Asos taps GenAI tools and DPD makes green progress: 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 Franprix, Microsoft, Walgreens, Instacart, Zalando, Amazon, Pricer, REWE Group, Warner Bros., Fandango, and Roblox.

46%…Parcel company DPD UK says it is on target to deliver a 46% reduction in emissions by the end of 2024, from the 2020 baseline, with a third of its final mile van fleet now electric and 95% of its transport fleet running on HVO (Hydrogenated Vegetable Oil).

As part of Geopost, DPD UK has a Net Zero target of 2040, which is fully validated by the Science Based Targets initiative (SBTi).

It recently outlined progress towards that aim including confirmation that a third of its final mile fleet is now electric, with an additional 350 EVs (4.25t Ford eTransits) being deployed over the next few months ready for peak, taking the EV fleet close to 4,000 strong. 

Meanwhile, DPD UK's new flagship London sortation centre in Bromley-By-Bow, Docklands, is getting up to speed after opening in November and is now consistently over 90% all-electric in terms of final mile, as part of DPD's plan to deliver electric only across London.

In addition, 95% of DPD UK's HGV fleet is now running on HVO, which reduces emissions by 83% compared to traditional diesel. 

Tim Jones, Director of Marketing, Communications & Sustainability DPDgroup UK comments: "Six years into our sustainability journey and we are more committed than ever to delivering real benefits in terms of decarbonising our business and improving every aspect of our operation.”

“While our fully validated Net Zero target remains 2040, we are working hard to bring through as much change and innovation as possible right now and, as these figures show, we are on track with the trajectory required to meet the group target and are making a real difference already.”

“There will be harder challenges down the line, we are well aware of that, but we will continue to work with the best in the sustainability space and invest in the innovation required to get to where we want to be."

DPD UK

3…Asos has signed a new AI related three-year agreement with Microsoft.

The online retailer is already tapping AI features integrated into Microsoft solutions.

This includes process automation through Power Automate; automated meeting summaries, notes, actions, and live translations through Teams Premium; and Microsoft Copilot, including Copilot for Microsoft 365 and Copilot for Github.

“A core part of our business strategy is driving operational excellence within Asos: making sure we’re as fast, efficient, and effective as we can be, and investing our time and resources in the projects that matter,” says Victoria Arden, Director of Technology Operations at Asos.

“Under this new agreement, we’re helping Asosers safely experiment with generative AI tools that can remove ‘busy work’ from their day, freeing them up to unlock greater creativity and insights and focus on delighting our customers.”

30,000…A2Z Smart Technologies Corp. has announced the first deployment of its new generation Cust2Mate 3.0 smart shopping carts at Franprix in Paris, France.

Franprix is a grocery chain that operates over 600 stores in France.

The launch is part of a framework agreement with IR2S to deploy 30,000 smart carts until 2026 across retail chains in France.

The A2Z Cust2Mate smart shopping carts that were deployed feature an all in one clip-on panel equipped with AI technology, self-scanning, and in-cart payments for a "pick and go" experience.

The 3.0 carts aim to enable the "connected store," combining online and physical shopping to offer exclusive promotions and personalised product recommendations as if shopping online.

Customers based in Paris were able to use them for the first time during a public launch on Monday

Franprix

€435.3 billion…Consumer e-commerce spend grew by 12% in 2023, according to new research conducted by Kantar on behalf of Nets, part of European PayTech Nexi.

Surveying 18,000+ consumers across Europe, 88% indicated they had purchased something online in the 28 days prior to taking the survey.

Overall e-commerce spend reached an all time high of €435.3 billion in 2023, according to the research.

Spending on physical goods surpassed €200 billion, with €171.4 billion spent on travel, representing 20% growth from 2022, as the industry continues to recover post-pandemic.

Martin Pitcock, Chief Marketing Officer, eCommerce at Nexi Group comments: “When shopping online, consumers traditionally spent the most on travel.”

“The pandemic halted this growth, but the sector is now back on track and may soon eclipse physical goods as the number one area of online consumer spend.”

7,500…Walgreens has announced a new collaboration with Instacart to offer online SNAP/EBT payment acceptance at more than 7,500 Walgreens stores across the US, including over 100 Duane Reade locations in New York.

Customers can now purchase thousands of SNAP eligible products for same-day delivery via Instacart.

“Our collaboration with Instacart underscores our commitment to expanding access to essential food items for our customers,” says Balachandra Visalatha, SVP and Chief Product Officer at Walgreens.

“By integrating SNAP/EBT payments, we are making it easier for families and individuals to shop for the items they need and offer an efficient, highly relevant customer experience that meets their changing needs and preferences.”

Currently, most Walgreens stores accept SNAP/EBT for in-person purchases. The Instacart tie up allows customers nationwide to use SNAP/EBT at any Walgreens, eliminating the need for transportation to the store.

Walgreens Instacart

€2.6 billion…Zalando this week released figures for the three months ending 30th June 2024.

Revenue returned to growth in Q2 FY2024, rising 3.4% to €2.6 billion, driven by its improved product selection, notably within sportswear and beauty, resonating well with consumers.

This improvement made up for the decline in Q1, allowing H1 sales to rise 1.5% to €4.9 billion. Zalando’s profits also improved in Q2, up 18.5% to €171.6 million, thanks to an improvement in inventory management and lower fulfilment costs.

These encouraging results have led the retailer to confirm its full year guidance, expecting revenue to grow between 0% and 5% and profits to reach between €380 million to €450 million.

£300 million…Amazon has opened its first micromobility hub in Norfolk at its delivery station in Norwich.

This houses a fleet of new electric cargo bikes which will deliver thousands of packages per week to Amazon customers, taking traditional delivery vans off city centre roads.

Norwich joins more than 40 cities in the UK and across Europe which have Amazon micromobility hubs facilitating electric cargo bike and on-foot deliveries.

As part of a £300 million investment to electrify and decarbonise Amazon’s UK transportation network, electric cargo bikes and walkers are now expected to make millions of deliveries to customers across the UK every year. 

6…A sixth REWE Pick & Go will soon open in Hamburg, Germany.

In a LinkedIn post, Prof. Dr. Stephan Rüschen of Baden-Wuerttemberg Cooperative State University, said: “My business students from the DHBW Heilbronn were allowed to help with the testing on the excursion to Hamburg. We tried out many shopping scenarios...And that's more than you think.”

He added: “Many thanks to Alina Klüger from the REWE team for this insight 'Behind the Scenes'. Note: Actually, it's already the seventh, but the store at Cologne's Heumarkt was closed a few months ago.”

In July, REWE Group reported that another location in Hamburg had launched Pick&Go.

Powered by Trigo technology, the store, which clocks in at 1.200 square metres in floor space and features 20.000 items, is pitched as Europe’s largest computer vision-based supermarket.

It is also the first REWE Pick&Go store in northern Germany, and offers four ways to pay for purchases: cashless via Pick&Go via app; scanning and paying at the self-checkout terminal; shopping via computer vision support without scanning at the self-checkout terminal; standard payment process at the cash register.

1…An immersive Beetlejuice Beetlejuice experience has gone live on Roblox, courtesy of Warner Bros. Motion Picture Group.

This includes an integrated virtual Fandango box office, where eligible users can purchase movie tickets - a first for the Roblox platform as it tests and invests in commerce.

[Beetlejuice] Escape the Afterlife was developed by Sawhorse and provides Warner Bros. the opportunity to expand its reach with new audiences and ways to increase content viewership, as well as drive ticket sales.

“We are always looking to engage audiences and amplify our reach in new and exciting ways; this first of its kind collaboration with Roblox and Fandango for Beetlejuice Beetlejuice allows for just that,” says Cameron Curtis, Executive VP of Marketing, Warner Bros.

“By leveraging the vast Roblox creator community, we are not only able to connect with existing Beetlejuice fans, but also have the opportunity to reach new audiences who are being introduced to him for the first time. And we are thrilled to be the first studio to test ticketing on the platform.”

[Beetlejuice] Escape the Afterlife

65%…Despite aggressive discounting and competitive ‘members only’ offers for loyalty programme customers, traditional supermarkets continue to lose market share to discounter rivals, Aldi and Lidl, according to the latest research by Pricer.

A survey of over 1,000 UK shoppers showed that discounter switching remains rife, with 65% now having switched some or all of their food shop to Aldi or Lidl, a rise of +4 percentage points year-on-year. 

51% had moved some of their food spend to the discounters, while 13% said they now do their entire food shop with either Lidl or Aldi.

Younger demographics of shoppers were the most likely to jump to discounter supermarkets, rising to 79% of Millennials, and 78% of Gen Z. Regionally, Londoners were the most likely to change their allegiance away from the traditional grocers and swap to Aldi or Lidl (81%), compared to 60% in the Midlands and 67% in the North.

57%…The Federation of Small Businesses (FSB) has unveiled a package of new measures that aim to help transform life on UK high streets for the millions of small firms based on them.

Supporting pop-ups and temporary use initiatives for new businesses, and community specific online marketplaces, creating mobile phone-based loyalty programmes, and showcasing local high streets in major tourism campaigns are some of the recommendations set out to revive the UK’s village, town and city centres, in the FSB’s report.

The research found:

  • Plummeting consumer spending (70%), falling footfall (47%) and crime or anti-social behaviour (47%) are the biggest risks to high streets according to the small firms based on them.

  • 57% of local businesses say a diverse range of independent businesses is one of the most important features for the long-term sustainability and future of their local high street.

  • Good transport links are also key for the future of the high street, according to 43% of small businesses based on them. 

  • 49% of high street small businesses say parking facilities are managed poorly on their local high street.

  • Since the beginning of the Covid-19 pandemic, most local businesses saw a range of closures on their local high street, including: retail stores (72%), hospitality (69%), banks (58%), post offices (28%), and entertainment venues (20%).