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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

#51

Post by cudgy »

michaelt wrote: post #42
jlarocco wrote: post #17

Earlier quoted context omitted.

But I think in the cities Kroger grocery stores serve as the fulfilment centers, so they don't need robotic ones. There's probably still room for automation, but it might have to be different than warehouse automation.

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…

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.

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

#52

Post by recursive »

aerostable_slug wrote: post #10
recursive wrote: post #4

Earlier quoted context omitted.

I like being able to see the thing I'm going to get and holding it in my hand.

I like not going to the store more. Because tips are important to the income of delivery shoppers, I find that I generally get good produce selections. It might be difficult to transition that particular incentive to robots, but the point is that delivery items don't have to suck. The only thing I really still pick out by hand every time are beef briskets. Pork shoulders tend to be uniform enough that randomly pickin…

Delivery shoppers wouldn't be able to pick out the good stuff if it's delivered by drone or whatever.

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

#53

Post by ch4s3 »

markus_zhang wrote: post #25

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…

You'll obviously buy fewer things that way, and I can't see that making business sense.

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

#54

Post by Frye »

Dylan16807 wrote: post #47
rolandog wrote: post #30

Earlier quoted context omitted.

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

I can't find the story, but if it's a human-driven truck there's nothing special about a vehicle hitting someone. Everyone that drives a vehicle is accepting that risk. It's not heartless to have vehicles . And I don't even know what particular regulations you're trying to imply.

Implying that Kroger announced that it would shut down its Florida operations shortly after losing the lawsuit with the cyclist. Nothing more.

Here is the story

https://www.facebook.com/100064532630592/posts/pfbid0DYoPXet...

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

#55

Post by Scoundreller »

seanmcdirmid wrote: post #39
markus_zhang wrote: post #25

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…

Sounds like the old general store model, you didn’t browse yourself, the shop keep would bring out what you wanted, it was always behind the counter. I experienced this in China when I started visiting in 1999/early 2000s, it’s mostly not like that anymore though. You still have department stores where you need to buy things first before touching them, though.

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.

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

#56

Post by bediger4000 »

adxl wrote: post #48

Whenn I lived in Atlanta the Krogers each had a nickname. There was disco Kroger because of its disco ball. There was murder Kroger that purportedly had been the site of a murder. This I guess is Robo Kroger.

A common practice in Denver. Kroger's local brand is "King Soopers". There's Scary Soopers, Queen Soopers, and ironically El Safeway and Soviet Safeway.

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

#57

Post by mothballed »

cudgy wrote: post #51
michaelt wrote: post #42

Earlier 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…

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 broken, returned, or even used and damaged stock. Items like building wrap will have soil and rips on it, concrete mix will be spoiled from moisture, lumber will be all the most warped pieces (if you don't order a whole pallet, expect every last piece of fractional pallet will be knotted to hell, split, twisted, and badly warped), plumbing valves will be open package and leaky, etc etc. It's like clockwork, even if the stock sitting on the shelf doesn't have these problems. Due to this there are some stores I will never do a pickup/delivery order from.

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

#58

Post by michaelt »

cudgy wrote: post #51
michaelt wrote: post #42

Earlier 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…

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.

If Kroger operates the same was as Ocado does in the UK, then the drivers are paid by the hour, with the company providing the van and fuel.

Agree a lot of modern delivery businesses involve "self-employed" drivers getting paid a pittance and using their own vehicle and fuel, though.

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

#59

Post by CPLX »

markus_zhang wrote: post #25

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…

You’ve just described B&H in New York City.

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

#60

Post by sct202 »

jlarocco wrote: post #17
mosura wrote: 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…

But I think in the cities Kroger grocery stores serve as the fulfilment centers, so they don't need robotic ones. There's probably still room for automation, but it might have to be different than warehouse automation.

Kroger placed one of the sites in Orlando to also service Tampa and Jacksonville when they have 0 regular stores in the entire state. They were trying to use it to expand into the area, but I never saw very much in terms of advertising or promotions to drive demand but it could have also been that the robots were so bad that they couldn't attempt to market and push volume.
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