The ‘retail store of the future’ is no longer a distant concept, according to David Cohn, the chief information officer (CIO) at Shoprite.
With the integration of technologies including artificial intelligence (AI), radio-frequency identification (RFID), digital advancements and data science, it was already a reality.
“To be at the forefront of this evolution, the synergy between business and technology is critical. Technology and business should not be viewed as separate entities, but a unified force with a free-flowing exchange of insights between the operational requirements and technological possibilities,” Cohn said.
Shoprite has adopted technology to execute game-changing initiatives to set new standards for efficiency and convenience.
Cohn said in March, the group became the first clothing retailer in South Africa to offer self-service checkout in its standalone UNIQ stores.
This week it opened its 10th UNIQ store in Rosebank Mall, Johannesburg, with plans to open eight more stores before the end of this year.
He explained how UNIQ stores operate: “With smart tags and advanced RFID, customers can easily scan and pay for items. With real-time tracking of products, RFID enables retailers to maintain accurate stock levels, reduce overstocking or understocking, and enhance supply chain efficiency.”
This technology eliminated the need for manual inventory checks, freeing up employees to focus on providing exceptional customer service.
Machine learning
Machine learning and AI were increasingly playing more prominent roles in both the customer-facing and operational aspects of the retail sector.
“AI-driven analytics help retailers predict trends, optimise inventory and reduce waste.
“In a South African supermarket first, the group successfully deployed a powerful end-to-end supply chain software solution to ensure highly accurate orders. Using machine learning and AI, the system considers a number of external factors when ordering ultra-fresh products, including historical data to predict buying patterns of certain products. The implementation was an immediate success, with substantially increased year-on-year sales growth and significantly reduced wastage,” Cohn said.
Machine learning was also applied to floor plans, to improve store layouts and reduce queues to enhance the in-store customer experience.
Data and technology were also the driving forces behind supply chain intelligence, a key focus for Shoprite. It started with meticulous planning – exemplified by stock supply – and encompasses considerations such as distribution destinations, lead time requirements, logistics co-ordination for promotional and non-promotional stock replenishment, as well as handling seasonal inventory needs like back-to-school orders.
However, Checkers Sixty60, which launched in 2019 – the first of its kind for a supermarket chain in South Africa – showcased Shoprite’s technological prowess, Cohn said.
“To capitalise on its success and further improve delivery times, we have since developed a machine learning algorithm to define optimal delivery regions. The solution overlays a map with the spatial-temporal view of orders while using order data to determine the optimal delivery area for each store,” he said, adding that the algorithm also considered packaging and delivery time to determine the areas that could be best served by a driver within 60 minutes.
But how do you bring the online into the real world?
Cohn said the trick was in bringing the physical store and the digital experience together.
“The success of Sixty60 lies not only in the technology and user experience online, but also in the back-end integration with Checkers supermarkets.
“We take this approach into every new project to deliver solutions that elevate the business and, ultimately, better serve our customers,” he said.
The retail landscape was “ever-changing”, so the group has had to innovate.
“The future is here, and it’s re-imagining the shopping experience,” he added.
BUSINESS REPORT