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INDUSTRY INSIGHT FROM PAGE 27 of driver-error related road fatalities.10 For consumers, instead of having their cars parked most of the time as they do now, autonomous cars could be running errands, picking up their groceries and dropping off clothes for dry cleaning. This will lead to retail staff engaging with consumers’ cars as an extension of themselves, which should ring alarm bells for brick-and-mortar stores. In this future it’s possible for consumers to spend less, or zero, time in physical stores, reiterating the importance of curated and personalised in-store experiences to lure consumers in.11 Self-driving trucks are on the forefront of trials internationally, and while they are only five per cent of all Australian vehicles, they represent more than 75 per cent of total freight transported.12 Relatively simple long-haul drives, logistical driver issues, driver shortages, and strict OH&S limitations on driving schedules make a perfect target for automation.13 With fully self-driving trucks, in combination with an automated DC that runs 24/7, it unlocks the capability for ‘always on’ constant fulfilment and could effectively improve productivity and output by two to three times, while better serving their customers’ needs. There’s a lot of debate regarding the safest and most efficient and realistic ways of adopting new technologies as automation progresses. In the US they’re testing self-driving trucks using an autopilot system like airplanes. A human drives the difficult metro part (similar to landing and take-off) and the highway long-haul is automated.14 The Netherlands is a global leader because of its collaboration with neighbouring countries, new laws that encourage adoption, and taking an active role in safety and legal issues. Currently they’re testing truck platooning, which involves grouped trucks driving closely together, with wireless communication allowing all vehicles to act simultaneously. Led by a single driver commanding the whole convoy, the trucks travel within metres of each other.15 This also reduces aerodynamic drag that could provide fuel savings of up to 17 per cent when travelling at a 4m distance.16 Government policy, legislation and infrastructure will make or break the development and adoption of autonomous vehicles in Australia. Currently, Austroads’ Future Vehicles Figure 1: Trucks operating manually (blue) and the new platoon system (red)17 28 RETAIL WORLD AUG, 2020 Figure 2. Automation analysis job change by 2030 across sectors22 & Technology Program is supporting 29 trials across the country to deliver an improved road transport network. These vary from driver monitoring and infrastructure readiness testing to Level 4 autonomous passenger buses and heavy-vehicle platooning.18 Store-level automation Increasing operating costs, online disruptors and industry-wide margin pressures have pushed retailers to exhaust their traditional cost-reduction levers. A hypercompetitive market with informed consumers leaves the retailer unable to pass on these costs and makes automation a requirement, not a choice.19 It also drives sales growth through greater personalisation, more convenience and a better customer experience. Studies identify retail to be most impacted by automation in terms of job change, however producing a net positive of 150,000 jobs by 2030. Most job growth will come from customer service, sales, and training occupations, while job losses are likely to come from production occupations such as operating machinery.20 Similarly, the introduction of bank ATMs meant branches operated with less staff, and banks reinvested the cost savings to open more branches with new employment. It changed the dynamics between the retailer and the customer from a transactional relationship to a long- term financial partnership, spurring new services and higher-margin banking.21 With the scalable technology available today, a typical grocery store could be operated with up to 55-65 per cent fewer labour hours and offer greater returns than historical hurdle rates for adoption. A study suggests this points to automation’s bottleneck being internal to companies, particularly a lack of skills and capability, and rollover annual budgeting mostly replicating previous year’s spending.23 Many automation technologies are being tested around the world and applied to retail. However, there are key areas that are fast growing: Electronic shelf labels Live shelf labels can display prices, promotional items, and more – all managed from a centralised source.24 This opens the opportunity for dynamic pricing based on market demands, such as perishable food depending on the time of day, which captures additional revenue pockets, consumers get better value and it reduces waste.25 This is standard practice to online