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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

#261

Post by bena »

taeric wrote: post #247
bena wrote: post #229

Earlier quoted context omitted.

Oh, that's not really related to turnover. Bread/snack cakes (Little Debbie, the bakery also does bread), chips, soda, and liquor/beer are typically handled by vendors. Coca-Cola has a guy come out and stock the Coca-Cola products. Frito-Lay has a guy handle the Frito-Lay products. Etc. They don't work for the store in any capacity. Vendors typically come during the normal operating hours of the store. Bread guys lik…

To rephrase what I think you are saying, I'm more likely to notice these trucks because they will be specifically branded by the vendors? That makes sense. I assumed it was that and that they are there basically every day. Always notable on the days when a snow storm is announced and bread will be completely wiped out. Only to be fully stocked the next day.

Pretty much. They do stick out a bit since they don't match the stores' branding.

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

#262

Post by adamc »

roryirvine wrote: post #251
lazide wrote: post #236

Earlier quoted context omitted.

If you are getting those things anyway, and only need small portions of the other, then why bother?

Because otherwise you'd have to do a lot more planning in advance. For instance, I called in to the patisserie this morning on a whim to treat myself to a pain au chocolat for breakfast. And I think I fancy cheese for dinner, so after work I'll nip out to the deli for some stilton and the greengrocer for walnuts and figs to go with it. I've already got fancy crackers and some good port from my last online delivery so…

Not a European, but this rings true for me in the US. I'll go out and get something, in part, because it is less lonely and feels more attached to life, to the world. Endless deliveries actually make that worse. I started buying more things locally in part because of that.

It's also one of the reasons I don't really like working from home.

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

#263

Post by no_wizard »

jon-wood wrote: post #195
karamanolev wrote: post #123

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…

I think there's a space for something in between Ocado and Uber Eats, in the 2010s I worked for a startup where you could book an Ocado style delivery slot for the next day from a bunch of different butchers, bakers, etc and then we'd send a van round to collect from all of them and deliver it to you. Annoyingly they ran out of money just a little bit too soon, I'm pretty sure if they'd managed to hold out until 2020…

>the biggest pain there was that we were relying on a bunch of third parties to pack an order, and if any of them got something wrong we ended up with an unhappy customer on the phone and needing to deal with it.

Why not have drivers verify the order with the store? Like have the store folks walk through the pick ups. It might be slower up front, but it would save lots of time and money for everyone in the long run. One of those slow is smooth and smooth is fast situations. Alternatively, the drivers should have a book they could match pics to items perhaps

The other thing I wonder if it would be possible, would be to reduce revenue share for stores that routinely had issues with accuracy, but that means you'd need leverage, and you simply may not have it.

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

#264

Post by throw7 »

Around me, the online grocery shopping and pickup is still pretty popular post-covid. There's always a worker or two going around the store picking up for the online orders, so there's room here for some type of site-local automation (not remote robotic fulfillment centers, i could of told you that would be way too costly comparatively).

However, robotics that can navigate an existing retail grocery store is not here. yet.

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

#265

Post by bena »

imtringued wrote: post #237
bena wrote: post #198

Earlier quoted context omitted.

Everything. Retail stores are logistics. And part of that is product flow. There are trucks coming in every single day. When you buy an item at a store, that item is deducted from the store's inventory, when that item's stock reaches a certain threshold, an order is immediately placed to the distribution center, and that item is loaded onto a truck and could arrive as soon as that night. There's no reason to keep any…

I would have worded this slightly differently. The store is the warehouse and the store owner is allowing self service inside the warehouse but not at checkout. Having robots means you're automating something that your customers would have done for free. The automation is an additional expense and does not reduce your operating costs. The online grocery business model only works for two types of customers: those who…

> Having robots means you're automating something that your customers would have done for free. The automation is an additional expense and does not reduce your operating costs.

Ultimately, I was pointing out why a two story grocery store with a "warehouse" on top doesn't make sense. A place to put stuff is not the issue for retail.

But, what you wrote there is a fair way to look at the core issue for Kroger.

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

#266

Post by infecto »

wiether wrote: post #232
simgt wrote: 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.

I have this conversation regularly with friends, family, coworkers... And I've not yet been able to establish the right criteria to guess how a person is buying their groceries. Location, age, income, number of people in the household, physical ability... A single guy living in the city center with good income? Takes his car to go in big supermarket outside the city. A family with four kids living in the suburbs? Goe…

At least for me. I buy fresh food via online ordering because I hate wasting time these days. Driving even to a nearby store takes 10mins round trip. Then having to walk through the store and fine what I need and checkout. I would much rather order online and get it delivered. Produce can still be a gamble, pickers have no incentive to pick the best produce but for the average meal, that’s fine.

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

#267

Post by Nextgrid »

iambateman wrote: post #216

I’m regularly surprised by how important physically picking out groceries is for a large segment of the population. We have done grocery pickup for years but the pickup lanes are almost always empty while dozens of shoppers walk into the store. To me, shopping for groceries by hand is a waste of time but it clearly has some utility for a lot of people. I wonder if that inertia is making traditional grocery shopping s…

I can pick my groceries faster and with less aggravation than I can navigate the online ordering UI's dark patterns and attempts to get me to "engage".

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

#268

Post by infecto »

rsynnott wrote: post #202
simgt wrote: 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.

I live literally five minutes walk from a decently sized supermarket, ten minutes from another, and ten minutes on the bus from a great big one. One of my neighbours still gets supermarket delivery. There seems to be some sort of market for it, anyway...

So that’s 10 mins round trip. How many times a week, plus the time it takes to pick and checkout.

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

#270

Post by rsynnott »

infecto wrote: post #268
rsynnott wrote: post #202

Earlier quoted context omitted.

I live literally five minutes walk from a decently sized supermarket, ten minutes from another, and ten minutes on the bus from a great big one. One of my neighbours still gets supermarket delivery. There seems to be some sort of market for it, anyway...

So that’s 10 mins round trip. How many times a week, plus the time it takes to pick and checkout.

I mean, I'm walking past it anyway on my way to the office or to the bus stop.
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