Rise of e-commerce fraudsters and thrifty consumers: the retail technology week in numbers

Do you like numbers? Do you like retail systems news? Then this is the article for you. Including Forter, PwC, H&M Group, Lidl GB, Wonder, REWE Group, Reckon.ai, Zapp, M&S, Ocado, and the RTIH AI in Retail Awards.

16.3%...Ocado Retail has reported significant growth in the first half of 2025.

Aliyah Siddika, Retail Analyst at GlobalData, says: “Ocado Retail has had another strong start to the year, as retail revenues accelerated on an already impressive comparative period. Strong growth in customer acquisition and retention fuelled this performance, highlighting a commitment to enhancing customer experience."

Ocado reported a 16.3% increase in retail revenue for the 26 weeks ending 1st June 2025. This performance exceeded the UK food and grocery online growth forecast of 7.5% for the first half of 2025, as projected by GlobalData, suggesting that it has gained significant market share. It has announced an increase in profitability, with an adjusted EBITDA of £33.3 million for its retail division.

This figure represents a £12.6 million rise compared to the previous year, which, alongside profit growth in Ocado’s other operations, drove Ocado Group’s share price up by over 13% in early morning trading on Thursday. Despite rising inflation at the beginning of the year, Ocado Retail has managed to keep costs down by implementing and enhancing technologies such as ‘tote-fill rounding’ to optimise decanting products, which have optimised storage efficiency and enhanced productivity.

Siddika says: “A key factor in Ocado Retail’s success last year, which is continuing into this year, has been its focus on customer acquisition and retention. The online grocer has seen a 14.7% increase in average weekly orders, reaching 491,000, thanks to a 13.4% rise in active customers and a 12.4% growth in mature customers (those who have placed five or more orders)."

"Promotions like 25% off the first order and three months of free access to the Ocado ‘Smart Pass’ have effectively encouraged repeat business. Ocado’s exclusive partnership with Marks & Spencer also remains a crucial factor in its appeal to customers.”

“However, Ocado is not solely relying on this exclusivity as it has also expanded its selection of smaller brands such as Hip Pop, Clonakilty, and Better Nature, all of which have expanded their product ranges at Ocado this year. This variety helps keep customers engaged and encourages them to explore new options."

“Price has been less of a focus for Ocado this year, with no visible extension of its pricing strategies, such as its ‘Big Price Drops’. While these strategies have successfully enhanced the grocer's value perception, it is crucial for Ocado not to become complacent.’

“Continued investment in price management is essential, as pricing remains a top concern for consumers. In the first half of the year, Ocado’s average selling price rose by 1.4%. Although this increase is lower than the UK grocery inflation rate of 3.1%, there is room for improvement, as it is only 0.1ppts below the average selling price for the first half of 2024.”

1.8 million...M&S reports that its Sparks loyalty scheme is now fully back online and will feature a range of ‘thank you’ treats and rewards, following a hugely damaging cyber attack.

Customers will find a range of rewards across Fashion & Home appearing in their Sparks hub. And the Coffee Stamp scheme will soon be reinstated across M&S Café’s in the UK, giving those who have collected their six stamps a free coffee in their Sparks Hub to redeem during their next visit.

The retailer will be dishing out over 1.8 million birthday treats to those celebrating their birthday this month, as well as a belated birthday treat for customers who had celebrations in May or June. People will be able to choose between one of two of M&S’ Food products; these could include Percy Pigs or a Swiss Truffle Assortment Box, a Bouquet of Flowers or bottle of Prosecco, a punnet of grapes or a packet of Outrageously Chocolatey Round Biscuits.

5...A report launched this week by Forter and PwC reveals major new emerging fraud trends for e-commerce companies.

While returns fraud holds its position from last year as the most prevalent risk, new emerging threats gaining traction in 2025 include: 

  1. Remote access attacks – A type of cyber attack where an unauthorised individual gains access to a computer or network from a remote location. Forter recorded an 8% increase in remote access attacks during the 2024 Black Friday/Cyber Monday period compared to 2023.

  2. Card testing – A fraudster tries to determine whether stolen card information is valid so that they can use it to make purchases. This attack fraud type predominately affects low-value transactions and is commonly seen in crowdfunding or charitable sectors, digital goods, food delivery services and subscription services.

  3. Fraud attacks on QSRs or fast-food restaurants – Attacks on QSR platforms surged by 45% from 2023 to 2024. Over 85% of fraud attempts on QSR sites involve returning fraudsters.

  4. Loyalty points fraud – This occurs when individuals exploit loyalty programmes, either stealing points, manipulating transactions, or creating fake accounts to redeem rewards. Accounts involved in loyalty programmes face four to five times higher rates of attacks compared to regular accounts, and those holding stored value or points are six to seven times more vulnerable to fraud.

  5. Fake accounts – This involves the creation and use of fraudulent accounts on platforms such as social media, financial institutions, e-commerce sites, and other online services, with the intent to commit fraud. Forter’s data indicates that 90% of fake accounts on digital commerce platforms are often created by a small subset of disciplined fraud users.

13.8K...Sun Bum reports that last week a soft launch of its rediem powered brand community The Bum Club got over 13.8K consumers to join.

Rather than focusing on transactional relationships with customers, Sun Bum says it is building an authentic offering by rewarding customers for living by their values. 

This means getting points for the likes of: Taking a selfie wearing SPF; Educating yourself about skin cancer prevention; Texting a joke to Sun Bum’s mascot, Sonny; Participating in quirky challenges like “Find the Banana” scavenger hunts; And even doing nothing (people can press a “do nothing” button and earn rewards).

So far, the company has seen: Over 1,000 pieces of organic UGC; Accelerated SMS list growth 4x above the brand’s weekly average; 85% completion rate on the profile sequence, driving 10K worth of zero party data points in less than a week; 77% engagement rate in challenges, such as "do nothing".

£12,999.99...Zapp, a London-based delivery app, is now stocking Beluga Epicure Series II by Lalique vodka, priced at £12,999.99. This is claimed to be the most expensive spirit ever made available for on-demand delivery in the UK.

Dan Whine, Head of Fine Wines & Spirits at Zapp, whose investors include Lewis Hamilton, Lightspeed, Atomico, BroadLight Capital and Vorwerk Ventures, says: “Beluga Epicure Series II is one of the most sought-after vodkas in the world and exactly the kind of extraordinary product our customers expect from Zapp.”

“We’re known for curating a distinctive, premium collection you won’t find at traditional retailers and we’re proud to offer this collector’s piece, delivered in minutes. It’s testament to our commitment to making rare and exceptional products instantly accessible.”

7...Linda Leopold is leaving H&M Group where she spent the past seven years, most recently holding the role of Head of AI Strategy.

She will now focus on being an independent strategic advisor, writer, and public speaker.

In a LinkedIn post, she said: “This summer, I'm wrapping up a seven year chapter with H&M Group and starting something completely new. These have been remarkable years – not only being part of shaping the company's efforts in AI, but also witnessing the rapid evolution and adoption of AI as a technology. I'm particularly proud of establishing H&M Group's Responsible AI programme from the ground up, and contributing to how the field has matured globally.”

23...REWE Group has opened its 23rd REWE To Go smart store, situated at the Stuttgart University S-Bahn station in Germany.

This serves the university's Pfaffenwaldring campus in the Vaihingen district.

In a LInkedIn post, Mehmet Tözge, Director Smart Store Development at Lekkerland SE, said: "Customer preferences have changed. End consumers want to shop 24/7 and quickly. We develop smart stores to meet the evolving expectations of end consumers.”

The store is equipped with the smart fridges from Reckon.ai. Stüwer and Gerhardt Automat are also technology partners on the project.

The assortment of the location, which is around 25 square metres in size, includes more than 130 items, including sandwiches, wraps, salads, sweets, snacks such as chips, drinks, coffee specialties and tobacco products.

1...The entry deadline for the RTIH AI in Retail Awards has been extended by one week. Deadline for submissions is now Friday, 25th July. It's free to enter and you can do so across multiple categories.

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Wednesday, 3rd September.

This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.

Please email our Editor, Scott Thompson, if you have any questions or need further information: scott.thompson@retailtechinnovationhub.com

64% and 70%...UK consumers' main driver when making a purchase is price, with older consumers the thriftiest. 64% of shoppers buy the cheapest product when deciding what brand to buy, with 70% of over 55s most influenced by price. 

The quality of the item is the second most influential factor, followed by earning points and cashback when choosing which store to buy from.

These findings come from new research from digital gifting platform, Prezzee, which surveyed 5,000 Brits.

It asked consumers what would increase their loyalty and the categories where customers were most influenced by cheaper standard pricing were food, technology and fashion. Increasing prices was a strong factor in reducing loyalty to a product, with 38% considering other brands when prices increase.  

Subscriptions are also heavily influenced by price, as cost was the main factor with 44% of respondents choosing the cheapest contract possible when renewing a service, more important than receiving a £100 voucher (31%).  

4...Lidl GB is gearing up to launch a trial in four stores of a new self-scanning mobile app feature.

In a LinkedIn post, it said: “We’re building retail innovation into the heart of the Lidl experience. This September, we’re launching a new self-scanning feature within the Lidl Plus app - part of our ongoing investment in technology to make shopping easier, faster, and more flexible for our customers.”

People will be able to scan as they shop, track spend and savings in real-time, and checkout faster via self-service. This is  launching first through a friends and family trial across four stores – with a full roll-out to follow next year.

“This isn’t a one off update. It’s the next step in a much bigger plan,” Lidl GB said. “From self-checkouts to loyalty led digital tools, we’re rethinking the entire in-store experience - and investing for the long-term to bring our customers more choice, more control, and more convenience.”

$17 million...Datavations, a New York-based data and AI powered intelligence provider for the building materials and home improvement industries, has closed a Series A funding round, securing $17 million in new equity capital.

This was led by Forestay Capital, with participation from Morpheus Ventures, as well as existing investors Sage Venture Partners, Nevcaut Ventures, and board member Jay Steinfeld. Additional backers include Rusty Reed, former CFO of Procore Technologies, and Travis May, founder of LiveRamp and Datavant. The investment brings Datavations’ total funding to date to $27 million.

The Series A round will enable the company to accelerate growth across all fronts by scaling its team and advancing product development. The cash will also support expansion across North America and help deepen relationships with clients.

Its platform, powered by advanced machine learning and AI, provides manufacturers with a data driven approach to better serve customers and grow their relationships with key accounts. By simplifying massive datasets into actionable business insights, it says it helps businesses make decisions to optimise pricing, inventory, and product assortment.

$1.8 million...Dublin-based Jarvio has raised a $1.8 million pre-seed round as it looks to build the future of Amazon selling, powered by AI.

This is backed by Darius Cubed, Baseline VC, NDRC, Enterprise Ireland, an Accel scout, and angels from the likes of Amazon, Wayflyer, Target, Meta, MongoDB, J.P. Morgan, and Fexco.

£500,000...Inntelo AI, a UK-based startup, has raised more than £500,000 in pre-seed funding to support the launch of its AI Concierge platform.

Led by venture capital fund Haatch and partner British Business Bank, with participation from Look AI Ventures, the cash will be used to support Inntelo’s commercial growth.

Inntelo says multiple hotels, including properties owned by Radisson and Wyndham, have adopted its platform, which uses conversational and agentic AI to improve the guest experience. It automates guest enquires made via WhatsApp or phone and converts the requests into coordinated tasks. This improves team responsiveness across departments including housekeeping, maintenance, food service, spas and other services, it is claimed.

53 and 54...Wonder, a food delivery and technology startup founded in 2018 and fronted by former Walmart U.S. eCommerce executive, Marc Lore, has opened its 53rd and 54th locations in the US.

In a LinkedIn post, Tong Hoggett, who left Amazon and the position of SVP Worldwide Grocery stores to join Wonder as CEO, said: "Great energy with the team at our new Wonder DC launch! Thank you for your hard work, and huge congrats on the milestone! Big shoutout to our Delaware team too, who welcomed their first customers this week. #53 & #54 More openings coming thick and fast!”

Lore has described the venture as a kind of "Amazon for food and beverage". The aim is to revolutionise the food and restaurant space by building a super app for mealtimes, one that blends food delivery, AI powered nutrition, and smart tech.

The company recently bagged $600 million in a funding round backed by Google Ventures, for a post-funding valuation of $7 billion.