A Leadership Guide to Robotics and Automation

Thom Blischok is the Chairman and CEO of The Dialogic Group

As retail leaders increasingly recognize that critical shopper decisions are made in-store, a growing number are investing in technology to optimize these moments at the shelf. According to Coresight Research, nearly half of all retailers have already adopted in-store tech, with over 80% of the remaining retailers planning to follow suit by mid 2025. These investments target four key areas: out-of-stocks (OOS), pricing accuracy, planogram compliance, and assortment planning, aiming to address inefficiencies that cost retailers 6% of gross sales and 5% of operating margin on average.

As grocery retail adopts AI-powered robotic, sensory, and camera-based automation alongside operational intelligence capabilities, CEOs and their capital committees are evaluating which technologies maximize impact — and can scale value across the business in the short and long term. This guide explores 10 common pitfalls to avoid when deploying these advanced systems.

Critical Mistakes

1. Failure to Align Technology with Business Goals

Technology adoption should align with business goals. While robots and AI are appealing, they should be implemented strategically to enhance customer experience, improve efficiency, and reduce costs - not simply because they're innovative. Without this alignment, new technology becomes a costly distraction rather than a business enabler. For example, retailers like SpartanNash have achieved 98% on-shelf availability by implementing automation technologies in areas earmarked as the most ripe for operational efficiency improvements.

2. Not Evaluating Technology Partners with Proven Track Records

Vendor selection is critical, and many vendors exaggerate their capabilities. Focus on partners with proven deployments at scale – theoretical capabilities mean little compared to demonstrated success. Your implementation must also account for data security, ongoing maintenance, and future scalability from day one.

3. Failure to Eliminate Organizational and Operational Silos & Roadblocks

Corporate and store management must collaborate closely to maximize intelligent automation benefits. Clear handoff protocols and shared metrics enable seamless coordination, driving operational efficiency and innovation. This alignment between headquarters and stores is essential for sustained success. One publicly traded retailer and distributor holds weekly KPI meetings, where top performers share their best practices with others.

4. Lack of Proper Planning and Analysis

Success starts with thorough preparation. Before any deployment, you need a clear understanding of your store operations, existing systems, and potential friction points. Your implementation should follow a controlled rollout that lets you test, learn, and adjust within one select use case before scaling to others.

What often trips up retailers isn't the technology itself, but organizational readiness for change management. You'll need strong alignment across your leadership team and clear communication between corporate and store operations. You should consider developing employee engagement and feedback mechanisms, evaluation of cross-departmental communication effectiveness and resistance to change measurement tools. Without this foundation, even the best technology will struggle to deliver results.

5. Not Gaining Alignment within the Capital Committee on Strategy and Tactics

Start by securing executive sponsorship and defining what success looks like for your business. Choose your pilot stores carefully and establish clear metrics to measure progress. Begin with a focused pilot program that validates your approach in one use case before scaling.

Selecting Pilot Locations

Select pilot stores based on a balanced assessment of technological readiness, operational performance, and innovation potential. Ideal candidate stores feature robust WiFi infrastructure, moderate complexity, consistent customer traffic, and staff openness to technological change. Prioritize locations with strong inventory management challenges, representative market demographics, and proximity to technical support. 

The goal is to choose stores that minimize implementation risks while providing meaningful insights for broader organizational deployment, focusing on sites with stable operational metrics, compatible technology systems, and a conducive environment for testing emerging retail technologies.

Identifying Metrics

Your metrics should focus on tangible business outcomes: improved inventory accuracy, labor efficiency gains, reduced out-of-stocks, and ultimately, return on investment. We recommend stack ranking your KPIs, and identifying only one or two as the most important. Customer satisfaction should be monitored throughout.

6. Insufficient Staff Training and Involvement

Successful implementation of robots and AI requires active staff engagement. Early involvement, thorough training, and including employees in decisions turns skeptics into advocates while leveraging their operational expertise. Industry leaders find that sharing positive staff testimonials from previous deployments and hosting educational events with food go a long way.

7. Neglecting Integration with Existing Systems

New technologies must integrate smoothly with existing systems to prevent data silos and fragmented operations. When robots and AI platforms connect effectively with inventory, POS, and CRM systems, they enable real-time data sharing and better decision-making.

8. Overlooking Maintenance and Support Requirements

Regular maintenance and support are essential for robots and AI systems. A proactive approach with scheduled inspections, updates, and responsive support teams prevents disruptions and protects the investment's value. Beware of solutions that require you to own the technology outright. Rather opt for solutions that put maintenance on the vendors’ shoulders.

9. Lack of Adaptability and Scalability

Technology investments must be flexible and scalable to adapt as stores grow and markets evolve. Solutions should accommodate changing consumer needs and emerging trends to deliver long-term value, and be customizable for your unique environment. For example, while robots are unrivaled in their ability to capture data from the store in the most accurate, cost effective and scalable manner, fixed cameras work well in high-turnover or high-theft areas.

10. Ignoring Data Security and Privacy

Protecting data security and privacy is crucial when implementing robots and AI systems. Strong security measures and compliance with privacy laws must be maintained to safeguard both store and customer information. Inquire about SOC2 compliance certification!

Getting Started

Your first move should be establishing an executive steering committee to guide this initiative while also identifying a single threaded owner of transformation who is guided by or reports to a steering committee. From there, develop your pilot criteria, select test locations, and create a detailed implementation roadmap. Remember, success in retail automation isn't just about the technology – it's about how well you execute on your strategy and bring your organization along on the journey.

Conclusion

While robots and operational intelligence promise major benefits for grocery retail, successful implementation requires careful planning. Stores must align technology with business goals, ensure proper system integration, and prepare for maintenance needs. Key challenges include adaptability, scalability, and data security. However, when deployed strategically, these innovations can transform operations and enhance customer experience. Success depends on combining technological innovation with engaged staff and thorough implementation planning to effectively position your organization to capture the full value of these investments.