SEP 2024
From Smart Carts to AI Salad Bars: Blending Innovation with Customer-Centricity
Schnucks, a family-owned grocery chain based in St. Louis, has established itself as a leader in the Midwest grocery market since its founding in 1939. With over 114 stores across Missouri, Illinois, Indiana, and Wisconsin, Schnucks has proven to be a resilient and innovative force in a highly competitive industry. In recent years, the company has embraced technology and digital solutions to enhance customer experience, streamline operations, and strengthen its position in the grocery sector. From artificial intelligence (AI) to personalized rewards programs, Schnucks continues to push the boundaries of what a regional grocer can achieve.
Schnucks' journey into AI-driven technology has expanded significantly, including the introduction of AI-powered solutions like its smart salad bars in 2023, which grew to 22 stores by 2024 across Missouri and Illinois. These AI-powered Picadeli salad bars offer a customizable, fresh, and healthy food option while using machine learning to determine what ingredients are most popular in each store. This data-driven approach allows Schnucks to provide tailored experiences, ensuring product availability and freshness while minimizing waste.
Another remarkable advancement is the deployment of Caper Carts, AI-equipped smart shopping carts that identify items placed inside through computer vision technology. With these carts, customers can bag groceries while they shop and skip the checkout line, paying directly on the cart itself. The Caper Carts further enhance Schnucks’ commitment to a seamless shopping experience, allowing shoppers to save time and avoid checkout queues. The integration of this AI technology positions Schnucks as a leader in grocery innovation.
Schnucks has partnered with Instacart to drive omnichannel solutions, blending in-store and online shopping experiences. The integration of Instacart’s Carrot Tags pick-to-light functionality enables Schnucks employees to efficiently fulfill online orders with increased accuracy, ensuring a better customer experience. The smart shelf technology uses light indicators to guide employees to the exact location of items, streamlining the order-picking process for online grocery shoppers. By improving order fulfillment, Schnucks ensures customers receive accurate, timely deliveries, a critical factor in maintaining consumer loyalty.
Moreover, Schnucks offers Instacart-powered e-commerce solutions such as Caper Carts, which are part of Instacart’s Connected Stores initiative. This program bridges the gap between online and in-store shopping, ensuring that customers can access the same seamless experience whether they’re shopping from their phones or navigating the aisles of a Schnucks store.
We are committed to using technology to create more value for our customers, whether they’re shopping in-store or online. The innovations we’ve implemented are designed to enhance convenience, efficiency, and, ultimately, the customer experience.
Driving Omnichannel Retail with Instacart
Leveraging AI and Smart Solutions for Customer Convenience
Schnucks has significantly enhanced its Schnucks Rewards Program, offering customers personalized deals and rewards based on their shopping behavior. With features such as Personalized Savings, members can access custom digital coupons, sales, and points offers tailored to items they frequently purchase. The company refreshes these offers weekly, ensuring shoppers receive timely discounts on their favorite items. Schnucks also integrates fun, community-driven elements into the program, such as gifting customers free donuts on their birthdays and after every St. Louis Cardinals home run. This personalized and localized approach helps Schnucks build a deeper connection with its customers.
The rewards program also extends to special promotions, such as Double Points Day, where customers can earn double the points on their purchases. With this program, Schnucks is positioning itself as a customer-centric brand, building loyalty by offering consistent value through exclusive deals.
Schnucks has entered the rapidly growing retail media space, leveraging its strong relationships with local customers to attract consumer packaged goods (CPG) brands for advertising opportunities. By partnering with platforms like Bridg and engaging CPG brands such as Danone North America, Schnucks allows brands to directly connect with shoppers through digital and social media channels. This strategy gives Schnucks an edge in a highly competitive market by transforming customer data into valuable insights for CPGs, while driving engagement and sales.
In-store, Schnucks is exploring the potential of smart carts, which could display targeted messages to customers as they navigate the aisles. The integration of retail media into the shopping experience allows Schnucks to serve as a platform for CPG brands, providing them with a unique opportunity to reach customers in real-time.
Personalization Through Rewards Programs
Leading the Way in Retail Media
Schnucks' success isn’t only driven by technology but also by a strong focus on workforce engagement. The company’s innovative Flexforce labor option allows employees to work part-time shifts at various store locations, accommodating their schedules while offering the same benefits as full-time workers. This program was designed to address labor shortages during the pandemic, but it has since evolved into a core part of Schnucks' strategy to retain and attract employees. The company uses Logile’s machine-learning software to prioritize key tasks and streamline work schedules, ensuring that employees can focus on what matters most—customer service.
By giving employees the tools to thrive in their roles, Schnucks creates a positive work environment, leading to higher customer satisfaction. “A happy employee base creates a happy and loyal customer base,” said Tom Henry, Chief Data Officer and Deputy CIO of Schnucks. The company’s commitment to its workforce is reflected in the personal relationships its employees build with customers, making Schnucks more than just a grocery store—it’s a trusted part of the community.
Schnucks has seamlessly integrated cutting-edge technology into its operations, enhancing customer experience, improving operational efficiency, and setting itself apart from competitors in the grocery industry. From AI-powered salad bars to Instacart-enabled omnichannel solutions, Schnucks has embraced innovation to ensure it stays ahead of the curve. With a strong focus on personalized rewards, employee engagement, and retail media, the company is paving the way for the future of grocery shopping.