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INDUSTRY INSIGHT ADAPTED HIGHLIGHTS FROM THE 2020 JOE BERRY AWARD WINNING ESSAY His essay, ‘How retail automation will change the operational methods of stores’, and presentation won Crossmark Business Development Manager Patricio Servat this year’s prestigious industry award. Here, he discusses key points from the acclaimed work. Considering distribution centres, store-level automation, automated transport, and the influences of online, what areas will benefit most and why? Automation is bigger than retail; it’s transforming the world and is considered the fourth industrial revolution. Since the dawn of time, humans have searched for a better way to do things – faster, easier, cheaper. The desire for productivity has fuelled our imaginations and its inventions. Distribution centres (DCs) are a classic environment of process improvement to drive out costs and prepare to meet future market demands. The sophistication of the DC will enable the full potential of artificial intelligence (AI) to be realised. AI will play a vital role in continuously tweaking store ranges for local demographics, and optimising layouts to maximise sales. Autonomous vehicles are a game changer, particularly as it becomes possible for them to pick up our groceries. It begs the question: how do retailers build a relationship with a shopper’s car? How do retailers entice people to visit stores when they don’t have to? AI will be able to automate your pantry staples by analysing your buying habits, and your self-driving car will collect it when ready. At this point, the grocery shopping dynamic becomes more about the occasion, much like buying an outfit. With technology available today for retail stores, it’s possible to run a typical supermarket with 55 per cent fewer labour hours. Upfront capital costs and lack of competition in what is predominately a duopoly means they don’t need to – yet. The labour savings will need to be reinvested into evolving the in-store experience. Imagine chefs and dietitians helping you put together a great family meal or a special dinner party for your friends. Automation affords you the labour to become more service-led and AI lets you tailor it for each person at scale. The recovery and outlook for the industry At the peak of the pandemic, the winners that did well in the first wave will continue to thrive due to the new shopping and consumption habits. However, the recent outbreak in Victoria has reminded us that we’re not ‘done’ with COVID-19 and in the “Automation affords you the labour to become more service-led and AI lets you tailor it for each person at scale.” 30 RETAIL WORLD AUG, 2020