Wakefern Food Corp. plans to roll out CB4 store execution technology across its ShopRite and Price Rite Marketplace chains.
New York-based CB4 said yesterday that Wakefern’s expanded deployment comes after a successful pilot of the CB4 app at some ShopRite stores last year. CB4’s Spotlight solution leverages artificial intelligence and machine-learning technology to enable store managers to correct costly execution problems in their stores. Spotlight’s algorithms detect when the most in-demand products at each store aren’t selling at optimal levels, and then the solution sends store or category managers timely recommendations to address issues on the floor and improve the customer experience.
“Our initial test of CB4 at several ShopRite supermarkets provided valuable insights to complement our existing operations without burdening our store teams,” Cheryl Williams, chief information officer at Wakefern, said in a statement. “We are pleased to be expanding CB4 throughout ShopRite and Price Rite Marketplace and anticipate much success.”
The nation’s largest retailer-owned grocery cooperative, Keasbey, N.J.-based Wakefern has nearly 280 ShopRite supermarkets in New Jersey, New York, Pennsylvania, Connecticut, Delaware and Maryland and 62 Price Rite value-focused grocery stores in Connecticut, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Maryland.
For each ShopRite and Price Rite store, the CB4 app provides a list of SKUs unique to its their selling pattern and operating conditions to help prevent inventory discrepancies that can impact replenishment and sales, according to CB4. Once alerted, store teams can make “quick fixes” such as updating the inventory management system, printing a new label or taking items out of back stock, CB4 explained, noting that such adjustments can help meet customer demand and lift sales. The company added that its solution also provides a high per-minute ROI, allowing store associates to spend less time each week tracking price mismatches, out-of-stock items, inventory snags and other common back-end issues.
On its website, CB4 posted survey results finding that 64.8% of grocery shoppers consider “product findability” as extremely important, and 81.9% left the store without buying what they came in for in the first place. The latter situation has a consequence: 48.9% of grocery shoppers said they go to a local competitor when they can’t find the products they want.
Key issues reported by managers across all Spotlight-enabled stores include poor visibility (cited by 34%), left in stockroom (20%), out of stock (16%), allocation problems (10%), price tag/label not properly applied, and price adjustments (2%).
CB4 said the corrections prompted by its technology can lift retailer sales by up to 2%.
“COVID-19 has been — and is still — a challenge and an opportunity for brick-and-mortar retail. Stores are very busy, and supply issues can be challenging. So it can be difficult to know what needs attention now,” commented CB4 CEO Yoni Benshaul. “Wakefern’s results using CB4 to solve this challenge while delivering revenue and customer satisfaction are amazing to see.”
Other grocery retailers enlisting CB4’s platform include Associated Food Stores, Weis Markets, Lidl and Festival Foods, as well as fuel/convenience store chain Kum & Go. The company, which also serves the specialty and apparel retail market, said it has tripled the number of stores using its solution between 2020 and 2021.
