As Tesco opens a new office in Shoreditch, London to house a team of app developers, Retail Week asks how can multiple retailers harness the digital start-up mentality.
‘If you’re going to fail, fail fast and move on’ is often the mantra used within the technology industry. The versatility of start-up technology companies – run on low overheads by small organisations on a project-by-project basis – is often lauded by those looking to drive innovation through their business.
While Tesco rarely fails in any of the wide variety of avenues it turns its hand to, the UK’s largest retailer’s move to embrace this mentality is significant. It allows the grocer to gain a fleetness of foot within the £72bn behemoth of a business. The team will identify future trends in shopping on smartphones to inform the retailer where it needs to invest and develop apps accordingly. The office will supplement the work done at the Hindustan Service Centre in Bangalore, India where Tesco spearheads digital innovation for the group.
The move takes Tesco into what is dubbed ‘Silicon Roundabout’ because of the influx of digital companies is also significant. It joins retailers Amazon and Aurora as well as a plethora of technology start-ups in trendy Shoreditch in a ploy which it hopes will attract a plethora of digital talent.
The IMRG E-Retail Survey earlier this year revealed 70% of online bosses intend to recruit more online staff this year.
The move follows Marks & Spencer’s creation of a digital lab earlier this year which looked to build a Silicon Roundabout mentality.
M&S multichannel ecommerce director Laura Wade-Gery said that the technological knowledge that characterises youthful digital companies as well as retail’s connection to consumers is something which the retailer wants to harness.
It is not the first time Tesco has shown willing to open up its thinking in the digital space. The retailer has run several ‘hackathons’ splitting staff into teams to create a new apps and ideas in 24 hours, developing ideas such as virtual shopping aisles and recipe bags where shoppers are delivered the exact ingredients for one meal.
IMRG chief information officer Tina Spooner says developments in mobile technology and the increase in mobile’s use in shopping is driving digital innovation by retailers.
“Mobile is definitely driving this area of retail and making some of the larger retailers innovate to react to this. We have a new breed of consumers and retailers need to be innovative,” she says.
If retailers are to stay ahead of the curve a new mentality may need to be developed. These new digital-focused operations may be the first significant step in that transition.
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