Shopping gets hi-tech makeover
VIDEO cameras which monitor shelves for continuous stocking and a thinking computer program which adjusts stock ordering based on weather patterns and local community events.
Meet the supermarket of the future being rolled out by Coles.
The supermarket giant has struck a major partnership with tech giant Microsoft to use artificial intelligence to transform its supply chains, stock ordering and shopping experience.
The partnership is the latest major technology investment by Coles which is building massive new automated warehouses, smaller robotic-powered centres to fill online orders and linking its store network with fibre optic cable.
The investments come as Coles works to provide shoppers with a much more individual shopping experience and strip out $1 billion in annual costs over the next four years.
Chief information and digital officer Roger Sniezek said harnessing artificial intelligence would create a far more efficient and accurate stock ordering processes.
It would also allow the retailer to “hyper tailor” a store’s product range to its neighbourhood.
That meant fewer empty spots on shelves, fresher produce and a better range of products shoppers in a particular location wanted, he said.
“If you take fruit as an example, demand can be affected by a huge number of things – the weather forecast, local events, kids going back to school,” Mr Sniezek said.
“Feeding all that into an AI algorithm gives us a much more accurate forecast of what we need to deliver day by day, which will give customers much better availability and freshness.”
Coles has hired Microsoft to build an enterprise data platform to combine and co-ordinate all information pouring in from its stores and loyalty program.
The Melbourne-based retailer processes more than 1 billion customer transactions a year while its Flybuys loyalty program has 6.6 million members.
Coles will also use Microsoft Azure as its cloud platform.
Microsoft engineers will join Coles’ innovation lab which is tasked with coming up with the next generation of retail innovations. At the moment the lab, located in Melbourne, is testing software which scans camera feeds from stores to identify stock outages.
“Can we look at all of the shelves and figure out where there are gaps and then help our team members in store prioritise the replenishment of those gaps?” Mr Sniezek said.
Both Coles and Woolworths are investing heavily in technology as personalisation and convenience emerge as new key battlefronts to win over shoppers.
The adoption of artificial intelligence and automation will also lower costs as they confront a new generation of discounters such as German heavyweight Kaufland, as well as established rivals Aldi and Costco.
Microsoft worldwide commercial business executive vice president Judson Althoff said artificial intelligence would help create a “personalised, seamless experiences for shoppers”.
FEEDING ALL THAT (INFORMATION) INTO AN AI ALGORITHM GIVES US A MUCH MORE ACCURATE FORECAST OF WHAT WE NEED TO DELIVER DAY BY DAY COLES CHIEF INFORMATION AND DIGITAL OFFICER ROGER SNIEZEK
QUENTIN TOD
COCO Republic, a near 40year-old home furnishings group, has set up shop in the AMP-owned The Brickworks centre in Southport.
The move comes two years after the group opened a Max Sparrow store at The Brickworks and added interior design and property styling divisions to its Gold Coast offerings.
The Coco Republic store spans 1000sq m and comprises the Max Sparrow space and a neighbouring area previously occupied by another furniture group, Dune.
Coco Republic, which has outlets across three states, has leased the space for seven years. The group says Max Sparrow’s Gold Coast customers will have access to a new flagship showroom in Fortitude Valley.
CEO Nicholas Foster said the new Brickworks store would offer Coco Republic’s successful outdoor collection. “The collection of more than