Page 46 - November 2021

RLI RETAIL INSIGHT

Automation or Bust?

The speed of change in the retail sector is rapid. Driven by
constantly shifting consumer trends and new technology, industry
developments are progressing at an exhilarating pace. However, this
rate of change means forecasting future obstacles and identifying
opportunities has never been more challenging or urgent. Hani
Weiss, CEO of Majid Al Futtaim Retail discusses this topic further
below.

believe we have arrived at a using artificial intelligence, which reduces store workers’ workload,
critical divergence of ideas and crucially, mistakes. Even as I write these words, it feels like I’m
I in the retail sector, whereby describing a utopian future dreamscape.
today’s market leaders will look
back and recognise this moment as a An unpopular opinion
turning point in their fortunes – some I believe the road to automation will not be smooth, straight
for better, many for worse. While or secure because automation projects present unique challenges,
there is a daunting unpredictability making them more challenging to execute than other innovations. I
to the outcomes this tech-forward believe we are operating at a new frontier, one in which the retail
world will create, we are preparing sector lacks the experience necessary to tackle the complexity of
for a future where automation technologically advanced design, engineering and implementation.
dominates the retail landscape. Furthermore, with Moore’s Law governing the acceleration of new
Already, we see consumers technology, many great ideas cannot be identified, tested, developed
increasingly expecting technology to and activated quickly enough by retailers. Bravery to try new ideas is
integrate seamlessly throughout the required. But bravery is more than just being confident. Now more
shopping experience. Yet, the road than ever, the retail sector needs courageous leaders that are willing
to automation will not be smooth, to make bold decisions that, at first, may be considered controversial
straight or secure. It is my hope that, and may even fail upon implementation but that are ultimately
as a retail community, we can share committed to driving the sector forward. There is no other option
ideas and learn from our collective – advancing technology waits for no one.
experience. The stakes are too high
to maintain a status quo approach Action steps
to our collective future. To keep pace with the speed of technological change and the
rapidly shifting consumer demands, we are now spearheading new
Towards exponential growth partnerships and investments aiming to bring greater operational
Moore’s Law observes that computing power doubles roughly efficiency through automation – both in front of the customer and
every two years. The exponential growth of Moore’s Law will in the background. Thanks to our ability to leverage state-of-the-art
continue beyond the use of today’s technology towards remarkable technology by many of the world’s leading tech firms, I am proud
developments that infiltrate every aspect of our lives, including retail. to be at the heart of an industry undergoing such tremendous
Until recently, automated fulfilment centres, autonomous mobile transformation. Automation or bust? I don’t believe this question is an
robots, and automatic checkout-free shopping were only abstract overstatement. We are approaching the most significant and frankly
imaginations for the retail sector. Add in the recent adoption of exciting transformation the retail sector has ever faced. The time
artificial intelligence and blockchain technology, and this scenario is now to make new connections, utilise the skillsets and creativity
resembles a science-fiction novel. If you’re like me, reading about of tech partners specialising in this domain, and listen closely to the
this pace of change will induce equal measures of optimism and demands of your convenience-driven consumers. I hope all retailers
dismay. So, how can the retail sector take advantage of this tidal take this call to action to heart and make a concerted step on this
wave of technological progress, or perhaps more honestly, how can thrilling journey. Automation is central to our future. Let’s take
it avoid being left behind? the lead and proudly advance the retail sector towards this brave
new reality.
Robots in retail
Partnerships with technology companies have resulted in robots
appearing across several major retail companies. Today, Majid Al
Futtaim collaborates with US-based eGrocery innovator Takeoff
Technologies to bring the latest robotised picking technology to
Carrefour, allowing up to 2,000 items to be picked per hour per
automated fulfilment centre. This digitised storage picking technology
automates managing orders, significantly reducing the processing
time by up to 50 per cent. Additionally, Carrefour boasts a fleet of
12 more Tally Robots across its UAE hypermarkets to assist with
stock management and control. Weighing 30kg and reaching a height
of 163cm, Tally robots are equipped with cameras and sensors that
make them capable of scanning up to fifteen thousand products
three times a day. They are used for checking for any stock errors,
such as out of stock items, price mismatches, wrong barcodes, or
stock misplacement. These robots also assist with stock auditing

RETAIL & LEISURE INTERNATIONAL NOVEMBER 2021