Schnuck Markets Inc. last week announced that it will expand its deployment of Simbe Robotics Inc.'s Tally mobile robots to all 111 of its locations across the U.S. The St. Louis, Mo.-based company claimed that it will be the first grocer in the world to use artificial intelligence-powered inventory management technology at scale.
“We are facing a ‘new normal’ in the grocery industry, and Tally has been instrumental to ensuring we continue to provide an exceptional store experience while rising to meet new operational challenges,” stated Dave Steck, vice president of IT infrastructure and application development at Schnuck Markets.
“By deploying Tally to all stores, we are fully operationalizing these insights into our supply chain and expanding our ability to leverage real-time data to make revenue impacting decisions,” he said. “Tally has become an integral component of our stores, streamlining operations and ultimately creating a better store experience for our customers and teammates.”
Founded in 1939, Schnuck Markets is a third- and fourth-generation, family-owned retailer that operates 111 stores and has 13,000 employees. The company serves customers in Missouri, Illinois, Indiana, and Wisconsin.
Schnucks said the multi-year, full-scale rollout of Simbe's systems across its operations will provide even greater visibility into store conditions, with deeper levels of business insights as it prepares to adjust to the quickly evolving landscape of a post-pandemic world.
Simbe's Tally uses sensors, AI, and the cloud
San Francisco-based Simbe Robotics' Tally uses sensors to operate safely alongside shoppers and employees during normal store hours. The autonomous mobile robot does not require infrastructure changes and provides store associates timely information to ensure that products are in stock, in the right places, and correctly priced, said the company.
Tally can scan an entire store up to three times per day and autonomously return to its charging dock for continuous operation, according to Simbe. In addition, the company's cloud-based software is powered by computer vision and machine learning.
Simbe said Tally can provide retailers worldwide insights to help them streamline store performance, maximize customer satisfaction, increase sales, and optimize operational expenditures.
Schnucks pilot demonstrates benefits
Schnucks first piloted Tally in July 2017 and expanded to additional stores in 2018 and 2020. Tally autonomously captures on-shelf data including inventory position, price accuracy, and promotional execution.
In addition, Simbe said Tally provided Schnucks the following benefits:
- Detected 14 times more addressable out-of-stock items than manual scans
- Enabled 20% to 30% reduction in out-of-stock items
- Increased price-tag and promotional execution compliance in stores across tens of thousands of products per day
- Increased accuracy of real-time inventory integrated into Schnucks’ automated replenishment system, streamlining ordering and ensuring that shelves were restocked quicker to meet customer needs
- Delivered access to real-time product location data through the Schnucks Rewards app, enabling more efficient shopping trips for customers, restocking and fulfillment activities for store teams, and third-party e-commerce partners
“Schnucks is the prime example of thoughtful adoption of retail technology, and we are honored to be their partner on this journey to create a better store experience through access to richer data,” said Brad Bogolea, founder and CEO of Simbe Robotics. “This expansion is a momentous occasion for Simbe, Schnucks, and the broader retail technology industry.”
“It demonstrates that robots that are thoughtfully deployed are a critically important tool for retailers to improve bottom lines, support teams, and maintain an exceptional shopping experience, both in stores and online,” he said.
Steck noted that Tally has become quite popular among many children. “Many of our younger customers get very excited to see Tally going up and down the aisles of our stores and seek it out when shopping with their parents,” he said. “A recent social media video we shared of a child’s interaction with Tally quickly went viral.”
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