Digital transformation journeys and shuttered physical stores: this week's biggest retail technology stories

It's Friday, the weekend is almost upon us, so let’s kick back and reflect on another eventful week for the retail systems space. Here's your briefing on the most important stories from the past few days, including Amazon, Primark, Ikea, Currys, Alo Yoga, Sawhorse Productions, H&M, and Cleveron.

1. Another one bites the dust as Amazon opts to shutter Go convenience store in California

Amazon will next month close its Amazon Go convenience store in Woodland Hills, California.

An Amazon spokesperson told RTIH that it’s being shut down after a portfolio assessment. The store is one of Amazon Go’s more spacious suburban formats.

At its peak in 2023, Amazon operated about 30 of these stores across Washington, California, New York and Illinois. But it has shuttered around half of these locations over the past three years.

2. Primark journey shows digital transformation not about ditching successful business models

Now is the critical moment for Primark to accelerate its digital journey. The convergence of the retailer's enhanced website capabilities, growing digital engagement, and robust store network creates a unique opportunity, argues Matthew Critchley, CEO at Odin Stones and former CMO at Kingfisher.

Primark is positioned to redefine value driven retail for an omnichannel age by leveraging its physical presence while expanding digital touchpoints, he adds.

Critchley made his comments as sales at Primark dropped for the first time since the Covid pandemic lockdowns, with the company saying its low income shoppers had been hit by economic worries.

Owner Associated British Foods (ABF) reported that sales at Primark’s established UK stores fell 6% in the final three months of the year.

Critchley said: "Primark's digital transformation presents a fascinating inflexion point. With 140 million website visits across 17 markets and a 23% global traffic increase, the numbers tell a compelling story: customers are ready for a digitally enabled Primark experience."

"The planned expansion of Click and Collect to all GB stores marks just the beginning. What's particularly intriguing is how Primark has maintained its core value proposition while strategically embracing digital innovation. Their approach to self-checkout technology in a few UK stores demonstrates their commitment to testing approaches to offering customer experience without compromising their cost-effective model."

3. Here's why Jason Buechel has opportunity to design grocery strategy that accelerates Amazon’s growth

Jason Buechel has been appointed to serve as the new leader of Worldwide Grocery Stores at Amazon, while maintaining his current role as CEO at Whole Foods Market (WFM).

"This expanded responsibility gives me an opportunity to look after the collective grocery offering across Amazon Fresh, Whole Foods Market, Amazon Go and Grocery Partnerships - and help move forward our goal of making grocery shopping simpler, faster, and more affordable for customers," he says.

"I’ve never been more excited about the work Amazon is doing to improve the grocery shopping experience for customers, and can’t wait to dig in further. Having a team of amazing leaders like Claire Peters and Anand Varadarajan will only help propel this effort. I’m grateful for their partnership and everything they do for our teams and customers."

He adds: "Customers are increasingly turning to Amazon for their grocery and everyday essential needs because of our unmatched selection, great prices, and convenient shopping options - be it fast delivery, easy pickup, or enjoyable in-store shopping. We still have more work in front of us, but I’m energised by our progress to date and excited about the continued invention that’s ahead."

4. London calling as Reckon.ai preps launch of first autonomous microstore with Ikea

Reckon.ai reports that its first autonomous microstore in partnership with Ikea is about to open in London.

In a LinkedIn post, Ana Pinto, CEO at Reckon.ai, said: "By streamlining customer access to Ikea products, optimise inventory management, and boost efficiency - food service revolution is there and our technology is ready to support. Stay tuned for this super launch and new stores, close to you, are coming too."

Pinto did not respond to RTIH’s request for comment re. the exact store in London and the opening date. We will update this article as soon as this information is available to us.

5. Currys tests out in-store QR code powered 'want to know more?' experience for product browsing

Currys has launched a pilot of an initiative the retailer intends to bring to market across its stores, a QR code enabled “want to know more?” experience that customers can trigger on their smartphone as they’re browsing products.

In a LinkedIn post, Dan Rubel, Brand & Marketing Director at Currys, said: "I believe this will be a gamechanger for us. I can’t believe we didn’t do it like this earlier. Mimic the in-store shopper experience by clicking here for yourself.”

"For nearly every piece of tech we sell, our physical fixtures don’t have enough space to wax lyrical about everything that tech can do. We skim the surface and that will become even more of a reality as AI becomes ever more embedded in the tech we buy. Sometimes customers want to know more than the fixture can tell them, but they’re not quite ready to chat to an expert colleague."

He added: "So Ainsley Sykes (Head of Commercial Initiatives at Currys) and his crew have grabbed hold of that challenge and smashed it to pieces with a blend of old and new tech.”

On triggering the QR code, shoppers will experience a social inspired dramatisation of the product’s key benefits (short sharp vignettes, using motion graphics or video). The content aims to be easy to skip through (bearing in mind that people are interested in different things) and with links to deeper detail for those who need that. And in the future there will be an AI fuelled chat function enabling customers to ask specific questions.

6. Alo Yoga and Sawhorse Productions bridge digital and physical worlds with immersive space on Roblox

Sawhourse Productions has announced a refreshed Alo Yoga Sanctuary experience on the Roblox platform.

In a LinkedIn post, it said: "This dynamic, immersive space brings mindfulness and movement to millions of users, offering a unique way to recharge and focus on wellness"

"But here’s the game-changer: We’ve bridged the digital and physical worlds like never before. Roblox users can now visit one of Alo’s 150+ global retail stores, scan an NFC enabled sticker, and unlock exclusive virtual rewards. This innovative activation - created with our friends at POAP Studios - sets a new standard for how brands engage communities across both virtual and real-life spaces."

7. Revamped H&M store in Stockholm, Sweden gets Cleveron 302 parcel locker for Click and Collect orders

Cleveron reports installation of the Cleveron 302 solution from its indoor parcel locker range in H&M’s newly transformed store on Drottninggatan 56 in Stockholm, Sweden.

In a LinkedIn post, Cleveron said: "This store is truly where fashion and technology unite to elevate the customer shopping experience. You can enjoy smart fitting rooms alongside our stylish parcel locker, making it easy and fun to pick up your Click and Collect orders."

It added: "Together with our partners, we’re shaping the future of retail by combining convenience and style in one destination. For Cleveron and H&M, it is not just about innovation - it’s about creating an experience worth remembering."

8. AI powered in-store audio and retail media specialist Qsic bags $25 million in Series B funding

In-store audio platform, Qsic, has closed a $25 million Series B funding round led by Hedosophia.

That brings the total raised to date to $31.7 million.

Powering in-store audio and retail media for retailers and QSRs like 7-Eleven, Coles Express and McDonald's, the company currently reaches more than 100 million shoppers at the point of purchase monthly, with more than 70,000 speakers set to deploy across North America over the next year.

The funds will be used to support the expansion of its AI powered in-store audio platform into new retail locations, accelerate product development and scale its sales team. 

9. Stadium ramps up use of Mirakl Ads retail media solution as sports retailer expands to Finland and Sweden

Scandinavian sports retailer, Stadium, is tapping Mirakl  Ads,  a retail  media  solution  by  Mirakl  that  is  optimised  for  both  first-party e-commerce and third-party marketplace assortments.

Building on the Stadium Marketplace powered by Mirakl,  this  new integration harnesses AI driven personalisation.

After being live for three months with the solution, the retailer is stepping up its use of Mirakl Ads by expanding to Finland on top of Sweden and is planning to launch display ads in addition to sponsored products.

10. PepsiCo and Wing partner to deliver snacks to customers in Frisco, Texas over Super Bowl weekend

PepsiCo and Wing (Alphabet’s drone delivery company) are taking to the skies for Super Bowl weekend to deliver a free snack pack via drone to fans. 

On 8th-9th February, the PepsiCo Party Pack will include Doritos, Tostitos dips, and two 12 oz cans of Pepsi Zero Sugar to fans in Frisco, TX. Customers can order through the Wing app while supplies last. 

The company delivers items in less than 30 minutes with automated, all electric drones that fly 65mph.