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ShopRite expands AI cart technology in Philadelphia stores

EditorNatashya Angelica
Published 06/28/2024, 02:48 AM
CART
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KEASBEY, N.J. - Wakefern Food Corp. and Instacart (NASDAQ:CART) have announced the deployment of additional Caper Carts, AI-powered smart shopping carts, at four ShopRite stores in the Philadelphia area. Following positive customer reception at the ShopRite in Hoboken, NJ, since May 2024, the technology will now be available at ShopRite locations in Morrell Plaza, Bridge & Harbison, Brookhaven, and Drexeline.

The Caper Carts feature an interactive screen and AI to allow customers to scan items, manage their budget in real-time, and check out without assistance. Equipped with sensors and computer vision technology, the carts can identify and weigh products as they are added. Shoppers can also link their ShopRite Price Plus membership for additional savings and deals.

Instacart’s VP and GM of Connected Stores, David McIntosh, expressed excitement about the expansion due to the carts’ popularity among customers, highlighting the interactive elements that enhance the shopping experience. Wakefern’s VP of Technology, Digital and Retail, Charlie McWeeney, noted the carts provide a convenient shopping tool for customers.

The expansion is part of a collaboration between Instacart and Wakefern, aiming to bridge the gap between online and in-store shopping experiences. Instacart’s Connected Stores platform includes the Caper Cart among other technologies. A new ShopRite store in Mount Kisco, NY, is also expected to feature the technology later this year.

Instacart, a prominent grocery technology company in North America, partners with various retailers to offer online shopping and delivery services. Wakefern, the largest retailer-owned cooperative in the U.S., operates supermarkets under multiple banners, offering independent ownership and operation by its nearly 50 members.

The expansion of Caper Carts reflects an ongoing trend in retail to integrate innovative technologies that streamline the shopping process. This information is based on a press release statement from Instacart.

In other recent news, Instacart has announced several strategic partnerships and initiatives. The company has teamed up with Sally Beauty (NYSE:SBH) Holdings to provide same-day delivery of over 7,000 products from more than 2,200 locations across the U.S.

The partnership, which follows a successful trial, forms part of Sally Beauty's strategy to improve product accessibility. In another development, Instacart has expanded its partnership with Rite Aid (NYSE:US90274J5618=UBSS) to offer Electronic Benefits Transfer (EBT) card payments for the Supplemental Nutrition Assistance Program (SNAP) online at over 1,400 locations.

The company has also authorized a $500 million stock repurchase, following the completion of a previous $1 billion program. This move provides the company with flexibility to make purchases as conditions allow. Furthermore, Instacart has launched a nationwide same-day delivery service in collaboration with The Home Depot (NYSE:HD), broadening its offerings beyond grocery delivery.

In response to these developments, Loop Capital raised Instacart's stock target from $46.00 to $49.00, citing reduced share count and improved earnings estimates. Similarly, BMO Capital Markets increased the company's price target to $36.00, based on accelerated growth in Gross Merchandise Volume. These are the latest developments in Instacart's ongoing business activities.

InvestingPro Insights

As Instacart (NASDAQ:CART) rolls out its AI-powered Caper Carts to additional ShopRite stores, the company's financial health and market performance offer insights into its capacity for innovation and growth. With a market capitalization of $8.7 billion, Instacart has demonstrated an impressive gross profit margin of 74.44% over the last twelve months as of Q1 2024, underscoring its ability to maintain profitability in its core operations.

InvestingPro Tips highlight that Instacart is not currently paying dividends to shareholders, which aligns with its significant revenue growth of 10.62% and the company's focus on reinvesting earnings into expansion and technology advancements like the Caper Cart. Moreover, the company's management is actively buying back shares, signaling confidence in Instacart's future prospects and potential for stock appreciation.

Despite not being profitable over the last twelve months, analysts are optimistic, predicting Instacart will turn a profit this year. This outlook is supported by a large price uptick of 34.14% over the last six months, indicating positive investor sentiment and market response to the company's strategic moves.

For readers interested in a deeper dive into Instacart's financials and future potential, InvestingPro offers additional tips and metrics. There are 5 more InvestingPro Tips available, which can provide further guidance for investors considering Instacart as part of their portfolio. To explore these insights, visit https://www.investing.com/pro/CART and remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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