2016 retail innovation briefing - iqpc corporate · futurestores.wbresearch.com 1 2016 retail...
TRANSCRIPT
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2016 Retail Innovation Briefing
February 7th, 2017 Courtesy of Future Stores
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ContentsIntroduction..............................................................................................................................................................................................................2
Amazon Go Is in Prime Position to Disrupt In Store Retail............................................................................................................. 3
Lowe’s is Augmenting Retail Reality with VR & Robot Assistants.............................................................................................. 5
How Macy’s “P2LU” Program Revolutionizes Inventory Management......................................................................................7
Walmart Wants to Win the Digital Wallet War with Walmart Pay.............................................................................................. 9
We.want.to.provide.you.with.perspective.on.how.major.retailers.are.implementing.technologies.that.enhance.the.customer.experience.on.a.grand.scale.using.technologies.never.seen.before..
The.retail.industry.is.undergoing.a.massive.time.of.transition.due.to.changing.consumer.behavior.and.disruptive.technologies..In-store.visits.are.significantly.down.due.to.the.massive.shift.to.digital,.so.stores.are.working.to.push.the.online.sale.as.well.as.reinvent.the.store.environment.to.increase.foot.fall..But.with.technology.changing.rapidly.and.consumer.expectations.at.an.all.time.high,.many.stores.are.failing.as.evidenced.by.numerous.store.closings..
Retailers.are.working.to.compete.with.Amazon’s.level.of.personalization,.efficiency,.price.and.overall.customer.experience,.but.it’s.no.easy.task..They.are.quickly.realizing.that.the.days.of.a.strictly.transaction-focused/product-centric.environment.are.gone..Today,.it’s.all.about.relationships.and.engaging.the.customer.wherever.and.whenever.they.choose.to.engage..
It’s.not.all.gloom.and.doom.however..There.are.many.retailers.who.are.successfully.reinventing.themselves.by.creating.immersive,.engaging.retail.environments,.hiring.knowledgeable,.tech.savvy.associates,.meeting.heightened.expectations.around.delivery.and.fulfillment.and.understanding.the.importance.of.the.smart.phone.throughout.the.entire.experience..
Overview
The Aim of This Whitepaper
Industry Backdrop
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Amazon Go Is in Prime Position to Disrupt In Store Retail
“Just Walk Out” TechnologyThe Start of Things to Come for Amazon Bricks?
The.supermarket.industry.has.been.discussing.and.attempting.a.faster.checkout.experience.for.years..However,.whilst.distracting.itself.with.self-service.checkouts.and.certain.buy.online.pickup.in.store.(BOPUS).initiatives.to.speed.things.up,.it.has.taken.an.online.retailer.to.come.up.with.a.solution.that.no-one.else.thought.of.–.no.checkout.at.all.
Amazon Go.is.Amazon’s.new.checkout-free.convenience.store,.set.to.open.a.presently.unmatched.in.store-based.retail.experience.to.the.public.in.Seattle.early.2017.
Watch.the video.and.prepare.to.be.wowed:
Amazon.has.revealed.that.it.uses.a.combination.of.machine.learning,.sensors.and.artificial.intelligence.to.track.items.that.customers.pick.up..The.items.are.then.added.to.the.customer’s.virtual.cart,.and.the.virtual.bill.is.subsequently.forwarded..This.allows.shoppers.to.literally.pick.up.what.they.want.from.the.store’s.shelves.and.then.“Just.Walk.Out”.–.hence.the.name.given.to.the.technology.
However,.the.company.is.keeping.its.cards.somewhat.closer.to.its.proverbial.chest.with.regards.to.exactly.how.the.Just.Walk.Out.technology.works..That.being.said,.tech.news.site.Recode spotted.a.patent.filing.by.Amazon.last.year.that.revealed.some.details.
The.patent filings describe.a.system.that.uses.Radio.Frequency.IDentification.(RFID).to.detect.when.a.shopper.removes.an.item.from.a.shelf,.and.then.syncs.the.generated.data.to.a.mobile.device..This.enables.the.system.to.log.items.in.real-time,.thusly.eliminating.the.need.for.the.customer.to.go.through.a.traditional.checkout..As.the.customer.exits.the.store.through.a.“transition.area”,.sensors.detect.that.they’re.leaving,.instruct.the.app.to.tally.up.the.bill,.and.the.items.are.then.charged.to.the.associated.Amazon.account.
From.the.patent.filing:
“For.example,.if.the.user.is.purchasing.items.from.a.retail.location,.rather.than.the.user.having.to.stop.and.“check.out”.with.a.cashier,.teller.or.automated.check.station,.because.the.picked.items.are.already.known.and.identified.on.an.item.identifier.list.associated.with.the.user,.the.user.may.simply.exit.the.retail.location.with.the.items..The.exit.of.the.user.will.be.detected.and,.as.the.user.passes.through.the.exit.(transition.area),.the.user,.without.having.to.stop.or.otherwise.be.delayed,.will.automatically.be.charged.a.fee.for.the.items.(the.items.are.transitioned.to.the.user).”
Amazon.has.been.dipping.its.toe.into.the.waters.of.brick-and-mortar.for.some.time..With.bookstores.popping.up.around.the.country.and.a.few.small.outlets.at.colleges.here.and.there,.the.announcement.of.Amazon.Go.has.nonetheless.arrived.as.a.surprise.
–nay,.a.shock.–.to.the.retail.industry.
The.premise.is.simple.–.customers.scan.the.Amazon.Go.mobile.app.as.they.enter.the.store,.pick.off.items.from.the.shelves,.and.walk.straight.back.out.the.door..Checkouts,.card.transactions,.bagging.–.all.are.inconveniences.set.to.be.eradicated.for.Amazon.Go.shoppers.
Checkout-free.shopping.has.strong,.truly.disruptive.implications.not.only.for.food.retailing,.but.each.and.every.segment.of.retail..If.Amazon.can.successfully.deliver.a.checkout-free.experience.in.a.convenience.store,.then.it.doesn’t.take.much.to.envision.a.future.filled.with.Amazon.outposts,.all.built.upon.the.same.checkout-free.premise.–.book.stores,.entertainment.stores,.beauty.stores,.perhaps.even.drive-thru.grocery.locations.
For.consumers,.Amazon.Go.represents.an.exciting.new.hassle-free.concept.and.level.of.convenience.that.until.last.week.could.not.have.even.been.dreamed.of..The.question.that.the.pending.store.poses.to.the.rest.of.the.retail.industry,.however,.is.much.more.serious:.Just.how.far.behind.are.we?
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From.the.video.and.Amazon Go’s online FAQ publication,.we.are.told.that.the.store.will.utilize.technologies.that.include.sensor.fusion,.which.amalgamates.data.from.different.sensors.around.the.store.to.increase.the.accuracy.and.reliability.of.results.
“In.some.implementations,”.the.patent.filings.read,.“data.from.other.input.devices.may.be.used.to.assist.in.determining.the.identity.of.items.picked.and/or.placed.in.inventory.locations..For.example,.if.it.is.determined.that.an.item.is.placed.into.an.inventory.location,.in.addition.to.image.analysis,.a.weight.of.the.item.may.be.determined.based.on.data.received.from.a.scale,.pressure.sensor,.load.cell,.etc.,.located.at.the.inventory.location..The.image.analysis.may.be.able.to.reduce.the.list.of.potentially.matching.items.down.to.a.small.list..The.weight.of.the.placed.item.may.be.compared.to.a.stored.weight.for.each.of.the.potentially.matching.items.to.identify.the.item.that.was.actually.placed.in.the.inventory.location..By.combining.multiple.inputs,.a.higher.confidence.
score.can.be.generated.increasing.the.probability.that.the.identified.item.matches.the.item.actually.picked.from.the.inventory.location.and/or.placed.at.the.inventory.location.”
It’s.been.more.than.two.years.since.these.patent.applications.were.first.filed,.so.it’s.very.likely.that.the.company’s.approach.may.have.changed.during.that.time..However,.from.what.we’ve.seen.so.far,.much.of.what.is.expressed.is.indeed.matching.up.
As Amazon now moves to push into the $800 billion US food and beverage market, it has no legacy store network to update – it begins with a checkout-free experience and can build from there.
Amazon Well-positioned to Disrupt Brick-and-Mortar Retail
On.the.surface,.it.may.seem.surprising.that.an.ecommerce.titan.such.as.Amazon.should.be.the.company.to.make.the.first.move.to.reinvent.the.physical.checkout.experience.in.such.a.
Big Winners Pay for So Many ExperimentsWill.Amazon.Go.work?
Well,.one.thing’s.for.sure,.Amazon.has.long.been.a.company.that.is.willing.to.pilot.initiatives.that.may.not.be.directly.or.immediately.profitable,.but.nonetheless.serve.to.create.additional.value.in.the.Amazon.ecosystem,.and.of.course.drive.greater.use.of.its.ecommerce.platform.
Amazon,.indeed,.takes.a.deep-pockets-approach.to.innovation,.and.Amazon.Go.is.the.latest.manifestation.of.the.philosophy..The final word goes.to.CEO.Jeff.Bezos.in.the.latest.annual.report:
“I.believe.we.are.the.best.place.in.the.world.to.fail.(we.have.plenty.of.practice!),.and.failure.and.invention.are.inseparable.twins..To.invent.you.have.to.experiment,.and.if.you.know.in.advance.that.it’s.going.to.work,.it’s.not.an.experiment..Most.large.organizations.embrace.the.idea.of.invention,.but.are.not.willing.to.suffer.the.string.of.failed.experiments.necessary.to.get.there..Outsized.returns.often.come.from.betting.against.conventional.wisdom,.and.conventional.wisdom.is.usually.right..Given.a.ten.percent.chance.of.a.100.times.payoff,.you.should.take.that.bet.every.time..But.you’re.still.going.to.be.wrong.nine.times.out.of.ten..This.long-tailed.distribution.of.returns.is.why.it’s.important.to.be.bold..Big.winners.pay.for.so.many.experiments.”
wholly.disruptive.manner..But.in.fact,.Amazon’s.heretofore.(nearly).online-only.existence.actually.serves.to.strengthen.its.position.as.a.brick-and-mortar.disruptor.for.a.number.of.reasons.
First,.leaving.its.college.pop-ups.and.bookstores.aside,.as.Amazon.now.moves.to.push.into.the.$800.billion.US.food.and.beverage.market,.it.has.no.legacy.store.network.to.update.–.it.begins.with.a.checkout-free.experience.and.can.build.from.there.
In.addition,.Amazon.already.has.in.excess.of.300 million customers,.all.already-identified.and.ready.to.spend..Since.a.checkout-free.store.requires.each.user.to.be.digitally.identified,.Amazon’s.massive.existing.digital.customer.base.puts.the.company.in.a.much.stronger.position.to.experiment.with.such.a.system.than.other.retailers.
Finally,.Amazon.customers.also.tend.to.be.digitally-savvy,.meaning.that.they.are.likely.to.be.open.and.keen.to.adopt.the.Amazon.Go.experience.
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Lowe’s is Augmenting Retail Reality with VR & Robot Assistants
With.the.likes.of.Apple.and.Amazon.perhaps.most.readily.associated.with.being.at.the.cutting-edge.of.innovating.the.customer.journey,.it.may.for.some.come.as.a.surprise.to.learn.that.for.a.true.high-tech.shopping.experience,.it’s.not.towards.a.tech.giant.that.we.must.venture,.but.instead.down.to.our.local Lowe’s.home.improvement.store.
“The.LoweBot.solves.and.serves.our.common.cold.problems,”.says Nel..“When.I.walk.into.a.store.and.I.want.to.know.where.something.is.I.want.to.know.right.then.—.I.don’t.want.to.have.to.download.an.app.—.a.robot.can.really.help.with.that.”
As.LoweBots.traverse.the.shop.floors,.they.quietly.scan.the.shelves.and.send.up-to-date.inventory.information.to.store.associates..The.ultimate.goal,.indeed,.is.not.to.replace.the.human.workforce,.but.rather.to.take.care.of.some.of.the.more.mundane.tasks.in.order.to.free.up.time.for.associates.to.deliver.a.more.personalized.service.to.in-store.customers..When.asked.if.the.LoweBot.could.one.day.eliminate.jobs,.Nel.affirmed,.“Most.definitely.not.—.my.phone.doesn’t.make.me.obsolete.”
LoweBot.began.rolling.out.(quite.literally).in.September,.and.over.the.following.months.will.be.increasingly.present.in.11.Lowe’s.stores.across.the.San.Jose.area.
Robotic Shopping AssistantsLowe’s Innovation Labs first.unveiled.the.OSHbot
–.a.5-foot-tall.robot.shopping.assistant.–.back.in.2014.at.the.midtown.San.Jose.Orchard.Supply.hardware.store..OSHbot.was.there.to.greet.customers,.guide.them.around.the.store,.source.product.information.and.aid.employees.with.inventory.management.
Since.then,.the.OSHbot.pilot.scheme.has.closed,.with.the.program.rolling.into.Lowe’s.and.the.LoweBot.
LoweBots.are.essentially.new.and.improved.versions.of.the.original..Using.a.3D.scanner,.the.bots.detect.people.as.they.come.into.stores..Customers.can.then.ask.the.LoweBot.(which.understands.and.speaks.7.languages).what.they’re.looking.for,.and,.using.smart.laser.sensors,.the.bot.will.guide.them.through.the.labyrinthine.aisles.directly.to.the.items..Along.the.way,.the.LoweBot.even.displays.location-based.special.offers.and.smart.recommendations.on.its.rear-facing.display.panel.
While.this.all.sounds.wonderfully.exciting.and.futuristic,.Kyle.Nel,.executive.director.at.Lowe’s.Innovation.Labs,.explains.that.the.main.role.of.the.LoweBot.is.in.fact.to.find.solutions.for.Lowe’s.customers’.most.basic.problems.
Image source: lowesinnovationlabs.com
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From HoloRoom to HoloLens
The Virtual/Augmented Reality Future for the ShowroomLowe’s.high-tech.flare.doesn’t.end.with.robotic.
in-store.assistants.–.the.home.improvement.chain.has.been.exploring.the.potential.of.virtual.reality.(VR).and.augmented.reality.(AR).in-store.experiences.as.well.
2014.brought.the.introduction.of.Lowe’s HoloRoom to.two.Toronto.stores,.with.19.U.S..stores.following.suit.from.November.2015..The.HoloRoom.allows.in-store.customers.to.design.their.dream.kitchen.or.bathroom.with.the.help.of.an.associate’s.tablet,.and.then.slip.on.a.VR.headset.to.view.the.results.and.make.real-time.alterations.to.the.design.in.virtual.reality..Take.a.look.at.the.video.below.to.see.it.in.action.
The.HoloLens.delivers.a.totally.immersive.experience.for.Lowe’s.customers..It.is.truly.innovative,.and.indeed.as.much.fun.as.it.is.practical..Lowe’s.customers.can.now.enter.a.bare.frame.of.a.showroom.kitchen.and.use.the.HoloLens.to.get.a.true.feel.for.how.their.new.kitchen.will.look.when.complete.–.and.that.plays.a.huge.part.in.helping.the.customer.along.the.journey.to.a.purchase.
“AR/VR.are.perfectly.suited.for.interior.design,.landscape.and.architectural.experiences,”.said.Adrian Weidmann, principal.at.StoreStream.
AR/VR are perfectly suited for interior design, landscape and architectural experiences. Most people can’t visualize a particular design or color in their particular space. This technology will allow shoppers to see what a particular remodel will actually look like, helping the shopper make that purchase decision.
In.March.2016,.Microsoft.HoloLens.announced an.official.partnership.with.Lowe’s.to.once.again.redefine.and.reinvent.how.DIYers.go.about.home.renovation.
Home.improvement,.of.course,.is.all.about.realizing.a.vision..However,.conceptualizing.exactly.what.a.complete.remodeling.of.your.kitchen.will.look.like.when.finished.is.incredibly.difficult.when.you’ve.only.got.a.few.paint-pot.samples.and.a.couple.of.tiles.to.work.with..The.HoloRoom.went.above.and.beyond.in.creating.a.solution.for.that.issue,.and.now.so.too.does.the.Lowe’s/HoloLens.partnership.
“Lowe’s.is.using.HoloLens”,.explains.the.Microsoft Windows Blog, “to.demonstrate.a.variety.of.design.options.for.kitchen.cabinetry,.countertops,.appliances.and.features.like.backsplashes,.in.a.visually-rich.and.interactive.way..Lowe’s.customers.will.be.able.to.experience.a.holographic.representation.of.a.completely.new.kitchen,.adjust.finishes.and.options.instantly,.and.share.their.designs.easily.online.”
Metrics.LLC..“Most.people.can’t.visualize.a.particular.design.or.color.in.their.particular.space..This.technology.will.allow.shoppers.to.see.what.a.particular.remodel.will.actually.look.like,.helping.the.shopper.make.that.purchase.decision.”
Just.how.AR.and.VR.might.be.incorporated.into.larger.swathes.of.retail.remains.to.be.seen.–.though.the.potential.is.huge..Lowe’s.has.shown.what’s.possible.for.interior.design,.the.future.surely.holds.even.greater.innovations.elsewhere..The.last.word.goes.to.Max Goldberg of.Max.Goldberg.and.Associates.
“VR.is.in.its.infancy..As.it.grows.more.sophisticated,.and.as.consumers.come.to.understand.and.accept.it,.it.will.become.a.force.in.retail..Just.what.force.it.will.become.is.still.a.work.in.progress.”
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How Macy’s “P2LU” Program Revolutionizes Inventory Management
“Accurate.inventory.is.the.single.thing.retailers.have.got.to.get.right.for.everything.else.to.work.”
So.said Bill Hardgrave,.professor.at.Auburn.University.at.the.National.Retail.Federation.(NRF).conference.in.January.last.year..And.he’s.right..Ever.since.shoppers.began.to.buy.across.multiple.channels,.the.whole.inventory.management.process.became.a.lot.more.complicated.
The.omnichannel.imperative.dictates.that.shoppers.should.be.able.to.buy.anywhere,.and.stores.should.be.able.to.fulfill.anywhere.–.and.the.whole.process.to.be.made.as.seamless.and.as.faultless.as.possible.
However,.in.order.to.deliver.this.true.omnichannel.experience.for.customers,.retailers.are.faced.with.the.task.of.having.complete.vision.and.control.over.their.inventory.at.any.given.time..But,.ensuring.that.there.is.complete.transparency.across.multiple.channels.is.no.mean.feat..It.means.retailers.seeing.their.entire.inventory.as.one.complete.stock.pool,.as.opposed.to.separate.stock.levels.scattered.across.different.channels..Without.this,.Hardgrave.says,.the.entire.digital.effort.behind.omnichannel.initiatives.is.wasted.
–.unless.retailers.know.exactly.where.stock.is.in.real-time.
Macy’s Leads the Way with Inventory Management Technology
It’s.no.secret.that.Macy’s.is.one.of.the.true.market.leaders.in.terms.of.omnichannel.–.and.this.is.a.feat.that.the.retailer.has.achieved.in.no.small.part.thanks.to.its.innovations.in.inventory.management.
Pick to the Last Unit
Reducing Risk While Increasing Sales
Macy’s.has.named.the.program.Pick.to.the.Last.Unit.(P2LU)..It.enables.omnichannel.fulfilment.of.consumer.purchases.right.down.to.the.very.last.unit.of.in-store.merchandise..This.means.that.the.retailer.is.able.to.list.products.for.sale.on.its.website.even.when.there.is.only.one.such.item.available.at.the.store.
This.is.a.huge.improvement.upon.what.Macy’s.was.able.to.achieve.in.the.past..Before.the.launch.of.P2LU,.inventory.counts.were.simply.not.accurate.enough.to.ensure.that.individual.units.were.actually.in-stock.and.therefore.available.for.sale..However,.through.the.use.of.the.RFID.technology,.Macy’s.says.that.inventory.counts.are.now.so.precise.that.the.retailer.knows.with.certainty.exactly.what.products.it.has.available.in.real-time,.and.can.thus.advertise.them.for.sale.(at.full.price).across.any.channel.until.the.very.last.unit.is.sold.
Indeed,.according to Terry Lundgren,.CEO.of.Macy’s.Inc.,.omnichannel.is.in.fact.all.about.
“inventory.optimization.through.technology”..In.order.for.omnichannel.experiences.to.be.successfully.delivered,.the.basic.principles.that.form.the.foundations.of.any.bricks-and-mortar.store.–.i.e..providing.an.inventory.of.products.that.a.shopper.can.browse.and.purchase.–.need.to.be.expanded.so.that.the.same.experience.is.made.possible.across.multiple.interconnected.channels..It.is.only.through.the.utilization.of.appropriate.technology.that.this.can.be.achieved.
Macy’s.has.long.realized.this.important.fact,.and,.through.an.initiative.that.involves.the.employment.of.radio.frequency.identification.(RFID).technology,.is.now.selling.products.down.to.the.final.unit.in.stock.at.its.stores.
With.this.level.of.inventory.accuracy.and.visibility,.Macy’s.is.able.to.provide.a.better.customer.experience.and.increase.sales.of.products.that.would.otherwise.be.destined.for.the.sales-rail..Typically,.when.products.are.sold.down.to.the.last.one.or.two.items,.retailers.will.remove.them.from.online.purchasing.–.due.to.a.lack.of.confidence.
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in.inventory.accuracy.and.ability.to.locate.such.items.in.stores.–.and.will.put.them.on.a.sales.rack.at.a.reduced.price.
“About.15%.to.20%.of.inventory.is.accounted.for.by.the.last.unit.in.the.store,”.says Peter Longo, President.of.Logistics.and.Operations.at.Macy’s..
“It’s.a.massive.amount.of.budget,.either.marked.down.or.not.sold,.and.it.is.curable.through.RFID.”
The.RFID.system.used.by.Macy’s.is.provided.by.Tyco Retail Solutions..The.P2LU.program.makes.available.the.last.unit.of.an.item.in.any.store,.and.Tyco’s.RFID.locates.it..This.change.to.inventory.management.to.support.Macy’s.omnichannel.strategy.has.enabled.the.retailer.to.reduce.$1.billion.worth.of.inventory.from.its.stores..According.to.Tyco,.fulfilment.sales.are.up.significantly,.and.markdowns.on.items.have.also.been.improved.upon..And.the.result.is.that.Macy’s.now.has.the.confidence.to.fulfil.customer.demand.across.multiple.channels.even.if.only.a.single.item.is.left.in.stock.
In.addition.to.sales.lift.and.reduced.rate.of.markdowns,.this.leveraging.of.single.unit.inventory.means.that.Macy’s.has.also.been.able.to.reduce.inventory.costs.by.lowering.interim.inventory.requirements.by.one-third..The.last.word.goes.to.Nancy.Chisholm,.President,.Tyco.Retail.Solutions.
“Macy’s.is.a.great.example.of.how.item-level.RFID.bolsters.inventory.optimization.and.opens.up.a.world.of.possibilities.for.omnichannel.fulfillment.success..By.utilizing.our.unique.RFID.Inventory.Visibility.offering,.Macy’s.has.a.complete.view.of.enterprise-wide.inventory.to.satisfy.customer.demand.and.achieve.their.‘buy.anywhere,.fulfill.anywhere’.vision..It.not.only.allows.them.to.enhance.the.overall.customer.experience,.but.also.to.maximize.revenue.opportunities.from.omnichannel.programs.”
About 15% to 20% of inventory is accounted for by the last unit in the store,” says Peter Longo, President of Logistics and Operations at Macy’s. “It’s a massive amount of budget, either marked down or not sold, and it is curable through RFID.
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Walmart Wants to Win the Digital Wallet War with Walmart PayEver.since.the.launch.of.Apple.Pay.in.October.2014,.the.pressure.has.been.on.high.street.merchants.to.adopt.support.for.digital.wallets..Indeed,.it.was.little.under.a.year.later.that.Google’s.answer.to.Apple.Pay.emerged.with.Android.Pay.in.September.2015..Samsung.Pay.also.appeared.in.the.same.year,.thus.completing.the.trio.that.gave.rise.to.the.digital.wallet.wars.that.proliferated.in.2016.
“Digital.wallets.are.quickly.becoming.mainstream,”.said.Leslie.McNamara,.Managing.Director.of.Partner.Management,.Citi Retail Services, in.a.statement.early.last.year..“Tech-savvy.shoppers.are.increasingly.demanding.seamless,.omnichannel.retail.experiences.and.looking.for.solutions.that.deliver.this..There’s.no.question.2016.will.be.a.pivotal.year.as.digital.wallets.gain.more.widespread.acceptance.”
Consumers.are.clearly.becoming.more.comfortable.with.making.in-store.mobile.payments,.with.forecasted.figures.set.only.to.increase.in.the.coming.years..The.question.is,.however,.who’s.winning.the.war?
Apple Pay Repeat Users Drop
Enter Walmart Pay
Apple.Pay.is.the.digital.wallet.that.has.been.in.the.US.market.for.the.longest.time..However,.despite.the.fact.that.the.number.of.people.installing.Apple.Pay.and.using.it.at.least.once.was.the.highest.it’s.ever.been.in.2016,.repeat.usage.has.dropped.significantly.
Stats.released.at.Innovation Project 2016 reveal.that.repeat.usage.of.Apple.Pay.have.been.going.down.since.March.2015..A.survey of Apple Pay users.by.PYMNTS –.in.partnership.with.InfoScout
–.reveal.a.number.of.reasons.for.such.a.slump,.the.top.2.of.which.being.that.people.either.simply.
“forget”.to.use.the.service.(21%),.or.“lacked.certainty.about.whether.or.not.the.store.accepted.the.payment.method”.(16%).
And.there.are.other.factors.at.play,.too.–.not.least.in.the.fact.that.Apple.Pay.now.faces.a.host.of.emerging.competitors..Android.Pay.and.Samsung.Pay.naturally.capture.a.share.of.the.mobile.payments.market.–.but,.perhaps.more.significantly,.are.the.US.retailers.entering.the.arena.with.offers.of.their.own.mobile.payment.services.made.available.exclusively.to.their.customers.
The.first.such.retailer.was.Walmart.with.its.unveiling.of.Walmart Pay.in.December.2015..Initially.available.in.only.a.small.number.of.stores.in.Northwest.Arkansas,.a.nationwide.rollout.of.Walmart.Pay.to.all.4,600.stores.was.completed.in.July.2016.
The.potential.for.a.store.like.Walmart.to.succeed.in.the.digital.wallet.space.in.areas.where.the.likes.of.Apple.Pay.et.al.are.proving.to.struggle.is.huge..For.starters,.140.million.Americans.shop.at.Walmart.each.week,.and.the.Walmart.app.–.where.the.Walmart.Pay.feature.resides.–.is.already.used.by.22.million.customers.as.they.shop.each.month..There.is.no.concern.amongst.these.individuals.about.“forgetting”.to.use.the.application,.nor.indeed.about.“lacking.any.certainty”.that.the.store.accepts.the.payment.method.
10futurestores.wbresearch.com
Figures released by Walmart confirm:.Payments.made.through.the.Walmart.app.jumped.45%.following.the.rollout.(not.a.huge.surprise,.granted,.considering.the.additional.opportunity.presented.to.consumers),.with.88%.of.the.transactions.coming.from.repeat.users..The.application.received.great.reviews,.too,.with.82%.of.users.saying.they.would.recommend.Walmart.Pay,.and.75%.awarding.five.stars.in.app.stores.
“There.is.something.very.powerful.about.the.ease.and.simplicity.of.Walmart.Pay,” said Daniel Eckert,.senior.vice.president,.services,.Walmart.U.S..
“What’s.even.more.powerful.though,.is.what.this.means.for.our.customers..We.want.to.make.every.day.easier.for.busy.families..We’re.connecting.all.the.parts.of.Walmart.into.one.seamless.shopping.experience.with.great.stores,.easy.pickup,.fast.delivery,.frictionless.checkout.and.apps.and.websites.that.are.simple.to.use.”
Added Value with Additional In-app Features
The.fact.that.Walmart.Pay.nests.within.the.Walmart.app.provides.further.assurances.that.customers.will.be.prompted.to.use.the.service..The.app.brims.with.additional.convenience-oriented.features,.including.the.ability.to.refill.prescriptions.at.the.Walmart.pharmacy,.save.wish.lists,.store.shopping.lists.and.organize.online.orders.
When.shoppers.are.in.a.Walmart.store,.however,.the.pay.button.appears.in.the.app.–.available,.it.must.be.noted,.for.both.Android.and.iOS..This.is.made.possible.through.the.fact.that.all.Walmart.stores.are.geofenced.–.meaning.that.the.app.“knows”.when.a.customer.is.in.store.and.automatically.switches.on.the.in-store.mode,.which.enables.mobile.payment.
“We.are.making.mobile.payments.a.reality.for.so.many.customers.because.it’s.not.dependent.on..a.certain.payment.method.or.a.certain.device,”..a.spokeswoman.for.Walmart.told.Mobile Strategies 360.
In.addition,.the.Walmart.app.automatically.prompts.each.shopper.to.submit.their.digital.receipts.to.Savings Catcher –.another.Walmart.tool.that.scans.competitors’.prices.and.guarantees.shoppers.a.refund.(on.a.Walmart.gift.card).equal.to.the.difference.if.a.competitor.is.offering.items.at.a.lower.cost.
With.the.mobile.payments.landscape.becoming.increasingly.fragmented,.and.with.Apple.Pay.et.al.still.struggling.to.truly.take.off,.Walmart.has.crafted.its.own.solution.for.customers.that.it.seems.people.are.actually.willing.to.use..As.ever,.convenience.is.key,.and.with.an.app.that.already.provides.practical.functionality.in.abundance.to.22.million.customers,.much.of.the.onboarding.battle.has.already.been.won..The.last.word.goes.to.Eckert:
“Walmart.Pay.is.just.the.beginning..We’re.building.deeper.relationships.with.our.customers.across.our.ecosystem.and.are.looking.forward.to.delivering.new.tools.like.Walmart.Pay.that.allow.them.to.use.the.Walmart.App.as.their.remote.control.for.a.faster,.more.convenient.shopping.experience.”
There is something very powerful about the ease and simplicity of Walmart Pay. What’s even more powerful though, is what this means for our customers. We want to make every day easier for busy families.
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RETAIL..REIMAGINED.
June 26 – 28, 2017 • Seattle, WA
The Event for In-Store Experience Innovators
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Scott Emmons, Head.of.the.Innovation.Lab,.Neiman Marcus
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Lindsay Angelo, Strategist,.Lululemon
Randy Peitsch, SVP,.Operations,.PGA Superstore
Angela Gearhart, Senior.Director,.Retail.Experience.and.Design,.Sleep Number
Ryan St. Mary, Director.of.Stores,.GANT Global
Andrea Farris, VP,.Director,.Retail.Systems,.Walgreens
Leslie Grandy,.Senior.Director,.Mobile Apps, Digital Media & Advertising, Best Buy
Jennifer O’Beirne, Director,.Business.Services.Marketing,.Staples
Cedric Clark,.VP,.Store.Operations,.PetSmart Inc.
Sarah Furnari, VP,.Retail.Experience,.BEHR
Brian Hack,.Design.Innovation.Manager,.Design.&.Construction.Services,.Dunkin' Brands
Joe Pascarelli, Sr..Manager.of.Global.Design.and.Construction.Innovation,.Dunkin' Brands
Ainslie Rinfret, Operations.Manager.-.Strategic.Initiatives.&.Pilots, Lululemon
Patricia Kilburn, Director.Store.Operations,.Camuto Group
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