Kroger Goes All Robotic with C-Store

Kroger has opened a fully automated convenience store on the campus of Ohio Northern University in Ada, Ohio.

The store, a 10×13-foot unit that stands nine-feet tall, carries up to 200 standard convenience items, such as beverages, cleaning supplies, over-the-counter medicines, refrigerated meals and snacks. According to the vending unit maker, Shop24 Global, the robotic arms that pick purchased items can handle products up to eight pounds.

Students on the campus can pay for purchases using cash, credit or debit cards, supplemental nutrition assistance program (SNAP) cards and meal cards from the university.

"This is a terrific brand extension opportunity for Kroger and a fantastic 24 hour retail convenience for the ONU students," said Jason Santoro, regional vice president for Shop24 Global, in a statement.

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Discussion Questions

Discussion Questions: Are robotic convenience stores one of the retailing waves of the future? Do you see more pros or cons to this approach for retailers such as Kroger?

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Fabien Tiburce
Fabien Tiburce
12 years ago

Let’s call a spade a spade. This is a “vending machine” not a “fully automated convenience store.” Yes it’s a big, fancy vending machine but a vending machine nonetheless. Will advances in technology increase the market penetration of such vending machines? Most likely (provided the capital and maintenance costs are not prohibitive). Are they the future of retailing? We are asking this question…seriously?

Steve Montgomery
Steve Montgomery
12 years ago

The upside for Kroger is an extension of its brand into locations that heretofore were far, far too small for the Kroger brand or one of its several c-store brands. The downside would be if the machine failed to work properly or the products being sold did not live up to their promise.

As Mr. Tiburce pointed out, this is really an enhanced vending machine. There have been much larger versions of this concept that have been tested in various markets. My expectation is that it will fulfill a niche, but don’t expect to see the U.S. market embracing this type of shopping experience to the extent Japan has.

Roger Saunders
Roger Saunders
12 years ago

The consumer’s leading reasons for shopping a particular retailer: Location, Price, Selection, Quality, Service … Kroger is answering the needs of an important segment of shoppers, in a well-controlled environment. Smart move in building experience with the concept, as it offers added opportunities throughout their geographic footprint.

Gene Hoffman
Gene Hoffman
12 years ago

My future doesn’t envision robotic retailing but my grandson’s, who’s encumbered by time and space pressures inherent in academic life, does. So, too, might those living in tightly crowded existences such as in Japan or overcrowded colleges and office buildings.

Like many other useful things, there is a place for everything — somewhere. But that somewhere is frequently determined by other factors.

Ryan Mathews
Ryan Mathews
12 years ago

Add my voice to the chorus; “This is a vending machine!” They’ve always done well in high traffic, sleep deprived, high impulse driven customer markets.

One question that hasn’t been asked here is, how many students can be employed inside a vending machine?

Ben Ball
Ben Ball
12 years ago

I’m a bit surprised by the chord of disdain being struck by many of the comments here. Automated Merchandising (that’s what it is called in most places around the world) has been growing in the U.S. market in leaps and bounds for the last twenty years.

How often do you visit that “retail service person” called the “teller” today?

How often do you interact with that cute teenager in the Blockbuster store to get your DVD for this evening?

The idea that U.S. consumers will reject automated merchandising of convenience food and OTC products is old school. As Gene so cogently pointed out, it may not be for him — but his grandson thinks the idea is “nifty”!

Tim Henderson
Tim Henderson
12 years ago

Robotic c-stores have been around for some time. I remember using and writing about one in Washington, DC, back in the late 90s. While unattended c-stores are definitely a part of retail’s past, present and future, it’s likely to remain a small part.

Robo c-stores make sense in locations like universities, corporate parks and some high-population urban neighborhoods. Consumers in such areas are looking for the occasional get-it-quick convenience item (e.g., a gallon of milk or tube of toothpaste) vs. the larger, more time-consuming grocery store pantry refill.

For retailers like Kroger, robo c-stores offer another format to keep the brand in front of consumers, even when they’re not able to or interested in visiting the larger store. But like store retailing past, present and future, the winning strategy remains finding areas with the right demographics for the store.

Ed Dennis
Ed Dennis
12 years ago

A great alternative to the convenience store. Now can they automate the sale of lottery tickets in a manner that won’t have some miscreant standing in front of the machine for 2 hours picking numbers?

Martin Mehalchin
Martin Mehalchin
12 years ago

Definitely a wave of the future, particularly in high-density, high-traffic locations like college campuses and urban public transit systems. Tesco is doing something similar in South Korea using augmented reality in subway stations (very cool and worth Googling). I don’t really see a downside for Kroger in this.

Bill Hanifin
Bill Hanifin
12 years ago

Taking the vending machine to another level is logical and in settings like a college campus seem to be the best place for trial of the concept.

More impressive than the machine and its technology would be the wisdom in selecting which products are available through the device.

I hope Kroger has built into its plan a method through which it can learn what people would like to have in the box. Slow moving items will be obvious, but what do students really want?

Maybe they should allow students to check in a code after purchase and leave comments about future wants. Participation would lead to a freebie down the road.

Herb Sorensen, Ph.D.
Herb Sorensen, Ph.D.
12 years ago

So it’s a small version of Horn & Hardart’s Automat? In any event, nothing wrong with the idea at all — it’s another way to get closer to the customer. Add it to the mix of Amazon making local deliveries through C-stores. The point is that the only reason this might not work is poor execution, and shoppers won’t care whether the trade gives it the right name.

Mel Kleiman
Mel Kleiman
12 years ago

This whole thing is unpatriotic. How is this going to help get Americans back to work? We need to get rid of these things like Redbox and ATM machines.

Brandon Thomason
Brandon Thomason
12 years ago

As an employee of Shop24, I can tell you that we are creating several new jobs and opportunities for the American public. These stores bridge the gap between c-stores and the consumers. It is ultra convenience and the response we are getting in this short time has been astronomical. It proves that there is a huge need for this in the US.

The c-stores will not even notice a decline in sales. People will continue to do their grocery shopping at the grocery store. But let’s face it, we have all been in the situation where you need a loaf of bread or a cup of sugar and don’t want to take the time, money, and hassle to go down the street. That is exactly what this is for and is the most American concept out there. I salute Redbox and other companies that create these jobs and keep moving the US into a new technological advancement era.

People will always be afraid of something new and inventive until you see its success. We hope to add a distribution center in every state of America including a manager, delivery drivers, IT jobs, etc. How does that not create more jobs for the American public?

You can call it a vending machine, retail store, or whatever you want, but it is cool! You have to see one for yourself some day!