SEEN ON FACEBOOK: “I work all day, go to Kroger late night, stock up on groceries and then get to the checkout and have to scan and bag everything by myself and still pay full price while Kroger can eliminate a job. Hmmmmm. That’s the equivalent to you coming into my restaurant, cooking your own food and I still get to charge full price. Am I being unreasonable???”
I honestly don't know where to begin. For lack of a better place, let's start with the history of grocery stores.
If you ever find yourself in Memphis Tennessee with a couple of hours to kill, check out The Pink Palace museum. They've got a beautifully reconstructed model of a Piggly Wiggly grocery store inside.
Why?
Piggly Wiggly (founded in Memphis) was the first self-serve grocery store in the U.S. Instead of handing the clerk behind the counter your list of groceries, if you were a Piggly Wiggly shopper, you took a cart or a basket and got your groceries all by yourself.
This move didn't save or create any jobs in the grocery industry. In fact, it eliminated them. But it saved a lot of money for consumers. This allowed them to eventually purchase more of other things instead of food: iPods, flatscreen TV's, or laptop computers, creating jobs in the iPod, TV and laptop industries.
Skip forward about a half century. Someone came up with a pattern of lines called a "barcode" that could be read by another device called a "
scanner".
This move didn't create any jobs in the grocery industry. It made checking out much, much faster, and eliminated a lot of inventory and supply chain jobs in the grocery distribution system. But it saved a lot of money for consumers. This allowed them to eventually purchase more of other things instead of food: iPods, flatscreen TV's, or laptop computers, creating jobs in the iPod, TV and laptop industries.
By the time the scanners came along, the U.S. military had already been using a warehouse concept called "cross-docking" for quite some time. This is a warehouse design where incoming shipments are received on one side, outgoing shipments are shipped on the other, with minimal storage space in between. Minimal inventory is kept on hand in the warehouse at any given time.
Sam Walton, of Wal-Mart fame, was the first to apply this concept to the grocery and retail industry.
This move didn't create any jobs in the grocery industry. It made distribution much, much faster, and eliminated a lot of inventory and supply chain jobs in the grocery distribution system. But it saved a lot of money for consumers. This allowed them to eventually purchase more of other things instead of food: iPods, flatscreen TV's, or laptop computers, creating jobs in the iPod, TV and laptop industries.
Finally, someone invented the self-serve grocery checkout stand. If you have a minimal amount of stuff to ring up, you can choose to do it yourself.
As the Facebook commenter wrote, the customer is doing some of the work himself. Kind of like the Piggly Wiggly customer started doing in the 1920's.
This move toward self-checkout doesn't create any jobs in the grocery industry. It makes getting out of the store much, much faster, and it saves a lot of money for consumers. This allows them to eventually purchase more of other things instead of food: iPods, flatscreen TV's, or laptop computers, creating jobs in the iPod, TV and laptop industries.
I hope this has helped.
We have not become a prosperous nation by "saving or creating jobs". We have become a prosperous nation by constantly churning the process, always trying to come up with a better way to get things done.
No one can predict what the next way will be. No one knows which kid is working in the Produce Department of an Albertson's Grocery Store who has already come up with a better way to distribute and merchandise fruit and vegetables, and who just can't wait to open his own store and try out his idea. No one knows which computer geek in his Mom's basement has already come up with a system to make distribution and logistics more efficient.
These people are going to bring us improvements and levels of progress that we can't even imagine, here in the primitive year 2011.