Food Waste!

In a recent video report, Phil Lempert, “Supermarket Guru,” referenced a United Nations’ Food & Agriculture Organization statement indicating one-third of food gets spoiled or wasted.

That translates to approximately $1 trillion per year, or double the dollar volume of the grocery industry as a whole!

As you are most likely aware, to reduce food waste we have to control environmental conditions including temperature, moisture levels, and UV exposure all across the supply chain including on shoppers homes.

The Spoon reports that a group of researchers led by Giovanni Salvatore at ETH Zurich have developed a biocompatible microsensor that can be directly applied to food and is safe to eat. The sensor is made from a combination of edible materials such as magnesium and a compostable polymer made with corn and food starch.

But there is a problem – making them is currently very expensive, compared to pennies or even fractions of pennies for traditional RFID tags.

However, Salvatore predicts that these biodegradable sensors will be part of our everyday lives within 5 to 10 years.

Customers King at Kroeger?

A recent SupermarketNews article reported that Kroger has launched a new improvement initiative to accelerate changes in assortments and better customer service.

While Kroeger has been in the news lately for considering the sale of its convenience stores, the new  “Restock Kroger” improvement initiative seems to be the bigger story. It will involve “an accelerated and more data-driven effort around pricing, personalized communications with customers, and a revamp of product assortments,” the article said.

“We will change the way people eat in the U.S.,” said Rodney McMullen, chairman and CEO. “If you are eating, we want to serve you. Unless you are eating in a white tablecloth restaurant, we want to be able to provide that meal for you.”

Read the full article… 

Groceries Delivered & Put-Away in Your Home?

According to a recent posting on techcrunch.com, Walmart has announced that it will begin testing a new service that will allow customers with August smart home devices, like the August doorbell and security cameras, to have their packages and groceries delivered inside their home instead of left on the doorstep. Grocery orders won’t just be placed inside the house like the packages, but will be put away in the fridge and freezer, when appropriate.

The retailer says it will soon start this test in the Silicon Valley area with select customers who have opted into to try the new service.

Sounds like continuous process improvement and the trend toward innovative customer service continues!

Read the full story…

Robots in the Aisles?

A recent video and report by Phil Lempert, founder of supermarketguru.com, shared information about “Tally,” a robot that will be working the aisles at Schnucks looking for items that are out of stock and checking on prices.

The robot is being tested at a store in the Richmond Heights area of St. Louis, the article says. A second will be tested at another store in the Kirkwood area. The tests are expected to last about six weeks.

Tally weighs about 30 pounds and stands at 38 inches tall and has sensors to avoid bumping into things like shoppers and carts. It scans the shelves and notifies the store personnel when quantities are running low.

A new component of the digital trend?

The e-Trend Continues: Saving Shoppers Time & Money

A recent “10 Items or Lessarticle posted by SupermarketNews identified steps taken by major food retailers that indicate the focus on e-shopping will continue to grow in 2017.

The article states that Wal-Mart Stores plans to have around 1,100 stores offering online grocery pickup this year, and that they are continuing with initiatives built around making fulfillment more versatile and/or efficient, such as offering discounts on online orders picked up in stores, and testing the idea of having store employees deliver orders to customer’s homes on their post-work commutes.

The piece goes on to report that Amazon said it was rolling out “Instant Pickup,” a free service offering its Prime members a curated selection of “daily essentials” available for pickup in two minutes or less. The service is available at five campus locations currently with plans to add more locations soon.

Even no-frills Aldi had issued a statement indicating it was getting into e-commerce for the first time through a partnership with Instacart in three cities.

“Our partnership with Instacart is another example of Aldi expanding our commitment to customer convenience and value,” Jason Hart, CEO of Aldi, said. “We know customers are looking for new ways to save time and money.”

As these new services are being rolled-out, it strikes me that supermarket chains will need to take an innovative approach to refining their work processes to reduce waste and cost.

See related article…about becoming more innovative.

Grocery Shopper Decisions at the Shelf?

A recent SupermarketNews article shared some interesting insights into how grocery shoppers are making decisions with respect to making healthier choices.

The primary factors influencing these “at the shelf” decisions include:

  • Concerns about impact on personal health/well-being
  • Desire to know exactly what ingredients go into their food
  • Environmental impacts
  • Do not want to support suppliers that use of genetically modified organisms (GMO’s)

While the study also showed an increasing number of shoppers relying on online-only retailers, (a trend led by Millennials), they’re selecting a narrow range of products online, such as household cleaning products, and continue to buy fresh bakery and produce items in-store.

 

“Checkout-less” Supermarkets: What’s Old is New?

The Seattle Times recently published an interesting and entertaining  article, which referenced the announcement made late last year by Amazon.com regarding the launch of an experimental convenience store in downtown Seattle where customers could skip the checkout line.

While the concept was presented as futuristic and technologically innovative,  a French retail chain, Monoprix, took issue with that depiction.

As the video showcased within the article explains (in a clever and somewhat humorous way), “Monoprix’s “Livraison à domicile +,” is their 10-year-old service that also allows shoppers skip the checkout lines – via a different form of innovation.

What’s old is new!

Wegmans Launching E-Commerce Partnership & One Hour Delivery Options

A recent SupermarketNews article reported that Wegmans is launching an e-commerce partnership with Instacart , which will enable online shopping and delivery at Wegmans Food Markets in select cities.

According to the article, the service will be available in Northern Virginia and Maryland, and will allow customers to order from Wegmans online and have their groceries delivered to them in as little as one hour.

A Wegmans spokesperson was quoted in the article as saying “it was offering the service to meet customer demand for time.”

This perspective is common as, in an effort to respond to consumer demand and competitive pressure, numerous food retailers have been striving to provide online offerings.

We expect the trend to continue as supermarket chains find new and innovative ways of maintaining customer loyalty.

 

A New Era in Food Retail?

While possibly making less of a splash than the Amazon-Whole Foods deal,  Lindl US opened a new store in Virginia Beach, VA, signifying the beginning of what many have termed a new era in food retail.

According to a SupermarketNews article, hundreds of shoppers were waiting in a line that circled the parking lot early Thursday morning waiting for Lidl US to open the doors.

The big splash and anticipated disruption to the industry may be based on a number of factors, two of which truly stand out:

  1. Lindl US is committed to offering the lowest prices. “We will beat the best prices in the market,” Brendan Proctor, CEO says.
  2. Lindl US is basing decisions on the voice-of-the-customer. “It’s not about whether our model works in a market,” Proctor said during an interview. “It’s about what we have to do to adapt to the market.”

As they say, time will tell…

Online Store “Made Easy” for Supermarkets

“We make it easy to take your grocery store online,” says Indemand a San Francisco-based plug and play platform for building an on-demand store or service.

According to the company website, their platform allows anyone to set up their own on-demand store without the need for any technical expertise. Customers can customize their solution, and also take advantage of a “mobile-first” solution.

While the service is available to “any” type of business, pricing plans for supermarkets range between $149 – $299 per month, plus a start-up fee and a per transaction fee.