The ever-evolving landscape of retail technology, including AI, retail media, robotics, automated checkout and traditional platforms, is a significant driver of change in grocery retail. There’s no slowing down in the pace of innovation in this area as retailers use technologies to streamline and simplify how they operate, and to create new shopping experiences. We’ve highlighted five initiatives our global team have spotted this year.
South Korea: virtual fridge for promotional purchases
South Korean convenience retailer GS25 has a feature in its app called ‘My Own Refrigerator.’ This acts as a storage service for shoppers. In GS25 and other Korean retailers, 1+1 promotions are common, which is the same concept as “buy one, get one free.” When shoppers purchase items as part of a 1+1, or “Buy One, Get One Free” promotion, shoppers can choose to either take both items with them, or just take one and store the other in their “refrigerator” in the app. They have up to 60 days to claim the second item that is stored in their app; they don’t need to purchase anything else in store. They can simply pick up the product, scan the barcode from their app and walk out with their pre-paid for item.
Singapore: teleconsulting drugstore vending
FairPrice, based in Singapore, has introduced drugstore vending machines that enable users to speak with a pharmacist. The unit offers over-thecounter and prescription drugs, with a teleconsultation mandatory for the latter. During the consultation, a virtual pharmacist can view the shopper and verify details before providing a prescription. Several cameras ensure the correct drug is selected, with the pharmacist also visually verifying the drug before releasing it to the shopper.
The Netherlands: scanning for the best avocado
Dutch retailer Jumbo is testing scanners for avocado within several of its stores. The solution, provided by tech company One Third, uses AI to determine if a product is ripe. This has driven an increase in sales while also aiming to reduce food waste. Previously, shoppers would squeeze the fruit to determine its ripeness, often causing damage. Further development of this technology includes using the scanner to determine the ripeness of other fruits such as mangos.
Thailand: integrating customer service into messaging app
GO Wholesale in Thailand provides a fish-cutting service at its seafood counter. This can often be a busy area as shoppers view the different products and wait for their items to be prepared. To overcome this, it has introduced a queue system that sends a message on Line, a popular messaging app in the country, to shoppers when their fish is ready for collection. This helps to save shoppers time and prevents congestion around the counter.
Germany: AI-based age verification at checkouts
The Edeka Jäger store at Stuttgart Airport is using AI-based technology for age verification on its self-checkouts.
When customers scan age-restricted items, the tech provider’s (Diebold Nixdorf) software automatically determines the customers’ age. The store features five self-checkouts, all with integrated cameras. If an age check is necessary, a photo is taken of the shopper and algorithms use AI to analyse their facial features and estimate their age – which takes a few seconds. The photo is then deleted for data protection. In 80-90% of cases, staff intervention isn’t necessary. To avoid misuse at this 24-7 location, the technology is not used when the store is operating without staff (between 10 p.m. and 6 a.m.). During this time, those over 18 can still purchase “light alcoholic drinks” (e.g., beer and wine) by scanning their ID card.
Stewart Samuel is Director of Retail Futures at IGD [email protected] | igd.com
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