Innovations in Retail

From the department-of-mythbusting: our Just Walk Out technology is not going anywhere but to even more locations worldwide. Let's walk through what's really going on here... If you want to optimize any experience, a great place to start is with the biggest, most egregious, inefficient part of that experience. For physical shopping - you don't have to look much further than waiting in line for a checkout. It's boring, and it's a waste of time for both the shopper, and the store. So when we started to look at how to improve physical shopping - we started with the question: how do we take out the line? This is a hard problem - but it led to inventions like Just Walk Out (an AI and sensor fusion system for checkout-free shopping), Amazon Dash Cart (where you scan items as you place them into your cart), and Amazon One (our palm-based payments and identity). These technologies are complementary, and serve a very different purpose depending on these store and shopping task: 🚶 Just Walk Out is great for really quick, "mission driven" shopping - like small-format convenience stores for snacks, drinks, and so on. You know what you want, and you don't want a lot. Enter. Grab. Just walk out. Even with relatively few items sold per visit, we have already sold over 18 million items in Just Walk Out stores, and there are now more than 140 third-party locations with Just Walk Out technology in the U.S., UK, Australia, and Canada. The response from shoppers to Just Walk Out in small-format stores has been so strong that we will launch more small-format third-party Just Walk Out stores in 2024 than any year prior, more than doubling the number of third-party stores with the technology this year. 🛒 In larger grocery stores, where customers are making a big weekly trip and buy a greater number of items, customers so far prefer Amazon Dash Cart. Dash Cart serves as a shopping companion that travels through the store with a customer, helping them locate items with an on-cart screen featuring maps and navigation, and receive personalized shopping experiences, all while tracking their savings and spending in real time. ✋ Regardless of the size or format of the store, shoppers tell us they like the security and convenience of Amazon One. Amazon One is in 500+ Whole Foods stores, other Amazon stores, and 150 third-party locations like stadiums, airports, fitness centers, and more. Just Walk Out, Dash Cart, and Amazon One - together - let us remove these pesky lines in more places than we could in isolation. They are complements to one another - like The Beatles. Stronger than the sum of their parts. So don't believe the headlines. Just Walk Out isn't going anywhere, except into more locations, in more countries, to help more shoppers, and more businesses. Now back to your regular scheduled programming... :)

#payments rails across the globe and the models behind them have evolved in three major (but very different) patterns and yet they are converging in certain ways. Let’s take a look. About half a century ago, magnetic-striped cards triggered a payments revolution. Swiping plastic cards at POS merchant terminals conquered the west, with Visa and Mastercard managing the rails and becoming an almost mighty duopoly. Cards made a smooth transition into the digitized #economy by embedding in smartphones (and even turning them into processors) and becoming the springboard for the rise of the #ecommerce. While the west was transitioning from old cards to chips, China was driving its own local payments revolution that erupted at the beginning of the 2000s and transformed the country from a purely cash economy to a #digital frontrunner. Starting from high smartphone penetration and bank account ownership, China essentially leapfrogged the card-based (western) model moving directly to a digital set-up built on e-wallets and QR codes and driven by two private companies (Alibaba and Tencent) that managed to build vast (2-sided consumer and merchant) ecosystems that transformed them into ubiquitous SuperApps. In parallel, a third pole had been developing in other parts of the world: —     The payments revolution in Africa was led by telecoms (being the only infrastructure available) by means of an e-#money set-up based on mobile phones. Companies such as Kenya’s M-Pesa (launched in 2007) managed to provide long needed basic financial services (saving and transferring funds, making payments or accepting government subsidies) to large swaths of the population. —     Countries like India or Brazil developed over the past few years state-sponsored real-time payments infrastructures, powering multiple bank accounts into a single app under A2A and P2P models. India’s Unified Payments Interface (UPI) has over 300 mn monthly active users recording 60% y-o-y growth, whereas Brazil’s Pix, launched only in late 2020, has managed to become the most popular payments’ method with over 150 mn users. These parallel evolutionary developments could hardly have been more different: a robust decades-old, card-infrastructure in the west (monopolized by two private companies), against a digital, wallet-based closed-loop model in China (powered by 2 giant ecosystems), versus public, state-sponsored, open, real-time rails in India and Brazil. Despite their very different origins and set-up, digitization has been acting as a huge convergence driver lately: digital wallets, super-apps, real-time payments and CBDCs (Central Bank Digital Currencies) are only some of the common underlying elements. As payments evolve to their next phase, a new digital infrastructure is in the making, fast bridging seemingly big structural gaps. Opinions: my own, Graphic sources: Credit Suisse, Alipay, Matthew Brenan, BCB, Bacancy, Alicriti

Tesco’s share price is up almost 50% in the last two years. The business is on a roll, reporting strong financial performance in the latest update which I recently discussed with BBC News. ➡ Strong Financial Performance: 💠Retail like-for-like sales up 2.9%, with UK (+4.0%), ROI (+4.7%), and Central Europe (+0.6%) 💠Adjusted operating profit increased 10.0% to £1,555m 💠Market share reaches 27.8% - highest since January 2022 ➡ Omnichannel Excellence: 💠Large stores leading with 4.2% growth 💠Digital sales surging - online up 9.3%, now 13.5% of UK sales 💠Whoosh rapid delivery expanding to 1,460 stores 💠1.3M online orders per week ➡ Digital & Loyalty Innovation: 💠Clubcard penetration reaching new heights: UK 82%, ROI 85%, CE 87% 💠4.9M customers receiving personalised 'Clubcard Challenges' 💠Growing retail media platform showing strong advertiser engagement What's fascinating about Tesco's performance isn't just the numbers - it's the sophisticated ecosystem play that's emerging. Here's why I believe Tesco are in such a commanding position: 📲 Data Monetisation Tesco isn't just running a retail media network; they're orchestrating the UK's largest closed-loop retail ecosystem. With 23M Clubcard households, they've created a virtuous cycle: customer data drives personalisation, which increases engagement, which generates more data. Their partnership with dunnhumby transforms this into a powerful advertiser proposition - true closed-loop measurement across online and offline touchpoints. This is retail media 2.0. What's more, retail media typically delivers 60-70% margins, compared to traditional grocery retail's 2-5%. By building this high-margin revenue stream, built on strong tech underpinnings, their media tech proposition has become a key strategic asset boosting their valuation. It's a page out of the Amazon/Walmart's media businesses playbook where this part of the business is valued at multiples of their retail operations. 🎯 Core Business Focus The 4.0% like-for-like growth tells a deeper story about strategic discipline. Over the past decade, Tesco has systematically simplified its business model - exiting non-core markets and doubling down on what they do best: food retail with a magic sprinkle of data. It’s been fascinating to see how sometimes doing less allows businesses to achieve more. 🤖 AI-Powered Customer Centricity The deployment of AI to analyse shopping patterns isn't just about efficiency - it's about reimagining the customer relationship. By using predictive analytics to anticipate customer needs and suggest relevant products, Tesco is moving from reactive to predictive retail. In my view, the next stage of personalisation. These results showcase Tesco's ability to balance traditional retail strength with digital innovation while maintaining strong market leadership.

The same people hunting for discounts on Myntra are paying ₹1,500 for instant fashion on Zepto. This isn't just another retail trend. It's a complete reversal of how we understand fashion buying. Urban consumers have started treating fashion like groceries, demanding immediate delivery for immediate needs. Think about it. That Saturday evening party outfit can't wait three days.  The campus event tomorrow needs the perfect look today. Quick commerce understood this shift before traditional retail even noticed and quick commerce platforms are specifically targeting trend-conscious urban customers and Gen Z. Why? Because they're willing to pay ₹500 to ₹1,500 on Zepto or ₹1,400 to ₹1,600 on NEWME for 25 to 60 minute delivery. The implications for fashion brands are staggering. Expanding inventory to new regions now requires: → Tech-led demand prediction systems → Understanding hyperlocal preferences → Building distributed warehouses → Tracking regional buying patterns Brands studying fashion demand must consider completely new factors. Weekend travel creates spikes in metro cities. Festive seasons hit differently across regions. Occasion-based purchases drive impulse buying. Each locality has its own style DNA. Traditional retail spent decades perfecting central warehouses and seasonal collections. Quick commerce demands the opposite. Small inventory points everywhere. Weekly design drops. Regional customization. Fashion has entered the 10-minute economy, and there's no going back. What's one fashion emergency that made you wish for instant delivery?

If Indian retail wants to win, it must shift its focus from discounts to this, Recently, in a conversation about retail strategy, someone asked me, “Why do so many brands struggle to build long-term loyalty?” The answer is simple: They’re addicted to discounts. Price cuts create a temporary spike in sales. But what happens when the sale ends? Customers move on to the next discount. There’s no loyalty in a race to the bottom. If a brand’s only value proposition is being the cheapest, it’s not a brand, it’s a commodity. And commodities don’t build relationships. The strongest retail brands win on something deeper: ✅ Product innovation: If your product isn’t unique, no discount can save you. UNIQLO doesn’t rely on markdowns, it invests in technology-driven fabrics like HeatTech and AIRism, making its products essential rather than seasonal. ✅ Customer Experience: Shopping isn’t just about the product, it’s also about how customers feel. IKEA built an entire ecosystem around its stores, cafes, play areas, interactive showrooms, turning shopping into an experience people return for, even when they don’t “need” anything. ✅ Community Building: The most powerful brands don’t have customers, they have believers. Starbucks doesn’t just sell coffee; it sells familiarity and personalisation. People go there for the experience of “their” drink, their name on a cup, their place to work or meet. That’s not a transaction, it’s a relationship. + The brands that rely on discounts are playing defense.  + The brands that invest in differentiation are playing to win. So the real question isn’t how much you can lower your price; it's how much value you can create. #retailleadership #beyonddiscounts #brandbuilding

In my years of leading retail strategy, I’ve seen countless 'tech revolutions' fail the customer. This week, ZARA might have actually cracked a milestone. Zara quietly launched an AI-powered Virtual Try-On this week. It works. It’s fast. And the quality feels… right. As someone who never really enjoyed trying clothes in a fitting room, I found myself intrigued, and, honestly, impressed. The tech is finally catching up to the promise. But this is about more than convenience. Imagine a world where we try on styles we wouldn’t dare pick up in-store. Where play, identity, and expression aren’t limited by body type, time, or confidence. Empowering, isn’t it? On top of this, scaling this tech means fewer returns. That's a massive victory for retail margins and an even bigger one for the planet. What would you try on, if all it took was a tap? #AI #Innovation Video source: Reda

In the clutter of D2C brands, customization can make you win. Last weekend, I was trying to buy a gift for my friend's anniversary, but every option felt generic. Basic. Non-memorable. Then, I found a leather wallet and cardholder set online where I could add their initials, choose the leather texture, and even include a hidden photo inside. Suddenly, it became a gift they’d remember. This experience made me realize that as the landscape matures, we’re moving from an era of 'product-market fit' to 'product-person fit.' Here’s why I think mass customization is becoming the new competitive advantage in retail: 1/ The New Consumer Psychology Five years ago, customization was a luxury add-on. Today, it's becoming the baseline expectation. When I asked my teenage nephew why he refused a popular sneaker brand, his answer was telling: "If I'm wearing the exact same thing as everyone else, what's the point?" The data confirms it: > 60% of Millennials and Gen Z prefer customized products. > More surprisingly, they’re 4x more likely to recommend brands that offer customization. 2/ The Business Transformation The most fascinating insight I’ve discovered as an investor: Customization is creating an entirely new business model. Take Traya – they analyze your background, health, diet, and lifestyle through a 30-question diagnostic, then create regimens with 4x higher efficacy. The result? ₹7Cr → ₹300Cr in 2.5 years. Or Bombay Shirt Company – by letting customers design everything from the collar to the thread, they’ve achieved what seemed impossible: mass-produced customization at scale. 3/ The Economic Advantage When we analyze the unit economics, customized products are creating an unfair advantage: > Customer acquisition costs drop by 35% (word of mouth increases). > Return rates fall by 55% (customers keep what they helped design). My favorite examples: > Perfora’s name engraving on toothbrushes. > Mokobara’s luggage monograms (they started it). > Lenskart.com’s custom-fit frames. Yes, it adds cost and effort. But it makes you stop while you’re scrolling. And it makes the customer feel like the ONLY customer. That’s everything today. 😉 Which customized product experience has impressed you the most? #ConsumerTrends #Customization #Retail #D2C

Tesco’s next move: personalised Clubcard prices—a game changer for loyalty? Tesco is taking its Clubcard Prices to the next level by trialing personalised discounts, tailoring offers to individual customers based on their shopping habits. This shift signals a growing recognition that one-size-fits-all promotions no longer cut it in modern retail. Why Personalisation Matters: 🔸 Relevance Drives Engagement – Customers are far more likely to engage with offers that align with their actual needs, rather than generic discounts. 🔸 Beyond Just Discounts – True personalisation isn’t just about price—it’s about anticipating needs, making shopping easier, and enhancing the overall experience. 🔸 Data-Powered Loyalty – Retailers have vast amounts of customer data, but the real magic happens when that data is used to create value for the shopper in a way that feels helpful, not intrusive. The Challenge for Grocers: Even with millions of Clubcard members, grocers have struggled to create meaningful, long-term loyalty. Many customers are still happy to shop around for the best deal. But if Tesco gets personalisation right, this could be a step toward deeper customer relationships, rather than just short-term transactional loyalty. 💡 What do you think—can personalisation revolutionise grocery retail? #Retail #Tesco #Clubcard #Personalisation #CustomerLoyalty #RetailInnovation

When a shipping container becomes a business model. A new multi-functional container design is turning entire trucks into fully deployable shops — and it might change how small businesses think about physical space. With its folding, modular structure, one unit can transform into: 🍽️ a pop-up restaurant 🛒 a mobile supermarket ⛺ a full camping or service station … all at a fraction of the cost of a traditional storefront. Why this matters: ✅ Ultra-low setup costs — no rent, no major construction ✅ Instant deployment — open a new location in hours, not months ✅ High mobility — bring commerce directly to where customers are ✅ Resilience — perfect for rural regions, events, disaster zones, or testing new markets We talk a lot about digital transformation — but physical retail is transforming too. Not by building bigger stores, but by making them move. This is infrastructure innovation at its best: flexible, scalable, and accessible. The future of retail may not be indoors — it may be on wheels. What kind of business would you launch if your store could follow your customers? #Innovation #Mobility #RetailTech #Design #FutureOfWork #Logistics #SmallBusiness Source 🙏 @sutoroveli_news