What are the best IT projects of the past year? Retail Week takes a look at some of the projects helping to change the way things are done in retail.
The retail sector is moving steadily through a fundamental period of change, and there are examples throughout the industry of the steps it is taking to improve its offer for ever-more demanding consumers.
As the closing date for the BT Retail Week Technology Awards looms, below we outline a handful of the most interesting technology projects in retail from the past year.
Some are trying out whizzy digital technologies, while others are addressing the need for sweeping infrastructure changes. But all are symptomatic of the new level of technical prowess retailers need to demonstrate.
1) John Lewis’s JLab
John Lewis’ bid to find the next big technology in retail has led to the creation of a competition for a place on its accelerator, JLab. The scheme will enable five start-ups to work with John Lewis IT staff in developing their idea.
IT director Paul Coby says retailers need to work more closely with start-ups. “We don’t have a monopoly on all the good ideas. One of the great things in the UK is this fantastic ecosystem of people who are all thinking about how you can use technology. Structuring that and giving companies the chance to contribute is something that will benefit everyone.”
It’s something others clearly agree with - John Lewis is not the only retailer to court start-ups. Tesco has sponsored the Rainmakers Loft start-up space in East London, and held a speed dating event for start-ups in 2013
2) Topshop’s virtual reality headsets
London Fashion Week has developed a bit of a reputation as a good time for brands to try out snazzy new digital technologies, and with Topshop’s virtual reality headsets the fashion retailer has led the way. In February it gave its customers the chance to sit on the front row of its fashion show in a virtual reality experience. The Topshop Unique show was live streamed from the Turbine Hall at the Tate Modern into a virtual world created by 3D agency Inition at the retailer’s Oxford Circus store. Shoppers could wear the headsets to enter a virtual world, which included a live runway feed, backstage action and VIP arrivals. Cameras recorded the scenes to give a sense of presence at the actual show.
3) Eat trials beacon technology with Weve
Weve is a joint venture between phone networks Everything Everywhere, O2 and Vodafone, and is their bid to commandeer the mobile payment and loyalty market. In what it claims is a UK first, it is working with food service retailer Eat to trial its loyalty app Pouch. The technology means shoppers can be sent marketing messages via their smartphones. Small bluetooth beacons are placed around the store, and communicate with shoppers as they move around.
4) Asda rolls out RFID
It looks as though RFID (radio frequency identification) is finally having its time in the sun - after decades on the ‘too expensive’ pile things are looking up for the technology. In January it was announced Asda is rolling out RFID, which essentially means tags are added to each product that enable it to be tracked as it moves around the supply chain. Working with supplier Tyco, Asda can now view stock levels on a real-time dashboard that shows staff stock volumes in each store. It’s all part of the at-a-glance stock visibility that every retailer wants.
5) House of Fraser queue busters
House of Fraser’s queue-busting technology is designed to reduce the time click-and-collect shoppers wait in store. The retailer announced in January it was to install the virtual queuing system, which was piloted at its London City store last year, in 15 further shops in the first quarter. It intends to roll out the technology to the rest of the estate by the end of the year. The system allows shoppers to check-in via a self-service kiosk as they enter the store. Shoppers then receive a text with an estimated waiting time and a link allowing them to check the progress. Customers can then shop the store or enjoy a coffee rather than wait in a queue.
6) Electronic pricing at Tesco
Electronic pricing looks like it may not be far off being a normal sight in UK supermarkets. Tesco is currently trialling electronic labels and chief information officer Mike McNamara said in December 2013: “The ones we’re using now use the same e-ink technology that’s used in ebook readers and feedback from customers has been good. That gave us the confidence to trial them in our Letchworth Express store in Hertfordshire, and we’re about to roll them out into our Enfield Superstore too.”
He adds potential benefits are huge. “It’s a much simpler system than manually changing between five and ten million shelf edge labels every week. That’s a lot of time that our colleagues in stores spend changing fiddly labels.”
Plus, McNamara added, there are fewer mistakes. “The other benefit is even more confidence that the price on the shelf edge is correct. When we are changing 10 million labels, mistakes can happen. With electronic labels, pricing information can be controlled from a central system and prices are changed instantly.”
7) Single global network at Tesco
It is a busy time for IT at the grocers - in January it also emerged that Tesco is rolling out a single global network as part of its centralisation programme. The network provides internet connectivity for its 12 international businesses, and Tesco has rolled it out with supplier Verizon.
Tesco has two separate IT strategies for different parts of the business - some areas, such as head office infrastructure, are being centralised, while others are being decentralised to allow staff to use the technologies best suited to local customers.
The grocer says the new centralised network will enable new technologies to be rolled out more quickly and cheaply across the entire business.
8) Asda 3D printing
Asda’s 3D printing service is unique among retailers, and has produced some interesting results from imaginative shoppers. The service means people can be scanned and then turned into lifelike 3D figures - some come into store in fancy dress, and Asda said one solider came into store wearing his uniform so his grandmother, who hadn’t been able to attend a medal ceremony, could see a model of him in it. The service is a great example of how technology can be used to create interest and entertainment in store.
9) M&S demand forecasting
The performance of Marks & Spencer’s food division has gone from strength to strength and the retail bellwether attributes its success in no small part to a demand forecasting system. The IT system has helped lead to 35 consecutive quarters of growth in food, and M&S is now rolling the data-driven system to general merchandise, with the aim of improving stock availability by 9% by 2015/16. The system uses different types of data to predict demand, allowing stores to more accurately forecast how much stock is needed and reducing the number of mark-downs.
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