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2016 Retail Innovation Briefing

February 7th, 2017 Courtesy of Future Stores

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ContentsIntroduction..............................................................................................................................................................................................................2

Amazon Go Is in Prime Position to Disrupt In Store Retail............................................................................................................. 3

Lowe’s is Augmenting Retail Reality with VR & Robot Assistants.............................................................................................. 5

How Macy’s “P2LU” Program Revolutionizes Inventory Management......................................................................................7

Walmart Wants to Win the Digital Wallet War with Walmart Pay.............................................................................................. 9

We.want.to.provide.you.with.perspective.on.how.major.retailers.are.implementing.technologies.that.enhance.the.customer.experience.on.a.grand.scale.using.technologies.never.seen.before..

The.retail.industry.is.undergoing.a.massive.time.of.transition.due.to.changing.consumer.behavior.and.disruptive.technologies..In-store.visits.are.significantly.down.due.to.the.massive.shift.to.digital,.so.stores.are.working.to.push.the.online.sale.as.well.as.reinvent.the.store.environment.to.increase.foot.fall..But.with.technology.changing.rapidly.and.consumer.expectations.at.an.all.time.high,.many.stores.are.failing.as.evidenced.by.numerous.store.closings..

Retailers.are.working.to.compete.with.Amazon’s.level.of.personalization,.efficiency,.price.and.overall.customer.experience,.but.it’s.no.easy.task..They.are.quickly.realizing.that.the.days.of.a.strictly.transaction-focused/product-centric.environment.are.gone..Today,.it’s.all.about.relationships.and.engaging.the.customer.wherever.and.whenever.they.choose.to.engage..

It’s.not.all.gloom.and.doom.however..There.are.many.retailers.who.are.successfully.reinventing.themselves.by.creating.immersive,.engaging.retail.environments,.hiring.knowledgeable,.tech.savvy.associates,.meeting.heightened.expectations.around.delivery.and.fulfillment.and.understanding.the.importance.of.the.smart.phone.throughout.the.entire.experience..

Overview

The Aim of This Whitepaper

Industry Backdrop

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Amazon Go Is in Prime Position to Disrupt In Store Retail

“Just Walk Out” TechnologyThe Start of Things to Come for Amazon Bricks?

The.supermarket.industry.has.been.discussing.and.attempting.a.faster.checkout.experience.for.years..However,.whilst.distracting.itself.with.self-service.checkouts.and.certain.buy.online.pickup.in.store.(BOPUS).initiatives.to.speed.things.up,.it.has.taken.an.online.retailer.to.come.up.with.a.solution.that.no-one.else.thought.of.–.no.checkout.at.all.

Amazon Go.is.Amazon’s.new.checkout-free.convenience.store,.set.to.open.a.presently.unmatched.in.store-based.retail.experience.to.the.public.in.Seattle.early.2017.

Watch.the video.and.prepare.to.be.wowed:

Amazon.has.revealed.that.it.uses.a.combination.of.machine.learning,.sensors.and.artificial.intelligence.to.track.items.that.customers.pick.up..The.items.are.then.added.to.the.customer’s.virtual.cart,.and.the.virtual.bill.is.subsequently.forwarded..This.allows.shoppers.to.literally.pick.up.what.they.want.from.the.store’s.shelves.and.then.“Just.Walk.Out”.–.hence.the.name.given.to.the.technology.

However,.the.company.is.keeping.its.cards.somewhat.closer.to.its.proverbial.chest.with.regards.to.exactly.how.the.Just.Walk.Out.technology.works..That.being.said,.tech.news.site.Recode spotted.a.patent.filing.by.Amazon.last.year.that.revealed.some.details.

The.patent filings describe.a.system.that.uses.Radio.Frequency.IDentification.(RFID).to.detect.when.a.shopper.removes.an.item.from.a.shelf,.and.then.syncs.the.generated.data.to.a.mobile.device..This.enables.the.system.to.log.items.in.real-time,.thusly.eliminating.the.need.for.the.customer.to.go.through.a.traditional.checkout..As.the.customer.exits.the.store.through.a.“transition.area”,.sensors.detect.that.they’re.leaving,.instruct.the.app.to.tally.up.the.bill,.and.the.items.are.then.charged.to.the.associated.Amazon.account.

From.the.patent.filing:

“For.example,.if.the.user.is.purchasing.items.from.a.retail.location,.rather.than.the.user.having.to.stop.and.“check.out”.with.a.cashier,.teller.or.automated.check.station,.because.the.picked.items.are.already.known.and.identified.on.an.item.identifier.list.associated.with.the.user,.the.user.may.simply.exit.the.retail.location.with.the.items..The.exit.of.the.user.will.be.detected.and,.as.the.user.passes.through.the.exit.(transition.area),.the.user,.without.having.to.stop.or.otherwise.be.delayed,.will.automatically.be.charged.a.fee.for.the.items.(the.items.are.transitioned.to.the.user).”

Amazon.has.been.dipping.its.toe.into.the.waters.of.brick-and-mortar.for.some.time..With.bookstores.popping.up.around.the.country.and.a.few.small.outlets.at.colleges.here.and.there,.the.announcement.of.Amazon.Go.has.nonetheless.arrived.as.a.surprise.

–nay,.a.shock.–.to.the.retail.industry.

The.premise.is.simple.–.customers.scan.the.Amazon.Go.mobile.app.as.they.enter.the.store,.pick.off.items.from.the.shelves,.and.walk.straight.back.out.the.door..Checkouts,.card.transactions,.bagging.–.all.are.inconveniences.set.to.be.eradicated.for.Amazon.Go.shoppers.

Checkout-free.shopping.has.strong,.truly.disruptive.implications.not.only.for.food.retailing,.but.each.and.every.segment.of.retail..If.Amazon.can.successfully.deliver.a.checkout-free.experience.in.a.convenience.store,.then.it.doesn’t.take.much.to.envision.a.future.filled.with.Amazon.outposts,.all.built.upon.the.same.checkout-free.premise.–.book.stores,.entertainment.stores,.beauty.stores,.perhaps.even.drive-thru.grocery.locations.

For.consumers,.Amazon.Go.represents.an.exciting.new.hassle-free.concept.and.level.of.convenience.that.until.last.week.could.not.have.even.been.dreamed.of..The.question.that.the.pending.store.poses.to.the.rest.of.the.retail.industry,.however,.is.much.more.serious:.Just.how.far.behind.are.we?

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From.the.video.and.Amazon Go’s online FAQ publication,.we.are.told.that.the.store.will.utilize.technologies.that.include.sensor.fusion,.which.amalgamates.data.from.different.sensors.around.the.store.to.increase.the.accuracy.and.reliability.of.results.

“In.some.implementations,”.the.patent.filings.read,.“data.from.other.input.devices.may.be.used.to.assist.in.determining.the.identity.of.items.picked.and/or.placed.in.inventory.locations..For.example,.if.it.is.determined.that.an.item.is.placed.into.an.inventory.location,.in.addition.to.image.analysis,.a.weight.of.the.item.may.be.determined.based.on.data.received.from.a.scale,.pressure.sensor,.load.cell,.etc.,.located.at.the.inventory.location..The.image.analysis.may.be.able.to.reduce.the.list.of.potentially.matching.items.down.to.a.small.list..The.weight.of.the.placed.item.may.be.compared.to.a.stored.weight.for.each.of.the.potentially.matching.items.to.identify.the.item.that.was.actually.placed.in.the.inventory.location..By.combining.multiple.inputs,.a.higher.confidence.

score.can.be.generated.increasing.the.probability.that.the.identified.item.matches.the.item.actually.picked.from.the.inventory.location.and/or.placed.at.the.inventory.location.”

It’s.been.more.than.two.years.since.these.patent.applications.were.first.filed,.so.it’s.very.likely.that.the.company’s.approach.may.have.changed.during.that.time..However,.from.what.we’ve.seen.so.far,.much.of.what.is.expressed.is.indeed.matching.up.

As Amazon now moves to push into the $800 billion US food and beverage market, it has no legacy store network to update – it begins with a checkout-free experience and can build from there.

Amazon Well-positioned to Disrupt Brick-and-Mortar Retail

On.the.surface,.it.may.seem.surprising.that.an.ecommerce.titan.such.as.Amazon.should.be.the.company.to.make.the.first.move.to.reinvent.the.physical.checkout.experience.in.such.a.

Big Winners Pay for So Many ExperimentsWill.Amazon.Go.work?

Well,.one.thing’s.for.sure,.Amazon.has.long.been.a.company.that.is.willing.to.pilot.initiatives.that.may.not.be.directly.or.immediately.profitable,.but.nonetheless.serve.to.create.additional.value.in.the.Amazon.ecosystem,.and.of.course.drive.greater.use.of.its.ecommerce.platform.

Amazon,.indeed,.takes.a.deep-pockets-approach.to.innovation,.and.Amazon.Go.is.the.latest.manifestation.of.the.philosophy..The final word goes.to.CEO.Jeff.Bezos.in.the.latest.annual.report:

“I.believe.we.are.the.best.place.in.the.world.to.fail.(we.have.plenty.of.practice!),.and.failure.and.invention.are.inseparable.twins..To.invent.you.have.to.experiment,.and.if.you.know.in.advance.that.it’s.going.to.work,.it’s.not.an.experiment..Most.large.organizations.embrace.the.idea.of.invention,.but.are.not.willing.to.suffer.the.string.of.failed.experiments.necessary.to.get.there..Outsized.returns.often.come.from.betting.against.conventional.wisdom,.and.conventional.wisdom.is.usually.right..Given.a.ten.percent.chance.of.a.100.times.payoff,.you.should.take.that.bet.every.time..But.you’re.still.going.to.be.wrong.nine.times.out.of.ten..This.long-tailed.distribution.of.returns.is.why.it’s.important.to.be.bold..Big.winners.pay.for.so.many.experiments.”

wholly.disruptive.manner..But.in.fact,.Amazon’s.heretofore.(nearly).online-only.existence.actually.serves.to.strengthen.its.position.as.a.brick-and-mortar.disruptor.for.a.number.of.reasons.

First,.leaving.its.college.pop-ups.and.bookstores.aside,.as.Amazon.now.moves.to.push.into.the.$800.billion.US.food.and.beverage.market,.it.has.no.legacy.store.network.to.update.–.it.begins.with.a.checkout-free.experience.and.can.build.from.there.

In.addition,.Amazon.already.has.in.excess.of.300 million customers,.all.already-identified.and.ready.to.spend..Since.a.checkout-free.store.requires.each.user.to.be.digitally.identified,.Amazon’s.massive.existing.digital.customer.base.puts.the.company.in.a.much.stronger.position.to.experiment.with.such.a.system.than.other.retailers.

Finally,.Amazon.customers.also.tend.to.be.digitally-savvy,.meaning.that.they.are.likely.to.be.open.and.keen.to.adopt.the.Amazon.Go.experience.

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Lowe’s is Augmenting Retail Reality with VR & Robot Assistants

With.the.likes.of.Apple.and.Amazon.perhaps.most.readily.associated.with.being.at.the.cutting-edge.of.innovating.the.customer.journey,.it.may.for.some.come.as.a.surprise.to.learn.that.for.a.true.high-tech.shopping.experience,.it’s.not.towards.a.tech.giant.that.we.must.venture,.but.instead.down.to.our.local Lowe’s.home.improvement.store.

“The.LoweBot.solves.and.serves.our.common.cold.problems,”.says Nel..“When.I.walk.into.a.store.and.I.want.to.know.where.something.is.I.want.to.know.right.then.—.I.don’t.want.to.have.to.download.an.app.—.a.robot.can.really.help.with.that.”

As.LoweBots.traverse.the.shop.floors,.they.quietly.scan.the.shelves.and.send.up-to-date.inventory.information.to.store.associates..The.ultimate.goal,.indeed,.is.not.to.replace.the.human.workforce,.but.rather.to.take.care.of.some.of.the.more.mundane.tasks.in.order.to.free.up.time.for.associates.to.deliver.a.more.personalized.service.to.in-store.customers..When.asked.if.the.LoweBot.could.one.day.eliminate.jobs,.Nel.affirmed,.“Most.definitely.not.—.my.phone.doesn’t.make.me.obsolete.”

LoweBot.began.rolling.out.(quite.literally).in.September,.and.over.the.following.months.will.be.increasingly.present.in.11.Lowe’s.stores.across.the.San.Jose.area.

Robotic Shopping AssistantsLowe’s Innovation Labs first.unveiled.the.OSHbot

–.a.5-foot-tall.robot.shopping.assistant.–.back.in.2014.at.the.midtown.San.Jose.Orchard.Supply.hardware.store..OSHbot.was.there.to.greet.customers,.guide.them.around.the.store,.source.product.information.and.aid.employees.with.inventory.management.

Since.then,.the.OSHbot.pilot.scheme.has.closed,.with.the.program.rolling.into.Lowe’s.and.the.LoweBot.

LoweBots.are.essentially.new.and.improved.versions.of.the.original..Using.a.3D.scanner,.the.bots.detect.people.as.they.come.into.stores..Customers.can.then.ask.the.LoweBot.(which.understands.and.speaks.7.languages).what.they’re.looking.for,.and,.using.smart.laser.sensors,.the.bot.will.guide.them.through.the.labyrinthine.aisles.directly.to.the.items..Along.the.way,.the.LoweBot.even.displays.location-based.special.offers.and.smart.recommendations.on.its.rear-facing.display.panel.

While.this.all.sounds.wonderfully.exciting.and.futuristic,.Kyle.Nel,.executive.director.at.Lowe’s.Innovation.Labs,.explains.that.the.main.role.of.the.LoweBot.is.in.fact.to.find.solutions.for.Lowe’s.customers’.most.basic.problems.

Image source: lowesinnovationlabs.com

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From HoloRoom to HoloLens

The Virtual/Augmented Reality Future for the ShowroomLowe’s.high-tech.flare.doesn’t.end.with.robotic.

in-store.assistants.–.the.home.improvement.chain.has.been.exploring.the.potential.of.virtual.reality.(VR).and.augmented.reality.(AR).in-store.experiences.as.well.

2014.brought.the.introduction.of.Lowe’s HoloRoom to.two.Toronto.stores,.with.19.U.S..stores.following.suit.from.November.2015..The.HoloRoom.allows.in-store.customers.to.design.their.dream.kitchen.or.bathroom.with.the.help.of.an.associate’s.tablet,.and.then.slip.on.a.VR.headset.to.view.the.results.and.make.real-time.alterations.to.the.design.in.virtual.reality..Take.a.look.at.the.video.below.to.see.it.in.action.

The.HoloLens.delivers.a.totally.immersive.experience.for.Lowe’s.customers..It.is.truly.innovative,.and.indeed.as.much.fun.as.it.is.practical..Lowe’s.customers.can.now.enter.a.bare.frame.of.a.showroom.kitchen.and.use.the.HoloLens.to.get.a.true.feel.for.how.their.new.kitchen.will.look.when.complete.–.and.that.plays.a.huge.part.in.helping.the.customer.along.the.journey.to.a.purchase.

“AR/VR.are.perfectly.suited.for.interior.design,.landscape.and.architectural.experiences,”.said.Adrian Weidmann, principal.at.StoreStream.

AR/VR are perfectly suited for interior design, landscape and architectural experiences. Most people can’t visualize a particular design or color in their particular space. This technology will allow shoppers to see what a particular remodel will actually look like, helping the shopper make that purchase decision.

In.March.2016,.Microsoft.HoloLens.announced an.official.partnership.with.Lowe’s.to.once.again.redefine.and.reinvent.how.DIYers.go.about.home.renovation.

Home.improvement,.of.course,.is.all.about.realizing.a.vision..However,.conceptualizing.exactly.what.a.complete.remodeling.of.your.kitchen.will.look.like.when.finished.is.incredibly.difficult.when.you’ve.only.got.a.few.paint-pot.samples.and.a.couple.of.tiles.to.work.with..The.HoloRoom.went.above.and.beyond.in.creating.a.solution.for.that.issue,.and.now.so.too.does.the.Lowe’s/HoloLens.partnership.

“Lowe’s.is.using.HoloLens”,.explains.the.Microsoft Windows Blog, “to.demonstrate.a.variety.of.design.options.for.kitchen.cabinetry,.countertops,.appliances.and.features.like.backsplashes,.in.a.visually-rich.and.interactive.way..Lowe’s.customers.will.be.able.to.experience.a.holographic.representation.of.a.completely.new.kitchen,.adjust.finishes.and.options.instantly,.and.share.their.designs.easily.online.”

Metrics.LLC..“Most.people.can’t.visualize.a.particular.design.or.color.in.their.particular.space..This.technology.will.allow.shoppers.to.see.what.a.particular.remodel.will.actually.look.like,.helping.the.shopper.make.that.purchase.decision.”

Just.how.AR.and.VR.might.be.incorporated.into.larger.swathes.of.retail.remains.to.be.seen.–.though.the.potential.is.huge..Lowe’s.has.shown.what’s.possible.for.interior.design,.the.future.surely.holds.even.greater.innovations.elsewhere..The.last.word.goes.to.Max Goldberg of.Max.Goldberg.and.Associates.

“VR.is.in.its.infancy..As.it.grows.more.sophisticated,.and.as.consumers.come.to.understand.and.accept.it,.it.will.become.a.force.in.retail..Just.what.force.it.will.become.is.still.a.work.in.progress.”

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How Macy’s “P2LU” Program Revolutionizes Inventory Management

“Accurate.inventory.is.the.single.thing.retailers.have.got.to.get.right.for.everything.else.to.work.”

So.said Bill Hardgrave,.professor.at.Auburn.University.at.the.National.Retail.Federation.(NRF).conference.in.January.last.year..And.he’s.right..Ever.since.shoppers.began.to.buy.across.multiple.channels,.the.whole.inventory.management.process.became.a.lot.more.complicated.

The.omnichannel.imperative.dictates.that.shoppers.should.be.able.to.buy.anywhere,.and.stores.should.be.able.to.fulfill.anywhere.–.and.the.whole.process.to.be.made.as.seamless.and.as.faultless.as.possible.

However,.in.order.to.deliver.this.true.omnichannel.experience.for.customers,.retailers.are.faced.with.the.task.of.having.complete.vision.and.control.over.their.inventory.at.any.given.time..But,.ensuring.that.there.is.complete.transparency.across.multiple.channels.is.no.mean.feat..It.means.retailers.seeing.their.entire.inventory.as.one.complete.stock.pool,.as.opposed.to.separate.stock.levels.scattered.across.different.channels..Without.this,.Hardgrave.says,.the.entire.digital.effort.behind.omnichannel.initiatives.is.wasted.

–.unless.retailers.know.exactly.where.stock.is.in.real-time.

Macy’s Leads the Way with Inventory Management Technology

It’s.no.secret.that.Macy’s.is.one.of.the.true.market.leaders.in.terms.of.omnichannel.–.and.this.is.a.feat.that.the.retailer.has.achieved.in.no.small.part.thanks.to.its.innovations.in.inventory.management.

Pick to the Last Unit

Reducing Risk While Increasing Sales

Macy’s.has.named.the.program.Pick.to.the.Last.Unit.(P2LU)..It.enables.omnichannel.fulfilment.of.consumer.purchases.right.down.to.the.very.last.unit.of.in-store.merchandise..This.means.that.the.retailer.is.able.to.list.products.for.sale.on.its.website.even.when.there.is.only.one.such.item.available.at.the.store.

This.is.a.huge.improvement.upon.what.Macy’s.was.able.to.achieve.in.the.past..Before.the.launch.of.P2LU,.inventory.counts.were.simply.not.accurate.enough.to.ensure.that.individual.units.were.actually.in-stock.and.therefore.available.for.sale..However,.through.the.use.of.the.RFID.technology,.Macy’s.says.that.inventory.counts.are.now.so.precise.that.the.retailer.knows.with.certainty.exactly.what.products.it.has.available.in.real-time,.and.can.thus.advertise.them.for.sale.(at.full.price).across.any.channel.until.the.very.last.unit.is.sold.

Indeed,.according to Terry Lundgren,.CEO.of.Macy’s.Inc.,.omnichannel.is.in.fact.all.about.

“inventory.optimization.through.technology”..In.order.for.omnichannel.experiences.to.be.successfully.delivered,.the.basic.principles.that.form.the.foundations.of.any.bricks-and-mortar.store.–.i.e..providing.an.inventory.of.products.that.a.shopper.can.browse.and.purchase.–.need.to.be.expanded.so.that.the.same.experience.is.made.possible.across.multiple.interconnected.channels..It.is.only.through.the.utilization.of.appropriate.technology.that.this.can.be.achieved.

Macy’s.has.long.realized.this.important.fact,.and,.through.an.initiative.that.involves.the.employment.of.radio.frequency.identification.(RFID).technology,.is.now.selling.products.down.to.the.final.unit.in.stock.at.its.stores.

With.this.level.of.inventory.accuracy.and.visibility,.Macy’s.is.able.to.provide.a.better.customer.experience.and.increase.sales.of.products.that.would.otherwise.be.destined.for.the.sales-rail..Typically,.when.products.are.sold.down.to.the.last.one.or.two.items,.retailers.will.remove.them.from.online.purchasing.–.due.to.a.lack.of.confidence.

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in.inventory.accuracy.and.ability.to.locate.such.items.in.stores.–.and.will.put.them.on.a.sales.rack.at.a.reduced.price.

“About.15%.to.20%.of.inventory.is.accounted.for.by.the.last.unit.in.the.store,”.says Peter Longo, President.of.Logistics.and.Operations.at.Macy’s..

“It’s.a.massive.amount.of.budget,.either.marked.down.or.not.sold,.and.it.is.curable.through.RFID.”

The.RFID.system.used.by.Macy’s.is.provided.by.Tyco Retail Solutions..The.P2LU.program.makes.available.the.last.unit.of.an.item.in.any.store,.and.Tyco’s.RFID.locates.it..This.change.to.inventory.management.to.support.Macy’s.omnichannel.strategy.has.enabled.the.retailer.to.reduce.$1.billion.worth.of.inventory.from.its.stores..According.to.Tyco,.fulfilment.sales.are.up.significantly,.and.markdowns.on.items.have.also.been.improved.upon..And.the.result.is.that.Macy’s.now.has.the.confidence.to.fulfil.customer.demand.across.multiple.channels.even.if.only.a.single.item.is.left.in.stock.

In.addition.to.sales.lift.and.reduced.rate.of.markdowns,.this.leveraging.of.single.unit.inventory.means.that.Macy’s.has.also.been.able.to.reduce.inventory.costs.by.lowering.interim.inventory.requirements.by.one-third..The.last.word.goes.to.Nancy.Chisholm,.President,.Tyco.Retail.Solutions.

“Macy’s.is.a.great.example.of.how.item-level.RFID.bolsters.inventory.optimization.and.opens.up.a.world.of.possibilities.for.omnichannel.fulfillment.success..By.utilizing.our.unique.RFID.Inventory.Visibility.offering,.Macy’s.has.a.complete.view.of.enterprise-wide.inventory.to.satisfy.customer.demand.and.achieve.their.‘buy.anywhere,.fulfill.anywhere’.vision..It.not.only.allows.them.to.enhance.the.overall.customer.experience,.but.also.to.maximize.revenue.opportunities.from.omnichannel.programs.”

About 15% to 20% of inventory is accounted for by the last unit in the store,” says Peter Longo, President of Logistics and Operations at Macy’s. “It’s a massive amount of budget, either marked down or not sold, and it is curable through RFID.

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Walmart Wants to Win the Digital Wallet War with Walmart PayEver.since.the.launch.of.Apple.Pay.in.October.2014,.the.pressure.has.been.on.high.street.merchants.to.adopt.support.for.digital.wallets..Indeed,.it.was.little.under.a.year.later.that.Google’s.answer.to.Apple.Pay.emerged.with.Android.Pay.in.September.2015..Samsung.Pay.also.appeared.in.the.same.year,.thus.completing.the.trio.that.gave.rise.to.the.digital.wallet.wars.that.proliferated.in.2016.

“Digital.wallets.are.quickly.becoming.mainstream,”.said.Leslie.McNamara,.Managing.Director.of.Partner.Management,.Citi Retail Services, in.a.statement.early.last.year..“Tech-savvy.shoppers.are.increasingly.demanding.seamless,.omnichannel.retail.experiences.and.looking.for.solutions.that.deliver.this..There’s.no.question.2016.will.be.a.pivotal.year.as.digital.wallets.gain.more.widespread.acceptance.”

Consumers.are.clearly.becoming.more.comfortable.with.making.in-store.mobile.payments,.with.forecasted.figures.set.only.to.increase.in.the.coming.years..The.question.is,.however,.who’s.winning.the.war?

Apple Pay Repeat Users Drop

Enter Walmart Pay

Apple.Pay.is.the.digital.wallet.that.has.been.in.the.US.market.for.the.longest.time..However,.despite.the.fact.that.the.number.of.people.installing.Apple.Pay.and.using.it.at.least.once.was.the.highest.it’s.ever.been.in.2016,.repeat.usage.has.dropped.significantly.

Stats.released.at.Innovation Project 2016 reveal.that.repeat.usage.of.Apple.Pay.have.been.going.down.since.March.2015..A.survey of Apple Pay users.by.PYMNTS –.in.partnership.with.InfoScout

–.reveal.a.number.of.reasons.for.such.a.slump,.the.top.2.of.which.being.that.people.either.simply.

“forget”.to.use.the.service.(21%),.or.“lacked.certainty.about.whether.or.not.the.store.accepted.the.payment.method”.(16%).

And.there.are.other.factors.at.play,.too.–.not.least.in.the.fact.that.Apple.Pay.now.faces.a.host.of.emerging.competitors..Android.Pay.and.Samsung.Pay.naturally.capture.a.share.of.the.mobile.payments.market.–.but,.perhaps.more.significantly,.are.the.US.retailers.entering.the.arena.with.offers.of.their.own.mobile.payment.services.made.available.exclusively.to.their.customers.

The.first.such.retailer.was.Walmart.with.its.unveiling.of.Walmart Pay.in.December.2015..Initially.available.in.only.a.small.number.of.stores.in.Northwest.Arkansas,.a.nationwide.rollout.of.Walmart.Pay.to.all.4,600.stores.was.completed.in.July.2016.

The.potential.for.a.store.like.Walmart.to.succeed.in.the.digital.wallet.space.in.areas.where.the.likes.of.Apple.Pay.et.al.are.proving.to.struggle.is.huge..For.starters,.140.million.Americans.shop.at.Walmart.each.week,.and.the.Walmart.app.–.where.the.Walmart.Pay.feature.resides.–.is.already.used.by.22.million.customers.as.they.shop.each.month..There.is.no.concern.amongst.these.individuals.about.“forgetting”.to.use.the.application,.nor.indeed.about.“lacking.any.certainty”.that.the.store.accepts.the.payment.method.

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Figures released by Walmart confirm:.Payments.made.through.the.Walmart.app.jumped.45%.following.the.rollout.(not.a.huge.surprise,.granted,.considering.the.additional.opportunity.presented.to.consumers),.with.88%.of.the.transactions.coming.from.repeat.users..The.application.received.great.reviews,.too,.with.82%.of.users.saying.they.would.recommend.Walmart.Pay,.and.75%.awarding.five.stars.in.app.stores.

“There.is.something.very.powerful.about.the.ease.and.simplicity.of.Walmart.Pay,” said Daniel Eckert,.senior.vice.president,.services,.Walmart.U.S..

“What’s.even.more.powerful.though,.is.what.this.means.for.our.customers..We.want.to.make.every.day.easier.for.busy.families..We’re.connecting.all.the.parts.of.Walmart.into.one.seamless.shopping.experience.with.great.stores,.easy.pickup,.fast.delivery,.frictionless.checkout.and.apps.and.websites.that.are.simple.to.use.”

Added Value with Additional In-app Features

The.fact.that.Walmart.Pay.nests.within.the.Walmart.app.provides.further.assurances.that.customers.will.be.prompted.to.use.the.service..The.app.brims.with.additional.convenience-oriented.features,.including.the.ability.to.refill.prescriptions.at.the.Walmart.pharmacy,.save.wish.lists,.store.shopping.lists.and.organize.online.orders.

When.shoppers.are.in.a.Walmart.store,.however,.the.pay.button.appears.in.the.app.–.available,.it.must.be.noted,.for.both.Android.and.iOS..This.is.made.possible.through.the.fact.that.all.Walmart.stores.are.geofenced.–.meaning.that.the.app.“knows”.when.a.customer.is.in.store.and.automatically.switches.on.the.in-store.mode,.which.enables.mobile.payment.

“We.are.making.mobile.payments.a.reality.for.so.many.customers.because.it’s.not.dependent.on..a.certain.payment.method.or.a.certain.device,”..a.spokeswoman.for.Walmart.told.Mobile Strategies 360.

In.addition,.the.Walmart.app.automatically.prompts.each.shopper.to.submit.their.digital.receipts.to.Savings Catcher –.another.Walmart.tool.that.scans.competitors’.prices.and.guarantees.shoppers.a.refund.(on.a.Walmart.gift.card).equal.to.the.difference.if.a.competitor.is.offering.items.at.a.lower.cost.

With.the.mobile.payments.landscape.becoming.increasingly.fragmented,.and.with.Apple.Pay.et.al.still.struggling.to.truly.take.off,.Walmart.has.crafted.its.own.solution.for.customers.that.it.seems.people.are.actually.willing.to.use..As.ever,.convenience.is.key,.and.with.an.app.that.already.provides.practical.functionality.in.abundance.to.22.million.customers,.much.of.the.onboarding.battle.has.already.been.won..The.last.word.goes.to.Eckert:

“Walmart.Pay.is.just.the.beginning..We’re.building.deeper.relationships.with.our.customers.across.our.ecosystem.and.are.looking.forward.to.delivering.new.tools.like.Walmart.Pay.that.allow.them.to.use.the.Walmart.App.as.their.remote.control.for.a.faster,.more.convenient.shopping.experience.”

There is something very powerful about the ease and simplicity of Walmart Pay. What’s even more powerful though, is what this means for our customers. We want to make every day easier for busy families.

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RETAIL..REIMAGINED.

June 26 – 28, 2017 • Seattle, WA

The Event for In-Store Experience Innovators

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CONFIRMED SPEAKERS INCLUDE:

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Scott Emmons, Head.of.the.Innovation.Lab,.Neiman Marcus

Kurt Rachdorf, Senior.Director.Brand.Retail.Operations,.LEGO Brand Retail

Lindsay Angelo, Strategist,.Lululemon

Randy Peitsch, SVP,.Operations,.PGA Superstore

Angela Gearhart, Senior.Director,.Retail.Experience.and.Design,.Sleep Number

Ryan St. Mary, Director.of.Stores,.GANT Global

Andrea Farris, VP,.Director,.Retail.Systems,.Walgreens

Leslie Grandy,.Senior.Director,.Mobile Apps, Digital Media & Advertising, Best Buy

Jennifer O’Beirne, Director,.Business.Services.Marketing,.Staples

Cedric Clark,.VP,.Store.Operations,.PetSmart Inc.

Sarah Furnari, VP,.Retail.Experience,.BEHR

Brian Hack,.Design.Innovation.Manager,.Design.&.Construction.Services,.Dunkin' Brands

Joe Pascarelli, Sr..Manager.of.Global.Design.and.Construction.Innovation,.Dunkin' Brands

Ainslie Rinfret, Operations.Manager.-.Strategic.Initiatives.&.Pilots, Lululemon

Patricia Kilburn, Director.Store.Operations,.Camuto Group

Tara Maffeo, Director,.Store.Innovation,.Gymboree

350 + CMO’s, VP/Heads of:

Retail/Stores

Customer Experience

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Omni-Channel Transofrmation

In-Store Technology

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Innovation