By akademiotoelektronik, 28/05/2022

The irresistible appeal for shops

Principle of interest and restriction

In appearance, Carrefour Flash has everything that an ordinary store has. I guess. Unlike other stand-alone points of sale, the new concept developed by the distributor resembles a traditional convenience store: There is no porch at the entrance, and employees are present. Two low gondolas, wall furniture, traditional troubleshooting service. Not surprisingly, the 50-square-meter convenience store opened on November 25 at 11 Parentir Avenue in Paris (see reverse).

Mais c’est à l’intérieur que cela se passe : baptisé Flash 10-10 en interne, le lieu, un ancien Carrefour Express, puis Drive Piéton, réunit 900 références et doit permettre de faire ses emplettes en dix secondes et de payer en dix secondes aussi. Elody Persesot, executive director of e-commerce, data and digital transformation at the group, said: "For us, it is a real convenience store with 100% autonomous journey. In fact, it is unique in its technological arsenal: The camera identifies the customer as he enters and turns him into an anonymous avatar, his every move being tracked. The shelves are covered with weight sensors for analyzing products that have been grabbed and may be put back. Finally, for payment, the tablet can identify the selected products, and if these products do not exceed 50 euros, contactless payment is required. No more scanning, everything is done automatically. A small holy grail of business, developed in cooperation with start-up AIFI.

While this is Carrefour's first in France, the group has begun developing independent stores after a long period of in-house testing at Massy headquarters (91). Brazil is also a lab with six Carrefour Flash scans& Go ahead, there are about 15 more by the end of 2021. Miguel Angel Gonzalez Gisbert, Carrefour's global head of technology and data, said: "The technology here is not the same, because customers scan every product they buy, while we target residential areas where we are not present." In Dubai, Carrefour, in partnership with franchise Majid Al Futtaim, also launched its replica in the fall. Customers identify themselves when they enter, and once they leave the point of sale, the payment is debited. Everyone has their own method, and the idea is to test several configurations.

Carrefour is far from the first to do so. The ultimate example of this-and a great pioneer-is Amazon Go, the Seattle giant's tech supermarket that opened to the public in early 2018. In this compact store, an army of sensors and sensors analyzes items on hand and automatically calculates the amount of the virtual shopping cart, which is debited from the customer's account once the customer leaves the store. The system has been deployed in dozens of the group's stores and will soon be deployed at the group's biggest point of sale, such as Whole Foods, if we believe in advertising.

Almost an obligation

At a time when digitalization is seen as a priority for all brands, aimed, among other things, against Amazon and big online vendors, having a separate store where customers make purchases and pay has become an obligation, or almost an obligation. Because this is a way to show investors and shareholders that the distributor is still in a leading position and can make innovative suggestions on current issues. In 2017, when George Prasatt was Carrefour's chief executive, submitting such a project to him would only provoke mistrust and ridicule.

In 2021, things are very different. Carrefour is driving the digital industry with unprecedented ambition-achieving 10% of total sales by 2026. It adds initiatives on delivery, e-commerce and, more recently, fast commerce. So it is not surprising that the French distributor has established itself in the controversial niche of autonomous or connected Magasin (the debate has already begun over the semantics that should be adopted). Un modèle qui fonctionne avec des technologies plus ou moins simples, allant de la RFID (qui nécessite de sticker tous les produits…) au contrôle du poids via des rayons équipés de balances (pour déduire les références prises en main par le client), jusqu’aux solutions plus complexes (capteurs, analyse d’images en temps réel, etc.). Parmi les acteurs de ces prouesses, on trouve Amazon et sa technologie Just Walk Out, celle du chinois Cloudpick (chez Auchan Go), de l’israélien Shekel Brainweigh (Black Box de Monop’), ou des américains AiFi ou Zippin.

On the customer side, this new generation of stores brings the promise of fast and "seamless" shopping, as people say. Simply put, we must put as few obstacles in the purchase process as possible, especially by simplifying the key issues of identification and payment as much as possible. So Amazon started off with a special app that comes with a QR code that can be used to identify itself. This is a solution that is still applicable, but other options have emerged. Don't you have a smartphone? Put your credit card in the reader at the entrance. If the card is linked to an Amazon account, the customer is identified. You don't have a bank card either? Put your palm on your drive! This spectacular innovation, Amazon One, already exists in 70 stores in the United States. But it is difficult to import it into France at present. The pursuit of simplicity is changing practice. For the recently deployed Hudson Nonstop airport snack bar using Amazon technology, identification is no longer required, and it is sufficient to use CB to unlock the entrance door (use a toll card when exiting).

Un attrait plus qu’un essor

À ce jour, les centaines de points de vente auto­nomes dans le monde font les choux gras de la presse, mais restent des vitrines plus qu’un nouveau standard à venir. D’abord, parce qu’ils ne correspondent pas aux gros pleins de courses. They are mainly used to buy emergency food in convenience stores of tens of square meters. There are special restrictions: Carrefour Flash Paris has fewer than ten fruit and vegetable reference products sold in each batch. And technology does not always allow for processing variable weight or bulk purchases. This is enough to convince us that this model will not immediately become a device for destination trade. Unless a system like Just Walk Out is coming soon.

Meanwhile, independent shops mainly serve busy areas and places, with queues forming within seconds during peak hours such as lunch breaks, half-time breaks and stadium breaks. It is no accident that Amazon started selling Just Walk Out to leisure and airport operators before signing up with more traditional distributors such as Sainsbury's in the UK.

Be careful not to be blinded by a large number of cameras and sensors. Behind the wow effect, an independent store has a cost, which is far from insignificant. "This is equivalent to several thousand euros per square meter. This is a model that can't be supported by food operators on a large scale economically, "an industry expert analyzed. According to the Business Insider website, the cost of an Amazon GO supermarket with tens of square meters has dropped from $4 million a year in 2017 to $160,000 (142,000 euros). The price curve is falling, but investment is still high, considering the profit margins of these small shops.

Finally, these unstaffed courses conflict with the current standards. "In Europe, there is a strong obligation to identify yourself at the time of payment. This is especially true since DSP2 (the second European payment service directive, editor's note) came into effect in May. Un système Amazon Go, où le client est débité une fois sorti du magasin, ne serait pas possible en France », pointe Jean-­Michel Chavanas, délégué général de Mercatel. In addition to psychological barriers, customers are tracked and staff are often absent at these points of sale. Even cultural barriers, or more rational barriers: Monoprix tested a stand-alone space in Paris for one of its close-range concepts, but had to shut it down as the venue was ransacked during the night.

In stark contrast to supermarkets or supermarkets, which have fresh, on-site prepared products on their shelves, as well as receptionists and escorts, there is no doubt that new versions of independent stores will emerge-while reigniting the debate about employment-and possibly providing opportunities for cities or specific locations. Consumers want to be fast, very fast and limit the interaction. But in search of the slightest stimulus, and at a time when the customer experience is sanctified, independent stores are scoring according to the NPS (Net Promoter Score) measure. Ultimately, the main challenge may be to export checkout deletions in a larger format. In addition to Amazon's third-quarter results at the end of October, BrianOlsavsky, the group's chief financial officer, said the company "still works with the same strength and passion" on Just Walk Out technology, which is now being used in some of Amazon Fresh's much larger supermarkets (more than 3,000 square meters) after being used on Amazon GO.

Most importantly, the Seattle-based group plans to equip two yet unearthed Whole Foods supermarkets with "Just Walk Out" next year, which are very large supermarkets with tens of thousands of goods and bulk goods of different weights, including snacks and meals. This is an issue that needs to be closely watched, because if we start talking about independent supermarkets instead of independent convenience stores, it may have a far-reaching impact.

Advanced Technology Semi-autonomous Stores of Different Distributors Many existing stores adopt autonomous mode in order to extend business hours at night and/or on Sundays. Others offer independent running routes in staffed facilities (tested at Intermarch é and Moscow's Azbuka Vkusa supermarket). When the course or store is independent, only self-service cash registers work, and the guards are the only professionals present. Franprix had its first test in Paris in March 2018. Since then, stores in Monoprix, G é ant and Carrefour have developed the model at some points of sale. The Low Techauchan Minute has been available in China since 2017. Here's the rationale for this ultra-compact store: Users log in through an app (China's WeChat) so they can access it. It scans all selected products in the app and makes payments in the same tool. Since then, Auchan Minute has been deployed in China on a large scale and exported to France on a small scale. Albert Heijn (Ahold Delhaize Group) deployed similar NFC card systems in the Netherlands and Germany in 2018. Under Amazon Go's model, several container stores offer self-service. Customers usually get in and out of the store by scanning a QR code or bank card, which sometimes opens the refrigerator (which is good in Belgium). In France, Store Lift opened its first independent store at Gennevilliers (93) in September 2020. Several distributors have introduced their concepts: Auchan Go and Monop's black boxes were tested in France, and Migros launched the Voi Cube in Switzerland earlier this year. Rewe launched a mobile store model in Germany, Carrefour City Plus launched in Dubai in the fall, and Carrefour Flash Scan& GO has 20 stores in Brazil. Monop 's black box, fully automated, has an 18-square-meter container size and has 300 references. The input to the Migros Cube Voi is done through an application. Customers scan their products with smart phones, and then pay at the cash register when they go out. Amazon GO: Chronology of Success on December 5, 2016, Amazon used a simple video to shine in the retail field. On YouTube, the e-commerce giant showcased "Amazon GO and its most advanced shopping technology in the world". Over a period of 1 minute and 49 seconds, the images show how the revolutionary store works (initially tested by group employees), where you just need to put the product you want in your bag and then come out and charge automatically. Featuring terms such as computer vision, deep learning algorithms, and sensor fusion, the speech ended with some avant-garde words: "No queues, no cash registers. Seriously. Since then, the Just Walk Out (JWO) technology, which consists of sensors, cameras and sensors, has aroused people's curiosity. After a run-in phase in the Amazon ecosystem, it has now been selling among partners and distributors for a year. January 2018. The first Amazon Go store opened in Seattle (so far, there are 26 in the United States). March 2020. Ouverture d’Amazon Go Grocery, supermarché de 1 000 m² équipé de la technologie Just Walk Out (JWO).Installation de la technologie JWO pour des espaces Grab & Go de restauration dans le stade United Center de Chicago.OTG, qui exploite des restaurants et boutiques d’aéroports aux États-Unis, commence à déployer la solution conçue par Amazon pour ses espaces Cibo Express Gourmet Markets.Mars 2021. An Amazon Fresh supermarket has opened in London, the first outside the United States. Bigger than Amazon GO convenience stores, it is based on Just Walk Out technology (there are seven so far). Hudson operates more than 1,000 stores at airports and transportation hubs in North America, and it launched the first independent Hudson Nonstop store equipped with JWO technology at Dallas Airport (above). D’autres aéroports en bénéficient également dans les mois suivants.Deux points de vente MRKT (boissons et snacking) avec la technologie JWO d’Amazon sont installés au stade TD Garden de Boston.Juin 2021. The 3, 500-square-meter Amazon Fresh store at the Bellevue, Wash., plant was equipped with "Go Out" as soon as it opened. C’est la première fois que cette technologie s’applique sur ce format de magasin, également équipé des caisses traditionnelles.Octobre 2021. Amazon announced that Just Walk Out technology will be available at two Whole Foods supermarkets that will open next year. Amazon said the JWO solution has been installed at three partner-run store sites: The Javits Center Convention Center in New York, as well as the Forum Performance Hall in Los Angeles and the Climate Commitment Arena in Seattle. At the end of 2021. On November 18th, Starbucks will open a pickup truck store in New York in combination with Amazon Go. Sainsbury's will open its first JWO-equipped vending shop in London. WHSMITH will soon open a small JWO-equipped shop at US airports and plans to replicate the model in some locations. Newsstands to be set up at airports.

Julie Delvall é e and Morgan Leclerc