And yet, supermarkets existed in the year 2000, selling products at comparable or lower inflation-adjusted prices, without any of this connectivity.
Yes, a lot of it exists to squeeze a bit more of a margin out of the business, but come on. The alternative isn't going back to the Middle Ages, it's shaving 0.1% off the profit margin. It's OK to wonder if the risk is worth it.
Yeah, I worked at one during that time. The amount of food we threw away on a regular basis was incredible.
Except that in this case, the possibility of something like this probably is worth it, because system vulnerabilities are solvable problems, while ignoring the ability to improve system efficiency is a static stance. A lot of things have driven up the price of groceries since that time. You mention "comparable or lower inflation adjusted prices", but this hides the fact that the inflation adjusted basket of groceries in the US is near inflation (105% vs a baseline of 94%), while the input costs to that supply chain (like labor, and diesel) have gone up faster. The efficiency isn't doing nothing, grocery prices would almost definitely be higher without it.
I think it's an interesting question.
I would be interested to know what the damage caused by this attack is compared to savings over a system where thermostats need to be adjusted on-site.
That's the work that goes into hiding the "other half" of the inflation (i.e. the 2x diff between reported inflation and what you can actually see in your life).
How would you stay in business if your competitor was offering 20% off your prices because they had better logistics and tracking? Ask consumers to eat the cost due to their latent demand for, uh, inefficient delivery and food spoilage?
Grocery stores infamously have some of the lowest margins in all of retail and typically hover in the 1-3% range. As a sector they have about zero room for inefficiency and have to be this aggressive about chasing operating cost reductions.
The increased profits that have occurred in recent decades have landed with the big food companies, not with the retail chains selling their products at very little margin.