Schnucks Doubles Down on Caper Carts | Key Moment in Grocery History or Gimmick?

Summary

Omni Talk Retail Podcast Summary

Episode Title: Schnucks Doubles Down on Caper Carts | Key Moment in Grocery History or Gimmick?
Release Date: May 2, 2025
Hosts: Chris Walton, Jeff [Last Name]
Guests: Chuck McMullen, Senior Director of Digital Experience at Schnucks

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1. Introduction and Expansion of Caper Carts

The episode kicks off with Chris announcing Schnucks' significant move to expand its partnership with Caper Carts. As per an Instacart press release, Schnucks is not only increasing the number of smart carts in its Missouri stores but is also venturing into Illinois for the first time. This expansion marks a pivotal moment as Caper Carts make their debut in Illinois.

Key Announcement:

Chris [00:00]: "Schnucks is expanding its capercart pilot... marking the first time the smart carts will be available in the state of Illinois."

Additionally, Instacart is enhancing the functionality of its Caper Carts by introducing a lower tray, designed to accommodate heavier and bulkier items, as well as providing more versatility to shoppers.

New Feature Highlight:

Chris [00:28]: "Do you know what it is? It's a lower tray."

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2. Customer Reception and Practicality

Jeff humorously speculates about the practicality of the lower tray, suggesting it could even support children, highlighting the cart's increased capacity.

Jeff [00:28]: "Can I put my kids on that? I put my kids on that."

Chuck McMullen interjects with a formal statement emphasizing customer satisfaction and the high utilization of Caper Carts in newly launched stores.

Chuck [00:31]: "It's clear to us that customers love shopping with caper cards... all 10 carts are in use."

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3. Evaluating the Significance in Grocery History

The conversation shifts to the historical significance of Schnucks' expansion with Caper Carts. Jeff raises the question of whether this move is a landmark moment in grocery history or merely a fleeting gimmick.

Jeff [01:23]: "From our recollection, it may be actually the first retailer to announce that it is expanding its use of caper cards. Therefore, how significant is this moment in the annals of grocery history?"

Chuck provides a nuanced perspective, comparing the introduction of Caper Carts to the self-checkout revolution and suggesting that while promising, their long-term impact remains uncertain.

Chuck [01:23]: "I think in terms of the self checkout equivalent revolution, I think the jury's still out for me."

He further relates the potential of Caper Carts to historical milestones by likening it to Piggly Wiggly's inception a century ago, indicating that its significance may unfold over time.

Chuck [03:34]: "It's, it's a good model... I'm selling this as a moment in time akin to a piggly wiggly opening 100 years ago."

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4. User Experience and Practical Feedback

Chris probes Chuck for a personal review of the Caper Carts, seeking insights into their usability and functionality from a shopper's perspective.

Chris [02:19]: "What's your review of it? Like? What, what do you like? What'd you not like about it?"

Chuck shares his experience, highlighting the convenience of swiftly shopping and paying without traditional checkout lines. However, he also points out limitations, such as the cart's reduced capacity compared to standard shopping carts.

Chuck [02:35]: "It's, it's right up my alley... the cart's a little wonky. It can't really fit as much as a traditional shopping cart."

Despite these drawbacks, Chuck notes that the Caper Carts encourage him to purchase more than he typically would, indicating a positive influence on shopping behavior.

Chuck [03:42]: "I definitely put more stuff in my basket than I think I would have normally done otherwise."

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5. Technological Advancements and Future Capabilities

Jeff delves into the broader technological advancements accompanying Caper Carts, referencing discussions with other major grocers adopting similar technologies like Amazon Dash Carts. He underscores the growing interest in integrating retail media and advanced analytics into these smart carts.

Jeff [05:14]: "They're being sold hard now on the future capabilities, especially as it relates to retail media... understanding out of stocks in a store."

Chris echoes these sentiments, drawing parallels to experimental innovations and emphasizing the need for proven return on investment (ROI) before such technologies become mainstream.

Chris [06:46]: "Implementations are one thing... but the one thing you never hear much about is that second implementation, the expansion."

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6. Challenges and Considerations for Wider Adoption

The hosts discuss the infrastructural challenges associated with scaling up the use of Caper Carts, such as the need for additional hardware and software integrations within stores. Jeff raises concerns about the extent of investment required and the practicality of deploying a larger number of smart carts across numerous locations.

Jeff [06:46]: "It also requires some infrastructural changes too... there's a lot more to be gleaned from this rollout."

Chris reiterates the skepticism surrounding whether Caper Carts will achieve the same transformative impact as historical grocery innovations, emphasizing the necessity for comprehensive evaluations of their effectiveness.

Chris [05:14]: "I think it's getting to the point where the tipping point... but there's still a lot more to find out here."

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7. Conclusion and Future Outlook

The episode concludes with an acknowledgment that while Schnucks' expansion with Caper Carts is a noteworthy development, its long-term significance in the retail landscape remains to be seen. The hosts agree that ongoing evaluation and broader implementation will be crucial in determining whether Caper Carts represent a pivotal change or a temporary trend in grocery shopping.

Jeff [05:14]: "So is it something that we're testing in more. More cases like we're seeing with Snooks here?"

Chris [06:46]: "But it's finding out enough to say, yes, we want to continue to move forward with it and see if there's an idea here."

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Notable Quotes with Timestamps

• Chuck McMullen [00:31]: "It's clear to us that customers love shopping with caper cards and that our newly launched stores were seeing many times throughout the day where all 10 carts are in use."

• Jeff [01:23]: "From our recollection, it may be actually the first retailer to announce that it is expanding its use of caper cards. Therefore, how significant is this moment in the annals of grocery history?"

• Chris [03:34]: "It's, it's a good model... I'm selling this as a moment in time akin to a piggly wiggly opening 100 years ago."

• Chuck [02:35]: "It's, it's right up my alley... the cart's a little wonky. It can't really fit as much as a traditional shopping cart."

• Jeff [05:14]: "They're being sold hard now on the future capabilities, especially as it relates to retail media... understanding out of stocks in a store."

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Final Thoughts

Schnucks' decision to double down on Caper Carts signifies a bold step towards integrating advanced technology into the retail experience. While initial feedback from both customers and industry experts like Chuck McMullen is promising, the true impact of this initiative will become clearer as Schnucks continues to expand and refine the use of smart carts. Omni Talk Retail will undoubtedly keep a close eye on these developments, providing ongoing analysis and commentary on their implications for the future of the grocery industry.

Transcript

[Chris]

Schnooks is expanding its capercart pilot. According to an Instacart press release, Schnooks is expanding its capercart to even more stores across Missouri and expanding into Illinois, marking the first time the smart carts will be available in the state of Illinois. In addition, Instacart is also adding a new feature to its carts. And are you ready for it? Do you know what it is? It's a lower tray. Yes, the Instacart caper cart now has a lower tray.

[Jeff]

Can I put my kids on that? I put my kids on that.

[Chris]

I think you can add cancel Christmas, it's got a lower tray. The option now makes it easier for customers to add heavier, bulkier items such as cases of water, soda and pet food to the cart, or possibly even eight year old children. And if you so desire. Yes, quote. It's clear to us that customers love shopping with caper cards and that our newly launched stores were seeing many times throughout the day where all 10 carts are in use, end quote, said Chuck McMullen, senior director of digital experience at Schnooks. Jeff, going back to you schnooks, from our recollection, actually Ann and I were talking about this yesterday. From our recollection, it may be actually the first retailer to announce that it is expanding its use of caper cards. Therefore, how significant is this moment in the annals of grocery history?

[Chuck]

This is a fun one. Significance in history, I don't know. I think in terms of the self checkout equivalent revolution, I think the jury's still out for me. But I do believe it will slowly become more normal. And as a patron who actually went outside their St. Louis location and experienced this, it's pretty cool. I mean, for me, I'm more of the convenience shopper. Want to get in, want to get out. It is definitely for a specific demographic. And so I think as you see it rolled out, it'll be in the limited capacity, you know, 10 carts in a store that has 150 of them. It's, it's a small component of the overall experience right now and maybe it, maybe it fits in some of the higher end grocery models. But I'm selling this as a moment in time akin to a piggly wiggly opening 100 years ago.

[Chris]

Okay, got it. Good, good reference, man. Okay, wait, so wait, so you're kind of a one of and he's a. Jeff's a one of one on this show. Like he's actually tried the caper card. I don't think I've actually seen Anyone that doesn't work for a retailer that's tried the caper card. So, so what's your, what's your review of it? Like? What, what do you like? What'd you not like about it?

[Chuck]

It's, it's, it's right up my alley. Who wants to literally just go and throw things in a cart and then walk out the, the store and click a button to pay and, and you're out the door? I couldn't tell you the last time I actually stood in a non self checkout other than the fact that you have to buy alcohol and occasionally have to go to the actual person to check you out. I'm a convenient shopper. I want to get in, get out. My wife hates the fact that I do a grocery run because she wants me out of the house and I'm probably back faster than she needs me. But it's a great experience. I mean the cart's a little wonky. It can't really fit as, as much as like a traditional shopping cart. So it is more of the kind of smaller components, the bottom capacity, I mean it could hold like a 12 pack of water. Not one of the big Costco size ones. So it's, but it's a, it's a, it's a good model. I mean I, I, I definitely put more stuff in my basket than I think I would have normally done otherwise. So it's, it'll be interesting to see how this gets rolled out to, to.

[Chris]

Illinois and you're two thumbs up on the card itself. Like for you as a shopper, you, you, you liked it, you liked using it, you'd use it again.

[Chuck]

I, I liked the convenience of it.

[Jeff]

Okay.

[Chuck]

Again, the card itself is, is a little bit like I said, wonky, but they'll get that fixed figured out. But it's, it's, it's, it's not going anywhere. I think we actually probably see a little bit more of this. But whether it's fully penetrated like a self checkout line item or line, I'm, I'm not, I'm not sold quite yet.

[Chris]

Not sure yet. Right, right, right. And what do you think here?

[Jeff]

You know, where do you put this.

[Chris]

On the, on the movement in grocery, grocery history. Is it wiggly? Is it less? Like where is it? I don't know.

[Jeff]

I mean I was just talking to a regional, pretty major regional grocer last week who's also going forward with the Amazon Dash cart in their, in their grocer and it, it surprises me but I think for me Chris. I mean, plain and simple. I think it's just a test of how far along this technology has come and what the caper carts are able to do. And I think what I was hearing from that particular retailer was that they're being sold hard now on the future capabilities, especially as it relates to retail media that they can add into this, even like cameras on the carts and being able to do walk, you know, pathing and understanding out of stocks in a store. So I think it's getting to the point where the tipping point where it's like, okay, these are finally providing a return on the massive investment that you have to make to bring them into stores. So is it something that we're testing in more. More cases like we're seeing with Snooks here?

[Chris]

Yeah. And I don't know. When I, when I hear you talk like that though, it reminds me of the old SNL commercial, you know, with Dan Aykroyd. Like, you know, it's a floor wax, but it's also a dessert topping. I think that's where people start to get a little too excited about the innovation and, and the potential of what they, what IT can do and trying to find the use cases. But I agree with Jeff. I don't think this is like Piggly Wiggly, momentous change in the history of grocery shopping, but I do think it's a pretty significant move here because, you know, it passes my litmus test that we've talked about on this show a lot, which is implementations are one thing. Software providers or hardware providers in this case are always talking about their implementations. They're always talking about, you know, here's how many places we're located. But the one thing you never hear much about is that second implementation, the expansion. And so I'm always skeptical until they reach the second rollout stage because that means you've proved the ROI at the first stage. Now, granted, it's 10 carts, you know, for in one of these stores, like Jeff said, like the headline said. So there's still a lot more to find out here, but they're finding out enough to say, yes, we want to continue to move forward with it and see if there's an idea here. But yes, the jury's still out on whether or not these are ultimately going to work in the long run, especially against all the other options that you have around retail media, via the phone, via Internet installations, on screens in the store, in store radio and. And all the other things you can do with cameras and robots and everything else, or even just AI in terms of understanding the dynamics of how your store is working on a daily basis. So I think a lot more to prove. But this is interesting in the fact that Schnooks, which is one of the smartest grocers around, is saying, hey, we're going to expand this. I think that's important, right?

[Jeff]

And. And you just brought up another question, Chris. Like, how many carts are they expanding to all these locations? Like, are they still going to go with the 10 cart per store test? Or is this going to be are we going to start to see more carts in action versus, you know, here's a few options or here's one option because it also requires some infrastructural changes too, to all of these stores, Chris, which we haven't talked about yet either. And so I think there's a lot more to be gleaned from this rollout and what it ends up looking like and really starting to get into the details of how many make sense and what the real investment is.