Latest / The Retail Podcast / Part 2 $100 Billion Shrinkage Challenge: Transformation Through Retail Innovation

Transcript

Part 2 $100 Billion Shrinkage Challenge: Transformation Through Retail Innovation · The Retail Podcast

• 0:13
  So, Leandro, thank you so much for the invite.
• 0:16
  What an incredible space you have here.
• 0:18
  So tell me, what am I going to learn today?
• 0:20
  What's in store for me? Welcome, Alex.
• 0:22
  First of all, thank you for coming.
• 0:24
  I'm really glad you made it to the showroom.
• 0:27
  So we're going to focus on mainly 2 things.
• 0:30
  First, we're going to start with our approach, how we go about it
• 0:34
  in the In the first part, we discuss what the problem is,
• 0:36
  what the challenges are, and we would like to introduce our
• 0:39
  service solution, this one service.
• 0:40
  That's how we work together with retailers to to decide what's
• 0:44
  next step. And secondly, we're going to to
• 0:47
  focus on the three top priorities that we think are the
• 0:50
  main challenges of retailers today when it comes to loss
• 0:53
  prevention. And we are going to show you
• 0:55
  specifically solutions around that.
• 0:57
  Chris, lovely to meet you. I've spent some time with
• 0:59
  Leandro and he's been taking me through E Tab Way and he's going
• 1:02
  to talk me through what you do in your in demo suites later.
• 1:06
  But I'm just curious if you don't mind telling us a little
• 1:09
  bit about what you do and how you help customers?
• 1:11
  Yeah, sure. So my my role as Vice President
• 1:14
  of Solution Design, it covers different services but
• 1:17
  specifically if I think for this conversation it's around how do
• 1:20
  we actually improve the experience for the retailers
• 1:25
  customers and. Our role essentially if you take
• 1:28
  that as the main part all about experience, there's a Halo
• 1:31
  effect of the other things that we specifically pull out to
• 1:34
  ensure that we safeguard and also we mitigate risks to ensure
• 1:37
  that while improving that experience.
• 1:39
  So from the current climate, the efficiency is key here.
• 1:43
  We look at reducing costs in store because you know to run
• 1:47
  stores today energy wise and you know general cost of living, it
• 1:51
  is a quite then and then finally.
• 1:55
  You know we want to improve sales and conversion.
• 1:57
  So you kind of got four things with the experience in the heart
• 2:00
  making sure that the other three kind of spur off that as a Halo
• 2:03
  effect go here. But every every customer has a
• 2:05
  different specific. There's some common threads,
• 2:08
  yeah, but we work with the overall solution designed to run
• 2:13
  workshops, work with the senior leadership team, really
• 2:16
  understand the strategy and the pains and gains but through the
• 2:18
  the consumers lens. But you know, rather than me
• 2:20
  getting to the specifics. Why don't let Leandro sort of
• 2:23
  take you around the showroom and show you some of the examples.
• 2:26
  Brilliant. Thank you.
• 2:27
  So yeah, we're actually in the demo room.
• 2:29
  Thank you. Tell me what we're gonna see.
• 2:31
  As you can see that it's a lot to see in the showroom, yeah,
• 2:34
  But we are going to focus on the top three challenges that we
• 2:37
  believe retailers are facing at the moment.
• 2:40
  First one is around customer guidance and how we make sure
• 2:43
  that the customers are following the sitting through.
• 2:46
  So I can't steal anything. I hope you're not.
• 2:50
  Oh no. The red lines have come on
• 2:51
  straight. I better put it back.
• 2:52
  I don't want to get arrested. So that's that's again the 1st
• 2:57
  use case. Then the second is going to be
• 2:59
  around high value items. How we protect high value items
• 3:02
  without? Is there?
• 3:03
  Is there a figure for high value items?
• 3:04
  Is there like from your experience, is there a the
• 3:07
  number? I don't know.
• 3:08
  Is it more than €5? What's a?
• 3:10
  It depends on the retailer. So we are for example talking
• 3:13
  about beer, wines and spirits. It depends a lot on the range of
• 3:16
  that retailer. But where we're seeing is that
• 3:19
  before retailers were protecting, I don't know wines
• 3:22
  over €30, but now it's that that range is going down.
• 3:26
  So I remember in the US it was shampoo and stuff.
• 3:29
  I was beginning to see shaving stuff behind.
• 3:32
  Threshold, it's going lower every time.
• 3:34
  So second it's going to be around high value items and 3rd
• 3:38
  is going to be around self checkered area which is probably
• 3:41
  the top challenge at the moment. OK.
• 3:43
  So yeah, we're here, we are in the in the first use case, this
• 3:47
  is around how we guide customers through the store.
• 3:50
  It could be an entrance and gate like this one.
• 3:52
  It could be exit, it could be within the any specifics area or
• 3:56
  section within the store for example where.
• 3:59
  Deploying these kind of solutions around the beer, wine
• 4:01
  and spirits. So within the store for a
• 4:03
  specific area got you. And there is a got thousands of
• 4:07
  aisles, yeah, I don't necessarily need to deploy gates
• 4:09
  at the beginning of my thing, I can just deploy it on the on the
• 4:12
  area that's most relevant. To me, it's up to you.
• 4:15
  It's up to the challenges that you are facing and that is a big
• 4:18
  element of the sign. So it's not just the the the
• 4:20
  hardware or just equipment and these like RFID gates like you
• 4:24
  know the ones I'm used to seeing, you know, like the big
• 4:26
  things in the. In these cases for for entrance
• 4:28
  what you're seeing, but in the case of the exit gates, it comes
• 4:31
  with RFID integrated on them. So got you.
• 4:33
  Yeah, you don't need both this spirits and wines, a headache
• 4:37
  through the whole store in terms of protecting these things and
• 4:42
  then stopping it going out and then the friction that it
• 4:45
  introduces in the experience. How are these any different?
• 4:49
  I would say that it's not well not only beer, spirits and
• 4:52
  wines, but also high value items in general.
• 4:55
  The same principles applies for electronics or any high value
• 4:57
  item that you have in the store, so.
• 5:00
  But what we're doing is we're working low with the smart tax
• 5:03
  and with this we are protecting the assets and the same time
• 5:06
  improving the customer experience and also making sure
• 5:10
  that we that we drive operational efficiency because
• 5:13
  to manage these tax and to log the the tax, it's much faster
• 5:17
  than in traditional tax. And how and how is that?
• 5:19
  Why? For example, putting A tag with
• 5:22
  a traditional tag will take a few seconds because for example
• 5:25
  in this case you have these bottlenecks.
• 5:27
  Yeah, tax it would take. Anywhere from 10 to 20 seconds.
• 5:31
  In this case it takes a couple of seconds, yeah?
• 5:33
  And then to release it again. Traditional tags could take
• 5:36
  anywhere from 30 to 40 seconds. And its case is automatic.
• 5:39
  They will be all right, so you don't have to wait for someone
• 5:41
  to come to the till to release it.
• 5:44
  And it also it's much much harder to to release it.
• 5:47
  And by your own means, so it's also and so then is this track
• 5:50
  through the store. It will track the items through
• 5:53
  the store. So we also have more control on
• 5:54
  what's being done with with the high value items.
• 5:57
  Fantastic. We've had a whistle stop tour
• 6:00
  through the top three use case and now we're pay the final part
• 6:05
  of my customer experience and my path to purchase.
• 6:08
  So what are we doing here then? What?
• 6:10
  What are we looking at specifically?
• 6:11
  So so far we have focused on the 1st 2 use cases.
• 6:16
  Customer flow and customer guidance, how to make sure that
• 6:18
  the clients follow the the, the path on the shop floor that we
• 6:23
  believe are the right ones and to mitigate risk.
• 6:26
  Then we went through asset protection and how we do that
• 6:29
  again in a way that it not it not only mitigate risk but also
• 6:35
  and drives efficiency and improves the customer
• 6:38
  experience. Yeah.
• 6:39
  And here we are in the last bit of the of the customer mission
• 6:43
  pay and exit, so. We have a few technologies,
• 6:47
  probably more than 10 use cases are covered in this area.
• 6:50
  Wow. OK.
• 6:51
  But if we focus on the main two or three, which are the ones
• 6:57
  driving more value to the, to the retailers and to the end
• 7:00
  customers, actually would be fraud detection at the self
• 7:05
  checkout. Yeah.
• 7:06
  And then how do we manage the exit from the self checkout in a
• 7:09
  way that? We can make sure that that flow
• 7:13
  is as seamless as possible for for their customers.
• 7:16
  OK, well, let's take a look. I can see that it's already got
• 7:19
  computer vision here and we're looking at a screen.
• 7:21
  So what are we looking at? This is, we'd call it, fraud
• 7:23
  detection solution of course, and it addresses different use
• 7:27
  cases. One is non scan, second one is
• 7:30
  product switch. So typical use case that someone
• 7:33
  will take a bottle of wine and put a label of bananas, yeah,
• 7:36
  whatever. And then the basket not empty,
• 7:39
  so. Finish scanning.
• 7:41
  You pay, but actually you have left products on the basket.
• 7:44
  OK, so. Let's see.
• 7:45
  Depending on the customer behavior, we track it with our
• 7:48
  AI platform. OK, if you scan and you put the
• 7:52
  product on on this auditing babe bottle of olive oil, I've seen
• 7:55
  the £2.50. Yeah, €2.50.
• 7:59
  But then if you for example do not scan and just skip and then
• 8:03
  put the product directly. And you can see that there is an
• 8:06
  exception in the oh OK and that would trigger an alert to the
• 8:10
  check in manager that once you finish the the the transaction
• 8:13
  and you're ready to pay it will trigger this action for someone
• 8:17
  to come. So Leandro, you've taken me
• 8:20
  through how you on a path to purchase on your shopping
• 8:23
  machine, you come into the store, high value items of the
• 8:27
  asset protected, how you're using computer vision, AI and
• 8:32
  data at the checkout. What happens on my exit?
• 8:36
  Well, we follow with the same principle to try to mitigate
• 8:39
  risk without adding friction to the mean, just walk out.
• 8:43
  Exactly. If you follow the the the path
• 8:46
  that it's supposed to be followed by customers, you enter
• 8:50
  the safe checkered area, You scan your items, you pay, you
• 8:52
  get the confirmation that the that customer paid, Yeah, the
• 8:55
  gate so far, I'm a bad actor. The census said that that item
• 8:59
  hasn't gone through. What happens there then?
• 9:01
  Or you didn't pay, we didn't the confirmation, you didn't follow
• 9:04
  the normal flow within the sub target area.
• 9:07
  The gates will not open and you will need all right?
• 9:09
  Sure, that happens automatically without any intervention.
• 9:12
  Thank you so much for taking the time and talking me through all
• 9:15
  these different experiences. How can people find out more?
• 9:18
  Of course, they can find us on our website etap.com, atab.com
• 9:23
  or in LinkedIn and we can get in touch and we can dive into more
• 9:26
  details on any of the challenges that we have discussed today.
• 9:30
  That's brilliant. Thank you.
• 9:31
  Thank you.