Why Smart Carts Are the Winning Technology Format for Independent Grocers

Instacart's smart carts, called Caper Carts, automatically identify items as they are added to the cart using computer vision and artificial intelligence (AI), which allows customers to bag as they shop, skip the line, and seamlessly checkout on the cart from anywhere in the store.

And while the technology might seem out of reach for independent grocers, it's not. Geissler's Supermarkets has already piloted the carts in some of their locations and are in the process of rolling them out at all seven locations in Connecticut and Massachusetts.

“We’re excited about the immediate benefits and what’s to come,” said Geissler's CEO and President Bob Rybick, who is also the president of IGA's National Retailer Advisory Board (NRAB) and 2020 IGA International Retailer of the Year.

A Hit With Shoppers of All Ages

Customers love the carts, saying shopping with a Caper Cart feels like an adventure. They love the ability to keep an eye on their running total, instantly access coupons and loyalty programs, “spin the wheel” for a chance to win discounts, and shop independently.

See Caper Carts in action at Fairway Market in this Fox News 26 segment.

Caper Cartsare used by people of all ages and are especially popular among couples and families. Kids pull their parents over to start using the cart, and often insist on scanning all the items themselves. In some stores, customers are waiting five minutes until aCaper Cartbecomes available — and for them, saving time in a checkout line is a distant secondary benefit to the value of the screen.

Click the video above to watch Instacart CEO Fidji Simo and her family shop using a Caper Cart at Bristol Farms.

When Caper’s founders set out to understand how technology could modernize the grocery industry, they spoke with more than 150 store owners and managers across New York to understand their pain points. From those conversations, they realized retailer adoption hinged on prioritizing a fast return on investment, not over-engineering technology, and delivering a plug-and-play and modular solution.

Since acquiring Caper nearly three years ago, Instacart has been working closely with more than 1,500 retail partners to understand how Caper Carts can seamlessly plug into their operations. Across major metro and suburban markets in North America, retailers including Bristol Farms, Fairway Market, Geissler’s, Schnucks, and ShopRite have introduced Caper Carts.

By the end of 2024, Instacart expects to deploy thousands of Caper Carts across North America.

Why Caper Carts for independents? First, smart carts can serve as an alternative to self-checkout, but Instacart said the real magic behind Caper Carts is the digital screen, which provides three key capabilities: gamification, personalization, and advertising.

Gamification

Shoppers can spin the wheel on the Caper Cart screen for discounts.

Customers said shopping with a Caper Cart feels like an adventure – they love the cart’s lights and sounds, which is especially appealing to families shopping. Today, customers can spin Caper Carts’ gamified coupon wheel for a chance to win discounts and dollars off right before checkout.

Instacart said they are continuing to build out gamification experiences on the cart to keep transforming the shopping experience from a chore into an adventure.

Personalization

This personalized screen checks off avocados and strawberries from the shopper's list.

By syncing Caper Carts with the Instacart App or retailers’ Storefront Pro-powered apps, customers can seamlessly import their shopping and “Buy It Again” lists directly to the cart, which automatically checks off items as they’re added.

Soon, shoppers can receive Instacart-recommended relevant recipes and products in real-time based on purchase history, where they are in store, or what’s in their cart. For example, when a customer adds a can of refried beans to their cart, Instacart would be able to surface a coupon for shredded cheese as they stroll through the dairy aisle.

Ads

Caper Cart screens include advertising, which can boost basket size thanks to personalized ads.

On average, customers spend more than 30 minutes shopping in-store with a Caper Cart, and are highly engaged with the screen as they decide what to drop in or remove. With Instacart's advertising on Caper Carts, the power of personalization and measurability online comes into the store, while offering customers more targeted, personalized recommendations right at their fingertips.

This gives CPGs, such as Del Monte Foods, Dreyer’s Grand Ice Cream, and General Mills, the opportunity to influence a consumer’s purchasing decisions in real-time in the store just as effectively as they already do on the Instacart app. And it’s great for the customer experience, introducing customers to new brands and savings in real-time as they shop.

As Instacart continues to expand in-store advertising opportunities, they'll help brands take advantage of a Caper Cart’s digital screen and omnichannel understanding of customers, while unlocking a new revenue stream for retailers.

For the last 12 years, Instacart has transformed online grocery shopping to make it more personalized, convenient, and affordable. Now, they are bringing that same innovation into the physical aisles of the store with Caper Carts, creating a new way for customers to shop the aisles of their favorite retail stores.

A Real Solution for Independents: Geissler's Case Study

In conversation with Nick Nickitas, general manager of local independent grocery at Instacart, Geissler’s Bob Rybick discussed his stores' recent implementation of Instacart's Caper Carts.

"As a multi-generational, independent grocer, we are focused on finding the best offerings and technology to help our customers, team members and business," Rybick said. "After evaluating our options, Caper Carts stood out as the most comprehensive solution."

At Geissler's, smart carts serve a double purpose --- creating a better shopping experience for customers and providing opportunities for increased sales. From reducing lines and in-store congestion to helping shoppers track their totals in real time, smart carts have positive impacts on the shopping experience.

"Our customers expect us to continually offer them first class in-store shopping experience and we feel implementing Caper Carts will drastically help with that," explained Rybick.

Additionally, smart carts offer support for retailers. Built-in features of Caper Carts, including barcode scanners, cameras, and scales have more safeguards against theft than traditional self-checkout.

Captivating features of Caper Carts can help customers have fun while shopping, in addition to building basket sizes. "The engaging customer experience of the smart cart has already proven to drive a larger basket size," said Rybick, mentioning gamification features of the carts. "Furthermore, the cart’s screen is a new surface for the future potential of serving relevant, personalized ads directly to our customers at the point of purchase."

Integration of Caper Carts was seamless at Geissler's. "It all came down to picking the right smart cart and the right company to partner with, for Geissler’s that was Instacart’s Caper Cart. With our chosen smart cart, integrating into our existing catalog to ensure all our SKUs would be recognized easily by the smart cart while customers are shopping was handled without issue," clarified Rybick.

With an internet connection and a charging bay for smart carts, independent retailers can take advantage of this exciting opportunity for growth.

"I think local, independent grocers have such an exciting opportunity to be the leaders in innovation in this space. The ability to be nimble and have an outsized impact on their business with new technology shouldn’t be dismissed," said Rybick.

He continued, "From the customer impact, store impact and revenue opportunities through increased basket sizes and retail media network/advertising, paired with the lower than expected lift to actually launch smart carts in store, it seems to me a no brainer that smart carts should be on all local, independent grocers’ strategic radar with a push on sooner rather than later."