DDi - February/March 2012 - (Page 130)

130 | In-Store Technology Fourth-generation retail Ringing up real sales in real time, virtually By Janet Groeber H omeplus, South Korea’s second-largest retailer, has likely rendered today’s typical pop-up store passé. Pop-up stores with physical merchandise, that is. The South Korean-based Homeplus hypermarket division of U.K.-based Tesco PLC opened what it says is the world’s first virtual store, which it also calls a “fourth-generation retail store.” The experimental store is located within a subway station platform in southern Seoul—but don’t look for a kiosk or in-store shop. The Homeplus Smart Virtual Store went live Aug. 25, 2011, in Seolleung station, a major train hub used by more than 200,000 commuters daily. There, seven pillars and six screen doors were transformed with life-sized images of fully stocked shelves—500 items in all, from food to electronics, office supplies and toiletries. The idea is simple: busy commuters can scan their groceries on their way to work in the morning and, as long as their orders are placed before 1 p.m., their items will be delivered that same evening. So, instead of filling their carts and heading for a checkout lane, customers can scan any item’s QR code with the Homeplus app downloaded on their smart phone. Once scanned, the item goes in the customer’s online shopping basket and the app allows the shopper to schedule delivery. Customers select the time they want items delivered, and the merchandise is sourced from a nearby Homeplus store. Delivery fees range from 92 cents and up, depending on the time of day. Stores make deliveries every two hours, or 10 times a day. Tesco reported 600,000 people had downloaded the app in the first four months. The rapid adoption of smart phones in South Korea—it’s estimated that 20 percent of the Korean population uses smart phones—also made possible the concept of converting wait time to shopping time, since all the technology needed to access and order groceries virtually is literally in the hands of most urban consumers. Potentially more profitable is that the Homeplus app actually allows customers to shop anywhere. At a press conference before the store’s opening, Homeplus CEO Lee Seunghan said, “If you want to order replacements of a bottle of water that you have in your hand, you don’t have to stop by the subway station. You simply scan the bottle’s barcode with the Homeplus app.” The process is the same as with the store—products are delivered later to a home or office. Since the Seolleung store’s launch, the company has already set up an additional virtual store at Seomyeon subway station in Busan, as well as 22 bus stations. So far, says Shana Lee, spokesperson for Homeplus, “The most popular items include bananas and bottled water.” To e-mail this article, visit www.ddionline.com/magazine. | February/March 2012 www.ddionline.com Photo: Courtesy of Tesco PLC http://www.ddionline.com/magazine http://www.ddionline.com

Table of Contents for the Digital Edition of DDi - February/March 2012

DDi - February/March 2012