Great As the new year begins, we present our top 20 most interesting

and exciting innovations of 2016 to ensure that you know what

innovations in they were, and what to expect in 2017 and beyond.

2016 Toby Pickard

Senior Analyst – Innovation
and trends
Toby.Pickard@igd.com
Holly Browne
Retail Insight Executive –
Online and digital
Holly.Browne@igd.com

Throughout 2016, we produced an

„Innovation of the Week‟ slide that
showcased interesting developments and
their implications for the food and grocery
industry from around the world.

Within this report we have selected our

top 20 innovations from 2016. These
innovations show how the industry is
continuing to innovate and evolve to make
shopping more convenient and relevant to
shoppers.

By reviewing the best innovations of 2016,

we expect to identify some key trends that
are likely to continue or emerge during
2017.

© IGD 2017 I Page 1

 Innovation of the week

Walmart opens
„hybrid‟ Seiyu
store

Hybrid „online and offline‟ store
About the innovation online inventories on the second floor,
whilst also being able to select some
Walmart opened a new hybrid Seiyu items – such as produce and meat –
store in Tokyo, Japan. It is designed to from the physical store.
address the demands of omnichannel
shopping. This is Walmart‟s first-ever Implications
hybrid Seiyu store. The format was
With Tokyo having a high population
specifically designed to satisfy the
density along with a growing demand
digital and physical shopping needs of
for online grocery shopping, this is a
Japanese customers.
smart response to addressing
How it works shoppers growing desire to save time.
The store is a mix of a traditional This is another example of Walmart‟s
convenience grocery store on the first commitment to developing new and
floor, and an online grocery warehouse better ways to meet the changing
(dark store) on the second floor. needs of customers.
The store is uniquely positioned to
cater to the masses. By having
dedicated inventories for e-commerce
they can meet more online orders,
even for a store with a small footprint.

In addition, it maximises inventory

turnovers as the store can pick from

© IGD 2017 Source: IGD Research, Walmart @TobyPickard_IGD I Page 2

 Innovation of the week

Coop Italia has

unveiled its
„Supermarket of
the Future‟
Store of the future About the innovation The Coop Italia also worked with
Accenture to implement technology
Italy‟s largest supermarket chain Coop around the store.
Italia unveiled its „supermarket of the
future‟ which offers an innovative and Implications
personalised shopping experience.
Coop Italia‟s vision of the store of the
future merges the physical and digital
The flagship store is located within the
shopping worlds to recreate an
Bicocca University campus in Milan,
atmosphere of local open-air markets,
and is based on the showcased
combined with innovative digital
concept at Milan Expo in 2015.
solutions that provide useful product
How it works information, whilst improving store
navigation.
Products are exhibited in the
supermarket on large interactive tables As the online channel gains market
where a movement of the hand shows share it will become even more
augmented information about the important and challenging for physical
product on an overhead monitor. stores to remain relevant and engaging
to entice shoppers to visit.
Shoppers can find out about each
product‟s origins, nutritional
information, sustainability credential
and other relevant products and
promotions. This capability is powered
by Microsoft Kinect sensors

© IGD 2017 Source: IGD Research Imagery: IGD Milan EXPO 2015 @TobyPickard_IGD I Page 3
 Innovation of the week

Scan and go:

self-checkout
via smartphone

Selfycart‟s new app
About the innovation
Selfycart launched a self-checkout app
for Rainbow Grocery, a San Francisco
based cooperative grocery store.
Selfycart is focusing on offering this
system to independent grocers like
Rainbow Grocery and Zanattos, two of
its current customers.
How it works
Shoppers can walk into the store and
use the Selfycart app to scan the items
they want, pay for them through their
smartphone and then leave the store
without needing to wait in a line at a
checkout or interact with anyone, if
they don‟t want to.
Before leaving the store, an associate
can check the shopper‟s QR code to
confirm that they have paid.
Selfycart‟s business model requires
companies to pay an annual
subscription of $19,800, paid in
monthly payments, to use its platform
and access its analytics dashboard.
Shoppers pay 2% per transaction, but
Selfycart says it will remove the fee if it
reduces uptake of the app.
Implications
Industry is continually looking to make
shopping in-store as quick and
convenient as possible, and
smartphones are playing a critical role
in enabling this.
Waitrose claimed to be the UK‟s first
supermarket to roll out a „scan as you
shop‟ mobile app, however you still
need to pay at the till to complete your
shop.

© IGD 2017 Source: IGD Research, Selfycart @TobyPickard_IGD I Page 4

 Innovation of the week

Unmanned
shop

In-store efficiency and About the innovation Implications

convenience A new concept for a store without any
staff was tested in Sweden. The
concept is called Näraffär, and it is
located in Viken.
How it works
The store will never close and will be
accessible through a smartphone ID
app, which opens the store doors to
registered customers. The app also
functions as a scanner to approve
every purchase, and the shopper then
gets invoiced.
Improving in-store efficiencies and
creating convenient shopping
solutions, such as a store that is
always open, will be beneficial to
shoppers.
Technology is helping create new and
dynamic ways of shopping physical
stores, from LCD cooler screens to
tunnel checkout scanners.

Those who are interested in using the

services will have to become
members. The only requirement for
joining is to provide a credit report.
Initially the range of products will be
limited, but customers will have the
power to influence product variety.

© IGD 2017 Source: IGD Research, Naraffar Imagery: Sydsvenskan @TobyPickard_IGD I Page 5
 Innovation of the week

Amazon opens
digitally
enabled food
store
„Just Walk Out‟ About the innovation cart. This enables shoppers to walk
straight out of the store. Their Amazon
„Amazon Go‟ is a new digitally enabled account will then be charged, and they
convenience store, which is will be sent a receipt.
approximately 1,800 sq ft in size.
Amazon claims to have created the The Amazon Go store is currently only
world‟s most advanced shopping open to Amazon employees, for a
technology within the store, allowing testing period, but will be open to the
shoppers to have a „Just Walk Out‟ public in early 2017.
shopping‟ experience.
Implications
How it works Amazon‟s new food store highlights its
The store is located at 2131, 7th Avenue, Seattle, WA, The checkout-free shopping ambitions for the food and grocery
on the corner of 7th Avenue and Blanchard Street experience is made possible by the market. Utilising its technological
same types of technologies used in capabilities will make it an appealing
self-driving cars: computer vision, proposition for shoppers that are
sensor fusion, and deep learning. All looking to shop as quickly and
the shopper needs is an Amazon conveniently as possible.
account, a supported smartphone, and
the free Amazon Go app.
The „Just Walk Out‟ technology
automatically detects when products
are taken from or returned to shelves
and keeps track of them in a virtual

© IGD 2017 Source: IGD Research, Amazon.com, Google @TobyPickard_IGD I Page 6

 Innovation of the week

First in-store
farming unit in
the Netherlands

Europe‟s „most sustainable About the innovation
store‟ Albert Heijn reopened its recently
renovated XL supermarket in
Purmerend, which it claims has the first
in-store farming unit in the
Netherlands. The store is also reported
to be the most sustainable
supermarket in Europe.
How it works
According to reports, one key
innovation within the store is its focus
on provenance, freshness and
interactivity with the shopper, with a
'choose it yourself' shopping
experience. Customers can choose
between 12 different fresh herbs to
„harvest‟ from growing beds within the
store.
The store itself is more than 100%
CO2 neutral, and supplies nearby
shops with surplus energy. The interior
of the store is made from recycled
material, and uses energy saving LED
lights. Solar panels on the store's roof
are used to power E-Car-charging
stations.
Implications
The cultivation method of the herbs
means that customers can buy the
freshest produce possible. It also
creates in-store curiosity and interest
for shoppers whilst reassuring them
about product provenance.
It also allows Albert Heijn to reduce its
carbon footprint by cutting out the need
for transportation and the use of
pesticides, which plays into the store‟s
overall aim of being the most
sustainable supermarket in Europe.

© IGD 2017 Source: IGD Research, Albert Heijn @TobyPickard_IGD I Page 7

 Innovation of the week

Maxima trails
new technology
to track
freshness
„Electronic nose‟ About the innovation meat, poultry and fish sections of a
store in Vilnius, following shopper
Baltic retailer Maxima tested a new research, which found that 84% of
„Electronic Nose‟ tool that allows shoppers link supermarket quality with
shoppers to check the quality and fresh food.
freshness of products in Lithuania.
Implications
Commenting on the development,
Managing Director Zydrunas Valka We have seen a lot of technological
said, 'Earlier this year, we opened its advances with personal handheld
own research laboratory, and now we devices that can measure freshness
have taken it a step further - customers and nutritional composition of
are introducing a mobile tool that will products.
allow themselves to make sure short
As these devices become mainstream
duration food freshness and quality. At
industry will come under greater
the same time it is a way of self-control
scrutiny.
and to ourselves, which will allow to
achieve maximum quality'.
How it works
The gadget was developed in
partnership with Ars Lab and can track
freshness based on the presence of
natural fermentation gas.
It is currently being trialled in the fresh

© IGD 2017 Source: IGD Research, esmmagazine @TobyPickard_IGD I Page 8

 Innovation of the week

Target is using
robots to stock
check instore

In-store robotics About the innovation transmitted to a server, where it is

analysed, and alerts can be sent to
Target tested a robot in-store that store staff.
tracks inventory on store shelves. The
retailer conducted a one-week trial at Implications
one of its department stores in
A robot that can check that shelves are
downtown San Francisco.
correctly stocked could be extremely
How it works important to retailers as it removes the
need for staff to conduct stock check
The robot, called Tally, which is which is very time consuming and
designed by Simbe Robotics to should help ensure that shoppers can
automatically roam stores, checking get the products they want.
whether a shelf needs restocking;
whether a product has been misplaced
or poorly arranged; and whether the
prices shown are correct.
The robot consists of a wheeled
platform with four cameras that scan
the shelves on either side from the
floor up to a height of eight feet. It uses
a map of the store to navigate, and the
shelf layout is used to compare the
actual shelves to the ideal plan. The
data collected by the robot is

© IGD 2017 Source: IGD Research, Fortune, Mike Yawney Twitter @TobyPickard_IGD I Page 9
 Innovation of the week

„Last mile‟
remote locker
solution in
Estonia
Remote lockers About the innovation All PackRobots have climate control,
and the temperature will be kept
In Estonia, Cleveron launched robotic between +5 and +20 °C all year round.
storage units, which aim to rival
Amazon Lockers. Implications
How it works Creating „last mile‟ solutions like this,
that are convenient and easy to use for
Ten „PackRobots‟ have been placed in shoppers, will help drive more people
Viljandi and Tartu in Estonia, and will to the online channel, and create a
be available to CollectNet customers. more profitable model for retailers as
The CollectNet network is open to all they don‟t need to drive to multiple
e-commerce, retail and logistics locations at specific times, like they do
companies. for home delivery.
PackRobots are located so end
consumers can receive their orders 24
hours a day (7 days a week).
PackRobots will be located next to
supermarkets and shopping centres.
To use the service, customers select
the PackRobot they want to collect
from when ordering. They will then
receive a notification from CollectNet
via email and text message when the
parcel is ready to be picked up.

© IGD 2017 Source: IGD Research, Cleveron Ltd. @TobyPickard_IGD I Page 10

 Innovation of the week

First vending
machine cafe

Vending machine in Singapore About the innovation Implications

Singapore's first vending machine café Besides offering convenience to
opened in Sengkang West on Sunday shoppers, the project also aims to help
(Aug 7th), signalling the start of what the manpower-lean food and drink
could become a more familiar offer to sector in Singapore to leverage
meet shoppers‟ ever growing demand technology. According to the café,
for convenience. there is no need for staff to be onsite,
as food is prepared in a central kitchen
How it works before being packaged and chilled.
Anchorvale's VendCafe, operated by We have seen a number of vending
JR Vending, is a collection of six solutions that have originated in Asian
vending machines, along with stand-up markets starting to be implemented
The vending machines serve hot across Europe.
meals, sandwiches, and freshly-
squeezed juice all day. The meals are
priced between S$3.50 and S$5, and
the menu rotates between a roster of
30 meals.
It has been reported that there are
plans to roll out more VendCafes in the
coming year, which may involve other
operators

© IGD 2017 Source: IGD Research @TobyPickard_IGD I Page 11

 Innovation of the week

Alibaba to
open VR store
with digital
assistant
Virtual reality shopping About the innovation product works or how it‟s worn.
The world‟s largest e-commerce Implications
marketplace Alibaba Group plans to
VR and Augmented Reality (AR), the
open a virtual reality (VR)
technology that Pokémon Go uses, are
demonstration shop.
hot topics at the moment in the
It aims to rollout the technology across technology industry.
its entire platform.
Increasingly we are seeing retailers,
How it works especially e-commerce players such
Alibaba‟s 400 million customers will as Alibaba and eBay, starting to use
soon be able to buy products from these technologies to enhance online
stores all over the world, by wearing a shopping experiences.
VR headset to simulate a physical
store shopping experience. Alibaba Alibaba‟s heavy investment in VR and
has said that it is selling over 300,000 its active role in driving the VR
units of VR gears every month. ecosystem is expected to lead to a
broad rollout of the service in the near
The virtual store has a digital store future.
assistant that greets shoppers and
recommends new products based on
their past shopping history and
customer preference. Shoppers can
rotate products by moving a controller
and ask a model to show how a

© IGD 2017 Source: IGD Research, Alizila, eBay @TobyPickard_IGD I Page 12

 Innovation of the week

Lidl UK
launches new
twitter price
drop campaign
Social pricing About the innovation trip.
Lidl launched a new and innovative Implications
price campaign that encouraged
This new campaign shows how Lidl
Twitter users to tweet about Lidl's
aims to stand out in the UK grocery
products in order to lower the price in
market by doing things differently, but
the run up to Christmas.
always with the customer in mind.
How it works Other retailers could learn from this
The „Lidl Social Price Drop‟ (LSPD) will refreshingly different initiative, driving
run from Monday 21st November to excitement over the festive period
Saturday 17th December. During this while promoting products and price
four-week period, a new product will be using simple social media tactics.
announced every Monday on Twitter at
8am and the price drop will close the
following day at 6pm.
Depending on how many tweets the
products get over the 1.5 days, Lidl will
drop the price accordingly on the
Saturday for shoppers to buy in-store.
The price drop will be announced via
social media platforms Twitter and
Facebook on the Wednesday, giving
shoppers time to plan their shopping

© IGD 2017 Source: IGD Research, Lidl @TobyPickard_IGD I Page 13

 Innovation of the week

Food shopping
through
Facebook

Social media shopping
About the innovation
Facebook users can now order food
from restaurants directly from their
Facebook pages in the US.
How it works
Facebook users simply click “Start
Order” on any restaurant‟s Facebook
page that uses Delivery.com or Slice.
The social network has partnered with
Delivery.com, a food-delivery start-up
operating in about 40 US cities, to
provide any restaurant with the ability
to take orders on their Facebook
pages.
Facebook has built a new tool for
displaying menus and ordering
information inside Facebook pages.
Any business that‟s currently signed up
for Delivery.com will see its delivery-
ordering information automatically
added to it Facebook page.
Customers can pay with a credit card
they have on file with Facebook, and
they don‟t need Delivery.com
accounts. Customer service issues that
fall beyond the remit of the restaurant
(payment issues, for example), will still
be handled by Delivery.com.
Implications
Facebook may be looking to imitate the
successes of messaging apps like
China‟s WeChat and Japan‟s Line,
which allow millions of users to order
dinner, watch videos, chat with their
friends, and order goods all through
one digital application.

© IGD 2017 Source: IGD Research, Facebook @TobyPickard_IGD I Page 14

 Innovation of the week

Preselected
automated
purchasing

Smart tech to drive purchases About the innovation Implications

Tesco Labs has collaborated with Helping shoppers with routine missions
IFTTT (IF This Then That). IFTTT is and prompting them to buy products
an online platform for joining together based on their own preferences is a
different online accounts. By joining good way to build loyalty and
accounts the user can set „triggers‟ and increased purchases.
„actions‟. For example, if you change
This innovation is a nice move towards
something in one online account a
the Internet of Things, however, it will
predetermined change will take place
require shoppers to register to use it
on another account.
and this is only likely if shoppers are
How it works made aware of this new tool.
Tesco has created its own channel on
IFTTT with two „triggers‟ and a single
„action‟. Users can now trigger any
other action on IFTTT if the price of a
Tesco product changes or if it goes
below a certain price. On the action
side the user can use any of the
triggers to add a specified item into
their basket. See the image on the left
for examples, i.e. if salmon falls in
price (trigger) add it to my basket
(action).

© IGD 2017 Source: IGD Research, Tesco Labs @TobyPickard_IGD I Page 15

 Innovation of the week

„Robovan‟ –
the future of
last mile
delivery
Automated delivery About the innovation The robots will be loaded with goods in
the „Robovan‟ using a racking system
Starship Technologies, the creators of that enables 400 packages to be
a self-driving delivery robot, has delivered every nine hour shift.
partnered with Mercedes-Benz vans to
develop ‟Robovan‟. It is reported to be Implications
the first transportation system
Starship Technologies has created a
integrating specially-adapted vans with
potential solution to reduce cost in the
autonomous delivery robots to allow
last 2-3 miles with its robots.
efficient delivery of goods in Stuttgart,
Combining the robots with vans helps
Germany.
to bring goods to more local area as
How it works the vans can cover greater distances.
According to Starship Technologies, The convergence of both systems
the semi-autonomous transportation creates an efficient, cost effective and
system will see Mercedes-Benz convenient local delivery method.
Sprinter vans act as ‟motherships‟,
hosting eight delivery robots.
The vans will drive to designated
locations, based on delivery density
and demand. They will then deploy the
robots to enable them to make the
delivery. The robots will then return to
the van.

© IGD 2017 Source: IGD Research, Starship Technology @TobyPickard_IGD I Page 16

 Innovation of the week

Shared shop
and delivery
solution

Anyone delivers About the innovation Implications

As the collaborative economy develops This initiative should allow REMA 1000
and the „last mile‟ becomes a new to reach a wider audience of shoppers
battleground for industry, leading who are looking for increasingly
Scandinavian discounter REMA 1000 convenient delivery solutions. In
has developed an app called VIGO, a addition, paying people to „pick‟ and
shopping and delivery solution in deliver goods helps the retailer achieve
Denmark. its low cost operating model, as this
initiative does not require a significant
How it works level of investment, unlike traditional
The retailer will encourage people to online fulfilment services.
shop on behalf of others and then
deliver the shopping to a destination of
the buyer‟s choice.
Ahead of the launch on October 25th,
the retailer is running a recruitment
competition to encourage people to
become deliverers. By signing up,
people can win a Macbook Pro, an
Apple iPhone 7 or a scooter. Recruits
can typically earn DKK 40 - 70 (€5.37 -
€9.38) per hour depending on how
many products are ordered.

© IGD 2017 Source: IGD Research @TobyPickard_IGD I Page 17

 Innovation of the week

Swedish
companies to
test “in-fridge
delivery”
Home delivery to your fridge About the innovation ICA.
A pilot project from ICA , Sweden‟s Implications
largest grocery chain, aimed to
This initiative does make home
develop an even more convenient way
delivery even more convenient as the
to shop for groceries online. Working
shopper does not have to be at home
with Smart Home start-up Glue, which
to receive the delivery, and does not
produces smart digital locks that can
need to unpack the shopping.
be installed on the front door. This
means shoppers can get their food However, there are likely to be some
delivered into their home and security concerns from shoppers about
unpacked into cupboards , the letting someone into their home when
refrigerator and freezer when they are they are not home.
not at home.
How it works
Using Glue Smart Lock, the door to
the house is opened and closed via a
smartphone.
This enables the driver from the
delivery company PostNord, who in
advance has received the customer‟s
approval and digital key, to enter their
home and unpack the groceries from

© IGD 2017 Source: IGD Research @TobyPickard_IGD I Page 18

 Innovation of the week

7-Eleven claim
first drone
delivery in the
USA
Home delivery by drone About the innovation place over just a few minutes.
7-Eleven partnered with drone start-up Implications
Flirtey for the delivery, which the
Flirtey and 7-Eleven have the freedom
companies said was the first time a
to continue testing autonomous drone
drone has legally delivered a package
technology in the real-world, all while
to a U.S. resident who placed an order
helping familiarise more people with
from a retailer.
the concept of delivery by flying robot.
The order consisted of a chicken
In related news, Amazon has started
sandwich, donuts, hot coffee, Slurpees
testing drone delivery in the UK. It has
and candy, that were packed into a
received permission from the UK
purpose-built container and carried
government to test the technology,
autonomously by a Flirtey drone
which could enable it to make
across two separate deliveries to a
deliveries within 30 minutes.
customer's home.
How it works
The drone flew autonomously from the
7-Eleven store in Reno on July 11 to
the family‟s house using GPS.
The drone flew for one mile then
hovered over the property and slowly
lowered the package into the backyard
using a rope, with the delivery taking

© IGD 2017 Source: IGD Research @TobyPickard_IGD I Page 19

 Innovation of the week

Migros
launches
supermarket
yacht
Floating shop About the innovation Sailors will be able to track the location
of the yacht.
Turkish retailer Migros launched its
„floating full-service store‟, a 40 metre Implications
yacht called „Migros Deniz Market‟
This development is a creative way to
(Migros Sea Market).
better meet the needs of shoppers, as
How it works well as capitalising on passing
seasonal trade from other boats.
Operating over the summer, the yacht
aims to meet the needs of customers In related news, Casino has revealed
in the coastal areas of Fethiye and its launch of 'Casino on Board', a
Göcek between 09:00 and 17:00 and grocery delivery service for people on
the Fethiye harbour between 19:00 boats in the south-east of France.
and 22:00.
The yacht offers a retail space of over
2,000 sq. m and stocks over 500 items,
including fresh produce, meat, bakery
and deli goods, as well as a range of
non-food products. Products will be
priced the same as those in other
Migros stores. The boat will also offer
an ATM service.
Customers with their own boats can
also gain access to the Migros yacht.

© IGD 2017 Source: IGD Research, MigrosTV @TobyPickard_IGD I Page 20

 Innovation of the week

Grocery
shopping
through your
fridge
Connected devices About the innovation when they are not at home, for
example when in a supermarket.
Samsung Electronics Australia
partnered with local retailer Implications
Woolworths to bring the Woolworths
This is not the first connected fridge in
app to Samsung‟s Family Hub
the market. But it is a novel move for a
refrigerator, which enables shoppers to
home appliance manufacturer to work
buy groceries directly from the smart
with a retailer, which makes “shopping
refrigerator.
from your fridge” no longer a concept
How it works but a reality. The wide range of
functionalities it offers, plus the
Through a customised app, users will connectivity it has with mobile apps,
be able to order Woolworths groceries enables it to create easy and engaging
directly from the Family Hub, which shopping and home cooking
shows on a 21.5” LCD touchscreen. experiences.
Shoppers can shop on screen or start
a shopping list on their smartphone
and then display on the fridge‟s screen.
The refrigerator has a built-in door
camera so owners can see the
contents of their fridge from the screen
on the door, and also on their phone.
This is designed to help shoppers
know the contents of their refrigerator

© IGD 2017 Source: IGD Research, John Lewis @TobyPickard_IGD I Page 21

 Implications
What to expect in 2017
Throughout 2016, we tracked and logged
hundreds of innovations, and produced
over 52 „Innovation of the Week‟ slides
that showcased interesting developments
and their implications for the food and
grocery industry from around the world.
Through reviewing the best innovations of
2016, we have identified five key areas
that we expect to continue and become
more relevant for the food and grocery
industry during 2017.
We will be tracking innovations in these
key areas and producing relevant insight
presentations over the coming twelve
months.
© IGD 2017 Source: IGD Research
Physical stores will continue to experiment and
Store of the Future enhance the shopping experience by utilising
technologies that make shopping more
convenient.
Retailers and brands will look to build greater
Smartphones, connections with consumers and shoppers
Social media and through smartphones, social media and emerging
Virtual Reality technologies like Virtual Reality.
Retailers will continue to try and create a truly
Merging of online seamless shopping experience. Major brands are
and offline shopping likely to try and build relationships directly with
consumers through direct-to-consumer selling.
Delivery of goods to consumers will continue to
be a battleground for industry, as companies look
Last mile delivery
to differentiate themselves through extremely
compelling delivery options for consumers.
As more smart devices entre the market in 2017
retailers and brands will look to capitalise on the
Internet of Things opportunities that this offers, one key area of focus
for industry will be „locking in‟ shopper loyalty.
@TobyPickard_IGD I Page 22