Here’s How Tesco and Trigo Are Taking on Amazon
It’s no exaggeration to state that ecommerce giant Amazon has been making out like a bandit during the COVID-19 crisis.
As people stuck at home became desperate to find distractions from the stress of the pandemic and the boredom of lockdowns, they increasingly turned to Amazon to find products which would achieve just that. Thanks largely to this success, Amazon now looks set to overtake supermarket chain Tesco as the UK’s biggest retailer – a position Tesco had held for a significant amount of time – over the next four years.
However, a massive brand such as Tesco isn’t likely to take this challenge lying down and has been taking aim at one of Amazon’s more innovative brands – Amazon’s innovative checkout free digital convenience store brand, Amazon Go.
Tesco
For those not aware, Amazon Go is a range of small convenience stores where customers serve themselves. On entry, the Amazon app automatically fires up and detects when items are removed from the shelves and placed in the shopper’s bag. When the shopper leaves the store with their items, the app automatically checks out and charges the customer’s Amazon account for the products.
An innovative blend of ecommerce and brick-and-mortar retail, Amazon Go has proved popular in the US and has seen rapid expansion across the country and, more recently, into the UK.
To meet the challenge to its market dominance presented by Amazon, Tesco has decided to throw its hat into the ring with its own range of frictionless convenience stores. To achieve this the supermarket brand has partnered with frictionless shopping technology disruptor, and Tesco investment partner, Trigo.
GetGo
The result of this partnership is a brand-new frictionless store which has recently opened in London. Designed to act as a proof of concept and trial opportunity for Trigo’s technology, the frictionless Tesco will hopefully represent the vanguard store for a new chain of these types of retail locations.
"We’re excited to bring this new technology to customers in London," said Chief Technology Officer at Tesco, Guus Dekkers in a press release. "This new proposition will save customers time, removing any friction from the checkout and offering even more convenience for shoppers. Working in partnership with Trigo, we have combined the range, quality and value of Tesco products with the latest in-store innovation, and we can’t wait to see how customers respond."
The technology which makes the stores possible works in much the same way as the Amazon Go experience. Customers open the Tesco app when they enter the store and choose the GetGo – the name Tesco is giving to its frictionless shopping experience and the technology which makes it possible – option. They can then peruse the store, pick out the items they need, and leave the store, at which point the card they have registered with the app will automatically be debited for the correct amount.
Cameras installed in the ceilings of the stores communicate with the Tesco app and make it possible to know which items have been selected and can even tell when a product has been removed and then put back on the shelf if the customer changes their mind about purchasing it.
On checkout the app will also register the purchase with the customer’s Tesco Clubcard – Tesco’s long standing loyalty points collecting scheme – and update the account with the necessary points. It’s unclear at this stage however, whether customers will be able to select an option which allows them to redeem their existing Clubcard points against their purchases in the Tesco GetGo stores. Assuming this functionality is not yet available, we would expect this to be a feature Tesco is working to bring to the GetGo experience.
"Located in High Holborn in central London, the Tesco Express store is 225 square meters, and outfitted with cameras on the ceilings, will allow customers to walk in, pick their desired items, and walk out without stopping at the checkout.," continues the press release. "Payments and receipts are settled digitally. This will be the first time anyone other than Amazon is rolling out frictionless checkout grocery stores in the world and comes as the US giant pursues its grocery strategy globally, which also includes Just Walk Out technology."
Final Thoughts
When Amazon first opened Amazon Go in the US, there was some discussion regarding whether frictionless shopping would prove to be a fad or not. However, with the rapid expansion of Amazon’s offering and now Tesco entering the frictionless convenience store arena, it seems that question has been answered.
Omnichannel experiences such as frictionless shopping are certain to part of the conversation at eTail Europe 2022, taking place in April at the Queen Elizabeth II Conference Centre, London, UK.
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