Pricing

Timing is everything and ‘your newest team member’ is right on time!

Lan Nguyen, Marketing Manager, Bossa Nova Robotics

With AI and data from your newest team member, retail work has never been easier. Bossa Nova, a leader in creating autonomous service robots for the global retail industry, tracks inventory plus store and shelf conditions in real-time. Its solution delivers data with speed and accuracy. By reducing inventory time, Bossa Nova is able to provide real-time data for stock levels with improved accuracy. So how does this translate to a financial gain for retailers? First, by automating mundane tasks, employees are happy and happy employees make a happier retail environment. You might wonder how many hours are spent on mundane tasks such as inventory audits.  There are 30,098 items in the average grocery store. A typical Target store has around 80,000 SKUs and a Walmart supercenter sells up to 120,000 items. It takes about 20 human hours to audit 10,000 products. Following this logic, an average grocery store would require over 60 hours per store,  160 hours per store for Target, and a whopping 240 hours auditing shelves at a Walmart Supercenter. It’s easy to see how grocery stores following the recommended minimum quarterly inventory schedule forfeit a high proportion of human working hours to this task. For those that audit monthly, the labor costs are even more tremendous.   Bossa Nova helps retailers automate these inventory audits and monitor shelf-conditions in parallel, scanning an 80 linear foot aisle in 90 seconds with 98% accuracy. Through automation, employee focus can be shifted to more action oriented, customer-centric tasks, while the Bossa Nova robot detects anomalies in shelf conditions, covering everything from addressing out of stock and misplaced items, to pricing, and more. This shift in employee focus to the customer directly translates to higher shopper satisfaction and increased loyalty. It is estimated that out of stocks cost retailers over $129 billion in lost sales in North America - a loss of -4% of revenue annually. (the cumulative worldwide cost of out-of-stocks for retailers has now reached over $984b) A study conducted by MIT Supply Chain Management Research determined that 78% of products that are not on the shelves (i.e out of stocks) are actually on-hand. Given this, a majority of out of stock issues can likely be resolved in-store. Inventory replenishment is critical to success, and those tasks need to occur at store level. Having the right products in the right place when consumers are looking for them (both online and in-store) allows sales to escalate and deliver a sales velocity that makes the most effective use of each square foot of space. Bossa Nova is committed to maximizing this efficiency by gathing  reliable, real-time data that delivers task oriented, actionable items. Efficient inventory control improves speed to shelf by alerting store-level associates of inventory on hand, as well as buying desks / suppliers of true OOS situations. Through computer vision implementation, retailers can accurately assess, and more importantly, address in-store conditions in real-time, across all locations. Real-time accuracy is not only important to retailers, but it is also important to your shoppers. By having accurate inventory, confidence thresholds for item availability can be increased for both in-store and online shopper inventory inquiries. In fact, 81% of shoppers do research online before visiting a physical store for what they want to buy, yet only 27% of retail sites provide store level inventory. When the robot “wheels” into your stores, you will be saving intensive labor hours and improving your store conditions with unmatched accuracy. Bossa Nova has the credibility and experience to help retail operations realize the return on investment and successfully integrate with existing platforms and systems. There are two popular sayings that really affect your bottom line: “Timing is everything”, and “Time is money”, and in business, money really is everything. While many technology companies are still working to surmount the bell learning curve of applied technology, Bossa Nova is equipped with extensive retail experience and has been trusted by operations and IT professions to successfully integrate and lead this huge step in retail automation. With accurate inventory management, you can increase your revenue potential and more accurately can forecast the future. +MORE

AI Powered Promotion Optimization

CART

Artificial intelligence (A.I.) is tailor-made for high SKU count, high transaction frequency supermarket retail. The insight and recommendations that A.I. provides can help retailers drive significant top line sales gains without increased promotional cost. In the high- volume, low-margin supermarket industry, where even slight improvements can deliver considerable increases to bottom line profitability A.I.-powered promotion optimization is nothing short of transformative. +MORE

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Artificial Intelligence Product, Price & Assortment Optimization

Daisy Intelligence Corporation

Use the power of A.I. to make the optimal choices clear. Measuring grocery and retail data is a highly complex and tedious task. The changing and dynamic relationships between your products and customers in addition to the effects of pricing and promotions make understanding and leveraging all this data humanly impossible. Daisy does what humans can’t. Using our focused artificial intelligence (A.I.) and proprietary mathematic solutions Daisy turns impossible big data problems into actionable decisions. We analyze very large quantities of our clients’ transaction and operational data in order to provide weekly promotional, price, and forecasting recommendations which our clients can use to grow total sales basket size, improve margins, and delight customers. Daisy provides more than tools and dashboards, instead Daisy provides you with actionable insights that are proven to help you make more profitable decisions and compete in the new world of retail. Daisy turns your underleveraged data into your most profitable asset and source of competitive advantage.  Why Daisy? Outputs are specific, actionable recommendations to core merchandising decisions – not charts or tools A.I. is self-learning and adaptive -perfect for the dynamic world of retail Outputs are optimized to bottom-line/top line performance No hardware/software to install – up and running in 30-60 days Without a doubt, Daisy has driven a meaningful lift in basket size and trips without any additional margin cost – Scott Little, CFO Earth Fare Read the case study with Earth Fare here to find out more! http://www.advancingretail.org/resources/AI-Powered-Promotion-Optimization +MORE

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Robots for Retailers

Bossa Nova Robotics

It is estimated that out-of-stocks account for -4% loss in revenue, not to mention the possible long-term effects of losing loyal shoppers. Great shelving conditions can lead to great shopping experiences. Bossa Nova is the leading developer of robots designed to provide real-time inventory data for the global retail industry. Our retail service robot autonomously tracks inventory and the true state of in-store conditions to seamlessly deliver actionable tasks benefiting retailers through efficiencies and accuracy.   Ensure implementation and maximize operational efficiencies by relying on the retail experience and expertise of Bossa Nova. Our trusted team makes it work for all retailers - helping them turn real-time data into actionable tasks and insights.  Real-Time, Accurate Inventory Data Product Availablity with Efficient/Actionable/Timely Replenishment Real-time Corrective Actions to Remedy Merchandising, Pricing and Promotion Compliance  +MORE

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CART Weekly Report 4/4/19

CART, Advancing Retail

MCDONALD’S ACQUISITION OF DYNAMIC YIELD TELLS US ABOUT DIGITAL TRANSFORMATION | ZDNet Gary’s Take: McDonalds is getting into the customization and recommendation game with its recent acquisition of Dynamic Yield. The idea is that McD’s will customize the menu in realtime based upon weather, time of day, food trends, and more. While a step in the right direction, where McD’s should be looking is personalizing the menu based on the individual customer in front of it at the drive through or at the self-ordering kiosk in store. Contextual relevancy is what’s called for in the Age of ‘I’ - it’s all about tailoring the experience to the individual customer.  WITH FACIAL RECOGNITION, SHOPLIFTING MAY GET YOU BANNED IN PLACES YOU’VE NEVER BEEN | CNET.COM Gary’s Take: The use of facial recognition is exploding, increasingly used by governments around the world, and also used by retailers. This article calls out the use of facial recognition for identifying shoplifters; once a shoplifter has been caught in one store, digital cameras across all the retailer’s stores can be watching for the same person. We are already seeing a growing use of the technology related to payment and there are more applications coming, especially around identifying customers (repeat shoppers, etc.). AMAZON CUTS MORE PRICES AT WHOLE FOODS | WSJ Gary's Take: I think the more interesting question is what happens at Whole Foods when Amazon goes stealth, unleashing its recommendation technology on the vast repository of (Prime) customer identified transaction data it is accumulating at WF and personalizing promotions and pricing to the individual customer? Kroger has leveraged personalization to great impact over the past decade. Amazon / Whole Foods is positioned to take the strategy far beyond what even Kroger is doing because Whole Foods is not reliant on brand manufacturer marketing funds like traditional retailers are. WHERE ARE GROCERS FAILING ON IN-STORE EXPERIENCE? | RetailWire Sterling’s Take: Getting in and out isn’t necessarily mutually exclusive with positive human contact or visually appealing displays. I do think that speed is a necessary condition for most stores and not every retailer needs to be a Wegmans. But there’s strong competition in some markets and coming soon to others that necessitates grocers take a step to compete.  WHICH DATA SOURCES SHOULD BE DRIVING PERSONALIZATION? | RetailWire  Sterling’s Take: Time-relative consumer feedback/requests really should be #1. How can you be more relevant than that? But I don’t think this is just about data sources. It’s about the quality of the personalization. Making two or three segments for offers is far different “personalization” than a more advanced AI that customizes offers and even prices for everyone. I’m with Nikki here that all of it is a value prop — if there’s enough perceived value, consumers will engage and respond. FEATURED BLOG OF THE WEEK:  SMARTER, FASTER RETAILING WITH ARTIFICIAL INTELLIGENCE, Guest blog by Ed Porter, VP – Customer Insights and Product Strategy Pristine Infotech HAPPENINGS CALL FOR PRESENTERS FOR VR/AR ASSOCIATION RETAIL & eCOMMERCE MAY WEBINAR DISRUPTIVE LEADERSHIP & THE SELFCARE REVOLUTION​, Boston Immersion Event Apply to present at Retail Tomorrow Labs: Boston - Applications due June 15th, 2019 SPRING 2019 RETAIL INNOVATION PITCH EVENT, hosted virtually on May 23, 2019 Get on the Inside - CART Community FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>> Your growth engine into retail Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future.  VIEW ALL SOLUTIONS HERE   HOW CART WORKS CONTACT US     TELL ME HOW TO GET MY SOLUTION ADDED TO CART +MORE

3 Types of Retail Execution Data: What They Are, and Why They Matter

Mat Brogie, Part of founding team and CEO of Repsly, Inc.

In today’s fiercely competitive market, retailers are taxed with the responsibility of making sure their in-store presence gives them an edge over their e-commerce counterparts. Effective retail execution is absolutely essential to keeping store sales afloat, seeing as over half of purchase decisions are made within brick-and-mortar walls. High-performing organizations incorporate three distinct data types into their retail execution strategy to keep store sales high and competitors at bay. Here we’ll discuss what those data types are, and how retailers and suppliers converge to best utilize them. Activity Data Activity data refers to the measure of outputs from brand representatives or store personnel. This encompassses metrics such as “visit frequency” or “number of shelf resets completed.”  These metrics have the power to reveal how team members are spending their time in-store. For example, retailers can rest assured that brand representatives are upholding their commitments by monitoring how often they visit the store and how much time is spent there. This data also proves useful in devising better schedules for employees based on how and when they interact with brand reps. Managers from either party (retailer or supplier) can more easily identify top performers by comparing activity data to sales lifts. What’s more, transparency around this data promotes accountability for whichever party is responsible for various retail execution tasks.  Activity data sets the stage for what’s going on within the confines of a store, but it can’t paint the whole picture. The real value comes from analyzing it against observational and sales data.  Observational Data Observational data includes qualitative data points that tell the story of what’s actually happening inside the store. Examples of this data type include notes on brand presence, photos of the shelf, or information on merchandising activities. This data tells the story of what’s actually happening at the store level, and has several practical uses. Some include: Sharing photos to prove compliance with a display or promotion Monitoring photos and other data points pertaining to shelf presence in order to flag stockouts more quickly and keep track of damages that might become returns Brands building trust with a retailer by sharing competitive intelligence from other stores through photos and questionnaires (i.e. “What does the inside of their store look like?”, “Who is shopping in it?”, etc.) Recording information about foot traffic and customer sentiment during a promotion or demo event  Observational data is able to reveal key insights about in-store presence at a very granular level of detail. However it becomes even more powerful when used in conjunction with sales data. Sales Data Sales data is simply the sales generated over a specified time period. Perhaps the most straightforward of the three data types, it’s still extremely telling. What’s interesting to retailers is how the other two data types (observational and activity) are able to push the needle on sales. Both retailers and brand suppliers can benefit from comparing historical sales data to improve forecasting, especially around the holiday season. When combined with activity and observational data, sales data reveals whether or not a promotion is effective or if a display is being properly set up. Similarly, steady sales followed by a steep drop-off could signify a stockout or the consumer switching to a competitor. Taking a look at sales and observational data can also convey where cross-merchandising is present to help retailers and brands make decisions about where else to stock complimentary SKUs. A close analysis of sales data can uncover a cannibalization that’s hurting other SKUs in a set. Conversely, brands can showcase which SKUs or promotions are the biggest sales drivers for retailers.  Putting It All Together A sizable 25% of in-store sales are lost to poor retail execution. When used either separately or in conjunction, three types of retail execution data are a retailer’s secret weapon to winning over consumers. Forward-thinking organizations understand this reality, and apply the three types of data as part of a virtuous cycle of insights, planning, and action at retail. +MORE

CART'S INNOVATION PROGRAM

Gary Hawkins, CEO , Center for Advancing Retail and Technology

CART’s Innovation Program, done in partnership with Retail Tomorrow, is a unique offering that works for retailers and solution providers alike. Designed for national and larger regional retailers, the CART team works with the retailer’s executive team to identify 2-3 specific areas of interest like automation, in-store experience, etc. With interests established, the team then goes to work identifying the leading solution providers in each area, filtering through and curating the most appropriate capabilities. That process often entails talking with each solution to ensure applicability and set expectations. Amongst the many factors we evaluate is making sure the size and scale of the retailer is aligned with the solution provider’s resources. Connecting a young solution to a massive retailer might sound exciting, but if the solution provider lacks the resources to pilot and then scale deployments it leads to frustration on all sides. Once the appropriate solution providers have been identified we all go on-site to the retailer’s HQ to spend a day with their executive team focused around education as each solution is given an opportunity to present to the group and talk about what they do. The format allows for Q&A along with opportunity to start building relationships as everyone networks over coffee breaks and lunch. From the solution provider’s perspective, the opportunity to get time with the senior exec team from prominent retailers is invaluable. Once a solution provider is selected to participate, the CART team will work with you to review your presentation materials to make sure you’re providing the most powerful and relevant message possible about your company and what you do. The CART team will provide some coaching for the presenters to make sure you deliver your message in the time allotted (these events are pretty tightly scripted to accomplish everything).  Expectations are clearly identified on all sides early in the process. From the retailer, CART is looking for executive level commitment and engagement with the process, the executive team’s commitment to spend the day with in the on-site meeting with all the solutions, and a commitment to seriously consider piloting appropriate solutions. From solution providers, CART is looking for new innovative capabilities to help the retailer address challenges they have or provide new capabilities that are beneficial to the retailer. This involves having a good understanding of retail and how retail works and helping educate everyone in the meeting as to the technologies involved. Retailers interested in learning more about the CART Innovation Program can get more information here Solutions interested in participating can learn more here +MORE

Smarter, Faster Retailing with Artificial Intelligence

Ed Porter, VP – Customer Insights and Product Strategy, Pristine Infotech, Inc.

You’ve heard all the buzzwords.  Machine learning. Deep Learning.  Artificial intelligence. Prediction machines.  Prescriptive analytics. Recommendation engines.  You keep hearing that Amazon and other Silicon Valley companies are using these tools to steal all your customers.  You can even see it in action when you look at your smart phone and see a hotel ad for a city you plan to visit three months from now.   But you can’t wrap your head around what all this is, or what you would do with it even if you did.  So here is a simple way to think about “Machine Learning AI”, why it’s important, and some ways you can use it. There are many definitions of Machine Learning AI.  One that we like is this: they are computer applications that teach themselves rules to mimic human insight and tactical thinking.  Humans learn through experience, by recognizing patterns and discerning the implications of those patterns.  In this case, machines sift through very large data sets in a very comprehensive manner, looking at every combination and every possibility.  They are able to detect many more patterns than humans can, and they are able to quantify the implications of those patterns with much more accuracy.    With their knowledge of these patterns, these machines are able to probabilistically predict outcomes.  And like humans, as they gain more experience, their predictions become more accurate. And when given decision guidelines and constraints, they can generate recommendations to take suitable action.  These recommendations can be simple, such as “discontinue these 100 redundant and slower moving items”.  Or they can be much more complex, such as recommending the best mix of everyday prices, advertised promotions, and personalized offers for a given week or quarter.      Why is this an important topic?  The reason is your customers. They now expect to get whatever they want, when they want it, and how they want it.  They want to do business with you on their terms, not yours. To meet this challenge, you now need to tailor your product choice, price, and convenience to fit the needs of each of your very diverse customers.  And this needs to be done in near real time. Traditional analytic tools can’t help you do this. There are just too many possible decisions to be made. And not enough time to complete the analysis, debate the implications, and then decide on the best actions to take. Here’s a practical example of how machine learning AI can be used to complete a very complex task that many retailers do every week; create a weekly promotion plan.  First, consider all the decisions that have to be made to complete this task; what items to put on sale, what price or type of promotion to run for each, what to put on display, and when (in what week or weeks) to run the promotion.  Also think about all the considerations you have; sales and margin budgets to achieve, competition, holiday opportunities, and vendor funding just to name a few. If you run 200 promotions each week, carry 2,000 promotable line groups, and wish to plan for 13 promotion weeks during an upcoming quarter, the number of possibilities is infinite.  Not to mention the additional complexity of balancing those financial and competitive considerations. Machine Learning AI can help you manage this task.  It will work within all your guidelines and constraints.  It will consider your financial goals and your competitive guidelines.  It will make sure holiday opportunities and “must have” items are included.  It will adjust quickly to changing market conditions. And it will make recommendations that probabilistically maximize your financial goals.             Machine learning AI can make you smarter, faster, and leaner.  It can be applied to any merchandising or marketing activity where guidelines and financial goals can be defined, and will assure that your decisions are “always on strategy”.  It combines the business knowledge, the goals, and the tactical thinking of your people, with the super-computing capacity that only a machine can possess. +MORE

Mobile App Pain Points

John Kangas, CEO, FwdMbl Solutions

Your current in-house system works great within your four walls.  The pain starts when you walk out that door and it can give you a full-on business migraine by the end of the day. We can ease the pain by targeting these five major sources when your workforce hits the road. Breakdowns in Communication When an Account Manager, Sales Rep, Delivery Driver, or Customer directly needs information, they need it NOW!  It should not require phone calls, strings of emails to and from the office or multiple warehouse locations to find product, invoice information, aging or account information, upcoming orders, etc. It’s frustrating and time consuming for everyone involved.  You should not require an Internet connection to give this to your customer when you are standing in front of them. FwdMbl Solutions gives Account Managers, Sales Reps, Delivery Drivers all this information right at their fingertips. It is available without the need for Wi-Fi or a cell signal and can be printed, emailed or faxed right there. There’s no need to track down items or pricing, looking up inventory and pricing is immediate. Pricing Errors Let’s face it, pricing can be complicated. If updates in pricing don’t make it to the ones that are selling in the field you can lose money. If incorrect information is given it can turn into an embarrassing situation.  Pricing can be different per customer given contracted pricing or discounts. Sales may be given leeway to adjust pricing on the fly within reason.  There are many scenarios as there are companies.  Pricing needs to be up-to-date and correct each and every time FwdMbl Solutions handles all pricing scenarios. All pricing updates can be real-time saving you money and confusion. Workflow Issues The system you are using doesn’t match your workflow.  You need to hunt for your tasks and weed through things you don’t use.  You are jumping from one item to another just to complete these tasks.  This takes precious time and leads to frustration. FwdMbl Solutions gives you role-based programming.  It gives you only your work for the day and one task seamlessly flows to the next. It’s so efficient, before you know it, your day is complete with time to spare! Internet Connection/Equipment Problems I see it almost every day while going to the grocery store, convenience store or my favorite restaurant.  Account Managers, Sales People, and Delivery Drivers trying to connect to Wi-Fi, or get any Internet connection.  Once they do, connection is slow and they have wait for webpages to display on their screen.  When it does finally appear, the information is hard to read or cannot be given to the customer. Printers disconnect or jam. Old devices just giving up the ghost. FwdMbl Solutions’ Apps are native apps that work connected or disconnected. They are not merely a webpage you are trying to display on your phone.  We use our unique technology to make sure your employees are never waiting for the information they need.  Once the information is pinpointed it can be printed, emailed or faxed to give immediate access to your customer. Training is Difficult FwdMbl Solutions’ Apps are robust, yet simple and elegant.  The screens are not busy or hard to read.  The workflow is intuitive and training is a breeze. The PAIN IS REAL!  When your software is in your employees’ hands and doesn’t work disconnected, has missing or inaccurate customer or order information, has printer or scanner malfunctions, or is cumbersome to use it is a recipe for unhappy employees and unhappy customers. At FwdMbl Solutions we can enhance your customer experience and improve employee satisfaction with our Mobile Apps and Portals.  We do this by connecting to your existing systems, so there is no need to change everything you do, only what they see.  We interface to your backend ERP, POS or other systems and display your information in a Mobile App or Portal that is fast and truly mobile. It is easy to use and best of all, it runs on the mobile phone you already own. Don’t own a phone? You can use an affordable Android device from our hardware partners. +MORE

The Growing Role of Data Intelligence in eGrocery

Michael Demko, CEO and Founder, Locai Solutions

2018 was marked by many advancements in the various applications of data intelligence – the ability for computers and apps to gather information, and use it to give customers a truly personalized experience – setting the stage for the next-level in convenience. Shoppers are now less resistant to the idea of individualized product suggestions, which creates a new dynamic of customer service: people expect products to be presented to them in an easy, personalized, and intelligent way.  A great user experience is an imperative part of any eCommerce offering, but the underlying logic, algorithms, and intelligence that bring depth and relevance to the user experience is where the real innovations are occurring. In 2019, personalization and AI will grow from being merely promotions and product recommendations to a set of  tools that help retailers sell time-saving solutions. By 2020 45% of retailers plan to utilize artificial intelligence to enhance the customer experience. Currently, many platforms generate lists that you can buy from, but with machine learning you can now deploy solutions that provide higher levels of convenience for your customers.  What exactly does the customer experience? A more frictionless buying experience. Upon initial sign in to an app powered by an engine like eGroceryIQ, customers answer questions about their dietary preferences, portion sizes, and favorite items. After each purchase, the order details are collected and used to modify that user's next shopping experience. If the customer reviews an item, that information is also integrated into future product and recipe recommendations. eCommerce platforms embedded with AI powered solutions will take all this customer data, integrate it with what is currently in their shopping cart, and provide them with a highly personalized and engaging shopping experience. These smart apps, using segment-of-one personalization, create a unique interface for each customer. Instead of having to sift through an entire catalog, shoppers are presented with their favorite items right away, as well as similar product suggestions – foods they might like based on past purchases.  Other applications for data intelligence include capabilities that provide shoppers with information to problem solve for quantity and product type. Customers can filter and scroll through listings to compare nutritional information and see what items fit with their dietary preferences or restrictions. AI solutions  can sift through recipes, parse ingredients, map them automatically to a retailer’s assortment and systematically scale the amounts needed for a family of 4 or a single serving enabling customers to use tools such as meal planning to maximize use of products already in their virtual shopping cart. As machine learning continues to evolve, the possibilities become endless.. Is it worth the investment? All that value for your customers translates to higher sales. Intelligent solutions mean higher basket sizes, improved loyalty & retention, increased conversion rate, and higher purchase frequency.  Furthermore, data intelligence can be used to advance your merchandising, logistics, and fulfillment efforts. According to Tech Emergence, "the predictive capabilities of AI may play an important role in forecasting inventory needs, determining prices of products based on internal and external factors, analyzing customer behavior, loss prevention, delivery services–and potentially much more."  Equipped with volumes of data about your customers, new platforms will emerge to enable you to more easily pivot your business strategies, optimize your interfaces, and offer a catalog of high selling products.  The bottom line? More convenience equals greater customer satisfaction and more revenue. Intelligent solutions for today and tomorrow According to Forbes magazine, almost half of Americans now buy groceries online. Recent surveys by Food Marketing Institute (FMI) and Nielsen show that 49% of US consumers had bought CPGs (consumer packaged goods) online in the past three months, up from 23% in 2016. The rates were higher among younger demographics – 61% for millennials and 55% for Gen Xers. As these rates continue to increase, experts predict that AI will continue to expand to meet the growing needs of both grocers and shoppers. Without AI, traditional grocery stores will have a difficult time meeting consumer behavior and demands. Many are finding that simply adding an online catalog is not enough to satisfy their customers, nor drive higher sales. The key is increasing value through efficiency and continuous learning about your customer. Solutions embedded with machine learning are designed to meet the needs of both the retailer and the consumer – giving the consumer an engaging, personalized experience, and the retailer a comprehensive, sales-driving and scalable platform. In order to succeed digitally, a broad set of components are needed and we’re beginning to see more and more partnering between grocers and technology solutions. As Yeal Cosset, Chief Digital Officer of Kroger said, “Personalization based on available data will not work. If the filter of the data is only good you will become obsolete, but if it is great you will have success.” Investing in flexible platforms that enable integration with the best in class consumer and operational features will become necessary, as a wide host of 3rd party application providers continue to emerge as the industry evolves. +MORE

Five Predictions for Retail Transformation in 2019

Gary Hawkins, CEO , Center for Advancing Retail & Technology (CART)

As we begin 2019, tomorrow is no longer going to resemble today. The pace of tech-fueled innovation continues to grow, bringing with it increasing change across the supply chain and greater impact on traditional retail operations and models. 2019 is going to be a year of even greater change. Here are five key areas to watch this year: Frictionless shopping: The Amazon Go store with its cashier-less shopping experience has gotten the industry’s attention and this year we will see a great deal of activity in this space. There are several tech companies working to bring similar capabilities to the retail industry along with cost-effectively scaling the technology to work in traditional supermarkets. I believe the proliferation of retailers’ mobile apps having some kind of self-shopping capability - the shopper scanning their products as they shop using their smartphone and then an expedited payment process - is an interim step to a completely frictionless shopping environment. The whole idea of the Amazon Go store is to make buying products as easy as possible; the shopper having to use their app to scan and pay makes it easier to buy but not as easy as just walking in, picking up what you want, and walking out. Automated fulfillment: Kroger’s partnership with Ocado to build and operate twenty automated grocery eComm fulfillment centers is on track. We are seeing several other retailers enter into agreements with Takeoff Technologies to build mini automated fulfillment centers that can sit in the backroom, automatically fulfilling high-velocity packaged goods ordered online. Walmart is working with a partner to build an automated fulfillment center that is designed to sit alongside their stores, fulfilling high-volume products. In 2019 we are going to see even more activity in this space as other retailers will be forced to follow these leaders as automation brings efficiency and lower fulfillment costs, opening up a productivity gap. We will be seeing other technology providers step into this space as the market expands. Automated delivery: Kroger’s partnership with Nuro to use automated, driverless delivery vehicles to deliver online orders to the shopper’s home is already in pilot. Udelv and other solutions will be gaining more interest as retailers begin to focus more attention on the final mile delivery. While many retailers have signed deals with Instacart or Shipt to handle actual delivery, we’re going to see growing interest in Uber and other services to handle deliveries and fast growing interest in automated solutions like Nuro and Udelv in search of cost efficiencies. Health & Wellness gets personal: The wearables market is growing fast as Apple’s Watch and similar devices provide even more functionality to monitor key health indicators in realtime. The explosion in health data coming from these wearables will become increasingly tied to food guidance, helping the individual understand what specific food products to purchase and consume based upon the individual’s health condition and realtime data. As an example, Dexcom recently released a device that provides realtime glucose monitoring for people with diabetes. The ability to use knowledge of an individual’s glucose levels at that specific time - for example, while they are standing in front of the shelf - will inform guidance to beneficial foods. This movement is already underway as the massive food and healthcare industries converge, driven by Amazon’s ownership of Whole Foods, PillPack, and other activity in healthcare. Kroger’s Opt-UP app enables the shopper to easily understand the quality of the foods they are buying and easily filter the store’s product selection based upon the shopper’s interests, needs, and preferences. Look for a lot more activity around this space in the coming year. Melding of digital and physical retail: While most industry activity has been focused around eCommerce and automation of fulfillment and delivery of orders, I believe we are going to see growing attention to the melding of digital and physical shopping. This encompasses bringing augmented reality into the store and shopping experience; we’ll also see growing activity in virtual reality shopping as VR tech gets better and cheaper. Digital signage will spread across the store and get smarter, not only using demographic info to present messaging relevant to the person standing in front of the screen, but engagement will be far more personalized. Kroger’s new shelf Edge system is moving in this direction, lighting up as a shopper moves down the aisle to call out relevant products. Obviously there are many more areas where technology is going to transform retail but these are five key areas to watch. Each of these fundamentally changes the game: Frictionless shopping and automating fulfillment and delivery remove significant costs and will put growing pressure on competing retailers as companies using these technologies scale deployments.  Personalization will move quickly, not just in marketing but in linking an Individual shopper’s health to her favorite store’s product assortment, guiding the shopper to products to improve her wellbeing.  Lastly, shopping is about to become far more interesting and truly immersive as technology really begins to impact the shopping experience, whether you are in the brick & mortar store or sitting at home. +MORE

Pseudo Customer Centricity: Fool’s Gold

Gary Hawkins on Winsight Grocery Business, CART

Retailers must employ a customer-first philosophy into organizational culture Many regional retailers are (at last!) intent on becoming customer-centric, more than a decade after The Kroger Co. led the way and more than two decades after early loyalty pioneers proved the value of a true customer focus. But too many retailers believe that customer centricity can simply be bolted on to their organizations without realizing that true customer centricity is far more involved. Like the intrepid gold miners of the 1840s, these retailers awaken to the realization that what they’ve taken for retail gold is in actuality a false promise, seduced by the fools gold of pseudo customer centricity. I can recount meetings with senior executives from well-known retailers who espouse their customer centricity efforts; spending massive sums on consultants and solutions powered by a decade’s old approach based on customer segments integrated to the retailer’s category planning processes, and even personalized offers to shoppers. Countless of these retailers remain anchored in a product-focused world, even those who tout using technology to discover what products should be put on offer to their customers rather than starting with a vendor-funded offer pool.  True disciples of customer centricity deeply embed a customer-first philosophy into their organizational culture, extending it to every part of the enterprise. These companies realize that providing savings on products relevant to the shopper is only the beginning. Leading companies such as Amazon and Kroger are investing heavily in taking customer centricity to the next level: comprehensive, seamless user experiences across channels and devices, integrating personalized product recommendations with an understanding of the individual shopper’s specific health conditions, and laying the technology foundation for immersive shopping experiences melding the physical and digital worlds. Customer first disciples understand the dynamic flow of customers and their shopping behavior over time, putting in place capabilities and processes attuned to providing contextual relevancy inside and outside the store. And personalization—driven by past purchases and recommendation algorithms—is fast evolving to what I think of as strategic hyper-personalization, leveraging vast intelligence about each individual shopper to power a mix of recommendations to win the shopping trip, grow baskets, maximize retention, and foster customer advocacy—one customer at a time, in real time. Many regional retailers are based in more rural areas where company executives believe their shoppers are less tech savvy, relieving pressure on digital imperatives. According to Pew Research, 95% of Americans own a cellphone in 2018, with 77% of Americans owning a smartphone. Pew also calls out that in 2018, 89% of Americans use the internet. Location is no longer a proxy for customer technology illiteracy.  This year, Amazon is projected to realize over $258 billion in U.S. retail sales, an estimated 49% of all online retail spending in the United States. With this kind of penetration, and the ability to ship products anywhere overnight, traditional supermarket retailers would do well to remember that their shoppers are increasingly expecting (demanding!) the seamless and comprehensive user experience provided by Amazon, and increasingly by Kroger and Walmart. Yet, too many retailers remain mired in digital purgatory, constrained by capability silos and the inability to bring piecemeal capabilities together in a seamless fashion for shoppers.  Lastly, many seasoned grocery executives have spent their careers being rewarded for following, letting someone else bring innovation to market and only following when it has been proven successful. Years ago IT executives would buy IBM, even if it wasn’t the best choice, but because it was the "safe" choice. This practice continues today as retailers sign deals with "established" providers because they believe it is the safe choice, failing to understand that today’s environment rewards fresh, forward-looking thinking. Retail executives need to look beyond yesterday’s approach to customer centricity to capabilities and platforms that actually position the retailer for future success. The cost of failing to provide a seamless shopping experience, for failing to provide true individual shopper personalization, and failing to provide real time contextual relevancy, can rapidly obliterate any savings or security from yesterday’s "proven" approach. Tom Furphy, a former Amazon executive and the originator of Amazon Fresh, in a recent interviewspeaking to the challenges retailers face today, especially a reliance on past practices, says it all: “What seems safe is actually destructive. That’s a recipe for longer term disaster.” This article originally appeared on Winsight Grocery Business and can be viewed here +MORE

The Top Five Ways Retailers Benefit from Industry Trade Shows

Courtney Muller, Chief Corporate Development & Strategy Officer, Clarion UX

When was the last time you attended a retail or food and beverage trade show? If you have to pause to think of the answer – or know immediately that the answer is, “Never” – then it might be time to find a show or expo near you. Trade shows are the best places for those within the industry to get out of their stores and network; find new products and stay abreast of the cutting edge technology offerings; and gain invaluable education in the areas you need it most. In short, even if you spend time every day trying to stay current, you could never see it all – or know what to search for. There is no better place than a trade show … from seeing new products, meeting new people, becoming educated on a new way to engage your customers, or finding out about technology … this is the place to find what you don’t know!   Here are some of the top reasons you should attend a trade show this year: Network with Decision Makers When you think of networking, perhaps the typical “mixer” scenario comes to mind with people you don’t know awkwardly milling about a bar or restaurant, trying to strike up conversations with random people in the hopes that you might be able to benefit one another in some way. Networking at a trade show couldn’t be any more different. As an attendee, you can specifically find exhibitors with the products you seek; attend educational sessions that pertain to topics you are interested in, therefore attracting other audience members who share the same challenges; and be assured that your peers in the same industry as you are seeking similar solutions as you.  And you might even run into a colleague you haven’t seen in years! Find New Products and Foods You subscribe to industry periodicals and get Google Alerts in your inbox every day, but have you seen that new robot that identifies out of stock items and potential slip and fall hazards? Have you read about leveraging data to establish loyalty and trust with food delivery customers? A trade show is the perfect venue to scope out all that is new in the retail world from tech products to new foods and services – all in one place – to help you use technology to create a seamless customer experience. As you look for new technology innovation to keep you competitive, you may find the perfect partner for online ordering, rapid delivery, or rapid checkout through customer’s smartphones.  No matter what you want to go to a trade show to find, you will likely be pleasantly surprised by discovering even more than you thought along the aisles. See New Trends in Action Are vegan offerings a must-have? Should you offer chef demonstrations to showcase meal ideas? Are international flavors high on consumer’s minds? What chef dishes are they trying replicate at home? Be on the front line of this year’s and next year’s trends so you can bank on what your customers will be looking for in the near future. You’ll walk away with new products and great ideas you can implement immediately in your store operations. You may even realize that you are on the verge of creating an entirely different trend yourself that has yet to appear on the market – good information that you can capitalize on in the year to come. Receive Best in Class Education If school is a distant memory – or perhaps you learned hands-on in a family business and worked your way up the ranks – one of the best perks of most trade shows is the educational content provided to attendees and exhibitors alike. Whether you’re interested in operational excellence, developing your workforce, building bigger baskets, or sessions dedicated to those hot new tech trends we previously mentioned, trade shows like The NGA Show (presented by the National Grocers Association) in San Diego this coming February will have you covered on all fronts. What’s more, you can connect with presenting industry specialists to gain even more valuable insight into the topics that interest you most. Gain Immediate, Actionable Ideas The bottom line … your time is valuable and you want to spend any time out of your store obtaining the cream of the crop ideas - from new products, growth strategies and tech trends. Hear what the experts have to share, sample emerging products, uncover new technology, and refresh your enthusiasm for the business. You’ll walk away with a plan to bring all of these new ideas and initiatives into your store operation to drive profits, growth and innovation.   No matter where you are in your retail career, a trade show will no doubt provide you with opportunities, education and inspiration as you progress in the business. Interested in learning more? Check out the upcoming NGA show: National Grocers Association Show, San Diego, CA, February 24-27, 2019, www.thengashow.com  Each year, The NGA Show brings together independent retailers and wholesalers, food retail industry executives, food/CPG manufacturers and service providers for unparalleled opportunities to learn, engage, share, network, and innovate.  Given today’s ever-changing marketplace and evolving advancements in innovation occurring in the food retail industry, The NGA Show is a must-attend event, providing over 40 educational workshops, an expo floor featuring innovative and game-changing products and solutions and countless networking opportunities.  Registration is open at www.thengashow.com – early bird registration rates in effect through December 10, 2018.  +MORE

NGA Show 2019: The Epicenter of Grocery Industry Innovation

CART, Advancing Retail

In a special event leading up to the opening of the new NGA Show 2019, CART will bring together unique education, an impressive line up of speakers, and cutting edge innovation to make San Diego the epicenter of grocery industry innovation during Feb. 24-27, 2019. With a focus on regional retailers and dynamic independent operators, the CART team will present an innovation tour de force designed to help attendees not only stay in the game but help them win. CART is coming together with leading retailers through-out the industry to provide attendees a new worldview for the future of retail where transformation and disruption are the new normal: iRetail. Focused on five ‘i’s, iRetail will give attending executives a framework for evaluating their existing capabilities and provide a roadmap to closing the innovation gap. In a time of declining and disappearing industry events, the NGA Show has become a beacon of light for the industry as it has grown each year, even outgrowing its longtime home in Las Vegas, spurring the move to San Diego this coming February. CART has had a long time partnership with NGA and is taking the relationship to a new level this year, building on the success of CART’s Innovation Event at last year’s show.  Make sure to put Sunday, Feb. 24, 2019, on your calendar and plan to attend the CART special event at the new NGA Show! +MORE

Technology's Profound Impact on the Supermarket Industry

Peter Larkin, President & CEO, National Grocers Association

Often cited as the one of the greatest catalyst of change within the retail grocery industry, technology is an area that independent supermarket operators must understand, and embrace.  Technology continues to have a profound impact, where virtually every detail of the supermarket industry is being touched by new solutions and platforms. I see three technology threads, each entwined with the other. One is the explosion of mobile applications and programs that are turning grocery shoppers into high information consumers. According to Pew research, smart phone adoption among Americans has more than doubled since 2011. Not only are shoppers becoming more sophisticated, but they are using technology as a way to gain more information, transparency, and convenience. At the touch of a mobile screen, consumers can instantly access to updated information on locally sourced perishables, competitive promotions, price checks and recipe ingredient lists. In turn, this migration to the digital space is shaping customer relationships with retailers. Today’s shopper does not want to be talked to but instead wants to be a part of the conversation. Consumer product manufacturers and marketers make up a second technology thread. By analyzing large chunks of customer data and retail sales, manufacturers, retailers and service suppliers are exploring innovative ways to touch their target audiences. Big data though can be vast and hard to harness. Whether it’s social media, a mobile payment system, or loyalty programs, technology can effectively create many new opportunities for savvy retailers to learn about and to connect with their shoppers to better serve their needs. A good place to see and learn about a number of these innovative solutions is right here at www.advancingretail.org. The third thread is in the store itself, where technology is increasingly employed to improve overall store productivity to program more effective lighting, to boost checkout efficiency, to track shopper traffic flows to improve layout and sales per square foot, or to offer customers immediate cost savings via real time wifi connections as they shop. A great, and very recent, example of this is Sedano's Supermarkets launch of a “robotic supermarket,” which entails an automated fulfillment center where AI-enabled robots will assemble full supermarket orders of up to 60 items. While the landscape is quickly evolving, many independent grocers are taking advantage of cutting-edge technologies to engage with their shoppers, find efficiencies, and reach new and existing customers where, how, and when they want. Independents have been making their move into digital. They are hiring dedicated staff, dedicating marketing budgets to digital initiatives, more effectively leveraging social media platforms, and integrating the latest technologies into their business strategies.  With the dramatic pace in which new apps and tech solutions are coming on to the market, it can all seem a bit overwhelming, but technology will play a defining role in the supermarket industry.  Those retailers that are on the forefront of implementing new technology and embrace the hyper-connected, tech-savvy consumer are positioning themselves for success. I’m one who is convinced that these threads will weave into a pattern of rising sales and profits. And that’s why the 2019 NGA Show will kick-off with a new educational event, spearheaded by our partners at CART, entitled “iRetail: Technology Innovation Reshaping the Grocery Industry.” The event is designed to give supermarket operators a framework for navigating fast-paced innovation while maintaining a focus on the importance of people and physical stores as we move into the future. Despite increased competition from all angles, it is an exciting time for the supermarket industry – and we at NGA are bullish about what the future holds for the independent grocers! Known as the true entrepreneurs of the industry, independents are nimble enough to quickly overcome obstacles, and are finding innovative ways to respond to changing consumer preferences, which is something they’ve always been good at given their close ties to their communities and the consumers they serve. +MORE

Locai Solutions

Locai Solutions Inc

locai is the first company to offer a full suite of software that integrates an e-commerce platform with a fulfillment management system. locai provides a flexible set of solutions including a turn-key eCommerce website, as well as access to great UX features - such as product recommendations, meal planning, and endless aisles - via APIs for easy integration into your existing eCommerce platform. These features have been proven to drive higher basket sizes, and create greater customer engagement, satisfaction, and retention. The locai platform is also the first eCommerce solution for grocers to be built on a cloud based architecture that enables order execution via the full spectrum of fulfillment formats. The locai Fulfillment Management System is versatile and capable of supporting numerous operating footprints, from warerooms to dark stores and/or dedicated distribution centers, and while fully integrated with locai's eCommerce Platform, the FMS can easily integrate with other eCommerce platforms and order management systems to create a unique solution for your brand. Embedded with real-time operating metrics, intelligent pick cart building logic and order verification, the locai Fulfillment Management System is proven to reduce operating cost per order while improving order accuracy. +MORE

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The One Technology Every Grocerant Needs to Know

Tebo Store Fixtures

Digital signage isn’t just a pretty display, it is a tool to boost sales, customer experience and more; The use of digital signage in your grocerant deli will inform and persuade customers. The use of eye-catching imagery and content will drive sales, allow you to cross promote within your store, and excite your guests. Every day more and more grocery store delis are adopting the use of digital signage and seeing the benefit from this increasingly affordable technology. In the Deli environment, this is not only a resource for customers but is a great resource to engage your employees as well. It brings your daily menu to life with promotions and specials.  Not only does this increase dwell time, it will also help your customers get to know your brand better than static boards leaving lasting impressions. The Benefits of Using Digital Signage: Remotely update menu boards with no ongoing printing or labor costs Offer service to non-English speakers Boost sales 8-22% by simply placing the screen in your deli space Reduce perceived wait time Cross promote within store Employee engagement The Deli grocerant has many challenges that digital menu boards can help solve, but the key to success is to have a clear objective for your digital menu boards. Asking yourself how to correlate to your customer base, store branding, and employee involvement are the steps necessary for a successful relationship with digital signage. Regardless of the size of your grocery stores (multiple or single locations) with the use of digital signage, it will increase the effectiveness of communication in the work environment. A little-known fact is having engaged employees there is a positive correlation to above average productivity. With a raise in productivity leads to more sales and customers walking through your doors. Bringing digital signage to your space is a great start for positive growth of your grocerant deli. +MORE

Upping the In-store Technology Game in Grocery: A Do-or-Die Proposition

Alex Goodwin, Aila Technologies

“The grocery business truly is at a digital tipping point, where every aspect of the shopper’s journey will soon be influenced by digital, and increasingly enabled by digital platforms.”                                                                                     — Chris Morley, President of U.S. CPG & Retail, Nielsen, January 2017 The summer of 2017 has seen retailers making moves to add new digital capabilities at a frenzied pace. Albertsons is revamping its e-commerce systems. Publix has declared that it will offer home delivery at all locations by 2020. Kroger is piloting “digital shelf-edge” technology that it hopes will enhance efficiencies in pricing and data collection. And that’s just to name a few. Spurred by Amazon’s surprise announcement that it would acquire Whole Foods in June, grocers and mass retailers in the food and beverage space have been racing to get a leg up on the competition by investing in technology that can capture data, create enhanced customer experiences, and activate new processes such as delivery and in-store online ordering. Amazon is a real threat to existing grocery chains, but it’s not the only one: Target is expanding its commitment to food and beverage, and the nation’s biggest retailer, Walmart, is “gaining [grocery] market share at an accelerating pace.”  With so much at stake in what amounts to a technology arms race, grocers must be strategic in the experiences they craft and the processes they enable. On the other hand, an overly cautious approach may also prove costly: as digital-first consumers are increasingly influenced by technologically sophisticated industry giants, retailers who fail to act decisively risk losing hardfought market share in this ultra-competitive industry. As the grocery world braces for increasing demands for e-commerce capabilities, grocers would be well served to consider enhancing those in tandem with their in-store digital offerings.  The Online Challenge To date, online ordering only accounts for roughly 3% of grocery sales in the US, according to the Shelby Report, although that number is expected to grow significantly in the coming years. While the last-mile logistical hurdles continue to be problematic, the one big edge that e-commerce gives retailers comes in the realm of data collection.  Every digital transaction provides a wealth of sortable data about shopping habits such as purchase history and frequency. It also provides an array of opportunities for personalizing the interaction. For instance, digital platforms offer numerous options for delivering product recommendations based on past purchases or to pair with products already in the virtual shopping cart. In addition to creating a more pleasant shopping experience, these are proven ways to drive revenue: a recent Mckinsey report indicated that cross-selling can increase sales by 20% and profits by 30%. Similarly, Amazon admitted way back in 2006 that 35% of its revenues come from its cross-sales and upselling efforts. While simple apps can provide automated cross-selling capabilities online, grocers must find ways to bring these and other revenue-generating opportunities into their brick-and-mortar locations. A Seamless Buying Experience, Online and In-Store With 97% of the reported $600 billion in grocery transactions each year taking place in physical locations, it is imperative that grocers provide a seamless experience across all shopping channels. Brick-and-mortar stores must be able to deliver the same capabilities that customers are increasingly expecting when they order online — ever smoother and more efficient transactions, as well as product recommendations, loyalty rewards and discounts, and enhanced brand interactions.  The future of grocery will be built upon an in-store digital infrastructure made up of a series of connected devices capable of bringing the convenience and personalization of the digital world into the supermarket aisle. This infrastructure can solve discrete problems for consumers — wayfinding, detailed product information, line-busting, product recommendations, couponing, and more. At the same time, it will serve more broadly as a platform for innovation for retailers, to experiment with exciting new brand experiences and digital efficiencies.  The traditional, bulky, custom-built legacy hardware systems simply don’t have the versatility to keep up. Furthermore, in an industry in the midst of transformational changes, investing in expensive, single-purpose devices risks locking companies into operational workflows that might soon be obsolete. Instead, the infrastructure of the future will likely be built upon powerful consumer-oriented mobile devices. Today’s tablets and smartphones possess the features and functionality to enable solutions that solve current needs, such as in-store price checking kiosks, ordering stations, and POS systems, while also providing the hardware capabilities and flexibility to enable a nearly limitless array of future experiences and use cases.  Retail stores today must act as showroom, warehouse, and fulfillment center, providing both product and information wherever and however their customers need it. To enable this, retailers will be well suited to have the following components in place:  A digital infrastructure (from price checkers to point-of-sale terminals to associate handheld tools) that delivers a seamless digital experience throughout the store, while also tracking data for analysis and optimization of the customer experience, inventory management, store layout, product location, and more. Smart handheld devices that empower associates with full access to product information and customer needs, improving efficiency and productivity. In-store kiosks that offer a branded, user-friendly interface that will make the in-store experience as convenient as shopping online, maximizing next-gen technologies. These tools are available now, and the grocery tech race is already well underway. To maintain the status quo or move slowly is to sink into obsolescence. Bold, decisive action to infuse brick-and-mortar supermarkets with the best elements of the digital experience will be critical to surviving grocery’s ongoing transformation. +MORE

Pace of Innovation -- Shattering the Status Quo

Gary Hawkins, CART

Retailers are shellshocked by the increasing pace of technology fueled innovation that is transforming and disrupting the industry. It seems not a week goes by that we don’t read about yet another new competitor entering the grocery space or some new innovation being rolled out by an existing competitor. Case in point: Kroger’s recent announcement that it is deploying its Shop, Scan, and Bag self-shopping solution at 400+ stores. This in response to Amazon’s cashier-less Go store pilot and Walmart’s similar self-shopping solution. Supermarket retailers are challenged on several fronts relative to innovation. It is nearly impossible for a retailer to be aware of all the new innovation entering the market. As an example, CART reviews an estimated 100 new solutions each month. Beyond awareness though is the challenge of deciding what areas to focus on (supply chain, distribution, marketing, store operations, etc.) and deciding what specific solution to pilot. And then having to decide what new capabilities to deploy across operating stores. Having efficient operations, quality foods, and great pricing and service is simply the cost of entry to supermarket retail. The new battleground is innovation. This is a new world for retailers to navigate. As an example, we see too many retailers implementing different digital capabilities in a piecemeal fashion rather than working towards a cohesive and comprehensive platform. The self-shopping capability mentioned earlier is a great example. Some retailers are trying to implement this kind of capability through a third-party app or a separate app rather than bundling it into one mobile app for their customers. Shoppers are after an omni-channel, seamless experience, not being forced to interact with different apps or systems to do business with a retailer. CART is here to help. We’re able to leverage our strong retail experience, industry knowledge, and unique insight to new capabilities and innovation flowing into the market to help retailers understand where they are today relative to their competitors and best-in-class retailers. Developing an innovation roadmap is important to help in prioritizing what new innovation to focus on and to create a foundation capable of adapting to new capabilities and technologies as they come into the market. +MORE

Improving Retail Profitability with A.I. Tech: Spotlight on Daisy Intelligence Corporation

Bill Bishop, Brick meets Click

You may not know Gary Saarenvirta, but if you are in retail today you should take the opportunity to benefit from his knowledge and passion. Gary is on a mission to bring the powerful information technology capabilities he learned in the aerospace industry and at IBM to retailing. The result is Daisy Intelligence Corp., a software-as-service provider that’s making it possible for grocery retailers (and other businesses) of all sizes to use artificial intelligence tools for optimized decision-making in order to increase profits. As retailers and merchandisers, your business is selling, and the competition is fiercer than ever.  In the future, growth will mostly likely stem from the ability to use your data in new ways, and the power of A.I. services like those offered by Daisy can improve your business results, despite what will prove to be a yet another challenging year ahead. This post is part of our Spotlight series and is sponsored by Daisy Intelligence Corp.  BMC: Most retailers are familiar with predictive analytics, how is artificial intelligence different?  Gary Saarenvirta: When we discuss traditional predictive analytics – like regression and other forecasting tools – we are talking about solutions that look to the past for answers. This tends to evaluate only subsets of data to draw inferences about historical activity. The problem with this is approach is that it ignores the related actions and ripple effects.  The “predictions” it produces are defined entirely on events that have occurred in the past.  Any “learning” that occurs happens only when new experiments are conducted, i.e., you can learn only as fast as time. Artificial Intelligence, on the other hand, creates a model of the retail environment that connects a retailer’s actions (promotions, prices, inventory, purchasing, real estate) to market results, taking into account the “ripple effects” caused by the actions. This allows A.I. to evaluate future outcomes, even if there is no historical precedent – in effect, A.I. can simulate the future. First, it uses 100 percent of the retailer’s historical data to learn what it can – it then takes the analysis to the next level by simulating a mix of previously known and new, untried actions to find the many different ways the future may unfold, choosing the optimal sequence of actions that achieve the best long-term outcome. As a consequence of this ability to simulate, an A.I. system can learn years of retail in one day, limited only by computing power. A.I. directly answers the question, “What actions should I take to maximize long term revenue/profit?”  The A.I. approach is comprehensive and a balance of historical and future-focused. While A.I. isn’t new, the good news is that in recent years, these A.I. capabilities are now accessible to businesses of all sizes – not just big corporations and government entities – because the power of computing has increased dramatically at the same time the cost has come down. BMC: So how does Daisy use A.I. produce/generate results for retailers? GS: Promotion optimization is one of many areas where A.I. offers significant and immediate improvements to profitability. Daisy uses A.I. to help retailers: Select the right products for promotion Set the right price for promoted products Forecast demand (sales) Promotions are complicated. For example, when you put Coke on promotion, you can expect to sell more Coke, but then there are ripple effects. For example, while selling more Coke increases the sales of related products like salty snacks, it’s also likely to cannibalize Pepsi sales for that week, and probably next week’s Coke sales due to forward buying.  So, where do you stand in the end?  Is the increase in related (non-promoted) products large enough to cover the cost of the promotion?  How big is the drag from cannibalization and forward buying?  What’s the impact on other categories? Daisy can use A.I. to simulate all of the ripple effects, so you can look at the whole picture and you’re able to gauge the long-term benefits and consequences, not just the immediate effect. In contrast, traditional analytics tend to be more narrowly focused and concentrated on the short term – it gives you the answer that sells the most of the promoted product for the next week. We’ve used these capabilities to create a metric we call Net Promotional Effect or “NPE.” The NPE captures and accounts for all of those plusses and minuses, and then allows us to rank every SKU in the store based on its contribution to NPE.  BMC: What makes this NPE metric distinctive from other metrics retailer currently use? GS:The NPE enables retailers to analyze results beyond the direct effect on weekly sales numbers and determine how all of the effects of the promotions are contributing (or not) to achieving the overall goals of the business. In effect, measuring NPE lets you look more broadly to see whether a promotion is taking you to a loss leader or an increase in basket size, profitability, sales, or margin. This is all about improvement and efficiencies – A.I. makes it possible for a retailer to increase NPE with no additional investment in price or margins, and in some cases it actually allows you to increase NPE with less margin investment. It also makes the grinding, week-after-week process of promotion planning far more efficient, so more energy can be put into marketing and merchandising instead of trying to find the right data and pull useful information out of it.  BMC: What differentiates Daisy in the minds of the retailers you work with? GS: Unlike a lot of analytics solutions, there’s no hardware to purchase, no software licensing agreement (and updates) to pay for, no complicated system integration, and no personnel training required. We take the retailer’s sales history and we do the work. We take the responsibility, instead of putting it back on the retailer. The most important deliverable Daisy produces is a set of detailed recommendations that will grow the business’s profits and sales. In terms of what makes us different, the retailers we work with especially appreciate two things:  First, our business model. We’re a software service business – this means we do the heavy lifting, and if we don’t deliver, then you don’t keep paying us. Second, the cost is reasonable – a fair charge based on the value we create. BMC: What is your background? What motivated you to start Daisy Intelligence? GS: Early in my career, I learned about computational fluid dynamics and massively parallel computing applied to massive volumes of data with millions of variables while studying for a Master’s degree in Aerospace. I was exposed to sophisticated machine learning techniques like neural networks, classification trees, and association rule mining at IBM. When I moved over to business, I was shocked to see how little use was being made of the math and science I was familiar with. I saw a gap. Businesses – especially in environments that are hugely complex and changing all the time like retail – needed better tools to solve their problems. I started Daisy to help everyone realize the promise of information technology to make the world more efficient, lower the cost of living for everyone, and along the way make businesses more profitable.  People like to joke that something “isn’t rocket science,” but when it comes to meeting challenges like evaluating the true ROI of promotion choices, it is actually a lot like rocket science. The thing is, now retailers of all sizes can benefit (and profit) from applying the same kind of analysis methods that rocket scientists use. BMC: Customer-centricity is a big focus for retailers these days. How can Daisy help them? GS: My view on this is a little bit on the maverick side. I believe customer-centricity actually starts with products. Transaction data is actually the most direct way customers “talk” to retailers. The reason a customer goes to the store starts with the product, and the key is giving them the products they want to buy. It’s the interplay between these two – products and customers – that’s the key to customer-centricity. It’s got to be both, and Daisy’s A.I. capabilities marry these two essential elements. That transaction data is what tells the retailer a) what products customers want to buy, and b) the patterns in which they prefer to purchase them. BMC: Daisy’s impact is particularly powerful in fresh and perishables. Why do you place so much emphasis on these departments? GS: Perishables are important, mainly because they trigger the weekly visits to the store – typically much more so than non-perishable products. For the customer, produce and meat are usually the core reasons for the trip, so it makes sense to build a promotional plan around those categories. Perishables also give retailers more freedom to do what’s right for the customer, so to speak,because they aren’t affected as much by supplier payments that are earned if a retailer promotes in a certain way, even if it actually runs counter to the retailer’s self-interest. We help retailers achieve better results with the right mix of promotions – with or without supplier payments – and perishables are a key part of this.  BMC: Aside from improving promotional effectiveness, what other challenges do you see A.I. helping grocers to overcome in the next year or two? GS: We’re working on developing A.I. solutions to improve profitability in three additional areas: Tailoring the assortment: Identifying which items to offer and how much space to allocate to each category and department. Improving the merchandising layout by improving the positioning of products in the traffic flow, determining the best distance between complementary products, and/or where key categories should be in the traffic pattern. Evaluating real estate site selection.  LOOKING AHEAD  BMC: If you are retailer or merchandiser, growth can come in 2018 from using your data in new ways and the power of A.I. services like those Daisy offers can help you improve business results +MORE

FwdMbl

FwdMbl Solutions, LLC

Account Management, DSD, Route Sales, & Proof of Delivery Apps Mobile Sales & DSD Customer, Leads, Prospects Orders, Credits, Invoices Aging, Statements Receive On Account, Credit Cards GPS Tracking & Signature Capture Print, Email, & Fax Documents Items, Availability, Inventory Images DEX, NEX & EDI Warehouse Transfers & Scrap Multi-Language Works Offline Proof of Delivery Delivery List Stop List Route & Stop Status GPS Tracking Signature Capture Returnable Container Tracking Asset Tracking Pallet Tracking Customer & Stop Documents Multi-Language Works Offline Account Management Customers, Leads, Prospects Quotes, Estimates, Notes Orders, Credits & Returns Receive On Account Aging, Statements Documents Sales History Warehouse Inventory Customer & Item Documents Multi-Language Works Offline Route, Inventory & Order Management Inventory Management Items, Kits Serial Number, Lot Tracking Expiration Date, FIFO/LIFO All Types of Transactions Reason Codes, Notes Pick, Pack, & Ship Reorder Points & Planning Barcode Labels & Scanning Multi Site, Warehouse, Bin Mobile Inventory App Order Management Customers Sales Orders Credits, Returns Dispatch Orders Work Orders Invoicing Quotes Inventory Integration Accounting Systems Integrations Mobile Sales App Route Management Driver & Route Setup Customer Assignment Inventory Assignment Cash Settlement Inventory Settlement Route Reports Signature Reviews Timeline & GPS Tracking Integration With Other Systems Mobile Management App   +MORE

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Interactive Kiosk

Aila Technologies, Inc.

INTERACTIVE KIOSK With scanning technology that’s second-to-none and customization that caters to any retail environment, Aila’s Interactive Kiosk is the industry standard for tablet kiosk solutions. ADDITIONAL FEATURES TrueScan™ Technology: The industry's best integrated image-capturing solution Wi-Fi Transparent: No matter where you place it in your store, the Interactive Kiosk is designed to maximize signal transmission Compatible: Designed for seamless compatibility with Apple's suite of iPad devices +MORE

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Retail Strategy Experts U. S. & Canada

Better Sales & Brand Management Group

PLANNING Planning for a market in the U.S. or Canada—regional or national—requires a methodical approach. Multiple elements come into play, from product to packaging, pricing and promotion. The right partners are crucial and a roll-out plan that is fiscally responsible is essential STRATEGY The key to success is a sound go-to-market strategy. We work with you to define your goals, priorities and expectations. We then recommend the best course of action based on resources and opportunities. All retail placements are backed with consumer marketing strategies to deliver sales results. BRAND MANAGEMENT Understanding the distribution and retail landscape while implementing proven brand management techniques only comes with years of hands-on experience and the right partners. We eliminate the learning curve and costly mistakes by providing a comprehensive service. Positioning – brand strategy and pricing Analysis – to decide on best distribution model Territory Management – Regional / National US and Canada Distribution Channels – set up and manage Broker Networks – set up and manage Corporate Accounts – set up and manage Sales Support – set up and manage sales teams/demos Reporting – setting goals and monthly reporting PRODUCT DEVELOPMENT Brand Concepts  We Help brands clarify & Define: A unique brand vision Positioning in the current marketplace Key Messages through ingredient stories Demographic of target audiences Formulation Development Custom formulations are developed specifically to fit the brands marketing concepts and target the desired demographic. We always keep a critical eye on budgeting and timelines throughout the process, providing frequent tracking reports of the project for your review. Specialized Formulation Development Services Include: Natural & Organic Formulations  Sophisticated, efficacious, and original formulas for the personal care industry Full Stability and compatibility testing services Wide range of ingredient claim information USDA Organic and Eco-cert Certified Cosmetic Ingredients Proprietary natural fragrances for unique, custom formulations Internationally compliant formulations Packaging Development We bring innovation and experience to cosmetic product packaging and design, key components  to the success of your brand. Our knowledgeable, experienced professional team can assist in coordinating all aspects of the development and sourcing process, creating a seamless collaboration between packaging design, formulation and functionality.  We have a strong global network of packaging suppliers, which enables us to help brands source the packaging of their choice. If we are unable to find the exact packaging to meet the needs of the brand, we develop customized packaging solutions. Strategic Planning for Timelines and Product Launches When taking the brand/product rom development to market, we develop a strategic plan, budget and timeline to achieve your goal launch date.   REGULATORY SERVICES Whether you are looking for assistance in becoming compliant in the United States and or Canada, Better Sales & Brand Managment Group can help. United States OTC Regulatory Compliance FDA Compliance Ingredient List Quantitative qualitative Prop 65 compliance Claims Review Dossiers Cosmetic Product Safety Assessments (EC) 1223/2009 Annex I, Part A and Part B EU Regulatory Compliance 1223/2009 EU Regulation Packaging Labeling: Claims & Compliance - Domestic & International INCI (International Nomenclature for Cosmetic Ingredients) Ingredient Labeling Claims Substantiation - Review packaging verbiage for compliance Canada Cosmetic Registration Natural Health Product  Drug Identification Number LOGISTICS We are specialists in logistics, calculating every detail to provide customized service to our clients with a reliable consistent relationship. Skilled in U.S. and Canadian Order Fulfillment Services, working with our partners servicing all classes of trade we are able to deliver seamless operational expertise. Fulfillment Pick and Pack Light Assembly Mailing services Cross Docking Same Day Shipping Inventory Management  Web tracking EDI set up and Management Order Processing Accounts Receivable/Payable Returned goods processing    Warehousing  We can organize central warehousing, establishing a base of business in the US and or Canada and provide state of the art facilities for all of our clients warehousing needs  +MORE

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DecisionCloud

MarketShare

You want to see a complete picture of marketing effectiveness – online, offline, long-term, short-term – everything. You want to easily plan your approach, optimize budgets and test scenarios. You also want cross-channel attribution, predictive insight and scale – with fast course corrections and decision support. And the measurement insights you gain must help improve ROI and show marketing’s revenue contribution. MarketShare DecisionCloud has five applications for advanced marketing decision analytics: Strategy: Our Strategy application, for large companies, can optimize your marketing mix and dramatically improve your marketing effectiveness. This advanced analytics technology reveals what truly drives demand for your products and services – whether it’s your marketing, what competitors are doing, or the weather. And it lets you run different scenarios to answer the “what if?” questions that are critical to effective planning and budgeting. Action: Our Action application delivers cross-channel attribution “in the cloud” and at scale so you can see the real value of each interaction or “touch point” with customers during their purchase journey. Our technology delivers a complete, holistic view that includes digital (online), offline and other factors that influence purchase decisions. It allows you to optimize, course correct and integrate with your ad tech ecosystem. Price: Our Price application is sophisticated cloud-based software for dynamic (real time) pricing. It’s perfect for industries such as entertainment, travel, hospitality and others. Our patented technology devours mounds of complex data, at scale, to reveal what’s driving demand and the optimal price to charge for maximum profit. Price delivers instant and ongoing recommendations on how you can adjust prices and boost revenue. Benchmark: Benchmark is an easy-to-use, self-serve application that helps agencies and others evaluate media channel effectiveness. It leverages proprietary, industry-specific intelligence we’ve developed over many years of experience. These insights show how different media impact sales, and how you can optimize media plans based on target goals. You can tap Benchmark’s powerful recommendations via your browser or through an API. TV: MarketShare TV™ provides early insights into how different networks, campaigns and creatives are performing on a daily basis through measuring the impact of TV impressions on website visits. +MORE

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SuperValu Retail Pricing Services (SVRPS)

SuperValu

SuperValu Corporate Retail Pricing system utilizes a Rules Based pricing program built around the NCR HQ pricing system, generating both Regular and TPR retails.  We generate Base Zone retails using a regional lead Chain Competitor target with incremental plus and minus zones. Regional Pricing Rules: System maintained Family Group relationships.  Private Label / National Brand Gap management.   Goal is to have the Private Label (PL) item linked to the appropriate National Brand (NB) item with a big enough gap to encourage PL sales while also showing a better Penny Profit than the NB item. Regular retails are generated based on Vendor cost changes (maintain margin). Regional lead competitor change (align with competition). Competitive surveys are on a 6 week rotation covering all Unified items / commodities that the competitor carries.   Top tier sensitive items surveyed every other week. + & - Zones with rounding to 5 & 9, 4 & 8, or 9’s only.  Under $1.00 rounds to 3, 5, 7, &9.  Base and plus zones round up and minus zones round down.   TPR’s (Temporary Price Reductions) are generated based on: 80 % pass through ($1.00 allowance goes to Unified customer and a $0.80 reduction of their retail goes to their customer). TPR’s must have a minimum savings of $0.04. TPR’s must have a minimum of two weeks shelf life. TPR’s round down to 5 & 9 except for those under $1.00 which round down to 3, 5, 7, & 9. TPR’s run for the full length of the deal.   This process results in increased margin $’s and increased sales over the regular priced item. SuperValu has three tiers of Sensitive items which allow our customer to set their Base Zones at a higher level yet select a more competitive zone for the Sensitive items.   Customers can utilize the Base and Incremental rules at the Type Business (TB), Department, or Category level.  TB might equal Grocery, but Dept might be Cigs, Tobacco, Specialty, or Hispanic. We have three Custom Price options for our customer to utilize, with on-demand and weekly automated reports to help manage them.   Locked Custom:  Target Margin resulting from a custom price is maintained if there are cost changes in the future.  We also generate a TPR based on the custom price instead of the Zone price. Manual Custom:  Customer maintains all changes on the regular retail once a custom price has been set.  System will generate a TPR based on the custom price instead of the Zone price. EDLP Custom:  Customer maintains all changes on the regular retail once a custom price has been set.  No TPR generation.   Our on demand Custom Report shows all items that a store has a custom retail on along with the corresponding Zone Retail and the Custom Rule.   Our weekly report is emailed to the store showing items that the store has a custom price on and the Base Zone has had either a cost or competitive change on that week.   DSD Pricing (Direct Store Delivery): Store specific DSD pricing is currently available in the Oregon, Washington, and Southern California regions. SuperValu provides you with files based on your store specific cost, retails and TPR’s. The store determines the TGM, Rounding Rules, TPR pass through by DSD commodity and Unified manages it for you based on updated vendor information. This allows the store to do back door receiving with their current effective cost and maintain their DSD margins and promotions based on their competitive situation. +MORE

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Pirc

Pirc

Pirc is reinventing one of the most important, if not the most important, pre-shop experiences for consumers of household/grocery goods – the weekly sales circular ($15B spend, 290B prints/yr). With 95% of all US commerce transactions occurring in-store, and the weekly circular driving a core % of those transactions, the circular has unbelievably received little to no real innovation – until now. While digital circulars are not new, Pirc is uniquely positioned to personalize and aggregate multi-store circulars and coupons, and ultimately create a Big Data brand engagement and promotion platform that scales. Today, Pirc delivers to consumers a weekly “Pircular”, or personalized circular, full of all the in-store weekly sales and coupons they actually want. At scale, we will have a database of consumers and their favorite brands which will give us a platform on which to build a more efficient, innovative marketing channel; also helping to displace the 70% of total marketing budget retailers spend on circulars today. We plan to monetize this service at scale primarily via an AdWords-type model, starting with native ad placements by brands and retailers. +MORE

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Analytics

The Smart Cube

The Smart Cube delivers specialized analytics services to global corporations and professional services firms alike, with the goal of leveraging data to drive strategic insights and tangible performance improvement.   Our strength lies in our ability to integrate sophisticated statistical analysis of proprietary client data with rigorous, in-depth primary and secondary research to derive fundamental insights into our clients' most pressing issues.  We don't simply deliver information, we deliver actionable, data-driven intelligence. Our specialist analyst team integrates industry, functional, and technical capabilities with local-market knowledge to generate critical insights that enhance our clients’ strategic performance.  Underlying this approach is a quality ethic that is reflected in every aspect of the client experience – from engagement design to execution and delivery. +MORE

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Pricing Solution

Pristine Infotech, Inc.

Pricing, promotion, and targeted offer solution for retailers. +MORE

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reach | optimize

reach influence

A solution that enables retailers to evaluate the effectiveness of weekly ads at the individual product level. The reporting, analytics, and price optimization functionality will help to improve advertising spend, promotional pricing, and top- and bottom-line performance. +MORE

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Revionics Price Optimization

Revionics

Revionics® Price Optimization blends pricing science, business rules and pricing strategy with the power of simulation to recommend optimal zone, channel and segment pricing. This product enables retailers to understand the impact of price elasticity, competitive activity, cost changes and product seasonality on shopper demand, price image and competitive positioning. +MORE

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