CUPERTINO, CA - Starwood Hotels’ Aloft brand has a new employee; A.L.O. the Botlr, or robotic butler.
A.L.O., pronounced “el-oh,” will soon be on call all day and night to fulfill requests from guests. CNBC reports that all a guest will have to do is call the front desk and the staff will load up the Botlr with requested items, enter the guest’s room number and send it off to make the deliveries. A.L.O. will navigate hallways and even call the elevator using Wi-Fi.
With Botlrs making the move from science fiction to reality, how long before we see robots picking fruit or washing vegetables? My guess is that it will be quite some time. For now, we will have to watch and see how Botlrs fare.
A.L.O. is being fine-tuned for an August 20 official launch of its pilot program. If this test is successful, Botlrs could appear in nearly 100 properties. Brian McGuinness, Senior Vice President for the Aloft brand could see one or two Botlrs in each Aloft hotel. “I think there is a chance that this could go enterprise-wide based on a successful pilot,” he told CNBC.
Sunnyvale, California start-up Savioke designed and built the Botlr with a seed round of funding of $2 million from investors, which included Google Ventures. Company CEO Steve Cousins told CNBC that he sees a huge market for service robots.
Innovations like A.L.O. have the potential to change the way that we work. One day, we may see robots in hospitals carrying medicine and sterile equipment, on the dock moving heavy pallets loaded down with fruits and vegetables or in the aisles at a grocery store restocking a fresh produce display. I for one am excited at the possibilites this new technology could bring.
Do you think robots will have a place in the future of the produce industry? Let us know by taking the survey below!
LOS ANGELES, CA - Fusion Marketing's Consumer InsightsTM research is suggesting the emergence of an important consumer preference shift, revealing that the modern consumer is 200% more willing to engage in the online grocery marketplace compared to this time last year. By 2017 Fusion Marketing expects this marketplace to have grown exponentially in size into a $9.5 billion industry, $1 billion for fresh produce alone.
“We are witnessing consumer perception change from being reluctant to buy to testing the waters and making purchases,” explains Steven Muro, President and Founder of Fusion Marketing. “Consumers typically aren’t spending a lot online overall. Our research conducted in 2013 and 2014 indicates that a larger percentage of consumers have made a produce purchase, but many spent under $25.00 per shopping occasion.”
One example of this increasing comfort level is revealed by a significant drop in consumer's concerns over the food quality and freshness of the produce they received via online shopping markets. According to a press release, today's consumer is much less concerned about whether their food will arrive fresh. Fusion Marketing suggests this is due to previous positive online shopping experiences in which expectations were met, creating a new bond of trust between online retailer and consumer.
How many dollars of profit for the industry this growing bond will develop into is still an open question. If Fusion Marekting is correct however, its looking to be a very nice number.
MINNEAPOLIS, MN - Target executives say that they are hitting the "reset" button on the company's supply chain operations, in order to repair the damage done by what many have characterized as an overly hasty Canadian expansion.
"With the benefit of hindsight, if we could do it all over again, we wouldn't have opened up that many stores, that many DCs (distribution centers), in that short a time frame. I know that much," Target Canada's President Mark Schindele told Reuters. "We're now unwinding some of the decisions we made that were based on speed."
What does this mean for Target going forward? Target hopes that its three pronged approach focusing on its supply chain, pricing, and merchandise selection will prime the company for increased future growth.
According to Reuters, Target's plans start with a full recount of its inventory at all 130 stores in order to “reset” an overburdened supply chain.
The emphasis on speed during Target's earlier expansion caused multiple problems with the set-up of its online systems for tracking product distribution. This led to a major bottleneck, according to Schindele, with orders arriving at warehouses that did not match the records in Target's computers.
"If your data integrity isn't good, it's really hard to keep stores in stock," he said.
Target Canada is now in the position to fix these problems. Together with the planned supply chain reset, they now have the sales data after a year of Canadian operations to more accurately predict consumer demand and allocate resources to meet it.
In addition to an infrastructure reorganization, Schindele says Target will also be retraining its staff to better work with the company's inventory system.
In all, Target should walk away from this period with a better trained staff, a more robust inventory system, and a stronger supply chain. Schindele is confident that these changes will give Target the tools it needs to take on the challenges and opportunities of the future.
"We expect to see measurable progress this fall," Schindele noted optimistically.
With these steps in place, I certainly think Target has given itself the right foundation to make a rebound possible. How successfully Schindele and his team is able to implement their growth plan will play a big part in determining the future success of Target's Canadian operations.
GRAND RAPIDS, MI – Meijer Inc. will open four of its new Wisconsin combined supermarket-discount stores next year.
Frank Guglielmi, Meijer’s Senior Director of Communications, tells the Milwaukee Wisconsin Journal Sentinel that the company plans to open stores in Kenosha, Grafton, Oak Creek and Wauwatosa in 2015.
Meijer also has plans to open area stores in Waukesha and Greenfield. Waukesha’s Plan Commission is conducting a final site plan review this Wednesday, and Greenfield’s Plan Commission is conducting a conceptual review this Tuesday, according to the Journal Sentinel.
“We are also talking to numerous other communities, but can’t confirm those sites yet,” Guglielmi added.
These stores are the start of Meijer’s move into the Wisconsin Market. In March, we reported that Meijer revealed plans to expand its footprint into that state.
“We expect to concentrate a lot of our expansion the next few years in Wisconsin,” Meijer noted. “Milwaukee ought to be able to support a dozen stores, but whether we will find a dozen sites in short order is another question.”
For the full article on Meijer’s expansion plans, click here.
Meijer has also recently announced a new distribution center in Wisconsin with the $146 million purchase of an existing facility.
The distribution center is expected to serve stores in states that include Wisconsin and Illinois. “This is great news for Kenosha County, which has proven that it is a very attractive area for job creators looking to grow and expand here in Wisconsin,” said Governor Scott Walker. For more information on this new distribution center, view our previous article by clicking here.
Stay tuned to AndNowUKnow for the latest information as Meijer continues its rapid expansion.
SHERMAN OAKS, CA – Sunkist Growers has announced plans to move its headquarters from Sherman Oaks to Valencia, California this fall.
“This is an exciting time for Sunkist Growers,” said Sunkist President and CEO Russell Hanlin. “In the past few years, we have made significant advances on key strategic initiatives to position Sunkist for long-term growth and profitability – and the relocation of our headquarters is part of that strategy. We look forward to welcoming our growers, customers, licensees and other business partners to our new home in Valencia.”
Sunkist’s new building will be situated between the I-5 Freeway and the Magic Mountain theme park at 27770 N. Entertainment Drive in Valencia, according to a press release. This location is also closer to Sunkist’s multiple growing areas and allows the company to keep its current employee group intact.
The Sunkist cooperative of family farms was founded in 1893 and offers more than 40 fresh citrus varieties.
Good luck on the move, Sunkist!
BELARUS - Belarusian scientists have just finished a nine-year breeding process that could soon bring pink and blue potatoes to the produce aisle. According to Ivan Kalyadka, head of the Research Centre for Potato Cultivation and Horticulture at the Belarusian Academy of Sciences, the new potatoes preserve the hearty taste of traditional white-yellow potatoes, while offering customers a whole new color palette to choose from when designing their dishes.
According to BBC, the new potatoes are slated to be used in a variety of dishes in the food industry with plans to incorporate them into everything from chips to instant mashed potatoes. First however they will have to finish their current rounds of state testing.
Once they are released to the market it will be interesting to see how these new potato varieties effect consumer purchasing decisions. A study conducted by Rajesh Bagchi, Associate Professor of Marketing in the Pamplin College of Business, and Amar Cheema, from the University of Virginia, showed that in the retail environment the color blue tended to correlate with a higher willingness-to-buy.
“Because these consumers were also only competing with the seller, purchase likelihoods were lower with red backgrounds compared to blue, indicating that their willingness to pay may have been lower,” Bagchi told writers at VirginiaTech.
It's too soon to tell whether a feature backdrop of blue potatoes might spur increased spending in the retail aisle. I'll be certainly be paying attention however.
I'll have to send Mr. Kalyadka an email asking if he can cook up some orange and black potatoes in time for next year's baseball season. The Giants are famous for their garlic fries after all you know.
PERU - Avocados from Peru is ramping up its U.S. presence with a host of radio campaigns this summer to promote the popular fruit. The initiative, which has gained momentum, is now expanding on a national scale. Initially kicking off with a soft launch, the campaign has evolved from 8 markets to 25 and spreading. More than 120 stations are airing over 25,000 Avocados from Peru spots. The campaign is slated to extend over a 10-week period, providing a unique platform for marketing Avocados from Peru and establishing the origin as a competitive player in the game.
“Peruvian avocado volumes have seen unprecedented growth this season. This campaign creates a new type of media experience for the avocado category and is a part of the Peruvian Avocado Commission’s expanding international brand platform. The summer months are a great time to promote avocados and Peruvian avocados are one of the only origins at this time, promoting such a strong marketing campaign at a national level,” Xavier Equihua, CEO of the Peruvian Avocado Commission (PAC), tells me. “These radio commercials provide each customer and station with the chance to record unique messaging with their own individual nuances and flare.”
One of these popular campaigns promotes “5 avocados for $5” and is being utilized by Giant and Stop & Shop in the organization’s top East Coast markets in New York and New Jersey, each lasting about a week.
“This ‘5 for $5’ campaign is a great example of how micro-tailored this campaign is. Instead of offering a pre-recorded spot with a tag we are offering retailers an opportunity to fully customize their promotions through radio spots. We believe this is a first for the category at the national level," Xavier notes.
Avocados from Peru is also ramping up its social media presence on the web and on its Facebook page, to support the radio campaigns and international platform. This month, the Association is looking to launch several more social media initiatives. So, keep on the look out.
The Association is partnering with two radio stations in Los Angeles, California, to offer kitchen prize packs for a Avocados from Peru Color Kitchen Makeover with kitchen accessories such as an avocado-green Kitchenaid Mixer, oven mitts, wall clock, and Benjamin Moore avocado green paint. On the horizon, Avocados from Peru will begin on-air demos in select markets that will include coupon giveaways and contests tailored to regional demographics. Other stations are taking the Avocados from Peru program to their own websites for contests, recipes introductions and consumer engagement.
“This different approach to traditional radio spots and tags stays away from pre-recorded messages that tend to be very specific and inclusive in style. Everyone has their own messaging…from country music to top ten. This platform is a collaboration that gives our partners the best tools we can, to deliver the message.”
“We will deliver our avocados directly to the show locations, allowing DJ’s to create a conversation around recipes, usage and of course the wonderful flavor and versatility. This advertising and consumer response is continuing to drive retailer interest in our campaign. It is an exciting time.”
This season will see the largest crop of Peruvian avocados to-date, ready and waiting for promotional opportunities. The company tells me that no other avocado brand has offered so many radio market programs during a specific period at a national level, in this case the summer months.
“Demand for fresh avocados in the United States is increasing approximately 10% every year and Peru is poised to meet this growing consumer demand, as we are demonstrating this summer,” added PAC Board Chairman Enrique Camet.
Stay tuned for more buzz from Avocados from Peru.
ANUK has 3 more supermarket technologies that could change the way the retail business is done in the near future:
Self-Serve Scanning
Recently acquired by Catalina Marketing, Modiv Media is pioneering self-serve scanning technology. According to Mashable, an online tech publication, the hand-held in-store scanners and Stop & Shop SCAN IT! mobile app which it has developed allow customers to ring up their own purchases as they shop, eliminating the need for the long checkout lines that are as much a headache for shoppers as they are for managers.
Automatic Checkout
IBM is developing a technology for the Australian grocery chain, Coles, that would a eliminate the need for checkout lines altogether by installing radio tags on store products. As the customer walked out the main doors with their groceries, the system would record the tag numbers and bill their credit wirelessly through the customer's smartphone.
Goodbye Barcodes
Mashable notes how Toshiba has created a new scanner which uses pattern and color recognition algorithms to identify any product in a grocery store. No barcodes needed!
Toshiba's Keichi Hasegawa explained, "Fruit and vegetables in supermarkets don't usually have barcodes because they're put out while they're fresh. So these items can't be read at the register using barcodes which means staff need to input data to record them....[this] can cause delays. We're developing this new scanner to solve that problem."
DigInfo published a feature video on Toshiba's technology. Check it out below:
If you liked these innovative ideas, be sure to check out part 1 of our series on supermarket tech innovations here.
Stay tuned to ANUK for more exciting supermarket technologies!
PHOENIX, AZ – Sprouts Farmers Market is expanding its national footprint by opening 14 stores during its third quarter this year.
“We’re on track to open a total of 14 stores during the third quarter, putting us at 24 stores for the calendar year, or 14% unit growth. Our growth plans currently includes 67 of pre-sites, and 42 signed leases for the coming years. All of our new stores are performing better than we expected, as we continue to serve as the healthy grocery store for our customers,” said Doug Sanders, Sprouts President & CEO during the company’s Q2 earnings conference call.
As we reported last week, Sprouts released its Q2 financial report on August 7th, 2014, beating analysts expectations across the board. Net sales rose 20% over numbers from the same period in 2013 to $743.8 million and comparable store sales grew 9.5%.
Other highlights from Sprouts Q2 Financial Report were:
- Net income rose to $30.2 million with a diluted earnings per share of $0.20
- A 68% increase in adjusted net income to $30.2 million. During the same period in 2013 this figure was $18.0 million
- A 43% increase in adjusted diluted earnings per share to $0.20. During the same period in 2013 this figure was $0.14.
- A 31% increase in adjusted EBITDA to $69.1 million.
- A increase in Sprout's 2014 Guidance
For more info on Sprouts Q2, check out our previous article by clicking here.
Amin Maredia, Sprouts CFO, said during the call, “With the opening of 14 new stores for the third quarter, we expect pre-opening cost to be approximately $2 million higher than the prior year. Further, as you know, in our new store model, our new stores start off with a lower gross margin than our mature stores and we have built in the compression to the gross profit and overall EBITDA margins from the new store openings for remainder of the year in our guidance.”
Sanders added, “I'd like to take time to recognize the tremendous effort of all our team members throughout the Company and especially those involved in our numerous new store openings. Our Southeast expansion involved combined efforts of countless team members from across the Company, and I cannot thank our entire team enough for all their hard work and dedication.”
Stay tuned to AndNowUKnow to see where Sprouts will be popping up next.
ST. LOUIS, MO - Mike O’Brien, 42-year veteran of Schnuck Markets, is retiring from his role as Vice President of Produce and Floral. Its been quite a ride, the produce exec tells me, especially for someone who had his eye on broadcast journalism in my colleges years, and the D.J. arts.
“I originally saw myself going into some form of journalism, but instead I got my MBA and then produce got its hooks in me,” Mike notes.
Mike will be retiring at the end of October, but is planning on remaining in the produce sector.
“I see retirement in a different sense of the word. It’s more of a transition for me into something new, but I am looking to stay in produce if I can help it,” he tells me. “Although I am exploring many different options, Schnucks and produce are in my blood, so it makes sense tome to stick around.”
Mike started “as a puppy” at Schnuck Markets, getting his start with the company as a bagger in 1972. He was promoted through a host of different positions that included Department, Store and Division Manager roles before assuming his title as VP of Produce and Floral.
“I am indebted and grateful to Schnucks for everything I have experienced and become over the years. Working for this company has allowed me to collaborate with so many different people and aspects of the industry,” Mike reflects.
Mike has a world of knowledge under his belt, with an expertise in marketing, merchandising and operations as well as analytics and category management.
“I know how to get things done and bring the right people together. Who would have thought I would be here after all these years? It began with a need for supplementing my gas money,” he laughs. “It’s exciting to sit back and watch things take their course."
Mike will be at PMA Fresh Summit this year in Anaheim, California. If you don’t get a chance to congratulate the produce veteran before then, it will be as good a time as any. See you there, Mike!
Congrats again, from your friends at AndNowUKnow.