Innovative Tech in the Supermarket Space

The old adage that every company is a technology company has never been truer than it is at this very moment. Whether it’s self-checkout lines, automated supply chain services, or reward programs no industry is more representative of this reality than supermarkets. Even before The Pandemic drive-up and delivery orders were becoming more available as companies adapted to changing customer preferences and competition from online retail giants. In order to grow with the changing times stores are making major investments to increase their technology footprint.

A recent study done at Texas A&M and published in Informs journal Marketing Science found that “Retail app users buy 33% more frequently, they buy 34% more items, and the spend 37% more than non-app user customers over 18 months after app launch.” These results confirm what most would already assume, and that’s that mobile applications are a “must” for any business wanting to compete with the leaders in their respective industries. That being said, not all grocery applications are created equal. Most large retailers have several independent silos that add to the complexity of one “all encompassing” user-friendly mobile application. As a result, most of the largest grocers have multiple applications for each silo… For example, they might have one for pharmacy, one for loyalty rewards, one for curbside pickup and another for coupons. Needless to say, this isn’t ideal, and almost certainly leads to consumer-tech fatigue.

Artificial Intelligence is also revolutionizing the retail sector, and it’s only the beginning. Amazon of course made headlines when it opened it’s first no-checkout location, but others are entering the space as well. New Zealand retailer Foodstuffs introduced a new technology called “SMARTCART” where the products are automatically scanned and charged to an account as they’re put into the cart. Any discounts or coupons are automatically applied as well, eliminating the need for physical coupons. Not only does this make the customer experience easier, but after the initial investment for the SMARTCARTS it also eliminates the need for coupon mail campaigns and paid cashiers.

AI and ML are also improving the way inventory management is handled. Utilizing technology to accurately forecast demand is a vital part of reducing waste and maximizing profit. It’s estimated that 35% of a stores fresh food is wasted on the shelf. Products like Shelf Engine aim to reduce waste and utilize sales data and demand trends to automate inventory orders. “Shelf Engine utilizes external data, like supply chain bottle necks and local preferences, with a store’s historical and daily sales to forecast future demand with a high degree of accuracy.” Relying on intuition and end of month sales data for thousands of SKUs is impractical and unnecessary.

At Spearhead Technology, we’re involved in some of the most important and innovative technology projects in the world with some of the largest companies on the planet. Our expertise centers around AI/ML Solutions, Cloud Migrations, Automation Strategies, Business and Intelligent Process Automation, Mobility Solutions, IT Infrastructure Management, Blockchain Technology and Web/Mobile Application Development, but we’re first and foremost a Technology Consulting Company. If you’re looking to invest in and expand your technology footprint let us show you what’s possible.