Focal Systems

Focal Systems’ core mission has been to help retailers implement AI solutions in stores with the help of computer vision and deep learning technologies. The company offers two core products aimed at enhancing retail automation.

1) Out of stock detection works with a small inexpensive camera placed on a shelf to monitor on-shelf availability. When the camera detects low inventory, it notifies staff in real time. The system generates an ROI of 7.8, and a pilot test with a Fortune 50 retailer showed that out-of-stock items fell nearly 30%, increasing sales by 8%. The technology helps rank shortages based on lost sales per hour and frustrated shoppers per hour, which store managers can then minimize by optimizing labor hours. The system helps free up nearly 40% of hours of stocking work per day.

2) Automated checkout includes cameras that retrofit a conveyor belt and detect products automatically (barcode/non-barcode) through product recognition. Associates can then focus on bagging the items. The system can handle 50 transactions per hour and has a payback period of 1.1 months. It helps cut average transaction time by nearly 75%, bringing the total transaction time to only 33 seconds. Further, it helps eliminate incorrect scans of products, thereby recognizing 53% of merchandise given away by cashiers, which would not be possible with traditional self-checkout processes.

Key customers and partnerships

In January 2023 , Focal Systems partnered with Good Food Holdings brand, a retail holding company, to pilot its technology at Metropolitan Market, a Pacific Northwest grocery store chain owned by Good Food Holdings.

Funding and financials

In December 2021, Focal Systems raised USD 25.8 million in a Series B funding round led by Point72 Ventures, with participation from return investors, including Costanoa, Zetta, and Zebra Technologies, among others. The funds are earmarked to expand its global sales and technical teams as well as to continue to grow and innovate its AI-powered retail automation solutions.