Tech savvy Ocado coaxes shoppers back: RTIH presents the retail technology week in numbers
Do you like numbers? Do you like retail systems news? Then this is the article for you. Including Co-op, Starship Technologies, Sweaty Betty, NewStore, RELEX Solutions, Ikea, and Alibaba's grocery chain Freshippo.
The Amazon One service is currently available at more than 200 Whole Foods Market locations across the country, including Arizona, Arkansas, California, Colorado, Idaho, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nevada, New Mexico, New York, Oklahoma, Oregon, Texas, Utah, Washington, and Wyoming.
12,000…Co-op and Starship Technologies have announced the expansion of autonomous online grocery delivery services across more neighbourhoods in Leeds in collaboration with Leeds City Council.
Following a pilot launched last November - which saw 20,000 residents within the Adel and Tinshill area of Leeds have access to the offering - a further 12,000 households in the Kippax and Swarcliffe areas of the city will now be able to access Co-op groceries via robots.
Orders are placed through the Starship app, with residents in Kippax and Swarcliffe able to choose from a wide range of groceries which are picked fresh and then delivered locally from two local Co-op stores.
With a delivery fee starting from 99p, customers can order their delivery to arrive in under an hour and watch the robot travel in real-time via an interactive map. They will receive an alert when the robot arrives, and can meet and unlock it through the app.
23 and 3…Supermercados Bravo, a grocery store chain in the Dominican Republic, is partnering with RELEX Solutions as it looks to increase the accuracy of its demand forecasts, improve replenishment processes, and optimise in-store space for its fresh and ambient products.
The RELEX solution will be implemented in 23 supermarkets, three distribution centres, and three production centres.
73…Sweaty Betty has rolled out NewStore’s mPOS solution in 73 stores across the UK and Ireland.
By replacing its legacy PoS with this tech, the London-based brand now runs its retail operations entirely on iPhone, laying the groundwork for its omnichannel transformation.
110…SES-imagotag has entered into an agreement with Ikea to deploy its VUSION IoT Cloud platform and smart electronic shelf labels.
The first part of the contract spans over 110 stores in six European countries.
The roll-out builds on a partnership forged between the two companies over the past years.
£4 million…Huq Industries, a UK-based company that provides data on footfall and visitor frequency to local councils, retail businesses and real estate developers, has secured £4 million in equity funding led by 24 Haymarket and alongside ACF Investors.
Conrad Poulson, CEO at Huq Industries, says: “We are delighted to have garnered such strong support from like minded individuals in the UK investor community as we expand our operations to meet the growing demand for actionable insights on real world behaviours.”
“This funding will enable us to build on the world class team that we have put together here at Huq in order that we can capitalise on the immense demand that we are experiencing for our products across EMEA.”
7%…Ocado has returned to profit in its retail business on an EBITDA level, thanks in part to efforts to cut prices which has helped coax shoppers back.
The online grocery retailer is a useful bellwether for the UK’s middle classes, and the extent of action needed to reinvigorate sales speaks to the significant challenges being faced in all corners of the economy.
“Pressure on Ocado’s overall margins is significant, especially because of efforts to improve its relationship with Marks & Spencer, which is damaging the bottom line,” says Sophie Lund-Yates, Lead Equity Analyst at Hargreaves Lansdown.
“Ocado’s shares have lifted 7% though on news that costs are under control for now, with runaway capital expenditure a thorn in the group’s side when it comes to the construction of its high tech customer fulfilment centres.”
“The current economic environment makes it more difficult to entice grocery chains to sign up to Ocado’s techy fulfilment systems – with supermarket margins already being squeezed as they walk the tightrope between higher costs and not alienating their core customers with unreasonable price hikes.”
“To that end, it’s the speed and scope of future deal making that’s under the microscope where Ocado’s concerned, although recent progress shouldn’t be knocked.’’
37%…While retail marketers continue operating in an uncertain economic landscape, last year’s Q4 holiday shopping season – which saw more in-app purchases by consumers compared to Q4 in 2021 – should provide a glimmer of hope, according to research from AppsFlyer.
Consumer spend in shopping apps climbed 37% in Q4 2022 compared to Q3 2022, 30% higher than the rise in 2021 over the same period.
On average, retail apps generated 10% more revenue in the peak shopping month of November 2022 compared to November 2021.
Additionally, in-app purchases (IAP) remained high throughout the entire holiday season.
Retailers focused on attracting customers with early discounts and continuous holiday season incentives, leading to shoppers making return visits to their favourite shopping apps and also making repeated purchases, which drove shopping’s economic engine.
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