All eyes on Next, Greggs and Amazon as Evri turns 50: 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 B&Q, Deliveroo, Amazon, Walmart, Stitch Fix, Asos, Snappy Shopper, Just Eat, Morrisons, Greggs, eBay, Quadient, and Ocado Group.
$148.7 billion…Shares of Amazon fell after it reported second quarter sales that came up just shy of the $148.7 billion expected ($148 billion).
“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth,” says Andy Jassy, Amazon President and CEO.
“As companies continue to modernise their infrastructure and move to the cloud, while also leveraging new Generative AI opportunities, AWS continues to be customers’ top choice as we have much broader functionality, superior security and operational performance, a larger partner ecosystem, and AI capabilities like SageMaker for model builders, Bedrock for those leveraging frontier models, Trainium for those where the cost of compute for training and inference matters, and Q for those wanting the most capable GenAI assistant for not just coding, but also software development and business integration.”
9…B&Q has partnered with Deliveroo to offer a new, on-demand delivery service of over 600 home improvement products from nine of its Local stores in London.
Starting later this month, customers will be able to order interior and outdoor paint, decorating, painting tools, plumbing, electricals, bathroom essentials, as well as tools and hardware.
B&Q said in an online post: “Our partnership with Deliveroo taps into the increasing demand from consumers for speed and convenience when it comes to buying DIY products.”
“It gives customers more choice of when and how their B&Q purchases are delivered, whether they’re tackling an emergency job that needs a quick fix or need additional tools halfway through a project. With the new service, orders will be delivered from the Local store to home in as little as 25 minutes.”
It added: “Offering an on-demand, fast delivery service in partnership with Deliveroo, helps us to reach a new target customer base and serve new shopping missions.”
The nine Local stores involved are at Camden, Harrow, Palmers Green, Streatham, Sutton, Tooting, Wandsworth, Wood Green and Staines-Upon-Thames.
50…UK-based parcel delivery company, Evri, celebrated its 50th anniversary this week.
The roots of Evri can be traced back to 1974 as Grattan mail order in Bradford. The business started with just seven couriers; the families of directors packed and delivered parcels to local customers; this is where the home delivery model was launched.
In the early 90s, Evri had 1,000 couriers, covering 60% of the UK and delivering parcels two to three days a week. Fast forward to 2024 and it has more than 20,0000 couriers and 8,000 employees, delivering 730 million+ parcels each year to over 220 destinations worldwide.
Martijn De Lange, CEO at Evri, says: “In our 50 years we’ve witnessed mail order evolve to introduce the first-ever telephone ordering service, a shift from printed publications to online ordering and the introduction of next day deliveries.”
“As we look back in fondness at the past half century, we are also focussed on delivering for our customers and clients in the UK and overseas now and over the next 50 years and more.”
“People are still feeling cost-of-living pressures, high levels of inflation and higher interest rates, although stabilising, have all exerted pressure on disposable income and spending power.”
“However, the phenomenon of home shopping continues to grow and evolve, and we have been quick to respond to this as the fastest growing parcel delivery service.”
3.2%,…All eyes in retail were on Next’s Q2 FY2024/25 update this week, to get an indication of how much impact the poor weather over summer has had on clothing sales in the UK.
Next’s numbers provided a sense of optimism, with its total product full-price sales rising by 3.2%, far outperforming its expectations of -0.3% due to the tough comparatives it was up against because of the exceptionally warm weather last year.
Emily Salter, Lead Retail Analyst at GlobalData, says: “Although the UK underperformed this, with total sales rising 0.4% as consumers had less need to purchase new summer clothing, this is still an outperformance of the UK clothing and footwear market, which GlobalData forecasts to have declined in the three months to the end of July.”
“Overseas online had an outstanding quarter and was the driver of growth, with revenue rising by 21.0%. Partnerships, like the one it struck with Indian online marketplace Myntra earlier in the year, should boost this growth over the longer term.”
“As a result of this strong sales performance as well as cost savings, Next has increased its profit guidance for the full year by £20 million to £980 million.”
She adds: “The impact of the poor weather in the UK can be seen in the performance of its two channels, with in-store sales falling by 4.7% as consumers were put off visiting stores.”
“Next was able to transfer some shoppers online, with sales for its own brand products rising by 0.6% online, and its LABEL third-party brands growing by 7.9%.”
“This trend showcases the strength of Next’s branded proposition that has driven its performance over the past few years, with its own brand taking a back seat. This is despite other retailers introducing their own third-party brand propositions, such as key competitor Marks & Spencer.”
“However, their approaches to this are different, as M&S has focused on elevating its product range, making it more fashionable to drive appeal among younger shoppers, with the addition of other brands to complement this, whereas Next has opted for a strategy of wider appeal by focusing on its plethora of brands.”
85%…A new Bluecore report explores how more than 100 omnichannel retailers and DTC brands, across apparel, beauty, home, sporting goods and other verticals, are performing when it comes to identifying their anonymous visitors, turning them into buyers, and then directly impacting how much they spend and how frequently.
This reveals that, on average, retailers only know who 15% to 27% of their visitors are, meaning that they're letting up to 85% of potential customers fly under the radar and missing out on a significant opportunity to increase repeat purchases.
According to the benchmarks, while many retailers and brands still are not aware of each individual visitor, the ones who are identifying them at a higher level are also seeing an increase in repeat purchases and revenue.
100…Amazon, Walmart, and Stitch Fix have topped an index ranking the 100 leading retailers and brands that are embracing AI to drive impact across their organisations.
The 2024 Retail AI Index was developed by Lily AI, a technology platform specialising in AI solutions for retailers and brands, in partnership with analytics and strategy consultancy, Radii Group, and focuses on retailers in the apparel, footwear, beauty, and home segments.
“AI continues to empower retail leaders to reshape and modernise the customer experience, and it’s critical for all retailers to understand where they stand,” sats Purva Gupta, Co-founder and CEO, Lily AI.
“AI is becoming table stakes for retailers who want to stay competitive. Not surprisingly, the biggest of the bigs - Amazon and Walmart - have the resources to invest in AI extensively.”
“But, as we found, even relatively smaller companies, such as Poshmark and Revolve, are taking highly innovative approaches and reaping the benefits.”
$20 million…Montreal-based WorkJam has received a $20 million investment from Export Development Canada (EDC).
The company will use the new funding to accelerate growth in the EMEA region, where it has recently added Marks & Spencer (M&S) and Metro Digital to its client roster.
“With labour dynamics shifting across the globe, particularly in the UK and European markets, many companies in these regions are looking to equip their hourly employees with digital tools that ensure compliance while also driving productivity, retention and overall workplace satisfaction,” says Steven Kramer, CEO at WorkJam.
“This new investment will enable us to continue on our strong growth trajectory in the EMEA region and we’re extremely grateful for EDC’s confidence and support as we fulfil our mission to empower frontline workers globally.”
9…Clifford Cohen has departed Asos where he held the position of Chief Technology Officer.
In a LinkedIn post, he said: “After nine amazing years I have made the difficult decision to leave Asos and move onto my next challenge.”
“It has been an absolute pleasure and honour to lead the Tech team and I couldn’t be prouder of the team we have today and what we have achieved.”
He added: “I would like to thank my entire technology team, past and present. I would also like to thank Jose Antonio Ramos (CEO), Nick Beighton (former CEO) and Nick Robertson (Co-founder) for all their support and friendship over the years.”
“I will be starting a new and exciting challenge in the renewable energy sector at the start of August.”
Asos did not respond to our request for information on Cohen's replacement as CTO.
29…Tony Rourke has announced his departure from The Very Group, a multi-brand online retailer and financial services provider in the United Kingdom and Ireland, where he held the position of Head of Technology (Platforms, Infrastructure and Networks).
In a LinkedIn, he said: “After 29 years the time has come to say goodbye to The Very Group. I’ve had a few months to prepare for this but it’s clearly not long enough and I’m struggling to put into words how I’m feeling right now. This company has given me everything…”
He added: “An opportunity to build a career, taking me from a graduate fresh out of university to leading technical teams that have transformed us from a loss making catalogue business to a £2 billion digital retailer. Instilling in me core values you need if you want to be successful, inside and outside of work.”
“Above all else, allowing me to meet and work with so many amazing people. People who are friends not colleagues and have supported me, taught me and basically made coming to work not feel like work. Honestly, 29 years feels more like 8…and for all of this I will be eternally grateful.”
2…The second IKI x REWE digital Retail Startup Night has been announced.
The initiative focuses on Baltic retail tech startups and investors.
IKI and REWE digital will be hosting an event, taking place in the city of Vilnius on 4th September.
In a LinkedIn post, Anika Vooes, Chief Acceleration Manager at REWE digital, said: “Are you interested in discovering how REWE Group collaborates with startups and expanding your network?”
“Join us in Vilnius for: an exiting pitch event featuring cutting-edge technology startups; fresh insights into the evolving retail landscape; prime networking opportunities with key ecosystem players and retail experts.”
She concluded: “Don't miss this chance to innovate and connect with industry leaders. DM me to express your interest. Let’s shape the future of retail together!”
1…Rapid delivery specialist Snappy Shopper has announced a partnership with Allwyn UK, operator of the UK National Lottery.
As a result of the tie up, independent shops now have the opportunity to sell National Lottery scratch cards online for delivery for the first time.
Previously, only major supermarkets had been allowed to sell scratch cards for home delivery due to age restricted sale requirements from regulator the Gambling Commission.
However, Allwyn said following ‘a successful trial’ with a small number of retailers, all Snappy Shopper partnered National Lottery stores can now offer the service.
380…Morrisons has expanded its partnership with Just Eat to include groceries from its supermarkets as well as deliveries from its cafés and Morrisons Daily convenience stores.
The tie up was initially rolled-out to Morrisons Cafés in 2022, followed by 60 Morrisons Daily convenience stores in December 2023, and today serves almost 700 Dailys.
Now, on-demand delivery from Just Eat will also be available from 380 Morrisons supermarkets across the UK. Customers will have access to thousands of products.
As part of the extended partnership, Just Eat is offering free delivery on all Morrisons grocery products (with a total basket value of over £15) until the end of 2024.
Charlotte Exell, Morrisons Online Operations Director, says: “By building on our successful partnership with Just Eat, we are excited to introduce another fast and convenient option for our customers to get Morrisons groceries delivered straight to their door.”
“We’re committed to offering great value and high quality products to our customers however they choose to shop.”
£960.6 million…Greggs this week reported that first half sales were up 13.8% to £960.6 million.
And underlying profit before tax was up 16.3% to £74.1 million.
Matt Britzman, Senior Equity Analyst, Hargreaves Lansdown, says: “Greggs has showcased its strengths once more, as the UK’s favourite baker continues to deliver. A high bar’s been set over the past year or so, but results have beat expectations once again.”
“The value offering that Greggs is so well known for has been holding it in good stead of late, and it was good to see that continue over the half with like-for-like sales well ahead of the industry average.”
He adds: “Perhaps unusual for a business geared to growth, management is keen to make sure investors are paid while they wait, and growing dividends are part of the attraction. The cash hoard on the balance sheet is expected to be flexed to cover increased growth investment, but that’s precisely what it’s there for.”
“Greggs is a quality outfit with plenty to like. The number of shops is set to rise to 3,000 over the next few years, the menus and stores have been reset, and market share is at an all time high. There are other growth levers, too, including bolstering delivery services, Click and Collect options, and opening later to attract more evening customers.”
1…Grocery technology firm, Instacart, and Schnuck Markets, report that the former’s Carrot Tags offering is rolling out chainwide.
Carrot Tags is a software solution that integrates into a retailer’s electronic shelf labels (ESL) hardware to enable incremental functionality, including pick to light capabilities.
Schnucks will be using this across most of its stores allowing Instacart shoppers to activate items from their picking list within the firm’s shopper app for easier and more accurate order fulfilment.
Schnucks first began using Instacart’s Carrot Tags’ pick to light functionality in 2023, and says that it quickly saw success across its pilot stores.
“As our first retail partner to introduce Carrot Tags’ pick to light functionality chainwide, we’re incredibly excited by the telling results of our partnership. Because Schnucks is using pick to light, we’re seeing an increase in found rates, which in turn provides higher order quality and customer satisfaction,” says David McIntosh, VP and GM of Connected Stores at Instacart.
“Schnucks has long served as a leading-edge partner for Instacart, especially when it comes to adopting our Connected Stores technologies like Caper Carts and Eversight. We look forward to building the future of grocery alongside Schnucks for years to come.”
A new and globally exclusive collection features characters inspired by the British dish.
Customers can book a slot and make their order from Jellycat’s Fish & Chips van in the Selfridges Toyshop on floor four.
The pop-up has received a rave review from Brittain Ladd, a supply chain consultant, Top 100 RTIH Retail Technology Influencer and former Amazon executive.
In a LinkedIn post, he said: “I must admit that when I first saw the video that I have posted, I thought I was watching an actual restaurant in action. However, as the video continued to play, I realised that what I was watching was stuffed toys being sold. The fish with a smile on its face gave it away.”
He added: “I believe Jellycat has the most creative store experience I’ve ever seen for any product. The stuffed animals, colours, wrapping, bags and stickers - it is truly exceptional and brilliant.”
“I’m amazed that The Walt Disney Company, Netflix, Amazon or Walmart hasn’t partnered with Jellycat. A TV series or destination shops should be explored.”
1…eBay’s first ever Love Island eBay Live, hosted by TikTok star Coco Sarel, alongside All-Stars winner and Pre-Loved Ambassador Tom Clare, took place on Monday 29th July at 8pm.
Fans had an opportunity to get their hands on pre-loved looks fresh from the villa wardrobe and series past with all funds donated to Doctors Without Borders (MSF).
The eBay x Love Island Live event gave fans a chance to shop a range of pieces worn by the Islanders from coupling up and date nights to pieces re-worn from previous series.
29…Lifestyle retailer, MINISO, is gearing up to open its first Newcastle store in Eldon Square shopping mall.
Situated opposite John Lewis on the Upper Floor, this will go live on Friday, 2nd August at noon.
Spanning 1,700 square feet, it is the retailer’s 29th store in the UK, following an expansion across the UK over the last two years.
4,000…British womenswear brand Hobbs is set to open a store at Trafford Centre in Manchester this autumn.
The new 4,000 square foot location, located on Upper Regent Crescent, will stock Hobbs’ mainline range, as well as exclusive limited edition collections and petite ranges.
The retailer says that it has recently re-evaluated the look and feel of its stores, with the aim of developing a modern and engaging store design concept that will be rolled out to future locations.
1…Ocado Group has launched its first customer fulfilment centre (CFC) in Spain with Alcampo.
This is equipped with Ocado’s latest technologies, including On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL).
At full capacity, Alcampo expects to deliver more than 70,000 orders per week from the CFC to customers in Madrid and the wider region, with a delivery fleet powered by fully electric or hybrid vehicles.
Alcampo already uses Ocado’s In-Store Fulfilment (ISF) software across hypermarkets nationwide to enable efficient picking from stores, covering its food and non-food business.
“The opening of this CFC is the high point in an ambitious project that will enable us to be leaders in omnichannel grocery in Spain. It will make our promise to customers a daily reality, enabling them to shop for groceries however, whenever and wherever they want,” says Antonio Valverde, Director of E-commerce at Alcampo.
250 and 1.5 million…Quadient reports a milestone of installed smart lockers totalling more than 250 colleges and universities across the United States. Across the campuses, more than 1.5 million students per year are served by the automated lockers.
Higher education institutions using the Parcel Pending by Quadient automated locker platform range from large universities with tens of thousands of students to smaller colleges with hundreds.
Institutions include The University of Alabama, University of Florida, University of Houston, Valencia College, University of Kentucky, University of Iowa, the University at Buffalo, Shenandoah University, Kennesaw State University and many more.
The platform offers a 24/7 package pick-up or drop-off experience.
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