Automation in grocery retail : A case study of operative, economic and social value creation

The presence of automation has increased in society and retail. Grocery retail obtains fundamental opportunities to integrate automated systems to make operations more efficient. Despite technical possibilities there is a lack of knowledge how automation affects these stakeholders, which in turn forms untapped potential. The purpose of this study is to analyze how automation affects a stakeholder in grocery retail with focus on operative, economic and social value creation. The research method is a qualitative case study of a grocery store that has implemented an automated system to reduce manual work in its parcel handling. The result indicates a decline in operative value creation for parcel picking and an increase in value considering parcel handover. The economic value creation changes positively with added cash flow and short payback time. The social value creation shifts positively for customers and employees who work distant from the system. For employees working close to the system the change is negative. The conclusions of the study emphasize that stakeholders in grocery retail should be aware of the fact that automated systems do not always perform as operatively expected. In addition to this, the study also concludes that automation could positively affect economic value creation while observing operative inadequacies. Furthermore, the study stresses that automation could affect employees differently depending on their connection with the system while also adding obvious value for customers.