Whole Foods to test robot barista

Whole Foods Market will install a robotic barista to provide in-store coffee service at its new Houston-Midtown location through a partnership with Austin-based Briggo, according to a press release.

After launching in 2018, Briggo is making its grocery store debut with Whole Foods, offering a novel concept for the retailer and its customers in one of its newest stores.

Briggo’s order-ahead app promises to shave time off shoppers’ morning coffee runs, while digital kiosks address efficiency and customer experience in-store. Restaurant chains across the U.S. have added ordering kiosks in recent years, so the technology shouldn’t be a leap for shoppers to use. Customers can also purchase packaged Briggo coffee to brew at home, which will be available at the Houston-Midtown store or online.

The novelty of the robotic barista may draw curious coffee drinkers in the short-term and could drive a sales bump as the new Houston store gets going. Long-term, the retailer will need to see sustained sales and labor savings to justify expansion to other stores.

Grocers are applying this same cost-savings assessment to other automated technologies flooding the industry, from shelf-scanning bots to micro-fulfillment.

Whole Foods is widely known for its in-store coffee service. The retailer has a full-service espresso and coffee bar at many locations and a Capital Commons cafe in its flagship Atlanta store, all of which sell its house Allegro brand. Its Lincoln Harbor, New Jersey, location is slated to have an outpost of the Brooklyn-based coffee shop Cafe Grumpy.

The U.S. coffee market has increased in volume by 3.8% in 2018, according to Allegra World Coffee Portal’s 2019 Project Cafe USA report. Allegra conducted a survey and found that the U.S. coffee shop market grew to a valuation of $45.5 billion last year, but the industry faces issues with labor costs and increased competition.

The store is set to open Nov. 7.

Source: grocerydive.com

Walmart selling ModCloth

Walmart is selling ModCloth to Go Global Retail. The terms of the deal, expected to close later this year, were not announced.

The discount giant acquired ModCloth in March 2017 as part of a move to increase its brand portfolio and target younger, higher-income shoppers with brands not available on Amazon. But ModCloth, along with several other of the acquired brands, including Bonobos, have yet to turn a profit, according to Recode.

Founded in 2002, ModCloth sells exclusive indie fashions and its own vintage-inspired line of apparel and accessories, with a target audience of women 18 to 35. In addition to its e-commerce capabilities, ModCloth has opened several showroom-styledstores. It also has a deal with Nordstrom.

Go Global Retail describes itself has a brand investment platform for strategic investors in the consumer sector. It has worked with other apparel companies including Guess and Billabong, according to its website.

“We believe that ModCloth’s strong brand equity positions it for growth in the future,” said Ashley Hubka, senior VP of corporate strategy, development and partnerships at Walmart. “We feel good about the progress at ModCloth and believe that Go Global’s team and scale out strategy presents an attractive opportunity for the employees and customers of this beloved brand.”

Go Global said that ModCloth will continue to operate as a freestanding, independent brand out of its current operational set up. Go Global Retail will invest in the fashion retailer’s digital capabilities, including artificial intelligence and predictive analytics.

“We believe that together with current management, ModCloth has the ability to become a stronger player in the premium fashion market, nationally as well as internationally,” stated Go Global’s Jeff Streader.

ModCloth will continue focusing on its core customers; championing values of female empowerment and inclusivity; and further serving their passionate buying community by celebrating their stories and offering a full range of sizes, the company stated.

Source: chainstoreage.com