Morrisons Testing Shelf-Scanning Robots

Morrisons is trialling robots that can check for out-of-stock items, pricing errors, and misplaced products.

According to trade magazine The Grocer, the supermarket is testing the ‘Tally’ robots from US tech company Simbe at three stores. They are claimed to be the world’s first autonomous inventory bot, which uses advanced AI and computer vision technology to collect comprehensive product data by roaming the aisles in stores.

The robots are being tested in Morrisons stores in Wetherby, Redcar and Stockton. Katherine Allanach, technology manager at the retailer, told The Grocer that they are being used to “check that the products on the shelves are being displayed correctly and are legally compliant.”

She added: “It is a crucial but time-consuming task, and so Tally aims to allow more time for colleagues to focus on customer service.”

The report stated that Morrisons is the first UK retailer to invest in Simbe’s Tally robot, which can capture 15,000 to 30,000 products an hour. It self-docks to a charging port when needed.

Morrisons noted that feedback from customers and staff had been positive, with a spokesperson saying: “They have been intrigued and curious but very positive and colleagues in particular can see how supportive Tally could be.”
The robots are currently being used by retailers around the world, including Carrefour, Albertsons, ShopRite and Kroger.

A spokesperson for Simbe told The Grocer that Morrisons’ adoption of Tally was a major step in its drive to expand its global footprint, but also “validation that retailers around the world are increasingly turning to autonomous solutions to gain unprecedented visibility and address key operational challenges.”

NamNews Implications:

• This says it all:
• “Tally aims to allow more time for colleagues to focus on customer service”
• Which has to have a payoff in repeat shopper visits…
• …where items required are found on-shelf.
• Simple but difficult...
• A no-brainer…

A space race, but not as we know it....online retailers could be hit by warehouse space shortage

According to a new report by property consultancy LSH in International Business Times, Amazon, Tesco, Argos and other online retailers could be hit by shrinking warehouse space. In fact, logistics space fell from a peak of 360 million sq. ft. in 2012 to 200 million sq. ft. in 2015 (Reuters).

Lambert Smith Hampton (LSH) predict that demand will exceed supply by 25 million sq. ft. by the end of the decade.

Given these retailers use a network of warehouses to ensure faster delivery of goods to customers, the shortage of storage space will affect their delivery capabilities.

Knowing that the retailers involved - and their online shoppers - don’t do waiting, it is unlikely that they will await the 1-year construction time of new-builds, and will instead race to buy available space.

Ironically, given the planning legislation, and different prices/rentals for retail vs. industrial usage, those B&M retailers with redundant large-space cannot simply switch some of their outlets over to online warehousing, although some may compromise, and ‘make do’ in the short term...

More likely we are probably going to see more consolidation/takeovers of any source of suitable warehousing, and even inter-retailer collaboration as stakeholders demonstrate their determination not to compromise the potential of the only growth-channel in town…

For suppliers, this means more complicated and rapid response logistics arrangements in a fast changing logistics landscape.

It is hopefully obvious that they will not be allowed to compromise online retailers’ ability to meet online-shopper need, as speed and availability become the only real differentiators in the online race… 

Making more of existing traffic in supermarket convenience….

With more than 1-in-20 shoppers are leaving supermarket convenience stores having failed to spend all they intend, according to him! research & consulting, it follows that improved availability will optimise existing traffic, without adding another shopper...

At a time when every little helps, it seems a no-brainer to respond to the 5,000 shoppers surveyed at supermarket convenience stores, including Tesco Express, Sainsbury’s Local, M-Local and Little Waitrose, that report the main reason for these failed purchases is poor availability. Moreover, failure to buy one product in smaller format stores, when shoppers only need two or three, means a significant proportion of a shopper’s needs are left unfulfilled.

Losing business in the aisle
As you know, a brand’s consumers exhibit different need-sets as they shop different store formats, and retailers need to tailor both the offering and layout to suit, or suffer business drift…

In the current climate, suppliers and retailers invest heavily in presenting the offering to the consumer. It seems a pity to discard that consumer as shopper when they respond via a more convenient store of their choice…

Moreover, any additional traffic arising from more satisfied shoppers ‘telling a friend’ will be truly incremental..