The six biggest retail technology news stories of the week
It’s Friday, the weekend is almost here, so let’s kick back and reflect on an eventful week for the retail systems space. Here's your briefing on the most important stories from the past five days, including Ikea, Amazon, Tesco and JD.com.
1. Ikea ramps up automation investment as store fulfilment grows
Ikea routed more than half of its order fulfilment through big box stores rather than customer distribution centres in 2021.
According to a a blog post by the retailer’s franchisee, Ingka Group, this practice will continue in 2022.
Ingka Group plans to open more stores and launch faster and more affordable and sustainable delivery options, such as Click and Collect in stores that are around one-fifth the cost of home delivery, and thousands of neighbourhood pick-up points.
2. Former Tesco exec Tony Hoggett joins Amazon physical stores push
Last year, we reported that Tony Hoggett was stepping down from the role of Tesco Chief Strategy and Innovation Officer to head up Amazon’s international stores arm.
He was set to move to Amazon’s HQ in Seattle, Washington and become Senior VP of Physical Stores, we noted.
In a note to staff, Tesco Chief Executive Ken Murphy wrote: “Tony’s career in Tesco has spanned over 31 years, during which time he has worked in various roles, most recently as Group COO and Chief Strategy and Innovation Officer.”
“Tony has made an incredibly valuable contribution over these years, and I wish him the very best for the future.”
Hoggett started his new job this week.
3. Tesco Clubcard Pay+ now available to all Clubcard members
Tesco is offering a new payment method to its 20 million Clubcard members.
They can now apply online following a phased Tesco Clubcard Pay+ launch which began in March 2021 with a limited number of customers and Tesco colleagues.
Shoppers can use a new debit card to pay, save and earn Clubcard points. Tesco is offering double Clubcard points for the first three months to pull people in.
4. PayTech venture Checkout.com announces mega Series D funding round
Payments company Checkout.com has closed a $1 billion Series D funding round, valuing it at $40 billion.
The venture, whose customers include Farfetch, Pizza Hut, Netflix and Shein, has raised a total of $1.8 billion to date.
Primary players in the Series D round include Altimeter, Dragoneer, Franklin Templeton, GIC, Insight Partners, the Qatar Investment Authority, Tiger Global, and the Oxford Endowment Fund.
Several of the company’s existing backers also participated.
The cash will be used in three key areas: US market growth, a marketplaces solution launch, and to strengthen its position in the Web3 space.
5. JD.com launches ochama robotics stores in the Netherlands
Chinese e-commerce giant JD.com has opened two automation powered ochama stores in the Netherlands.
These involve robots preparing parcels, and home delivery service.
The first two ochama pick-up shops are in Leiden and Rotterdam, with two more set to open in Amsterdam (Diemen) and Utrecht.
6. Back Market raises $510 million, now valued at €5.1 billion
Refurbished electronics marketplace, Back Market, has announced a Series E funding round of $510 million led by new investor Sprints Capital and also involving existing backers.
It will use the cash to expand its operations in Europe and beyond.
Back Market Co-founder and CEO, Thibaud Hug de Larauze, says: “Our goal is to make refurbished electronics the first choice for tech purchases.”
“We expect to see similar to the same development in the electronics market as we have witnessed in the second hand car market, where sales of second hand vehicles have increased compared to new car sales in.”
“The support and confidence of these funds, together with our growing customer base, marks an important step in our journey, and more importantly, for the circular economy as a whole.”
