Non-legacy grocers very active buyers of material handling automation equipment
Increased traction for e-grocery platforms and headless architecture is now preferred option
Early mfc adopters continuing deployments
The first multi grocer locker delivery network
Neutral
Multiple material handling system integrators have hired snr automation people from grocers; e-grocery viewed as the next big trend after e-commerce
Mfcs no longer viewed as a silver bullet, network approach from top warehouse automation vendors
Multiple new vendors; legacy vendors have released products & services overlapping with e-grocery
Negatives
Online grocery sales declining from pandemic highs; declines at different speeds and likely influenced by geopolitical events & surging inflation
The partnering trend between mfc + e-grocery platform vendors has cooled/died
New mfc customer deployments quiet since the 2021 e grocery infrastructure report
Grocery sector extremely complex
Stiq acknowledges that the grocery sector is extremely complex with often short or immediate supply chains from farms to stores, often difficult to replicate
Many pureplay online grocers have partnered with legacy grocers for ready made supply chains
Online grocery sales remain at <10% as a proportion of all grocery sales in many countries, even strong online countries, such as the uk
Post pandemic impact, inflation
Many publicly traded grocers have announced expanded capex on digital & online initiatives and stiqs view is inflation will not affect the sector in the short term
However, there may be continued supply chain challenges for robotics and other automation equipment
Pandemic effects are subsiding fast and it is difficult to estimate any permanent positive effects on sales
Furthermore, post pandemic inflation caused by geopolitical events, qe, etc. Is currently impacting consumer behaviour
Clear differences in 2022 interviews
Stiq noticed a number of clear differences from the 2021 report (download here for free)
The main difference was the lack of new mfc deployments + a sense that legacy grocers (those with stores) are taking time to consider their approach to the online channel
Part of this could also be that many grocers built up significant technical debt during the pandemic that they are now unravelling
Significant experimentation
Grocers are experimenting significantly across online grocery technologies and modalities
For example, the very first shared (multi legacy grocer) last mile solution was unveiled in paris in 2022
No silver bullet
Overwhelmingly, stiqs impression of 50+ interviews and conversations with industry participants is that the sector remains in its infancy despite pr initiatives by early adopters and technology vendors
Significant hiring from grocers including such warehouse automation teams hints that vendors have some expectation of larger projects to come
Whilst legacy grocers have been relatively slow to buy equipment, pureplay grocers have accelerated automation deployments to gain and retain market share
This report is available free of charge thanks to the generous sponsorship of Grocery shop
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