The retail world is in constant transformation, driven by changing consumer behaviors, evolving market dynamics and the relentless quest to improve the customer shopping experience. The outlook in technological innovation for 2024 in the retail industry must continue to advance the digitization of stores, the supply chain and home deliveries.
RFID WILL REVOLUTIONIZE SUPERMARKETS
Its adoption in large-scale food distribution is getting closer and closer. The supermarkets of the future will use RFID technology, which will enable them, through radio frequency, to identify and track products thanks to electronic tags that emit radio signals.
The implementation of RFID electronic tags will serve to manage an establishment in the same way as a stand-alone store, but with the competitive advantage of not having to invest as many resources in the transformation of supermarkets.
New advances in silver nanoparticle ink allow RFID antennas to be printed through an inkjet process, making the cost of the tags extremely low without compromising tag quality.
This new technology offers multiple advantages for supermarkets, both in terms of management and sales. Internally, it facilitates inventory control, product replenishment, loss prevention, traceability and monitoring of the cold chain.
Externally, it improves the customer’s shopping experience by enabling them to pay without going to the cash register, receive personalized offers, access detailed product information and enjoy faster and more convenient service.
The implementation of this type of labels will serve to manage an establishment in the same way as a stand-alone store, but with the competitive advantage of not having to invest as many resources in the transformation of supermarkets.
AUTONOMOUS STORES
The autonomous store concept, along with its practical implementation, is gaining popularity. The global retail artificial intelligence market size is expected to grow from $7.14 billion in 2023 to $55 billion in 2030.
Smart shopping carts, equipped with computer vision technology, are gaining ground within the technological solutions adopted by retail chains
The rise of stand-alone stores is unstoppable. These are stores without cashiers or checkout lines where customers can enter, pick up the products they want and leave, all thanks to automatic recognition and payment systems. This innovative technology not only saves consumers time, but also reduces retailers’ operating costs.
Its popularity continues to grow and, by 2023, we have seen the debut of a wide variety of smart stores across Europe and the US.
Possibly the most significant innovation has been the development of hybrid stores, opening up the possibility of using autonomous or staff-assisted technology to serve customers who prefer to continue to be attended by a person. Another variant of hybrid stores is the Zabka Group’s commitment in Poland, where it has installed autonomous technology in its Nano stores for nighttime hours when there are no employees, thus providing its stores with 24/7 service.
SMART CAR
Smart shopping carts, equipped with computer vision technology, are gaining ground among the technological solutions adopted by retail chains. These carts are designed to help customers find products in the store, offer personalized recommendations, and facilitate the checkout process, providing a more convenient and faster shopping experience.
The global retail artificial intelligence market size is expected to grow from $7.14 billion in 2023 to $55 billion in 2030
To date, we saw this technology as somewhat distant. Amazon was the forerunner with its ‘Dash Cart’ carts in its Amazon Fresh stores and Instacart with its Caper Cart in the US.
Today, Israeli tech companies Tracxpoint in Italy and Cust2mate in France have started their expansion in Europe. Tracxpoint began its roll-out phase with the Conad del Tirreno cooperative after a successful pilot project in Pisa (Italy), with its DAiVI model, which will culminate in 2027. For its part, Cust2Mate has received an order for 250 carts from French retailer Monoprix for immediate delivery and a further 2,000 for Carrefour France in the first half of 2024 for its third-generation model.
In turn, French start-up Knap has started a pilot project with leading French retailer E.Leclerc in one of its stores, implementing 40 smart carts. The number of retailers worldwide adopting this technology is expected to grow by 2024.
rOBoTICS
The incorporation of robots in both store operations and merchandise delivery seeks to optimize the efficiency of processes, from shelf replenishment to home delivery. Robots are playing a crucial role in the supply chain, ensuring accurate and timely deliveries, and assisting with tedious and repetitive tasks.
Amazon has just incorporated Digit humanoid robots from technology company Agility Robotics into its headquarters on a pilot basis to help with container recycling. Digit is not the first robot to be used by the U.S. giant, but it is the first to mimic human movement. It is expected to be incorporated into truck unloading and other more complex activities in later stages.
DIGITAL ASSISTANTS
The implementation of digital assistants, interactive displays, holograms and virtual reality or augmented reality applications is transforming the physical in-store shopping experience.
Consumers can explore products virtually, receive personalized recommendations and enjoy exclusive promotions, all through innovative technologies that enable a more exciting and interactive shopping experience.
Virtual assistants provide customers with product samples, discount offers and coupons, as well as culinary recipes. They not only encourage interaction with products, but also provide culinary inspiration and exclusive promotions, thus encouraging impulse purchases. A clear example of this is the Savings Stations implemented by Ahold Delhaize subsidiary Stop & Shop supermarket chain in the U.S. These innovative Savings Stations, created in partnership with Entrypoint Communications, have been designed specifically to cater to non-digital shoppers.
These kiosks provide a convenient solution for customers to activate and load their digital coupons onto their loyalty card while shopping in-store.
The initiative ties in with Stop & Shop’s vision of making digital offerings accessible to all. Another example is the approach of Wakefern Food Corp, the largest retail cooperative in the United States, which, through multisensory retail media specialist Freeosk, has installed 95 interactive kiosks offering free product samples in selected supermarkets of the ShopRite and The Fresh Grocer chains.
According to Freeosk, its campaigns generate an average increase in sales of more than 50%, with 70% of shoppers new to the brand and more than 20% of repeat shoppers after the campaign.
Freeosk’s interactive kiosks combine in-store merchandising, automated sampling and digital media, creating a multi-sensory experience for customers. They also transform ordinary in-store spaces into discovery destinations for new products and categories.
The future of food retail in 2024 will be marked by the convergence of innovative technologies that will gradually transform the entire shopping experience, from automation to in-store personalization campaigns, whose trends are driving a revolution in the way we shop for food, offering consumers convenience, efficiency and personalization at every step of the shopping process.