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Amazon is no stranger to innovation. One of its recent launches happened on June 15, when the company announced the upcoming implementation of Just Walk Out technology in a new full-size Amazon Fresh grocery store in Bellevue, Washington. At this store, all grocery items including meat, pre-made meals, pastries and produce can be purchased without stepping foot in a checkout line. The Just Walk Out technology uses computer vision, sensor fusion and deep learning to register what items the shopper has selected, and instantly charges shoppers via their Amazon account or connected credit card.
As GK Software CEO Michael Jaszczyk told Winsight Grocery Business, this announcement by Amazon should encourage other grocers to lean into innovation. He pointed out, “The future of checkout is here, and retailers must deploy technology that’s designed for simplicity and convenience to stand out from the competition and win over customers.” But before implementing new technology, grocers must first understand how to cater their offerings towards what shoppers really want.
The announcement from Amazon excited many U.S. consumers, especially those who prioritize contactless, efficient shopping experiences in the wake of the pandemic. The Amazon Go stores across the country have done remarkably well, with 76% of shoppers who tried the cashierless experience within the first few months saying they preferred it over traditional store formats, according to a survey from Inmar Intelligence.
Those that are open to the new technology were optimistic that overall retail transformation was in the works. The same survey found that 54% of shoppers expected this new type of store to succeed as e-commerce grows. For these consumers, they will be drawn to stores that lean into innovation and offer exciting new shopping experiences such as pop-up locations or mobile app engagement.
However, not everyone is comfortable with new technology, or the necessary changes associated with implementing it. In fact, 43% of shoppers were not interested in seeing Amazon Go or Just Walk Out technology in their towns. For some, the disinterest comes from a fear of how it will impact their local communities. Retail Dive reported that 59% of American consumers see Amazon Go as a threat to other major grocers.
Another concern with digital-first stores is the impact the advancements will have on elderly community members. Pew Research recently reported that only 61% of citizens over the age of 65 owned a smart phone as opposed to 96% of those younger than thirty. For groups more wary of technology, retailers must invest in easy-to-use platforms that encourage shoppers to adapt to new processes.
Despite the contradicting viewpoints on what the future of grocery retail – and checkout technology – looks like, there are ways to cater to both sides. The first is to offer easy-to-adopt and user-friendly innovations like BOPIS or QR Code scanning that shoppers of almost any level of digital understanding can utilize. The next is to ensure that there is always an alternative. Touchless check points should be paired with a nearby employee to help confused shoppers ease into the more innovative store experience. Technology does not have to be intimidating or exclusive. With the right solutions for the target audience, the future of grocery is bright for all types of shoppers.
We understand that your store must satisfy all potential customers on the first try in order to succeed. That’s why our solutions were designed with a variety of shoppers and digital skill levels in mind. To hear how GK Software can help your store stay ahead of the curve without leaving anyone behind, reach out to us today.
CLOUD4RETAIL is GK Software's flexible, open commerce platform providing services for the operation of integrated unified commerce environments from in-store and online touchpoints through to mobile devices. The platform is enriched by innovative services such as AI-based dynamic pricing, personalization, fraud detection, and mobile applications. Now available with Azure, SAP Cloud, and IBM, the extensive expansion and customization options of the various CLOUD4RETAIL services can be used on a wide range of devices.
‘The partnership with GK and their innovative AppEnablement allows us to offer retailers the Abacus managed lottery services in a simple and effective way, cutting significant effort and time for retailers and allowing them to realize increased sales and a broader, more integrated way of selling lottery to their customers’ says Simon Butler, Abacus CEO. ‘We are glad to be able to offer our customers, leading retailers in over 65 countries, such a quick and simple way to introduce lottery, everywhere. Increasing retailers revenue and pleasing their consumers’ says Orit Bar-Ad, GK Software Portfolio Director.
See a demo here.
Abacus – the gateway at the heart of connecting consumers, retailers and lotteries in the global market. With an established presence in Europe operating for the last six years Abacus is actively growing their market presence in North America. Abacus believes the future of lottery lies in integrating into the existing retailer and consumer infrastructures by providing a highly secure transaction gateway that enables all parties to work together and create mutual growth. The Abacus Fusion Platform sits at the heart of connecting consumers, retailers, and lotteries, with the Abacus team managing integration from start to finish. Abacus is building long term relationships by working together to develop new and innovative solutions. We use cutting edge technology, created by forward thinking industry experts, the Abacus gateway enables lotteries and retailers to respond to the ever-changing consumer market with speed, agility, reliability, and integrity. For more information visit: www.lotteryeverywhere.com.
Retailers juggle vast amounts of data from a variety of sources to improve their level of service and the customer experience. This is critical, as 90% of consumers say the amount they spend or shop with a retailer is impacted by how consistently the retailer delivers a personalized shopping experience – and 65% are willing to share their data with retailers in order to receive it.
But analyzing data without advanced technology can be overwhelming. AI is helping retailers aggregate their physical and online data to better serve their customers. What's more, these personalized engagements can be carried out at the point of sale in order to foster loyalty.
What makes customer service good? During an interaction with a customer, sales staff can learn about specific needs and recommend corresponding products. But imagine how much more beneficial it would be to know a shopper's preferences at the beginning of each interaction – without having to even ask.
Devices for employees, such as mobile phones or tablets, can provide support while they are on the sales floor interacting with shoppers. After identifying a customer by loyalty card or e-mail, additional information across both physical and digital channels can be accessed. This includes information on recent purchases as well as items viewed or added to a basket but not purchased. Based on this information, AI-based solutions can calculate product recommendations, enabling sales staff to make relevant suggestions during each customer visit.
Through recommendation-based interactions, sales staff achieve a better quality of service, strengthen customer loyalty and generate additional purchases, which in turn has a positive impact on sales volume.
Whether on paper or presented digitally, coupons are still a popular means of customer loyalty. In fact, 2020 was the first year digital coupons exceeded print circulars. But regardless of format, coupons must be relevant. Offering a vegetarian a discount for a meat-based product is not only inappropriate, it can be offensive.
To increase redemption rate, retailers must suggest relevant products to customers on an individual level. Self-learning AI algorithms can automatically calculate product recommendations of the highest personal relevance and combine these with existing coupons and promotions. At the point of sale, a customer can then receive a coupon directly on the receipt or in an email newsletter. This interaction can spur return purchases and further brand loyalty.
In-store television and digital signage is often used to promote specific products. This technology is also beneficial as retailers look to safe, engaging in-store experiences. However, this method of in-store advertising requires significant manual maintenance. In order to be timely, the display must be constantly updated. Luckily, AI can fully automate digital signage with real-time, relevant content depending on the retailer's goal.
The content used on digital signage can also be adapted to time of day, location, regional events or current customer behavior. For example, if there is little demand in the baked goods department, the sign will display a special offer during a specific time slot. If the weather is warm, AI recognizes this and can recommend barbecue supplies or ice cream. In this way, the impact of in-store TV and digital signage is significantly increased, and more interesting offers can be played out to customers.
As the point of sale is expanding beyond the checkout counter, making sense of data can be overwhelming. Between customer, inventory and pricing information – just to name a few factors – retailers need the right technology to access actionable insights. GK Software is here to help you implement the best solutions for your business.
Today’s “store of the future” is often considered to have technology like self-checkout shopping carts and camera-filled stores à la Amazon Go that allow for a completely touchless experience.
It’s obvious that COVID-19 accelerated the demand touchless retail as a result of consumers’ sanitation and safety concerns. Now, 87% of U.S. consumers prefer to shop at stores that have touchless or robust self-checkout options.
As counterintuitive as it may sound, touchless technology offers retailers additional – albeit contactless - touchpoints to interact with customers at every step of their journey. As of April 2021, 71% of U.S. consumers felt safe going to a physical store. But retailers can be doing more to ensure that every step of the customer journey is touch-free.
When a consumer enters the store and chooses to shop contactless, they can either open up the retailer’s app, or scan a QR code that is located at the entrance of the store. From there, the shopper can be identified and loyalty information can be accessed.
Once the shopper has grabbed their basket, retailers have a number of touchless ways in which they can continue to interact.
As a shopper scans barcode items, their pending order total will automatically update. In addition, mobile devices can alert shoppers of existing promotions on products they have already scanned, or share offers on similar items to increase basket size. For example, this could be a discount on salsa if chips are bought.
Another way retailers can serve their customers from afar is by providing item information and item location online. The retailer’s app can be set to the shopper’s current location or preferred store, allowing them to check item availability as well as the specific aisle it’s located on. This allows the shopper to continue their journey without having to locate an associate and ask them for assistance.
Once a shopper is ready for checkout, they have two options: first, they can choose “check out” on the app. From there, they move to a payment prompt and can complete their purchase. Second, shoppers can opt for the “just walk out” method, where no interaction is needed and their account is charged automatically. This may seem like technology of the future that giants like Amazon have already implemented, but all a retailer need is an integrated POS and payments solution.
Touchless payment modes can also speed up the purchase process, a common pain point for retailers. The same technology can also encourage customers to sign-up for loyalty programs all at the same time.
To further drive loyalty, many retailers miss the final touchpoint, which is after a shopper has left the store. Digital receipts can be sent via email or SMS, and may contain targeted offers or an update on loyalty points to incentivize a customer to return to the specific retailer.
Retailers with a strong mobile app presence are one step ahead when it comes to ensuring a completely contactless in-store shopping experience. However, retailers now have the option to integrate app-less technology across their business. This eliminates any barriers for customer interaction.
Regardless of which shopping method a consumer chooses, retailers must focus on every step of the customer journey – from when a consumer enters the store to when they are sent a post-purchase receipt. By eliminating friction and providing shoppers multiple options for how to shop, retailers are establishing a convenience and flexibility that will drive loyalty. Are you ready to get started?
Just three years ago, we officially launched CLOUD4RETAIL at EuroCIS 2018. Since that first splash, CLOUD4RETAIL has been used worldwide to power the modern retail experience, from touchless mobile payments to personalized digital engagements.
Our product continues to evolve to meet the market and while there are many reasons our customers select CLOUD4RETAIL, there are four we hear time and time again.
In October, RBR’s Global POS Software 2020 study revealed that GK Software confirmed its market position as the leader in new POS installations.
The report analyzed global point-of-sale installations of more than 75 vendors in six regions. In addition to receiving the top position in new retail installations, we were ranked sixth in total POS installations.
Across Europe, RBR found that we were responsible for more new installations than any other provider, with a total share of 20%.
CLOUD4RETAIL is the only POS to provide an enterprise-class, unified platform for every retail format: from quick- and full-service restaurants and convenience, to grocery, fashion and fuel.
According to McKinsey & Company, “The COVID-19 pandemic has reset the retail game board. The most successful retailers will be those that connect with consumers in new ways by leaning in on their digital, omnichannel and in-store technology ambitions.”
Our all-in-one platform is the only solution on the market that provides a single solution, eliminating the need for multiple POS systems and enabling rapid innovation. Plus, CLOUD4RETAIL is a headless commerce solution, ensuring retailers benefit from easy updates and new integrations.
As an open platform for retailers operating globally, CLOUD4RETAIL is used in more than 60 countries and meets all legal requirements.
Consider our customer Tally Weijl, an international fashion retailer with more than 900 stores in 38 countries, plus a comprehensive online offering.
Tally Weijl selected CLOUD4RETAIL to interact with its customers across all channels and drive international growth. One of the essential building blocks is the centralized store-level GK Software solution, which can be customized in line with country-specific requirements.
Learn more about Tally Weijl’s implementation in their case study.
The Omnibasket Developers Portal, launched early this year, makes it easy for third-party solution providers to easily integrate their applications with CLOUD4RETAIL.
This provides flexibility and growth opportunities for retailers, who can choose from a growing number of applications that complement and easily integrate with GK.
“The GK Software Omnibasket developer portal and Innovators program are a revolutionary approach,” said Simon Butler, CEO of Abacus Lottery Everywhere, an early adopter of the new portal and program. “This could help enable solution providers to offer retailers significant benefits with very little effort and time to market, integrating into their existing platform.”
Worldwide, GK Software customers’ annual total revenue is $520 billion. We work with 24% of the global top 50 brands.
Our position as a top worldwide POS provider, support for all retail formats, help driving global growth for retailers and easy integration through Omnibasket are just four reasons customers select CLOUD4RETAIL. But the reality is there are many reasons to work with GK Software.
Learn more about CLOUD4RETAIL online, or get in touch with us to discuss how we can help grow your retail footprint today.
This relationship will help to provide retailers with an enhanced pathway to retail innovation using IBM's secured cloud technology and extensive industry services alongside the leading enterprise cloud solution for retail. As part of the collaboration, GK Software’s CLOUD4RETAIL, currently the solution most rolled out to major retailers worldwide in new projects 1 , is now accessible via IBM Cloud, accelerating hybrid cloud adoption within the industry. This global relationship also supports a joint go to market strategy which enables IBM’s Global Services (GBS) to build integrated solutions and innovative offerings for retailers.
CLOUD4RETAIL is GK Software's flexible, open commerce platform providing services for the operation of integrated unified commerce environments from in-store and online touchpoints through to mobile devices. The platform is enriched by innovative services such as AI-based dynamic pricing, personalization, fraud detection, and mobile applications. Now optimized on IBM Cloud, the industry’s most secured and open public cloud for business, the extensive expansion and customization options of the various CLOUD4RETAIL services, can be used on a wide range of devices.
GK Software will also extend the deployment flexibility of CLOUD4RETAIL by adopting Red Hat OpenShift, the industry's leading enterprise Kubernetes platform, allowing customers to run GK solutions across hybrid environments – from on-premises to multi-cloud environments and at the edge.
1) See latest rbr research Global POS 2020 (category new POS without installations in hospitality and fuel)
Michael Scheibner, Chief Strategy Officer of GK Software, says: "GK Software and IBM share a long partnership in the retail industry and many common customers. We are very pleased to accompany retailers on their transition to the cloud in cooperation with IBM. We believe that we can make an excellent offer for holistic omnichannel processes based on state-of-the-art technology, especially to long-standing IBM customers."
This position is also underlined by Luq Niazi, Global Managing Director IBM Consumer Industries; "The challenges facing many retailers are extensive; diverse customer expectations, intense competition, increased operational complexity and ongoing cost pressure, all while navigating the disruptions and uncertainty of today’s changing retail landscape. By adopting a hybrid cloud strategy with IBM and Red Hat technology, managed by IBM Services, CLOUD4RETAIL can enable retailers to modernize applications and connect multiple technologies and the resulting data across the store, offering a more personalized and secured experience for shoppers.”
For further information about IBM in the Consumer Industry please visit: www.ibm.com/industries/retail
Without a doubt, the past year and has been volatile for retailers as they were forced to adapt to changing consumer behaviors.
But while retailers were heads down and looking for answers to their technology limitations, analyst firms were recognizing GK Software for existing solutions already solving the problems COVID-19 exacerbated.
Most notably, Gartner released a guide on pricing and promotion solutions and IHL Group explored the market leaders in order fulfillment; both named GK Software as a leading provider in the space.
COVID-19 turned BOPIS and curbside pickup into mass-adopted services in 2020. And these services are now a solid part of consumer's shopping habits, as 75% of shoppers have used in-store or curbside pickup in the past six months.
For retailers, the shift in behavior required retailers to respond with streamlined fulfillment processes. IHL Group's Competitive Market Leaders report identified the key partners for digital order fulfillment at a store level. The report ranked vendors based on the average percent their customer's revenue comes from digital sales completed by store fulfillment, and included GK Software as a top company.
The industry's focus on curbside demonstrates that physical stores still play an essential role for retailers. But the traditional store has evolved to be much more than a location for shoppers to browse and buy the items they need.
Retailers must now have an established architecture that achieves omnichannel commerce, as well as new fulfillment options like curbside. GK Software's CLOUD4RETAIL platform supports retailers as they enable a unified commerce experience.
Over the past year, grocery prices have increased by 2.6% overall,according to the Bureau of Labor Statistics. Shoppers' increased price sensitivity, as well as the volatility of the market and competition has led retailers to focus on dynamic pricing. This allows them to better serve customers and retain loyalty while also improving profit margins.
Customer demand and the availability of certain products can change daily, making it almost impossible to manually run a meaningful forecast of purchase behavior based on typical seasonal trends.
GK Software's Dynamic Pricing solution was recognized in Gartner's Market Guide for Retail Unified Price, Promotion and Markdown Optimization Applications. The AI-enabled solution allows retailers to optimize their omnichannel pricing strategies in real time and at scale, based on the full scope of their available customer and market data.
As you look to prioritize your technology investments, it can be overwhelming to balance the demands of today along with expectations for the future. GK Software can help you implement solutions that address both. After all, we are an analyst-recognized provider. So why not work with the best?
This growth has seen the company’s EBIT nearly triple to 3.20 million euros (Q1 2020 = 1.06 million euros). The EBITDA was 5.13 million euros, an increase of nearly 2 million euros over the previous year (Q1 2020 = 3.26 million euros) that can be attributed to sales growth of 4.9 per cent to 30.45 million euros (Q1 2020 = 29.02 million euros).
These results were achieved on the basis of two new customer acquisitions in Germany and Mexico, strong business with existing customers, and the ongoing implementation of the measures in the company’s efficiency program. The company’s performance also backs up the Management Board’s forecast for the whole of 2021, which continues to be supported by a strong sales pipeline and additional sales from Deutsche Fiskal starting in the second quarter. The sale of AWEK microdata has no impact on the forecast.
The quarterly report is available for download at https://investor.gk-software.com/en/publications/financial-reports?task=download&cid=844.
AWEK microdata is a wholly-owned subsidiary of GK Software, focused on the development, sale and management of euroSUITE, the solution for medium-sized retailers. It was taken over in 2012 in connection with the acquisition of AWEK GmbH. At the end of the 2020 financial year, the company had 41 employees at the Hamburg and Bielefeld business sites and contributed less than five percent to the revenue and earnings of the GK Software Group. The transfer of business will take place on 21 May 2021.
The GK Software Management Board would like to thank the company’s management and employees for the work carried out in the course of its affiliation with the Group and wishes them every success in the future.
The back-to-school shopping season is expected to look different again this year.
Like last year, buyers’ needs will be impacted by whether learning takes place in person. Presently, school administrators are expecting a mix of in-person and remote instruction during the upcoming fall semester.
In addition, consumer behavior is continuing to evolve. Shoppers are slowly returning to stores as vaccines rise. And, at the same time, many new shopping behaviors are expected to stick, such as curbside pickup and an increased use of ecommerce.
Retail sales are also beginning to increase after experiencing a 9.8% surge in March compared to a 3% drop the month before. This increase is the largest since May 2020, when stores reopened after pandemic closures. It was also dramatically larger than the 5.5% Wall Street analysts expected. This growing trend signals good news for retailers during this year’s back-to-school shopping season.
As mentioned previously, 69% of administrators are implementing a combination of in-person and remote schooling, as hybrid learning models allow families a choice in schooling and much-needed flexibility.
To support this model, educators plan to work towards ensuring all students have the technology they need to complete schooling at home.
Either way, prevention measures will likely still be necessary as many children remain unvaccinated. Currently, the CDC recommends a range of mitigation strategies including mandatory masks, good ventilation, regular handwashing and continued social distancing.
Recent research from NRF hints at new shopping methods that are expected to stick. For example, 65% of consumers pay for a delivery shipping service, with a quarter paying for more than one. In addition, seventy percent of consumers have used BOPIS and found it improved their shopping experience.
As for online shopping, consumers spent $861.12 billion online with U.S. retailers in 2020, up 44% from $598.02 billion in 2019, according to Digital Commerce 360.
Since the upcoming school season is expected to be a mix of in-person and remote learning, back-to-school shopping habits from last year can give us insight into what to expect this year.
Growing children need new clothes whether they are at school or at home; last year, 47% of consumers surveyed said they were spending more on clothing, and 59% said higher spending would come from school supplies like pencils and notebooks, according to NRF.
For parents expecting students to be at home, 72% of respondents planned to buy items to help with remote learning, such as computers, home furnishings and other supplies. Thirty-six percent are expected to buy laptops, 22% speakers/headphones, 21% tech accessories and 17% printers.
In 2021, the best plan is to be prepared for anything to happen.
We’ll likely see shopper behavior continue to evolve, with consumers using a variety of purchasing methods. And with a mixture of in-person and online learning expected, what consumers are buying is likely to be diverse as well.
To learn more about how to prepare your stores for a flux of in-store shopping, check out our recent blog that provides tips on contactless POS, electronic receipts and mobile tools.
If you’re looking to learn more about how to personalize the online shopping experience, check out this post on our blog.
The Retail Innovators