Posts Tagged ‘Kroger’

Service of Where’s the Milk? Confusion When Grocery Stores Move Things Around

Monday, October 8th, 2018

Photo: aldridgeonline.com

If you routinely visit a grocery store that’s being remodeled, you know your shopping expedition will take longer than usual while you search for the milk, favorite cookies or pasta. One of my favorite stores also keeps switching things in the meat department even though its renovations are over. There must be a good reason, other than to hope I become tempted by other items while looking for what’s on my list.

Expecting to pick up a bag of M&Ms at the checkout counter at a grocery chain? Soon some will have freezer cases placed in front instead. Heather Haddon wrote about the motivation behind major product location shuffles as stores prepare for increased orders placed online for in-store customer pickup. They hope these customers, as they wait for their order in the front of the store, will add a few major items–an ice cream cake, a few frozen dinners or bags of fries and veggies–rather than a pack of gum or a candy bar. She wrote about the displacement of impulse items and other anticipated changes in her Wall Street Journal article “E-Commerce Reshapes Grocery Stores.”

Photo: supermarketnews.com

Americans spend $800 billion a year on food and drink, she reported, and supermarket chains don’t want too big a chunk going to Amazon and other giants. Haddon wrote: “E-commerce represents less than 5% of U.S. grocery sales currently, but food and beverage sales are growing far faster online than in traditional supermarkets. Forrester Analytics predicts that by 2022, the U.S. online grocery market will total $36.5 billion, up from an estimated $26.7 billion this year.”

According to Haddon, Walmart and Kroger are “spending tens of millions of dollars to acquire digital-ordering technologies, implement home-delivery systems and build thousands of store pickup points for online orders. Kroger, the U.S.’s largest supermarket chain, has hired or assigned nearly 19,000 workers to run an estimated 1,400 pickup sites for online orders, covering roughly half of the company’s stores.”

Photo: edgylabs.com

Haddon identified risks for the chains from the enormous upfront investment to irritating traditional customers who compete for goods whisked off shelves to fulfill online orders. Currently, supermarkets don’t have warehouses as Amazon does, though they may in future.

Meanwhile, “Clerks fulfilling online orders can clog aisles and checkout lanes or pick over the best produce, customers and grocery consultants say.” Haddon concluded “Through it all, grocers are struggling to find a balance between encouraging customers to place orders online and drawing customers into their stores.”

Do you shop for your groceries online? Are you tempted? It must be a time-saver to simply show up at a store and drive away minutes later with packages of groceries. Does the concept work for cities where people don’t usually own cars? Would you miss seeing what’s new in categories such as ice cream, frozen food, bakery and yogurt? Do you ever pass an aisle, see something like mustard or strawberry jam which reminds you you’re about to run out? How will internet ordering gain such purchases without irritating customers with popup suggestions?

Photo: petco.com

Service of Hourly Work–No Bed of Roses

Thursday, May 31st, 2018

Photo: biggiesboxers.com

Hourly workers have more than minimum wage pay and taxes nibbling away at their income. They must fight to get the full wages due because of technology that gyps them and also upends and holds their lives hostage by changing their work schedules at the last minute.

Photo: work.chron.com

Rachel Feintzeig in her Wall Street Journal article reported something that doesn’t get sufficient attention. The headline: “Employees Say Time-Tracking Systems Chip Away at Their Paychecks–Employers maintain the methods keep labor costs predictable and reduce time spent recording breaks.”

Workers are suing American Airlines, Kroger and Montage Hotels & Resorts, to name a few businesses “for unfairly subtracting fractions of their hourly wages using time-tracking technology.” These “rounding policies” over years can amount to $thousands in lost pay.

Some hourly hospital workers are in the same boat as their counterparts in airline, supermarket and hospitality industries. Often they can’t leave a patient to grab a bite of lunch yet they are automatically dunned a half an hour of pay each day for a break not taken. Workers in call centers who stay past their shift to finish a call claim that the time “is rounded away.”

Photo: cheatsheet.com

The fines made against businesses represent chump change to employers who have saved $millions in unpaid wages. Elizabeth Tippett, a professor at the University Of Oregon School Of Law told Feintzeig that casino workers in Nevada were awarded $450,000 when the gaming company they sued saved $12.6 million in wages thanks to its rounding policies. After litigation costs the employees shared $207,500.

Photo: casino.org

The software creates a “heads I win, tails you lose” dynamic with employers holding all the cards causing additional miseries for hourly workers. Feintzeig wrote: “Time-tracking software is usually part of a broader workforce management system that records absences and schedules workers. These suites of software have come under fire from attorneys general in New York and other states for enabling employers to switch around shift assignments at the last minute, creating unpredictable schedules for workers.”

Time tracking technology is also big business–$12 billion worth. Clearly more than a few companies use it.

Do these workers have a prayer in today’s economic climate that favors the rich and ignores everyone else?

Photo: 123rf.com

Service of Where Is Everybody? Looking for Help at Retail Today

Thursday, May 10th, 2018

Photo: blog.shelving.com

Are there longer lines when you check out in large retail stores these days? Have you had a hard time finding anyone to answer a question or direct you? The Wall Street Journal’s Suzanne Kapner offered reasons in “Stores Slash Staffs and Watch Lines Grow.”

Since 2008, she reported, Macy’s has cut 52,000 workers–full and part-time in stores, warehouses and at headquarters. During the same period at J.C. Penny, “workers have disappeared twice as fast as department stores,” now 112 per store down from 145.

Photo: blog.linelogic.com

“Retail staffing hasn’t kept pace with growth in the broader economy or population gains in the past decade. The number of salespeople at retailers grew by 1.5% over the past decade, even though the population served by each store has increased 12.5%, according to government data. At clothing and accessories stores, the number of cashiers is down more than 50% from 2007.”

In the lead, Kapner attributes the “assault” from Amazon while others blame cuts at headquarters, smaller stores, do-it-yourself checkouts, more full-time workers reducing the number of part-timers and “shelf-ready packaging that they say makes existing workers more productive.”

To redress overzealous cutbacks, Kroger grocery store is adding 11,000; Dick’s Sporting Goods plans to add 10 percent and Macy’s will bolster staff in fitting rooms, dress, women’s shoe and handbag departments “for the most impact.”

Retail, Wholesale and Department Store Union president Stuart Applebaum told Kapner:  “If brick-and-mortar retailers can’t compete on price in an online environment, the only thing that allows them to survive is to provide a positive in-store experience.”

Kapner reported that “Over the past 12 months, 86% of U.S. consumers say they have left a store due to long lines, according to a survey conducted by Adyen, a credit-card processor and payment system. That has resulted in $37.7 billion in lost sales for retailers, Adyen estimates.”

Saks flagship store NYC Photo: complex.com

According to a Saks employee on the job 24 years, sales associates in the NYC flagship “process returns, restock shelves and fill online orders which takes them away from selling.”

Is there a solution? Kapner wrote: “Retailers typically set staffing as a percent of sales, but a growing body of research suggests it should be based on foot traffic. The problem is twofold: Many retailers don’t track traffic and even if they do, they are reluctant to add labor, which is already among their biggest costs.”

A Florida chain installed cameras and noticed that even though one store was packed during the afternoon, sales were down at that time because staff was overwhelmed. Sales increased when management added two people during the busy hours.

Do you frequent major retailers? Have sales personnel been distracted or nonexistent? Are there other answers to fighting behemoth amazon.com and online venues that don’t shoulder a retail rent expense? Do people have shorter patience when waiting for help or to pay in a department store than at a discounter? Are there other businesses that, like retail, use financial models from a different time that no longer apply?

Macy’s Oakbrook Center. Photo: cspaksco.com

Get This Blog Emailed to You:
Enter your Email


Preview | Powered by FeedBlitz

Clicky Web Analytics