Implementing the Cloudpick AI unmanned retail solution to create technology-friendly stores

Customer requirements

When mentioning the "convenience store giant," people often immediately think of Japan, which has nearly 60,000 stores. In comparison, South Korea, which introduced its first convenience store more than ten years later, has now surpassed the milestone of 50,000 stores, with a penetration rate of 1,034 people per store, far exceeding Japan's 2,208 people per store.

However, achieving the title of the "convenience store giant" is not an easy task. With the continuous rise in hourly wages, an aging population, and the impact of the unexpected COVID-19 pandemic, the industry's development faces increasing challenges. The sudden disruption caused by the pandemic has particularly hit offline retail, making it more difficult for convenience store operators to cope. Consequently, there have been instances of shortening operating hours or temporary closures.

In this context, automation technology has gradually become a hotspot pursued by major convenience store brands. Previously, South Korean conglomerates such as Shinsegae Group's emart24 and GS Retail's GS25 collaborated with Cloudpick to introduce unmanned convenience stores with automated checkout. In line with this trend, the well-known South Korean convenience store brand CU also aims to adopt Cloudpick latest AI unmanned retail solution, seeking to further balance efficiency and customer experience.

Cloudpick Solution

They have adopted the Cloudpick AI intelligent unmanned store solution, which is built on cutting-edge technologies such as AI computer vision, deep learning, and multi-sensor fusion:

• Cloudpick AI Smart Unmanned Store: Utilizing computer vision, machine learning, and multi-sensor fusion technologies, this solution accurately recognizes customers' actions of taking and placing items, as well as product information. It enables automatic settlement upon exiting the store, creating a novel shopping experience that distinguishes itself from RFID technology and self-checkout methods.

Result

On January 28, 2021, the Tech Friendly CU located in the Samsung Biologics Building in Songdo, Incheon, South Korea, officially opened its doors. It marks the first "technology-friendly" and "future-oriented" store introduced by CU in South Korea.

Frictionless Payment, Dual Relief

With over 30 AI cameras installed in the store, precise recognition of customers' movement trajectories and actions is achieved as they enter the store. The selected items are automatically added to the associated virtual shopping cart. When exiting the store, there is no need to scan barcodes or display payment codes; customers can simply walk through the gate to complete the settlement. The details of the transaction are then received in the CU Buy-Self APP. Even during peak hours for breakfast and lunch, Samsung Biologics employees can shop freely, maintaining pace with the fast rhythm of daily life and work.

For operators, this system helps alleviate workforce pressures, allowing easy implementation of 24/7 operations. There are also reduced concerns about store theft, as the system can identify items being placed in bags and group shopping behaviors, achieving an accuracy rate of 99.9%. In case of detected abnormal activities, such as attempted theft, immediate alerts are sent to relevant operational staff for prompt action.

Face Recognition for Seamless Entry, Ending Delays

To eliminate the delays caused by scanning QR codes on mobile phones when entering the store, Tech Friendly CU introduces facial recognition. Customers only need to register their facial information during the initial use. From the next shopping session onward, they can enter the store without a mobile phone, opening the gate for normal transactions. This feature caters to spontaneous shopping desires that may arise when passing by the store.

The image shows Lee Jeon-jun, General Manager of BGF Retail, entering the store with face recognition.

On the opening day, Lee Jeon-jun, the General Manager of BGF Retail, the parent company of CU, personally experienced the charm of the "future-oriented store." It's worth noting that even wearing a mask does not cause any disruption; the system can accurately track customers' movement trajectories and actions after entering the store, ensuring a shopping experience identical to pre-pandemic times. This vividly exemplifies the core concept of being "technology-friendly."

Smart Marketing for Enjoyable Discounts

In traditional convenience store settings, employees often inquire during checkout whether customers want to participate in certain discount or additional purchase activities. Therefore, some may be concerned about how to continue enjoying various discounts in the unmanned "future-oriented store."

It is reported that Tech Friendly CU has adopted the self-developed POS system by BGF Retail for the first time. Customers do not need to present a membership card or phone number. The POS system can automatically match membership services, product discounts, and monthly promotions based on the items purchased by customers. Even without store staff, customers can still enjoy discounts and accumulate points, ensuring a seamless customer experience while significantly enhancing the daily operational efficiency of the store.

Customer Testimonial

BGF Retail General Manager Lee Jeong-jun stated, "Positioning the 'future-oriented store' as technology-friendly is not an elusive goal. Currently, this is an advanced solution that can be deployed in specific scenarios at any time. We plan to open 10 more Tech Friendly CU stores this year. In the future, we will continue to innovate, providing cutting-edge operational systems for over 15,000 stores nationwide and creating a new digital shopping experience for customers."