Case Study: Shopping Cart Fleet Management

When faced with a severe shopping cart shortage, Ralphs, a southern California supermarket chain with 183 U.S. stores and 17,000 employees, turned to The Peggs Company. Peggs helped Ralphs overcome its immediate cart problem while implementing a comprehensive program that ensured it would avoid similar shopping cart challenges in the future.

In 2021, Ralphs’ Expense Manager was faced with a severe shopping cart shortage. Due to pandemic-related supply chain issues and the ongoing effects of theft, multiple locations in southern California were rapidly losing carts. Stores that typically required a fleet of 200 carts were sometimes limited to 50 or less.

A shortage of shopping carts represented a major customer service crisis that would, in turn, affect brand perception and the per-transaction receipt. To make matters worse, the shopping cart procurement vendor Ralphs had previously worked with could not fulfill their requests.

Faced with a difficult task, he recalled, “We didn’t have access to any shopping carts—and if we can’t replenish our carts when needed, our business suffers. We thought there was no way anybody would be able to help us.”

Searching for a solution to his immediate and long-term shopping cart shortage concerns, he contacted Peggs based on its established reputation for maintaining and servicing shopping cart fleets for supermarkets of all sizes. “Peggs was able to give us some different ideas and get us a solution that was available immediately.”

Made possible by a network of strategically placed manufacturing and distribution facilities, Peggs supplied Ralphs with in-stock remanufactured carts to temporarily shore up its dwindling fleet. He was impressed by the immediacy of Peggs’ response.

“Peggs was able to deliver really quickly, within days,” he said. “In the grocery industry, you’ve got to be able to turn on the dime, especially in southern California, and Peggs came to the table to help us stay competitive.”

Peggs immediately started manufacturing new carts that met Ralphs’ exact brand specifications. The lead time for Peggs to manufacture new carts was shorter than the industry standard at that time—a process that generally takes between four to eight months was accomplished by Peggs in two.

Thanks to Peggs’ fast action and industry expertise, Ralphs quickly replenished its fleet, maintained its standards for customer satisfaction and profits, and established a foundation for a scalable program that would minimize the potential for facing this type of crisis in the future.

With proper analysis and the ability to forecast cart needs annually, Ralphs no longer faces unexpected shortages. “Shopping carts are no longer a concern for Ralphs.”

Since then, the relationship between Ralphs and Peggs has only gotten stronger. Ralphs continues to benefit from the full breadth of Peggs’ services, a “cradle-to-grave” concept that considers every part of the cart life cycle. 

Peggs’ customized approach to managing Ralphs’ shopping cart fleet now includes ongoing Preventative Maintenance and reactive on-call service paired with a pool program designed to efficiently manage the repair, remanufacturing, storage, and distribution of carts at Ralphs’ request. 

“Since we’ve set up the pool program, there have been absolutely zero hiccups obtaining shopping carts when we need them. It’s literally an email away,” he stated.

Peggs monitors cart inventory and provides regular reporting to ensure that fleets are running at full capacity and up to brand standards.

“For the last three to four years, this relationship has become very deep simply because Peggs can turn something around as quickly as I need it,” he said. “We were able to deliver for our customers because Peggs came through.”

For over 60 years, The Peggs Company has been an industry leader with an unwavering commitment to its customers, driven by dedication to service, innovation, and integrity.  Peggs delivers high-quality products that enhance the retail experience, drive sales, reduce costs, and elevate the quality and functionality of equipment and fixtures.