AI Shopping Trolleys: Imagr Revolutionizes Retail in New Zealand

Imagr's Vision-Based Approach to Automated Supermarket Shopping

In the realm of contactless, automated supermarket shopping, Imagr champions a vision-based system. However, unlike Amazon Go stores, which employ cameras and sensors to monitor shoppers throughout the store, this New Zealand-based firm believes that only product images entering a shopping cart require capture and analysis.

A Novel Technology for Contactless Checkout

This early-stage startup has developed technology that attaches to shopping trolleys. Utilizing cameras, the system identifies and categorizes products as they are placed inside, adding them to a virtual cart. Shoppers can then complete their purchase without any interaction with staff or waiting in queues.

Growth in Contactless Shopping

The contactless shopping sector has experienced gradual growth over the years, but the pandemic significantly accelerated its expansion. A 2020 study by Juniper Research estimates that the value of transactions processed through frictionless checkout technology will reach $387 billion by 2025.

Responding to Retailer Needs

“The COVID-19 pandemic exposed vulnerabilities in supermarket infrastructure,” explains Will Chomley, CEO and co-founder, in an interview with TechCrunch. “It also underscored the consumer desire for a completely frictionless experience, something many retailers were unprepared to deliver. Furthermore, staff shortages due to health concerns necessitated solutions for operating stores with reduced personnel.”

Competition and Opportunity

Amazon’s “Just Walk Out” technology is expanding internationally through its Amazon Fresh stores in the U.S. and the U.K. Chomley notes that this expansion concerns retailers who fear competition from the technology giant. Simultaneously, the global trend towards cashless transactions creates a favorable environment for advancements in frictionless checkout systems.

Funding and Strategic Partnerships

Imagr recently showcased its technology with a pop-up shop in London and is currently seeking Series A funding. Having previously secured $9.5 million in seed funding in November 2019, led by Toshiba Tec, the company has raised a total of $12.5 million to date. Chomley emphasizes a preference for strategic partners over solely relying on venture capital as they pursue their next funding round, stating the technology is ready for wider implementation.

Current Deployments and Future Plans

The startup’s initial smart shopping carts, featuring a camera-equipped halo, are currently deployed in 150 H2O Retailing stores in Japan. Imagr anticipates launching a contract in the U.K. this year, with two additional contracts in progress and further European plans under development.

A Modular Approach to Scalability

However, the haloed cart is not the final iteration. Imagr plans to introduce a more modular system by Q4, consisting of three hardware components that attach to standard shopping carts. Each module will incorporate its own cameras, lights, and a microprocessor for real-time data analysis, transmitting information to the shopper’s app with latency of less than one second.

Cost Considerations and Competitive Advantages

Chloe Lamb, brand and communications lead, highlights the scalability benefits of the modular design. Smart carts can cost retailers between $5,000 and $10,000 each and require substantial maintenance, while traditional carts cost less than $100 and endure years of use. Amazon’s “Just Walk Out” technology is estimated to cost retailers over $1 million for installation and hardware, plus ongoing maintenance. Imagr’s current pilot system costs approximately $75,000, including 10 carts, an imaging station, a server, integration, and support.

Differentiating from Competitors

Shopic, an Israeli company, also offers a smart trolley attachment with computer vision, featuring a touchscreen display for a constantly updated receipt and advertising opportunities. However, Lamb asserts, “We have the hardware, but we have the software. Our vision/AI is superior. We’ve solved the most challenging aspect – the AI – and are now focused on deploying it in a more compact form.”

The Competitive Landscape

Standard Cognition is another player in the field, replicating Amazon’s walk-out technology for other stores. The San Francisco-based company, valued at $1 billion, recently raised $150 million in a Series C round and partnered with Circle K.

Concerns Regarding Data Privacy and Scalability

Lamb expresses concerns about the privacy implications and scalability of walk-out technology, citing the extensive data collection and infrastructure requirements. “The all-seeing cameras can be unsettling, and the cost of maintaining such a system is prohibitive.”

Data Usage and Efficiency

Imagr’s system reportedly uses the same amount of data as streaming HD Netflix for a single day in a store.

A Focus on Minimal Disruption

“Shopping carts were a natural choice because they are universally used and familiar to both retailers and consumers,” explains Chomley. “This approach minimizes disruption to existing systems, offers a faster return on investment, enhances the customer experience, and addresses privacy concerns.”

The Future of Frictionless Checkout

Chomley believes that while overhead technology may become more affordable over time, Imagr’s approach offers a quicker and more direct path to market. “Amazon validated the demand for frictionless shopping, which is beneficial for our business. However, Amazon built a supermarket for the technology, while we have built technology for existing supermarkets. This is where retailers will struggle with processing vast amounts of data.”

Corrections: A previous version of this article incorrectly stated Shopic used barcode scanners. This has been updated to reflect the correct information. This article has also been updated to clarify that Amazon’s “Just Walk Out” technology is expanding internationally via its Amazon Go and Amazon Fresh stores.

Lamb notes that many retailers view Imagr as an upgrade from scan-and-shop systems, offering comparable pricing with the added benefit of real-time cart monitoring, reducing the risk of theft.

Imagr provides retailers with a white-label solution, allowing them to own, operate, and scale the system independently. The company maintains a shared licensing agreement for data to continuously improve its AI models. Lamb anticipates future inventory analytics capabilities, enabling retailers to optimize stock levels and prevent shortages.

“Our goal is to provide retailers with comprehensive tracking of all inventory movements,” says Lamb. “Ideally, when an item sells out, the system will automatically alert a staff member to restock the shelf. We are actively developing this functionality.”