Introducing the Cloudpick AI unmanned retail solution caters to both consumer and operator experiences

Customer requirements

With declining birth rates and the intensification of aging, the current labor shortage has become a major societal issue in Japan. The resulting rise in labor costs poses challenges for labor-intensive industries such as retail and services. There is an urgent need to use digital means to reduce dependence on human labor and enhance operational efficiency. Additionally, the ongoing impact of the COVID-19 pandemic has shaped new consumer habits and preferences, with a stronger demand for non-face-to-face and contactless shopping experiences. The focus has shifted towards "safe and reliable" alongside "convenient and fast," making it a key concern.

Japan's NTT Data and Daiei (a supermarket chain under the Aeon Group) aim to introduce the Cloudpick AI system to transform their business models, addressing the challenges mentioned above and achieving a dual improvement in consumer and operator satisfaction.

Cloudpick Solution

They have adopted the Cloudpick AI Smart Unmanned Store solution, developed using cutting-edge technologies such as AI computer vision, deep learning, and multi-sensor fusion:

• Cloudpick AI Smart Unmanned Store: Utilizes computer vision, machine learning, and multi-sensor fusion technology. Accurately identifies customer actions (picking up and putting back items) and product information. Enables automatic settlement when customers exit, providing a novel shopping experience distinct from RFID technology and self-checkout.

• Cloudpick Store Smart Management System: Customizes user apps, store manager apps, and PC-based merchant platforms based on local usage habits. Allows operators to check store operations anytime, anywhere. Enables online activity settings, promotion information publication, and receiving out-of-stock alerts. Facilitates remote store management.

Result

On September 2, 2021, the unmanned store "CATCH&GO" located in the cafeteria of the NTT Data headquarters building in the Koto ward of Tokyo, Japan, officially opened. This unmanned store, which operates from 9 a.m. to 8 p.m., does not require manual cashiering or self-checkout; customers can automatically pay upon exiting. It is reported to be the largest unmanned store in Japan, offering nearly 600 products including bento boxes, beverages, desserts, and frozen foods to meet the daily consumption needs of the employees at the headquarters.

Automated unmanned stores for the convenience of employees:

Contactless Payment: Fearless of peak hours, unaffected by the pandemic.

By installing AI cameras on the ceiling inside the store, the Cloudpick AI system can accurately recognize shopping behaviors and product information. Items taken from the shelves are automatically added to the associated virtual shopping cart, and returning items removes them from the cart, allowing real-time tracking of purchases. Employees at the headquarters open the user app, link their credit card, scan the code to enter the store, make selections, and simply walk out through the gate, with the corresponding amount deducted automatically. Even during peak dining hours, this method ensures a quick exit. During the pandemic, it also effectively avoids the risk of virus transmission due to crowd gatherings and contact, making shopping both convenient and secure.

It's worth mentioning that colleagues can use a single account for consumption, meeting the need for colleagues to "treat" each other. After the host scans the code and opens the gate, the invited guests can enter together, and all their actions are recorded under the host's ID. Upon exiting the gate, the payment is unified and completed through the account associated with this ID, greatly ensuring the experience of group shopping.

"Second Cafeteria": More products, longer operating hours.

In addition to convenience, as a supplement to the cafeteria scene, CATCH&GO provides more dining options for employees throughout the day. Carefully designed bento boxes, sandwiches, salads, and unique products are offered to meet different taste preferences.

The NTT Data headquarters building has 32 floors, and CATCH&GO is located on the 22nd floor. During non-operating hours of the cafeteria, employees on higher floors don't have to go to the first floor's convenience store; they can visit CATCH&GO for energy replenishment. The store operates for 11 hours, ensuring a supply of meals from breakfast to overtime, guarding the employees' stomachs as the second cafeteria.

Customized hardware and software for convenient operations:

Customized Hardware: Innovating digital capabilities, reducing labor costs.

At the hardware level, Cloudpick Technology has customized a series of intelligent IoT devices for store needs, including shelves, air curtain cabinets, and bagging machines. Thanks to the interconnection of these devices, stores can achieve automated control, and operators can remotely access sales information at any time, even with unmanned operation.

For example, when a shelf is out of stock, the AI system immediately notifies the operator through the app or SMS, specifying which shelf, which section, and which product is out of stock. This allows for efficient restocking at lower labor costs, avoiding a decline in sales due to vacant shelves.

Customized Software: Focusing on local needs to enhance operational efficiency.

On the software side, Cloudpick Technology has adjusted user apps, store manager apps, and PC-based merchant platforms based on customer usage habits and requirements. The interfaces are more streamlined, and the backend logic is adapted to the standard practices of Japanese retailers, providing a more user-friendly experience.

For instance, stores can publish daily fresh food promotions and new product information online, eliminating the need for in-person promotions offline. This stimulates employees at the headquarters to shop in-store more efficiently, increases sales conversion, reduces food waste, and aligns with the concept of sustainable corporate development.

Customer Testimonial

The relevant person stated, "Daiei has seamlessly integrated with the backend system of CATCH&GO. There is no need for manual export of sales data; it can be directly generated within our internal system. This endeavor is a preparation for future implementations of more unmanned stores. In the future, Daiei plans to extend this unmanned store model to larger-scale store formats that can accommodate approximately 2000 SKUs. This aims to provide consumers in various scenarios with an unprecedented and novel shopping experience."