Grocery Store Tech
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I started working when I was about 15 and a half. My first job was at the Park N’ Shop grocery store in Dudley, Massachusetts (and then continued on in the Auburn, MA store). The grocery story is one place where you don’t expect to see interesting advances in technology but there is a lot of innovation happening there. Since my time in the grocery business there have been two interesting innovations that I’d like to highlight.
Innovation 1: Pricing with Digital Networked Displays
Pricing is an area in which grocery stores feel a lot of pain since the average grocery store carries 45,000 products (2005 stat) many of which need to be re-priced frequently (as much as once a week). The pains the stores feel come in many forms including printing numerous price tags, spending a lot of employee hours each week re-pricing and mistakes in pricing that can cost the store.
A solution that is slowly moving forward is one Information Week talked about in 2001 – electronic price tags. The electronic price tags eliminate the need for printing tags which will save grocery stores a lot of time and money. They also save the man hours it takes to change the tags since the tags are all linked via a wireless network to one computer where the manager (or other staff members) can manage the pricing. The central pricing management system will also drastically reduce pricing errors.
Innovation 2 – Anti-Theft Grocery Carts
This is an innovation I came across yesterday afternoon while I was doing some grocery shopping (it is also what inspired this post). I was walking into the store pushing the cart as my better half started to plan our assault on the store when I noticed that the cart had a note on it (pictured right) where ads are usually shown. I read the note and noticed that it was informing me that the cart would lock up if it left the grocery store grounds.
Of course I was now intrigued so I searched each wheel thinking in my head that one of these things would not be like the others. I received some weird looks but, sure enough, the front right wheel was called “The Wheel” (pictured left – by the way, who were the marketing guys on that one?!) and looked different than all of the others. That was it! That wheel would lock up if I took it past the invisible barrier the store had installed.
It is a pretty interesting innovation especially considering that, according to the Food Marketing Institute in D.C., grocery cart theft totals about $800mm globally. What does that mean to the average store? Losses in the high four to low five figure range.
Conclusion
Innovation happens everywhere and entrepreneurs should always keep that in mind. Who would have thought that grocery cart theft has such a big dollar amount tied to it? I wouldn’t have but some entrepreneurs did and have created some innovative solutions which should make them a handsome return.
[...] Original post by Eric Olson [...]
Money Blog » Grocery Store Tech
5 Dec 06 at 8:33 am
I have seen in Myrtle Beach, SC that the wheel lock was born out of necessity. There is a Bi-Lo grocery store that is close to the hotels on the beach. Since this is the only (major) grocery store around they had to lock the wheels up so they wouldn’t wind up in the ocean. It is funny to see people trying to push the carts once they get into the “lock up” zone. Usually rednecks with bewildered looks figuring how to get four cases of Coors Light to the hotel (guilty as charged).
BTW, why do they charge so much money to build those carts anyway?
Skummy
5 Dec 06 at 1:05 pm
I work in the IT industry and I am confident to say that staff-originated theft is far more damaging then consumer theft. Some figure show that staff theft represents as much as 65 % of losses.
Christina
5 Dec 06 at 4:00 pm
Interesting point Christina. I wonder if a lot of grocery cart theft/loss is caused by employees as well.
Eric Olson
5 Dec 06 at 4:11 pm
I hope “the Wheel” is powered by the kinetic energy from pushing it. I wouldn’t want to be changing batteries or anything like that to make sure the electric fence is in tact.
Lazy Man and Money
14 Dec 06 at 5:27 pm
Also there is cart technology which helps shoppers find items (search and recommendation history based on past shopping) , get coupons, and self checkout.
Employee theft software has never taken off and has been tried a dozen times by a different startups.
ventureblogalist
17 Dec 06 at 7:12 pm
I don’t understand why American merchants haven’t latched on to a system used in Sweden which absolutely works. Each grocery cart is locked to the preceeding grocery cart much like the luggage carriers in airports and you can’t pull the cart out unless you deposit a coin. When you return your cart, a/the coin is returned to you. Given the attitude of some thieves, they might think 50 cents or whatever is a small price to pay for a cart and wouldn’t return it, but the coin could be a special coin from the market or video camaras could be set up in cart areas. For merchants, that’s a small price compared to the annual dollar loss in carts. It’s also an excellent way for carts to always be in the right place. If people were to return them to the racks, they wouldn’t be all over the parking lot and therefore, always available for customers.
Dorothea Clymer
20 Jun 07 at 9:29 am
I quite like the idea of electronic price tags, could you possible tell me where i can purchase these electronic price tags, and do you know how much they costs.
Thankyou
sham
12 Jul 07 at 3:11 pm
Not sure where to find the tags or what they cost.
Eric Olson
13 Jul 07 at 11:14 am
i want know about electronic price tags.
how much is that?
ali kebriaee
22 Mar 08 at 7:06 am