NEC collaborates with Cloudpick to launch an unmanned supermarket at its Japan headquarters, accelerating the global potential of smart retail formats

Customer requirements

The history of NEC providing solutions for the retail industry can be traced back to the early 1980s. In an era that marked Japan's initiation of store automation and retail industry innovation, NEC was at the forefront, envisioning innovative retail with electronic ordering terminals, programmable POS devices, and more. Over the years, NEC continued to introduce more sophisticated systems such as payment systems, ATM systems, and customer VIP card systems, aiming to help stores reduce costs and enhance efficiency.

To address the increasingly severe issue of labor shortages in the retail industry, NEC has also been accelerating its exploration of unmanned operations. At the "RetailTech JAPAN" Retail Technology Expo held at the Tokyo International Exhibition Center, NEC showcased a POS settlement demonstration system based on various object recognition technologies. Unlike many current stores relying on manpower and many unmanned convenience stores relying on customer self-scanning, reading individual barcodes, or RFID electronic tags, this system only requires customers to place the items on the checkout counter for simultaneous recognition. This further simplifies the checkout process, not only releasing store labor but also providing customers with a more convenient shopping experience.

In the torrent of time, not moving forward means falling behind. Especially in the rapidly evolving field of technology, only by maintaining an iterative pace can one continuously catch up with the demands of the new era.

Therefore, following the introduction of facial recognition payments and image recognition POS settlement systems in the headquarters convenience store, NEC has set its sights on fully automated contactless payments. By creating an unmanned supermarket—NEC SMART STORE, they are further realizing the vision of unmanned operations. It is understood that NEC not only continues its existing technological advantages with the facial recognition AI engine "NeoFace" but also collaborates with Cloudpick Technology to empower the advancement of the retail format through the latter's AI unmanned retail solution. By setting up cameras and various intelligent devices in the store, the system accurately identifies product information and customer shopping behavior.

Cloudpick Solution

Cloudpick has adopted an AI-driven intelligent solution incorporating cutting-edge technologies such as computer vision, deep learning, and multi-sensor fusion:

• Cloudpick AI Smart Unmanned Store: Utilizing computer vision, machine learning, and multi-sensor fusion, this system precisely recognizes customers' actions of picking up and putting back items, automatically settling payments upon exit. It introduces a novel shopping experience distinct from RFID technology and self-checkout methods.
  

• Cloudpick Store Intelligent Management System: Operators have real-time access to store operations, allowing them to perform tasks like online ordering, price adjustments, setting promotions, and receiving alerts for out-of-stock items from anywhere. This system enables remote store management, providing convenience and efficiency.
  

Result

Currently, this unmanned supermarket serving 110,000 employees attracts a large number of staff daily. Upon entering, employees are authenticated through facial recognition, and the door automatically opens. After selecting items, they can simply walk out, and the payment is automatically deducted from their employee card. The system may also consider introducing diverse payment methods, such as credit cards and various electronic currencies in the future. In such a scenario, even during peak commuting hours or busy work intervals, employees can quickly enter and exit the store to complete their purchases.

Notably, NEC SMART STORE has introduced operational systems for small and medium-sized retailers, including revenue management and customer information management. Collaborating with Cloudpick Technology, they have created a data analytics engine. For supermarkets, this enables precise understanding of customer preferences based on digital solutions, identifying frequently repurchased items and moments of hesitation during product selection.

While facing unknown high-tech solutions may cause apprehension for many, this is not the case with NEC SMART STORE. In essence, NEC and Cloudpick take on the most complex technological implementation tasks, allowing customers to enjoy the convenience and peace of mind of this format. Especially in the unique circumstances of the COVID-19 pandemic, this model, achieving 100% contactless and sensorless offline shopping, significantly reduces the risk of virus transmission. Simultaneously, cashiers are liberated from daily mechanical and low-value repetitive cashier work, enabling them to fulfill more creative roles, such as welcoming and assisting consumers.

With such automated settlement systems, offline retail stores no longer require manual cashiering or in-store patrols, directly eliminating the increasingly high labor costs and effortlessly achieving 24/7 operation. This is particularly advantageous for countries like Japan, South Korea, and the United States, where there is significant demand for convenience stores during the night. In the context of the global spread of the pandemic, the growing desire for "contactless" services is driving the resurgence of intelligent retail formats like unmanned supermarkets. It is accelerating the global adoption of unmanned modes in the retail industry. As the public gradually accepts and becomes accustomed to this shopping form, it may create an irreversible new trend, transitioning from the "accidental occurrence during the pandemic" to the "normalized future lifestyle." Simultaneously, this digitized and intelligent solution empowers efficient store management.

Store managers only need to register product information when opening the store or restocking, allowing real-time understanding of shelf sales. The consumer behavior data accumulated during operations can inform the optimization of product configurations, serving as an excellent reference to guide store operations.

Customer Testimonial

Mr. Hidetree Kawai, Head of the First Retail Solutions Division at NEC Group, explicitly stated, "The settlement system has matured and reached the level of commercial application. In the future, we also hope to leverage this system to address more pain points in the retail industry, such as personalized shopping and digital operations."

With the alleviation of the pandemic, NEC plans to expand the implementation of this system to more stores, with the capital city as the center, achieving a larger-scale deployment. Mr. Takashi Niino, Chairman, President, and CEO of NEC, expressed his hope to promote this new retail format throughout Japan and many more countries globally after experiencing the unmanned supermarket.