AWS stumps up £8 billion to expand empire in the UK: 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 Ikea, Evri, ZigZag, Fastn, Roblox, Shopify, Target, Carter, and Iceland.
$6 million…DELLI, an online platform for independent food and drink founded by Depop alumni Marie Petrovicka and Simon Beckerman, has announced a $6 million seed extension fronted by Balderton and HV Capital.
Petrovicka says: “We see a mega trend in the way food is consumed. Buyers are stepping away from overprocessed, mass produced food to small batch, independently made products. They want to discover new food with a story behind it.”
“With DELLI, we are excited to continue giving space to these makers and building a platform that will give buyers easy access to the new generation of unique and independent sellers, making shopping for food inspiring and fun.”
“On the seller side, we are developing tools that allow the small batch producers to start and grow their business and connect with buyers in an easy way, helping overcome some of the big roadblocks they face in the current system dominated by supermarkets. We can’t wait to bring more real food to more people all across the UK.”
100…Ingka Group, the largest Ikea franchisee holding company, has joined Partnership on AI (PAI), a new international organisation of 100+ partners, including companies such as Apple, Microsoft, Google, as well as nonprofits like Amnesty International and Human Rights Watch.
Ikea will contribute to conversations around the ethical use of AI, helping ensure that its development is aligned with human centric values and societal needs.
This builds on the retailer’s implementation of a digital ethics framework across the company, focusing on responsible automation that puts people first, and launching an AI and Data Literacy movement to educate its workforce.
Parag Parekh, Chief Digital Officer (CDO) at Ikea Retail (Ingka Group), says: “Our participation in this partnership reflects our belief that AI has the potential to enhance our mission of creating a better everyday life for the many, while helping address some of the most pressing challenges facing society today, from climate change to resource management.”
“This includes leveraging AI for good to drive positive, long lasting change. We are committed to this journey for the long-term.”
£8 billion…AWS, the cloud computing powerhouse driving Amazon’s growth, is expanding its empire in the UK.
It’s planning to invest £8 billion to maintain and operate datacentres in the UK as part of a five-year programme.
Susannah Streeter, Head of Money and Markets, Hargreaves Lansdown, says: “This announcement will be music to the ears of the government, which pledged to work with the private sector to increase investment in the UK and help boost the economy.”
“These centres will form part of the backbone of the AI revolution, as models need huge pools of reliable data to work effectively. With this the new wave of AI demand, computing power is a hot commodity. This deal, which will be a small part of the spending pie, demonstrates that it’s not cheap to keep building out the new infrastructure to service rocketing demand.”
“Investment is set to ramp up over the coming quarters and that is starting to have an impact on profit guidance. Revenue must keep accelerating for the huge sums being spent to be worth it.
50…Ahead of London Fashion Week, parcel delivery company Evri celebrated its 50th anniversary by revealing the latest fashion retail insights and taking a nostalgic look at top trends over the past five decades.
Based on data from the parcel deliveries it fulfils for fashion brands including M&S and John Lewis each year, the research reveals that, as the UK’s shopping habits have transformed, so too have the trends that define each era.
The news comes as data from Evri reveals that in spite of the higher cost of living after groceries (62%), fashion (40%) and footwear (27%) are now priority purchases in the UK.
Top influences on our spending decisions are value led with us being easily influenced by those we speak to and follow online.
· Price (60%)
· Voucher codes (27%
· Word of mouth (25%)
· Social media (24%)
· Shop windows and in-store promotions (20%)
In terms of how we shop for fashion, on average Brits are now visiting the high street 70 times a year, and shopping online annually 60 times.
For 46% of Brits they are visiting stores to try on items before they buy online, however we are an indecisive nation as 21% of items bought online are then returned.
11…Target reports that its 11th sortation centre is now open in Detroit. The new facility is ready to serve more than three million consumers, and is expected to process up to 60,000 packages a day by 2028.
Gretchen McCarthy, Chief Supply Chain and Logistics Officer at Target, says: “Our Detroit sortation centre will retrieve packages daily from 30 to 40 local stores; then sort, batch and route these items for delivery to local neighbourhoods - either by a local delivery driver or a third-party carrier.”
“I am so proud of our team at Detroit T-3886 - and our entire supply chain team - for their dedication to delivering a seamless guest experience. Team, congratulations on this latest milestone and for all you continue to do to expand our network to better serve our guests nationwide.”
53%…The 2024 Digital Consumer Insights Survey issued by Carter in partnership with Ipsos, looked at how consumers interact with online platforms, and their perceptions of data privacy, and found that 53% of online shoppers say they are familiar with what they are agreeing to when they accept cookies.
A total of 1,000 Americans were surveyed for this.
Highlights:
66% of online shoppers typically accept cookies, with those ages 18-34 being most likely to accept them (79%)
24% of respondents are influenced by personalised advertisements when shopping online, including 34% of those online shoppers being ages 18-34, and 33% being weekly online shoppers
Primary reasons for accepting cookies include: access to full online features (53%), enhanced user experience (43%), remembering login information (34%), and personalised content (27%)
58% of respondents are familiar with what data is being collected by companies online through cookies, with weekly online shoppers being more knowledgeable at 66%. However, only 15% of people are very familiar with the data companies are collecting
6,929…The Campaign Against Living Miserably (CALM) and Iceland Foods Charitable Foundation (IFCF) have unveiled an installation of 6,929 birthday balloons in Westfield shopping centre, marking the missed birthdays of young people lost to suicide.
Suicide is now the leading cause of death for young people aged 15-24 in the UK, with data revealing that two fifths of those people aged between 18-34 have experienced a mental health crisis or suicidal thoughts over the past five years.
Earlier this year, Iceland Foods Charitable Foundation pledged £300,000 in funding which could help CALM have over 37,000 life saving conversations via their helpline –and now the retailer has donated an additional £350,000 and joined forces with CALM for the aforementioned installation.
The Missed Birthdays installation at Westfield White City, London, marks the launch of a new report from CALM which reveals that only 20% of parents and adults in the UK have discussed suicide with children aged 16-23.
£3.4 million…NOQ Group, a software provider in the events sector, reports the closure of a £3.4 million funding round, bringing the company’s total funding to £5.1 million.
NOQ Group says that it is redefining how festivals and events manage multiple vendors, payments, and data. Its platform integrates into the event ecosystem, offering features like real-time data intelligence, vouchers, loyalty programmes, multi-network payment coverage, and offline transaction capabilities.
From mobile ordering via progressive web apps to kitchen display systems (KDS) and split revenue functionalities, NOQ’s suite aims to address the complex needs of modern event organisers.
€12 million…PastPay, a provider of B2B payment solutions, has announced a €12 million Series A funding round led by Platina Capital.
Currently, PastPay operates in Central and Eastern Europe (CEE), including Italy, Germany, Poland, Czechia, Slovakia, Romania, and Hungary, with expansion plans to other EU markets.
The funding round also includes participation from several financial institutions, including MBH Bank, Advance Global Capital, Quantic Financial Solutions, STRT and BNL Start Partners, as well as a number of private investors, such as Jared Schrieber and Mark Ransford.
PastPay will utilise the cash to expand its current offerings.
$AU165 million and $AU2.5 billion…SafetyCulture reports an $AU165 million round, giving it a valuation of $AU2.5 billion. This was led by Airtree Ventures and is the largest initial investment the venture capital firm has made.
SafetyCulture’s Founder and CEO, Luke Anear, says: “We are excited about the opportunities the round creates for us to accelerate our growth and help even more customers.”
“It’s a tough environment to be raising in, but we’re proud of the results the business is delivering and pleased that we can continue to create regular liquidity events for early investors and long-term employees.”
The funding round follows the launch of a workplace operations platform in October 2023, which introduced new capabilities in training, asset management, sensors and IoT functionality.
33%…ZigZag has taken a look at the returns policies of the UK’s 130 largest retailers, finding that 33% now offer a paid returns policy - up 17% year-on-year.
Other insights from its report include:
Returns windows are seasonal - 68% stick to a 28-30 day window, and 42% extend this in peak season
Portals are the standard - only 1% use label in the box as returns portals dominate (58%)
Convenience is key - 82% of retailers with 20+ stores offer return to store, and 62% of retailers now offer three or more carrier services in the returns process
Retailer spotlights - how New Look and Next managed the transition to paid returns
This has already meant that the shipping industry has had to work throughout the traditional summer lull to move goods from China and other parts of South-East Asia to the UK and Europe.
Retailers are concerned that the traditional peak pre-Christmas shipping period could be disrupted as the shipping industry strains to deal with the closure of the Red Sea. They are also trying to get goods shipped in case volatile shipping rates suddenly start moving higher again.
Disruption caused by the Red Sea attacks on shipping have led to a massive increase in shipping costs – the Drewry World Container Index (WCI) is up 270% since the start of the crisis from $1389.5 (Oct 5 2023) to $5,182 (Aug 29 2024).
Further increases in cargo rates could occur, with analysts predicting that demand for shipping will remain high until at least February 2025 (following Chinese New Year). Potential labour disputes on both the US East and US Gulf coasts could further disrupt supply chains and increase cargo rates.
Typically, retailers would expect goods for the Christmas period after September, but this year they are demanding shipments from suppliers from July onwards. This move has put pressure on suppliers to fulfil pre-agreed orders months in advance.
1…Virtual gaming platform Roblox has its sights set firmly on the e-commerce space.
It has announced a global partnership with Shopify that will allow creators of Roblox experiences, including brands and retailers, to sell physical goods directly within the platform via Shopify’s checkout.
In a LinkedIn post, Harley Finkelstein, Shopify President, says: “It’s official: we are the first commerce integration partner on Roblox. This year we’re piloting integrating our world class Checkout into Roblox, with a larger launch coming in early 2025.”
“Soon, you’ll be able to shop physical products like clothing, accessories and collectables designed by your favourite creators and brands, all within Roblox, powered by Shopify. This means that developers, creators, and brands who are on Shopify can sell directly within their Roblox games.”
$2.6 million…Fastn has announced a $2.6 million seed funding round led by LiveOak Ventures and Antler.
Leveraging AI, the startup aims to simplify the process of composing and connecting modular components, focusing on reusability, adaptability, and observability.
Instead of custom building applications from scratch, businesses can now rapidly compose and connect existing solutions, break down silos, and streamline their technology stacks.
“Each era of application architecture has required a new platform to integrate between components,” says Creighton Hicks, Partner at LiveOak Ventures.
“Composable – or headless – architecture is rapidly gaining mindshare, yet enterprises struggle to adopt it and rely on custom code to connect components. Fastn is uniquely positioned to be this new platform, enabling enterprises to easily adopt composable architecture.”
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