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Kroger acknowledges that its bet on robotics went too far

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

#21

Post by AngryData »

da02 wrote: post #12

Here in the Houston areas, supermarkets like Kroger/Walmart/HEB/etc always have single floor buildings. Why can't they build multi-floor buildings for storage upstairs and retail walk-in sales on the ground floor? On the above ground floors, they can create an automated or semi-automated system for employees to gather up items for online/delivery orders.

Probably because you then need pillars throughout the entire building to support the second floor which you are loading down with a ton of weight. The average forklift weighs 3x or more the weight of the average car, and then adding racking and stock on top of that. Yeah if you completely redesign your storage system to not require forklifts you save weight there, but you end up adding the weight back with all the heavy duty track systems and extra heavy duty racks that are required to eliminate the forklifts. Plus there is liability of having that weight up top, a rack failure on a second floor could take down half the building.

It is possible, but you end up spending 10x as much on the building.

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

#22

Post by [deleted] »

da02 wrote: post #12

Here in the Houston areas, supermarkets like Kroger/Walmart/HEB/etc always have single floor buildings. Why can't they build multi-floor buildings for storage upstairs and retail walk-in sales on the ground floor? On the above ground floors, they can create an automated or semi-automated system for employees to gather up items for online/delivery orders.

[deleted]

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

#23

Post by bena »

da02 wrote: post #12

Here in the Houston areas, supermarkets like Kroger/Walmart/HEB/etc always have single floor buildings. Why can't they build multi-floor buildings for storage upstairs and retail walk-in sales on the ground floor? On the above ground floors, they can create an automated or semi-automated system for employees to gather up items for online/delivery orders.

The vast majority of the inventory is already on the sales floor.

Also, the backstock is minimal. Stores are designed for turnaround.

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

#24

Post by glitchc »

markbao wrote: post #16
liquidise wrote: post #5

Good news for blue collar workers, tough for investors. The bean-counting dream of LLM's and Robotics remains, but until ChatGPT is placing your order at Mcdonalds drive-thrus and Amazon is laying off warehouse associates en masse, i'd say that last 5% is still taking 95% of the time.

McDonald’s is an interesting example because they’re increasingly replacing cashiers with kiosks. Robotics/LLMs seem to have diminishing returns compared to that in the order taking realm.

Sure, but not the kitchen staff, which is where the robotics dream is supposed to take you.

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

#25

Post by markus_zhang »

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 press a button to rotate the samples, observe them, and place an order by pressing a button. Samples not chosen are temporarily stocked at the window as a “stack”.

In each closed section, there are humans who monitors and maintains the robots, and occasionally fetch samples when robots stop working (hopefully it too often, you know those 9s).

At the exit, a human worker assembles the packages and hand them to the customers with a smile. Customers have a last chance to return unwanted items.

Why was it a retro futuristic dream? Because the customers have the option to go into a bakery to enjoy a cup of coffee/tea, some cake and socialize with fellow customers. All of them looked like the men and women from advertisement from Fallout 4.

I’d like to shop or even help build one of these.

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

#27

Post by kulahan »

markbao wrote: post #16
liquidise wrote: post #5

Good news for blue collar workers, tough for investors. The bean-counting dream of LLM's and Robotics remains, but until ChatGPT is placing your order at Mcdonalds drive-thrus and Amazon is laying off warehouse associates en masse, i'd say that last 5% is still taking 95% of the time.

McDonald’s is an interesting example because they’re increasingly replacing cashiers with kiosks. Robotics/LLMs seem to have diminishing returns compared to that in the order taking realm.

I hate those stupid things so much. They're really, as far as I can tell, just moving all labor to the kitchen and drive-thru, while considering the dining area an afterthought.

Maybe they're just following the trends their own numbers tell them are happening, but I don't think they trust robotics enough to put an area they truly care about under its purview just yet.

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

#28

Post by al_borland »

markbao wrote: post #16
liquidise wrote: post #5

Good news for blue collar workers, tough for investors. The bean-counting dream of LLM's and Robotics remains, but until ChatGPT is placing your order at Mcdonalds drive-thrus and Amazon is laying off warehouse associates en masse, i'd say that last 5% is still taking 95% of the time.

McDonald’s is an interesting example because they’re increasingly replacing cashiers with kiosks. Robotics/LLMs seem to have diminishing returns compared to that in the order taking realm.

McDonald’s is also pushing their app pretty hard with lots of incentives.

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

#29

Post by DrewADesign »

bena wrote: post #23
da02 wrote: post #12

Here in the Houston areas, supermarkets like Kroger/Walmart/HEB/etc always have single floor buildings. Why can't they build multi-floor buildings for storage upstairs and retail walk-in sales on the ground floor? On the above ground floors, they can create an automated or semi-automated system for employees to gather up items for online/delivery orders.

The vast majority of the inventory is already on the sales floor. Also, the backstock is minimal. Stores are designed for turnaround.

Right. Not selling things fast enough is a bigger problem than not having enough storage for unsold stock.

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

#30

Post by rolandog »

Frye wrote: post #26

Also worth mentioning Kroger just lost a multi million dollar lawsuit in Florida after one of their delivery trucks hit a cyclist. I wonder if this has anything to do with it as well.

"Something, something, ... omelettes ... few eggs" -- mouthpiece from corporation that lobbies to cut regulations
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