{"id":3736,"date":"2020-07-16T13:52:00","date_gmt":"2020-07-16T11:52:00","guid":{"rendered":"http:\/\/rr.fwch.pl\/?p=3736"},"modified":"2022-11-23T14:05:09","modified_gmt":"2022-11-23T13:05:09","slug":"grocers-are-losing-a-lot-of-money-during-covid-19-times","status":"publish","type":"post","link":"https:\/\/rr.fwch.pl\/fr\/grocers-are-losing-a-lot-of-money-during-covid-19-times\/","title":{"rendered":"Grocers are losing a lot of money during Covid-19 times!"},"content":{"rendered":"<h1>Grocers are losing a lot of money during Covid-19 times\u2026 because their sales are substantially rising!<\/h1>\n\n\n\n<p>Moreover &#8211; according to&nbsp;CNBC and Bain &amp; Co.&nbsp;who released a&nbsp;report recently on&nbsp;e-grocery &#8211; they will lose even more &#8211; as&nbsp;the growth of&nbsp;e-grocery is&nbsp;going to&nbsp;continue in&nbsp;the next years &#8211; especially if&nbsp;there will be&nbsp;a&nbsp;\u201csecond wave\u201d.<\/p>\n\n\n\n<p>No matter which scenario happens it&#8217;s going to&nbsp;be&nbsp;a&nbsp;fast ride forward for the next several years. In&nbsp;2020 alone &#8211; acceleration is&nbsp;going to&nbsp;be&nbsp;2+ years in&nbsp;US, 4+ years in&nbsp;UK, 3+ years in&nbsp;FR.&nbsp;And up&nbsp;to&nbsp;1,5x maximum expected increase in&nbsp;online grocery penetration in&nbsp;2025 vs.&nbsp;pre-Covid-19 forecast.<\/p>\n\n\n\n<p>The growth and its acceleration is&nbsp;amazing. Covid-19 was the &#8220;push forward&#8221; the industry needed to&nbsp;enter the mass market. To&nbsp;cross the chasm. And this trend is&nbsp;all over the world. One of&nbsp;our partners said &#8211; that in&nbsp;April they had a&nbsp;100% rise in&nbsp;grocery orders and could have had a&nbsp;400&nbsp;or&nbsp;500% if&nbsp;they had the right infrastructure introduced.<\/p>\n\n\n\n<h2>Why are grocers losing money?<\/h2>\n\n\n\n<p>Simple. Because their margins are much smaller than the cost of&nbsp;picking the order combined with the last mile costs.&nbsp;And the customers do&nbsp;not want to&nbsp;cover them!<\/p>\n\n\n\n<p><strong>So now &#8211; it\u2019s a \u201cwake-up call\u201d.&nbsp;<\/strong>Grocers need to&nbsp;fix their online business model\u2026 and human operated curbside pickup or&nbsp;increasing the margins are not the solution for the real profitability and growth.<\/p>\n\n\n\n<h2>What is the solution?<\/h2>\n\n\n\n<p>To cut the long story short &#8211; as&nbsp;Melisa Repko from CNBC suggests &#8211; grocers need to&nbsp;invest in&nbsp;(1) MFC\u2019s (micro fulfillment centers) or&nbsp;CFC&#8217;s to&nbsp;lower the cost of&nbsp;picking, and (2) \u201cvending machine-like micro-fulfillment centers\u201d to&nbsp;lower the costs of&nbsp;the last mile.<\/p>\n\n\n\n<p>Only the combination of&nbsp;these two &#8211; leads to&nbsp;real profits.<\/p>\n\n\n\n<p><strong>The first part can by covered MFC&#8217;s providers<\/strong>&nbsp;such as&nbsp;Dematic, Take-off or&nbsp;Ocado. And this is&nbsp;slowly being introduced internationally by&nbsp;some retailers. Great people working to&nbsp;make it&nbsp;happen. And this is&nbsp;amazing news. I&nbsp;will not get into details in&nbsp;this text as&nbsp;most of&nbsp;you read a&nbsp;lot of&nbsp;articles about the miracles it&nbsp;can do&nbsp;to&nbsp;retailers profits.<\/p>\n\n\n\n<p><strong>The second part can be covered by our Arctan<\/strong>&nbsp;&#8211; a&nbsp;robotic e-grocery click&amp;collect solution developed by&nbsp;us&nbsp;at&nbsp;Retail Robotics. And this is&nbsp;happening, too. Starting in&nbsp;France this year.<\/p>\n\n\n\n<p>Arctan has a&nbsp;high capacity, small footprint, it\u2019s fast and can serve many clients at&nbsp;a&nbsp;time. And what is&nbsp;most important from grocers&#8217; perspective &#8211;&nbsp;<strong>it decreases the cost of the last mile by 70% thanks to big &#8220;hub effect&#8221;.<\/strong>&nbsp;It&#8217;s also is&nbsp;much more convenient in&nbsp;terms of&nbsp;times of&nbsp;delivery and makes \u2018same day delivery\u2019 much easier to&nbsp;fulfill. And, last but not least, click&amp;collect solution is&nbsp;much safer in&nbsp;the times of&nbsp;pandemic &#8211; less contact.<\/p>\n\n\n\n<p>What is&nbsp;important &#8211; the solution is&nbsp;much more effective in&nbsp;terms of&nbsp;functionality and savings than traditional refrigerated parcel lockers that are characterized by&nbsp;limited capacity and big footprint. The basic version of&nbsp;Arctan has a&nbsp;capacity of&nbsp;202 logistic bins (capacity of&nbsp;14&nbsp;traditional solutions) and it&nbsp;can be&nbsp;combined in&nbsp;clusters of&nbsp;2, 4&nbsp;or&nbsp;more &#8211; to&nbsp;serve even more clients and more orders, and create an&nbsp;even bigger value. It&nbsp;can also be&nbsp;placed next to&nbsp;a&nbsp;micro fulfillment center.<\/p>\n\n\n\n<p>Beneath you can find a&nbsp;comparison of&nbsp;Arctan network and home delivery efficiency.&nbsp;<strong>With our solution 1&nbsp;courier can deliver even 300&nbsp;orders a&nbsp;day!<\/strong><\/p>\n\n\n\n<p>We shall be&nbsp;introducing Arctans in&nbsp;Paris in&nbsp;the coming months, and we&nbsp;are talking about pilots in&nbsp;UK&nbsp;and US.&nbsp;Arctan was recently featured in&nbsp;Winsight Grocery Business by&nbsp;Jon Springer in&nbsp;an&nbsp;article&nbsp;&#8220;Is This the Future of&nbsp;Click-and-Collect?\u201d.<\/p>\n\n\n\n<p>We are happy to&nbsp;be&nbsp;an&nbsp;important solution for the current broken business model. And shall be&nbsp;more than happy to&nbsp;fix it&nbsp;with you.<\/p>\n\n\n\n<p>Marek Piotrowski, CMO &amp; Partner at&nbsp;Retail Robotics<\/p>\n\n\n\n<p><strong>*<\/strong><\/p>\n\n\n\n<p><strong>Important links:<\/strong><\/p>\n\n\n\n<ol><li><em>&#8220;The Next Five Years in Online Grocery: Going Mainstream, Fast&#8221;&nbsp;<\/em>&#8211; Bain &amp; Co. report &#8211; <a rel=\"noreferrer noopener\" href=\"https:\/\/www.bain.com\/insights\/the-next-five-years-in-online-grocery-snap-chart\/\" target=\"_blank\">https:\/\/www.bain.com\/insights\/the-next-five-years-in-online-grocery-snap-chart\/<\/a><\/li><li><em>&#8220;Grocers urgently need to fix broken online business model, as pandemic shifts more to web, report says&#8221;<\/em>&nbsp;&#8211; by Melissa Repko, CNBC &#8211; <a rel=\"noreferrer noopener\" href=\"https:\/\/www.cnbc.com\/2020\/07\/09\/coronavirus-grocers-must-fix-broken-online-model-report-says.html\" target=\"_blank\">https:\/\/www.cnbc.com\/2020\/07\/09\/coronavirus-grocers-must-fix-broken-online-model-report-says.html<\/a><\/li><li><em>&#8220;Is This the Future of Click-and-Collect?\u201d&nbsp;<\/em>&#8211; by Jon Springer, Winsight Grocery Business &#8211; <a href=\"https:\/\/www.winsightgrocerybusiness.com\/technology\/future-click-collect\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.winsightgrocerybusiness.com\/technology\/future-click-collect<\/a><\/li><li>About Arctan:&nbsp;<a href=\"https:\/\/www.rrobotics.co\/product\/arctan\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.rrobotics.co\/product\/arctan<\/a><\/li><\/ol>\n\n\n\n<p>Arctan is&nbsp;a&nbsp;high performance click and collect solution for e-grocery retailers. At&nbsp;the moment &#8211; it&nbsp;is&nbsp;the most efficient solution for last mile in&nbsp;e-grocery on&nbsp;the market. It&nbsp;has smallest footprint and high capacity and it:<\/p>\n\n\n\n<ul><li>Reduces delivery costs by&nbsp;70%<\/li><li>3x effectiveness compared to&nbsp;human operated pick-up &#8211; by&nbsp;reducing space and labor cost<\/li><li>Serves 2-3 customers at&nbsp;a&nbsp;same time<\/li><li>Offers simultaneous consumer pick-up and courier drop-off<\/li><li>Supports same day delivery services<\/li><\/ul>","protected":false},"excerpt":{"rendered":"<p>Marek Piotrowski (Retail Robotics CMO &#038; Partner) recently wrote an article showing how accelerated e-grocery growth causes huge losses for retailers.<\/p>","protected":false},"author":1,"featured_media":3738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/posts\/3736"}],"collection":[{"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/comments?post=3736"}],"version-history":[{"count":3,"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/posts\/3736\/revisions"}],"predecessor-version":[{"id":3740,"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/posts\/3736\/revisions\/3740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/media\/3738"}],"wp:attachment":[{"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/media?parent=3736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/categories?post=3736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rr.fwch.pl\/fr\/wp-json\/wp\/v2\/tags?post=3736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}