Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
The hottest club in retail is “omnichannel,” where retailers have convinced themselves that always-on is the way to a person’s heart...and wallet. Naturally, Instacart wants in.
In its bid to streamline the online and in-store shopping experience, the online grocery platform this week acquired the smart cart and autonomous checkout startup Caper AI for $350 million.
- By injecting Caper AI’s tech, Instacart wants AI-powered shopping carts and automated checkout counters to speed up the shopping experience. Time is money, after all.
What gives? Autonomous checkouts are gaining traction as consumers and retailers value the convenience and speed the tech offers.
- “I would expect in the next three to five years, autonomous checkout will be a common sight in grocery stores at least,” explained Ken Fenyo, president of research and advisory at Coresight Research.
- Instacart could be hoping that this new technology will cut down costs on a tech that requires substantial capital expenditures.
The partnership comes at a time when looming pressures, from labor shortages to changing consumer behaviors, are leading retailers to experiment with AI and smart technologies.
- “Today retailers are squeezed for profitability due to supply issues, growing costs of store operations and labor,” Inna Kuznetsova, CEO of retail analytics firm 1010data, told Retail Brew. “[Retailers] increasingly turn to automation, including AI-based optimization of promotions and personalization of experience both for higher promotional effectiveness and cost reduction.”
Zoom out: The “smart retail devices” market is projected to be a $75 billion industry by 2027, and the smart shopping cart market continues to grow along with consumer preferences for contactless and express retail self-checkout counters. But questions persist.
“What are consumers willing to give up for the prospect of a completely frictionless experience?” Lucien Etori, VP, executive strategy director at digital-innovation consultancy R/GA, said. Will they be ok with the massive data harvesting this technology will warrant? I’m pretty skeptical.”—JS