Morning Brew - ☕️ Scanning

How robots are helping grocers “remain competitive.”
Morning Brew February 18, 2022

Retail Brew

Hey team.The Olympics may be ending, but that won’t stop us from spending the long weekend skating around ice rinks picking up roses. Try not to look directly at our sequins—they’re blinding.

In today’s edition:

  • Grocers embrace robots
  • Allbirds runs to resale

—Erin Cabrey, Julia Gray

TECH

Autopilot

Smart scrubber robot by Brain Corporation Brain Corporation

When we think of robots, the droids that live in a galaxy far, far away may come to mind. But autonomous machines have been popping up a bit closer to home—like, say, in our local grocery stores.

Those on the East Coast may have seen Marty, the googly-eyed hazard-detecting machine (that caused a stir on Twitter a few years ago) roving the aisles of their neighborhood Stop & Shop, while Kroger shoppers across the country have likely spotted a scrubber cleaning the floors with no one in the driver’s seat.

  • These fleets are growing: In an April 2021 RetailWire survey, 47% of retailers said they would be involved with an in-store robotics project within the next 18 months.

As the roles of grocery workers evolve, robots have emerged as solutions for easy(ish)-to-automate tasks, be it cleaning, monitoring stock levels, or even fulfilling deliveries.

Future in focus: Sam’s Club is one of the latest companies to double down: After deploying those aforementioned smart scrubbers, made by Brain Corporation, to all of its 600 locations, it added the company's new inventory-checking capabilities late last month. Todd Garner, VP of in club product management, said the Walmart-owned retailer hopes to continue to be at the “forefront of this technology.”

“We had a leader at Walmart that said one time, ‘Loyalty is the absence of a better option,’” Garner told Retail Brew. “As that bar to excite members continues to rise, technology like these are critical for Sam’s Club, or really any retailer, to remain competitive.”

Nuts and bolts

The robot overlords creators, too, are advancing their tech to meet evolving needs.

Brain Corp. has deployed 20,000+ floor-care robots since the company was founded in 2009, focusing on making traditionally manual cleaning processes autonomous, explained Josh Baylin, its VP of product and marketing. Recently, it’s been evaluating data collection opportunities to make the most of the robots’ trips up and down aisles, he told us.

The company has bolted new sensors onto its fleet of robotic scrubbers to take high-resolution images, monitoring shelf conditions (spotting missing facings, misplaced products, or misaligned pricing signs), to give retailers and CPG companies real-time shelf insights.

  • The Sam’s Club partnership is the first chain-wide application of this tech.

Click here to keep reading about how grocers like Schnucks are deploying robots—and the companies behind them. Plus, on Monday, we’ll dive into how they can give workers a helping hand.—EC

        

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RESALE

Trading birds

Allbirds illustration Francis Scialabba

We’ve already seen resale programs from the likes of Madewell, Ikea, and Balenciaga, to name a few. And yesterday, Allbirds was the latest to enter the race to own the strategy.

The deets: Allbirds’ new secondhand platform, called ReRun, is part of the company’s plan to halve its carbon emissions by the end of 2025. Customers can now visit one of three Allbirds locations (in LA, Chicago, or NYC) and trade their gently used sneakers for $20 of store credit.

The shoes will be refurbished by recommerce service Trove, which is powering the platform, and then resold via ReRun.

  • Allbirds’s sneakers retail for $98+, but the secondhand kicks will start at $59.
  • The program will eventually expand to more stores, and it plans to collect shoes through its e-comm operation.

+1/-1: Not only does resale serve Allbirds’ sustainability goals, it also provides a new revenue stream, an avenue for data collection, and a way to connect with consumers, Trove CEO Andy Ruben noted to Vogue Business. He also said that, while luxury brands have less of an issue, secondhand shoes aren’t the easiest sell. (Smelly feet are our best guess as to why…)

The plan is to “start small” in order to gauge consumer interest and build from there, Allbirds’ head of sustainability, Hana Kajimura, told Vogue Business. “What is the point of a resale program if customers don’t buy into it?”—JG

        

WHAT ELSE IS BREWING

  • Fanatics teamed up with a group of celebrities, including Jay-Z and Meek Mill, to acquire the sports-merchandising company Mitchell & Ness for $250 million.
  • Walmart will carry Bonobos’ new Gen Z-centric men’s line at 250 of its locations.
  • Hermès International shares dropped as much as 8.4%, the most in five years, as sales from its leather-goods division took a hit because the retailer said it couldn’t keep up with demand.
  • Reebok announced “a new and enhanced partnership” with Foot Locker, that agreed to stock a deeper assortment of its footwear at the retailer’s stores.

SWAPPING SKUS

Today’s top retail reads.

Shrug it off: As prices go up (thank you, inflation), US shoppers don’t appear to be as down as expected. (Forbes)

Unseated: Inside Peloton’s wild ride. “Companies and people make mistakes. The ­problem is, this company made its mistakes in front of everyone,” said Simeon Siegel, an analyst at BMO Capital Markets. (Financial Times)

Wood not: One of the world’s largest old-growth forests can be found in Romania. Ikea may want a cut. (The New Republic)

FRIEND OR FAUX?

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

  1. Coca-Cola’s latest limited-edition release is “inspired by the light of stars.”
  2. Beyoncé has teamed up with Shake Shack for a “Blue Ivy Burger.”
  3. An Alabama courthouse was shut down over a suspicious package report that turned out to be a Taco Bell delivery order.
  4. KFC Canada is selling a new spicy chicken sandwich that’s so hot it comes with milk—for free.

Keep reading for the answer.

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FRIEND OR FAUX? ANSWER

Shake Shack appears to be sticking to the classics for now.

Written by Erin Cabrey and Julia Gray

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