The Store sales tool (Pat.) and Bagholder product (Pat.) for food stores.

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Development of wellbeing and process improving products and ways to increase return and ecology in food stores have been driving forces for thorough research in this area. Prior experiences, analysis, extensive field trips and research of the store environment and market have contributed to these inventions.

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Investors, ESG is realised by products. Maximizing return but also Sustainably, Socially responsible and with Impact.

A few important points around the store sales tool and Bagholder product.

Cashflows around the store sales tool and the Bagholder product.

The store sales tool, patented, shows a math of a 1.000 a week that is 52.000, - a year per store. 100 stores X 52.000, - is € 5,2 million per year. Using Gordons growth formula this has a value of 173 million. Less ad costs, less food waste and plus other positive factors. In addition, the tool offers a drastically reduced electricity consumption compared to normally. 

The Bagholder product, patented. The added value to company with implementation in 100 stores using bag sales alone is 121 million. Less needed space can mean a yearly saving of 30.000 for 12 m2, 10 more shoppers per day can mean 33.600 more in return plus the 36.343 in bag sales in 1 store.

Area of operation

The world

Food store market in the US, EU and Japan.

Food store sales for the 19 biggest chains in the US is about 834 billion. Food store numbers for the 19 biggest in the US is about 73,358. Food store sales for the 13 biggest in the EU are 554.16 billion. Total food store sales for Japan in 2014 was 45.590 billion JPY. Food store numbers for the 7 biggest in Japan is about 49.129.

The store sales tool is suitable for most stores globally. The Bagholder product works in stores with automated payment systems.

The Bagholder product functions in stores with hand-scanning or automated payment systems e.g. Walmart, Costco, Kroger, Ahold, Tesco, ASDA, Waitrose, Auchan, Carrefour, ATAC, E.Leclerc, Groupe Casino, Feneberg, Manor, Coop, Supevalu, Coop, Conad, Esselunga, Finiper, E.Leclerc Conad, Iperal, Famila, Bennet, Tigros etc. Amazon, that recently purchased Whole Foods, cashier less store functions along these lines. In China chains like JD, Hema (Alibaba) and Bingo box are opening stores with automated payment functions. Spar has opened its first cashless store with automated payment solution.

Competitors

The Bagholder product is patented. Its competition or obstacles are non-hand-scanning stores, and canvas bag type arrangements. Many or most stores are still using double solutions i.e. cashiers and hand-scanning. There is ample room for the Bagholder product in other words. Overall thoughts with regards to store processes is that it can add value in many places. The new eco plastic materials are favourable for the Bagholder overall. EU has legislated development of these eco materials to be used for food wrappings as well, banning single use plastic and plastic bags. The manufacturer has quality and environment certificates ISO 9001:2008 and14001:2004 and among others produces product parts for the oldest and best-known brand in Finland.

The store sales tool and strategy is patented. Importantly customer numbers and market share of a chain stay quite constant with time. A store has its customers and they come to shop among the products they know very well. (Also, why it is the most effective place for the product.) Alternatively, they may use the chains internet or online offerings and services. A store is always a great or good market place. An online purchase function is always different than a store visit and is a more list buying event. The internet is also a different or a more confined place to market food. In our markets a store can increase profits and sell more with the product. Simultaneously the mentioned added values and benefits arise with the store tool. They will further contribute to return of the store or chain. Of course, it all starts with the customer and the service created for her. Competitors are not offering a system like the store sales tool. Centrally driven and mobile driven solutions are quite common. The store sales tools many benefits are unprecedented. The system is CE marked.

Peer basis valuation comfortable, confirmed by 3rd party external analysis as well for Strategies.

SWOT

Company strengths

Light and low cost with easily sellable products that scale everywhere and are not dependent on place of use. Proven products, researched benefits and uses at globally very similar places of business. Products functions fulfil a need and create good return as proven by research and testing. Product is suitable everywhere in the world as stores and customers are alike. The store staff benefits and ecological value added is also created. Products are patented which process includes looking at other possible chains and companies protected ideas.

Company weaknesses

Possible long contracts with vendors although they are not offering similar products.

Company opportunities

Creating value added in all areas compared to some other applications of today remembering overall return creation and ecological aspects.

Company threats

Copy cats, competitors, long vendor contracts.

Self-assessment

Solid product based upon broad and solid research suitable and superior to many other alternatives available. Especially focusing on service, cost, return, store and staff in todays online hyped market.

Research references

The retail products are results of thorough analysis and research of what stores can do to become better and more profitable in todays markets. When ready, before the product was put to use, its functions have been examined by one of the larger chains project manager to make certain functions and product fulfil normal guidelines and standards. The return figures stem from 1,5 years of measured daily sales data from the accounting system. The figures were achieved in a very competitive environment with 5 other larger stores within a 200m radius. The period houses both holiday and normal periods and reflects the tools fit to an everyday store situation. With an average return of ~1.000,- per week and return percentages in the hundreds it is second to none. To this can then be added indirect value added in the form of worker wellbeing, reduction of food waste, tidiness and affordable ads.

What does, and can worker wellbeing mean? The worker wellbeing winner in the Global Sonae Retail Book of Innovation for 2017 resulted in +8% Highly motivated employees, +37% More motivated employees, -45% lowly motivated employees and +1% in sales.

The store sales tool creates a way for the staff to impact their own performance which is even better of course. And the most important point in and job satisfaction situation. I.e. that one can somehow and in some way feel that one is making a difference big or small.

( Among the 80 innovations selected for the Innovation Book a ground-breaking report in the business field throughout the world: https://www.sonae.pt/en/media/press-releases/sonae-invests-105-million-euros-inretail-innovation/ )

When researching effective effects patents independent claims were also written covering electricity savings with the Store Tool. Namely “providing content daily ……….and in real time….” This for example gives rise to: Service, wellbeing, and sales with a fraction of the normal electricity consumption…. That can come in handy when electricity in eg. Germany on 11.3.2021 costs 21,13€/MWh and on 19.7.2022 costs 325,24 €/MWh. Of course, the tools other effects are retained and may perhaps be even larger.

Food waste is around 5% in total. The highest food waste, 5-12%, is in fresh, fish and meat products. Small improvements can mean large gains to the bottom line.

As a reference Professor Wansink from the US reached 30% increases in bulk product sales in 68 stores with different price reduction campaigns.

Todays stores carry small margins which means returns are at serious risk with only such a strategy.

The Bagholder tool is very intuitive and simple and it just works. Without a similar solution the whole automated store idea falls apart and the invested money goes to waste as well. It is something one can try oneself even. Its simplicity is also its beauty. Together with the new bio bags creating the most ecological solution fitting for store and trash.

- In addition, the massive global surveys of what customers appreciate the most in stores are improving the in-store customer experience as first. They choose where they buy on three main criteria:  Convenience, Price and Diversity.

- Convenience can be seen as depending on total time spent in shopping and on the value of the time spent.

- Spending shorter periods at the checkout is what customers want in general and in the survey.

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