Marks and Spencer gives shareholders plenty to be happy about: 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 OneStock, Haz, Polytag, M&S, Fluent Commerce, Max Retail, Emperia, Pixevia, Getir, Zilch, and Zippin.
4 million…Zilch, a BNPL specialist which is pitched as the world’s first ad subsidised payments network, has surpassed four million registered customers within 44 months of its launch.
"In less than four years, we’ve transformed how millions experience, engage and - most importantly - are rewarded with their daily payments, generating our customers over $500 million in savings and counting," says Philip Belamant, CEO and Co-founder at Zilch.
Zilch says that it currently adds over 100,000 new customers each month and now around 12% of the UK’s 33 million adult working population has an account with it.
Since its launch, the platform has created over $3 billion in commerce, or Gross Merchandise Value (GMV), for retailers, with over half of this GMV generated in the last 12 months.
86%…Fluent Commerce, a provider of distributed order management system (OMS), Fluent Order Management, has released the findings of research which found that after a tough start to the year, 86% of retailers are feeling positive about the rest of 2024 - with 36% describing their outlook as very positive.
The survey of more than 100 retail professionals, conducted at Retail Technology Show 2024, shows growth is on the horizon for retailers. 93% said they expect to grow their business within the next year, with two fifths forecasting significant growth.
Just 1% of respondents anticipate making a loss in 2024.
This is despite many retailers facing a disappointing start to the year as the aftershocks of the Covid-19 pandemic continue to impact consumer spending. Despite high inflation easing, recent ONS figures have shown stagnant Q1 sales, casting a shadow of doubt on the industry’s resurgence.
When asked about the biggest challenges facing their business today, 54% of respondents said the cost-of-living crisis.
$15 million…Max Retail, a marketplace via which independent retailers and brands can sell excess inventory, has announced a $15 million Series A round led by Nosara Capital, with participation from Rethink Impact.
The round also includes continued support from VC M13, The Artemis Fund, and StandUp Ventures.
“Independent retail shops are core pillars of their communities but face limited options for their excess inventory other than discounting far below cost, sending to consignment, or donating for a tax write off,” says Melodie van der Baan, CEO and Co-founder of Max Retail and former independent retailer.
“With this investment, we will continue to grow our sales channel network and expand this excess inventory solution to support the full product lifecycle, giving independent retailers and brands the tools they need to increase their inventory turns and maximise cash recuperation on unsold goods.”
£13 billion…M&S this week reported full-year revenue of £13 billion, up 9.3%, with operating profit up 33.8% to £839 million.
Guy Lawson-Johns, Equity Analyst, Hargreaves Lansdown, says:“M&S has given shareholders plenty to be happy about this year, growing market share and margins while implementing a significant cost cutting programme.”
“The group has achieved £180 million in cost savings this year and identified an additional £100 million in potential cuts, surpassing its previous five-year guidance.”
In the last quarter, M&S emerged as Britain’s fastest growing grocer alongside Lidl and the retail arm of Ocado, in which it holds a 50% stake.
Investing to create the perception of value through the Remarksable line has helped keep its appeal and allowed sales growth amid cost-of-living pressures.
That’s meant despite the challenging retail environment, marked by wage inflation and business rates, M&S exceeded analyst expectations with full-year revenue growth of 9.3%, and operating profit growth of 33.8%.
Despite promising in-house progress, there are concerns regarding Ocado, however. Losses from M&S's share in Ocado Retail have widened, and its public spat has drawn media attention, suggesting potential strain in the partnership.
Lawson-Johns concludes: “Operational and strategic improvements mean the business is healthier than it has been in some time. Enhanced cash generation and a robust balance sheet have enabled a continued reduction in net debt.”
“This financial stability has allowed M&S to restore its full-year dividend to 3p per share. While the prospective yield of 2.3% may seem modest, the anticipated increase in dividends could appeal to income-focused investors.”
90%…New Dentsu UK&I research finds that Gen Z expect brands to demonstrate purpose beyond profit, even in the face of economic instability, as they report the highest concern (90%) of all generations about social issues, which has a clear impact on their purchase decisions.
Dentsu’s 2024 Read the Room: Pursuing Happiness report surveyed 2,000 respondents across the UK.
It found that 75% of Gen Z are more likely to buy from brands that give a portion of their sales to charity and
70% say they prioritise brands that demonstrate emotional intelligence in their advertising – both findings are the highest of all generational cohorts.
The research also shows that Gen-Z donates the highest proportion of their salary (5%) to charity compared to other generations.
That’s despite 57% of Gen Z reporting that they are extremely anxious about their finances in the immediate future. An additional 78% agreed they would be more likely to purchase from a brand that makes its products sustainably.
1…Zippin and Aramark UK have partnered with LEGOLAND Windsor Resort to launch Europe’s first checkout-free store in a theme park. The store, which recently opened for the 2024 season, lets resort guests grab items without having to join a queue.
DUPLO Coffee Co, located in DUPLO Valley, sells a variety of sandwiches, snacks, coffee, and other drinks.
It was converted into a Zippin powered store where guests can enter with a credit card or mobile wallet, take what they want, and exit.
There are no checkout lines and no stopping to scan purchases. Guests are automatically billed for what they take as they exit.
$1.4 million…London-based startup Haz, an AI social commerce app that connects friends through the things they own, has landed $1.4 million in pre-seed funding led by Speedinvest with participation from the scout programmes of A16Z (co-founder Reface, Dima Shvets), Atomico (Sameer Singh), Concept Ventures (Oliver Kicks), and individuals from Lapse, Lendable, Lottie & Ecoigo.
The cash will be used to develop its proprietary AI technology and launch the platform in the UK before expanding across Europe.
“82% of Gen Z now think about the resale value of an item before they even buy it, yet 47% of items fit for resale remain unsold,” says Haz Co-founder Ronan Harvey-Kelly.
“It takes a lot of time to resell something and consumers still lack the data they need to make informed resale decisions. That’s where Haz comes in.”
$72 million…OneStock, a provider of order management systems (OMS), has announced a $72 million investment from Summit Partners.
OneStock was founded in 2015 by CEO, Romulus Grigoras, and CTO, Benoit Baccot, to help retailers and brands navigate the increasing complexity of the omnichannel landscape and enhance overall customer experience.
The company’s cloud native solution provides a centralised platform designed to manage end-to-end order fulfilment and visibility and enable retailers to offer a ‘buy anywhere, deliver anywhere, return anywhere’ experience to customers.
5…Olga Dogadkina, Founder and CEO at Emperia, has taken to social media to discuss her company turning five years old.
Emperia has developed an immersive commerce platform at the intersection of Web2 and Web3, enabling brands and retailers to boost their online channels through virtual stores.
It was shortlisted at the 2023 RTIH Innovation Awards.
$1.2 million…Quantia, whose solution helps boost sales for consumer brands with AI driven recommendations, has raised $1.2 million in a pre-seed round.
This was led by Inovo VC and Team X, including Ariel Finkelstein, with participation from business angels, such as Dominique Locher (founder of LeShop.ch), and Ben Lang (one of the first 15 employees at Notion).
The company will use the cash for further product development and to facilitate growth in Western Europe, primarily in the UK, Nordics, Spain and Germany.
It was founded in 2023 by Marta Lacka, whose experience includes managing multinational brands in Procter & Gamble, as well as leading product development in tech scale ups.
€1.5 million…AI retail technology company, Pixevia, has raised €1.5 million in new funding. This saw new investors Coinvest Capital, Omni Commerce Ventures and Rita Sakus join primary investor Iron Wolf Capital in the round.
Other prominent existing backers Open Circle Capital, Vladas Lašas, and Renaldas Zioma made significant contributions.
The cash will be directed towards planned expansions throughout the US and Europe, especially within the DACH region. Included in these plans are the integration of new venues such as sports arenas, university campuses, and airports.
The event was all about innovation and problem solving as 17 teams focused on opportunities to better serve customers and run the Clothing & Home business.
From digital outfit recommendations to improving the M&S bra fit proposition, employees worked around the clock to bring to life digital first solutions.
Womenswear Director and sponsor for the event, Maddy Sillem (Evans), said “Well done to everyone who took part. I’ve been thrilled to support the event.”
“It’s been great to see teams come together from across business areas, stretching themselves and incorporating insight to keep colleagues and customers at the heart of solutions - all while using the power of digital to accelerate these strategic opportunities."
£5 million…Getir, the rapid grocery delivery company that was valued at $12 billion just two years ago, quit the UK recently, and is also leaving the US and western Europe.
The Turkey-based company has a three-year training kit sponsorship deal with Tottenham Hotspur F.C. which expired at the end of the Premier League season on Sunday.
And according to a report by Sky News, it owes close to £5 million to the club.
This comes as Getir tries to access a tranche of agreed funding from major investors Mubadala and G Squared to help facilitate its withdrawal from the UK, Germany and the Netherlands.
At the time of publishing this article, it was unclear whether it had the means to settle its debt to Spurs.
Getir and Tottenham Hotspur did not respond to our request for comment.
1.5 million…Walmart last week opened a new 1.5 million square foot fulfilment centre ten miles north of Hagerstown, located at 1915 Ebberts Spring Court in Greencastle, Pennsylvania.
This is Walmart’s fourth next generation facility.
A fifth was recently announced that will open in 2026. These facilities bring the combination of people, technology and machine learning together to achieve faster shipping and delivery, while increasing Walmart.com order fulfilment capacity.
The latest one will contribute to expanded access to the retailer’s next- or two-day shipping.
Combined with the rest of its fulfilment network, these centres will enable the retailer to reach 95% of the US population with the service. Walmart Fulfillment Services, Walmart’s end-to-end third-party fulfilment service, will also leverage the space to fulfil Marketplace items.
5…Sainsbury’s and Microsoft have announced a new five-year strategic partnership, using the latter’s artificial intelligence and machine learning capabilities and Sainsbury's datasets to help accelerate the retailer's recently announced Next Level Sainsbury’s strategy.
The tie up aims to improve store operations, drive greater efficiency for colleagues and provide customers with more efficient and effective service, delivering stronger returns for shareholders under Sainsbury's Save and Invest To Win programme.
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