at the desk. Very handy for people who can order from the job site on the account and send the lad round to grab it.

And a (relatively) unshittified website too because if jobbing tradies can't use the damn thing because it's too loaded down with ads and bullshit, they just won't.

Re: Kroger acknowledges that its bet on robotics went too far

#158
post #136

I work in this exact space (online grocery retailer in Europe). We're profitable and one of the few companies to be so in the sector - many online divisions are losing money and being bankrolled by the parent company with physical stores. Alternatively, burning VC money. The thing that's wrong with Ocado's technology is that it's ridiculously expensive and tailored for huge FC's (fulfillment centers). The problem wit…

Where are you operating? I live in a dense European city and I don't know a single person who orders groceries online. Smallish shops with bike racks in front of the door are simply too convenient, seems hard to beat. Next few days shopping can easily be done in 15mn on the way back home.

I live in a not-so-dense European city (Bratislava) and several our neighbours here in the extended city centre order groceries online, although we have a small shop within 100m and supermarkets within 2km of driving. It's very convenient for parents staying at home, for example.

Re: Kroger acknowledges that its bet on robotics went too far

#159
post #126

Earlier quoted context omitted.

Incredible, they were 75 years ahead of their time.

That kinda stuff is why I'm an incrementalist, as opposed to "Great Man" theories of civilization. A big impressive product or leap-forward is mostly luck and thousands of cascading preconditions on small improvements everywhere else, and often not even the first person to try. It's not hard to imagine that if a fundamentally similar store today that took the world by storm, there would be a profusion of news stories…

But if the technology is not ready to be implemented yet, was it really a genius level idea?

Here’s my idea: instant teleportation.

I expect to be credited

Re: Kroger acknowledges that its bet on robotics went too far

#160
post #70

Earlier quoted context omitted.

I like it, I order on my phone before I get to the place and just pick it up. Any reason to like the old way is just nostalgia in my head.

There are pros, but ultimately we’re all still apes, we need human interaction and contact. It can’t be completely replaced with technology.

Do you really need a human to ask whether you want fries with that?
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