London-based Kavanagh’s Budgens in Belsize Park has become the first ‘Vusion 360 store’, combining electronic shelf labels (ESLs) and cloud platform technology from SES-imagotag, to achieve huge time savings, greater efficiencies, higher turnover and an improved shopper experience.
The IoT (Internet of Things)-powered grocery store enables optimal inventory management, accurate pricing and promotions, and well executed in-store marketing campaigns, boosting in-store shopper connectivity.
The store team can now better utilise at least 10 hours a week that would normally be spent changing paper tickets, while automated shelf monitoring and alerting save staff up to two hours per day not having to do manual gap scans.
Automated price and promotion execution, as well as real-time visibility into what is on shelves, helps drive sales, and prioritises replenishment for high value and margin products.
In addition, the store achieves 2% higher on-shelf availability than seen with manual approaches, and the tech delivers at least 2% higher sales due to better availability, clear customer information and timely executed campaigns.
ESLs also help to reduce waste and improve operating margin through automating daily operations, delivering messages at the shelf, and utilising AI-driven analytics.
By connecting shelves to the Cloud, the system can provide real-time accurate information on product availability and location, allowing for reduced inventory, out-of-stock, and waste, as well as improved on-shelf availability and merchandising compliance.
Meanwhile, consumers can easily access better product, nutritional and traceability information at the shelf and enjoy a frictionless in-store shopping experience.
Kavanagh Group managing director Noel Kavanagh Jnr believes the investment will help the store to tackle future challenges. “The 360 store delivers capabilities that allow us to get timely insights and visibility on shelf stock availability, promotion execution, “proof of play” and more accurate and efficient restocking,” he says.
“By turning the physical store into a digital asset, we can optimise return on investment opportunities on an ongoing, sustainable basis in a volatile and challenging market,” adds Noel, who bought the Belsize Park store from Andrew Thornton in May 2021.
“Our customers can also utilise a store that is agile and efficient, meaning that the store staff have more time to serve and assist them. A 360 store builds customer trust and can demonstrate alignment with their values and local community which is hugely important to us.”
Over the coming weeks, Kavanagh Group and SES-imagotag will be working together to introduce further rich product information at the shelf, such as sustainability ratings, as well as enhanced digital media solutions to attract and convert shoppers to offers in store.
“Retailers are under immense pressure to increase revenue and reduce operational costs, all while generating a better customer experience. In a bid to achieve this, they are operating numerous different processes to ensure their stores run smoothly,” said David Morgan, VP Customer Value Propositions, SES-imagotag.
“While each of these processes undoubtedly bring value to individual teams or departments within a store, many of them aren’t connected enough to deliver their highest value. A store utilising an integrated set of digital solutions that work together becomes a digital asset with the ability to use granular insight to improve performance and service with exceptional agility and efficiency.” Morgan added.
Roy Horgan, SEVP – group strategy, marketing & communications, SES-imagotag, said:
“Synergy is the seamless integration between parts to produce a combined greater than the sum of their separate effects, this is what a Vusion 360 store is about. Store digitalisation is not only good for retailers and brands, it also benefits society through the positive impact on local stores at the heart of the community. By combining the values of our solutions and the insights gathered in stores, Vusion guides retailers toward a better, more sustainable business model. Kavanagh’s of Belsize is a perfect example of that and we are delighted to help them in that journey.”
Kavanagh owns Budgens stores in London and the South of England, as well as a chain of Supervalue stores in Belfast and the North and West of Ireland.
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