Table of contents

• Key takeaways
• Regulations
• Funding
• Product updates
• Partnerships
• M&As
• Appendix

Key takeaways

Regulations

• Stricter laws proposed for self-checkout systems: A proposed Californian law aims to restrict self-checkout kiosks in large grocery and drug stores to reduce theft, create jobs, and ensure safety. Despite this, retail giants like Amazon, Aldi, and Target are continuing to roll out self-checkout kiosks at their stores, with Target limiting the self-checkouts to 10 items or less per customer. Though seemingly restrictive, these regulations could enhance trust and drive Retail Tech players to further improve their solutions, addressing the concerns raised by the regulators.

Funding

• 1H 2024 funding declined by 18% YoY to USD 237 million: The Retail Tech sector experienced a subdued funding environment in 1H 2024, with the typically high-funded segments, such as B2C marketplaces - specialized, micro-fulfillment, and automated stocking and shelving, receiving no funding. Instead, funding was focused on smart carts, competitive position optimization, and floor cleaning, with smart carts capturing 55% of total 1H 2024 funding. Notably, this funding was driven by smart cart software developer Aisles, which raised USD 130 million across two funding rounds to advance its AI ecosystem, including features like advanced navigation, biometric security, and personalized shopping assistance.

Product updates

• Most product launches focused on automating stores with smart carts and self-checkouts: During 1H 2024, most product launches were geared toward automated stores (10 out of 19), with a focus on smart carts and self-checkouts. Smart carts were gaining traction, with Amazon planning a nationwide rollout of its Dash Cart and A2Z receiving orders for 2,500 of its Cust2Mate 3.0 smart carts from supermarkets and retailers. Additionally, Kwikkart introduced an AI-based device that transforms traditional carts into smart carts. Despite stricter regulations and some retailers removing self-checkout solutions at their stores, large retailers like Aldi and Amazon continued to adopt self-checkouts. 

• The Retail Industry Robots sector launched floor cleaning and inventory management robots: The Retail Robotics sector saw nine product updates, mainly centered on floor cleaning robots (3) and inventory management (3). Companies like Keenon and Tennant introduced new floor-cleaning robots featuring autonomous cleaning, obstacle avoidance, and advanced sensor systems. Meanwhile, Sensormatic and Simbe Robotics are leveraging RFID, AI, and computer vision technologies to provide deeper insights into customer behavior and improve efficiency in inventory management within the Retail sector.

• Retailers looked to GenAI for virtual assistants and product visualization: During 1H 2024, the adoption of GenAI in Retail grew, driven by the need for personalized shopping experiences and operational efficiency. The most common use cases include virtual assistants and product virtualization where key tech players such as Microsoft, Google Cloud, and Amazon are at the forefront of developing virtual assistant and product virtualization platforms using large language model (LLM) or foundation model (FM) technologies for retailers like Victoria's Secret (VS) and Walmart. 

Partnerships

• Deployment of automated store solutions drove partnerships, with strong activity from incumbents: Partnership activity was led by incumbents with notable collaborations to automate stores, including Amazon for its full automation tech “Just Walkout,” Instacart for its Caper Cart tech, and Toshiba for its self-checkout solution. Meanwhile, startups focused on product development partnerships, particularly in industrial robotics. Notable players included Simbe Robotics, which partnered to produce and distribute its autonomous inventory robots, and Brain Corp, which partnered to develop an autonomous inventory scanning robot.

M&A

• Cantaloupe expanded self-checkout services into the sports, entertainment, and restaurant sectors: There was only one notable acquisition observed during 1H 2024, which was in the self-checkout space. The acquisition supported Cantaloupe’s expansion of services into sports, entertainment, and restaurants, allowing it to capitalize on emerging trends and demands.

Outlook

• Retailers are automating stores with smart carts and cashier-less checkouts: Driven by consumer demand for efficiency and convenience, the push toward automation is likely to remain strong. Though regulatory hurdles could lead to lower adoption rates, this regulation will help address theft and job creation and may spur further innovation in tech. In the near term, companies are likely to shift toward full automation in small format locations (such as entertainment venues or airports) or smart carts with some slowdown in self-checkout adoption.

• Retail industry robots are advancing slowly: The Retail Robots sector seems to focus on floor cleaning, inventory management, and micro-fulfillment. Despite a limited number of players and products, advancements in robotics mainly focus on operational efficiency. The adoption of robotics in retail is expected to grow, especially as technology improves and becomes a cost-beneficial alternative to retailers. 

• GenAI drives retail innovation further: GenAI has the potential to revolutionize retail tech, particularly in retail automation and B2C ecommerce. More retailers are starting to use GenAI to develop chatbots that assist customers and provide visual representations of products, enhancing their online shopping experience. This suggests that we can expect to see more GenAI involvement across retail tech solutions, as customers demand a more immersive shopping experience. 

Regulations: Stricter self-checkout laws to reduce retail theft and ensure the safety of workers and customers

Analyst Take: A proposed legislative measure in California aims to restrict the use of self-checkout kiosks in large grocery and drug retail stores to curtail retail theft, create more jobs, and ensure the safety of workers and customers. This measure seems to be a response to issues observed with self-checkout kiosks, highlighted by Walmart's recent closure of self-checkout kiosks this half. However, despite the proposed bill, there has been a growing adoption of self-checkout kiosks among retail giants like Amazon and Alibaba during the period. Additionally, Target also embraced self-checkout kiosks but aligned with the measure by only allowing self-checkout lanes for fewer than 10 items. While these measures appear restrictive, they could foster greater trust and reliability in the system, prompting players to enhance the operational aspects of self-checkout systems. 

• In May 2024, California proposed Senate Bill 1446, which aims to regulate self-checkout kiosks in large grocery and drug retail stores in the following ways:
  • Deployment of supervision: Employees must supervise self-checkout stations in person. Each employee can supervise no more than two self-checkout stations. Such employee supervisors shouldn’t be assigned any other duties while supervising self-checkout stations.
  • Introduction of at least one manual checkout station: Stores with self-checkout kiosks must also provide at least one manual checkout station, which means that fully self-checkout retail is no longer an option.
  • Item limits: Self-checkout lanes are to be limited to customers with 10 or fewer items.
  • Restrictions on purchases: Items requiring ID or with theft-deterrent measures must be processed only at manual checkout stations.
  • Impact assessment for AI technology: A worker and consumer impact assessment is required before introducing any AI-based technology.

Funding: Smart cart segment leads amid subdued funding activity

Analyst Take: In the first half of 2024, the Retail Tech sector experienced a subdued funding environment, with a decline of nearly USD 53 million (-18% YoY) compared with the same period in the previous year. Notably, the typically high-funded segments such as B2C marketplaces - specialized (51% of total funding from 2021 to 2023), automated stocking and shelving (8%), and micro-fulfillment (6%) saw no funding activities in 1H 2024. Instead, funding shifted toward smart carts, competitive position optimization, and floor-cleaning robots, with smart carts leading the way (55% of total 1H 2024 funding). This funding trend mirrors increased product launches and partnerships in these segments, emphasizing a strategic push toward adopting automated store technologies that enhance customer retail experiences. 

Retail Tech: 1H 2024 funding summary

• Retail Tech companies raised USD 237 million in (disclosed) funding across 11 rounds in 1H 2024. The total saw a decline of 18% compared with the first half of 2023, with the number of rounds also falling to 18% (USD 290 million across 13 rounds). This was due to a decline in funds raised across the automated stocking and shelving, micro-fulfillment, competitive position optimization, and inventory management segments, which collectively accounted for 75% of the funding raised in 1H 2023 but did not raise any funding in 1H 2024.

• The smart carts segment in the Automated Stores space raised most of the funding in 1H 2024, amounting to USD 130 million across two rounds, corresponding to 77% of the total funding (13x YoY). The funding was primarily driven by Aisles, a company that develops software solutions for smart carts. Aisles raised USD 30 million in Series A, followed by a USD 100 million private equity funding round. The company plans to use the proceeds to accelerate the development and deployment of its AI ecosystem, which includes advanced navigation, biometric security, and personalized shopping assistance.

• For the first time since 2021, the smart carts segment surpassed its previous high of 26% (Q3 2022) of total Retail Tech funding. Previously, B2C marketplaces - specialized, automated stocking and shelving, and micro-fulfillment consistently received the highest funding and conducted the most funding rounds. This half, however, reflects a notable investor interest in supporting smart cart solutions and advancing AI integration within shopping experiences.

• Besides smart carts, the competitive position optimization segment in the Digital Retail Enhancement space secured about 25% of funding in 1H 2024 compared with 14% of the funding raised in 1H 2023. Funding was led by Crisp, a retail platform providing real-time store and shelf-level data for brands and distributors, which raised USD 50 million in new funding, comprising a USD 20 million Series B extension and USD 30 million in debt financing. Blue Cloud Ventures, FirstMark Capital, Spring Capital, and 3L led the Series B funding, while TriplePoint Capital provided the debt. The funds will be used to support Crisp’s growth through product development, market expansion, and further acquisitions (such as Atlas Technology Group in 2023).

• The floor cleaning segment in the Retail Industrial Robots space also secured about 13% of funding in 1H 2024 compared with no funding in 1H 2023. Brain Corp, a developer of AI systems for autonomous robots raised a USD 32 million corporate funding round led by Tennant Company, a provider of floor-cleaning vehicles. Tennant's investment will enable the launch of its first purpose-built floor-cleaning robot, featuring Brain Corp’s AI-based navigation technology.

• During the first half of 2024, venture capital funding rounds were the most common, with three notable instances. Apart from Brain Corp’s USD 32 million from Tennant, UK-based investment firm IW Capital invested USD 1.5 million in mobile-app-based self-checkout solutions provider Ubamarket, while the developer of AI-powered autonomous stores Pixevia secured USD 1.6 million led by Coinvest Capital. This funding mainly supported geographic expansion and product development.

• Notably, only two seed funding rounds were observed this half compared with 10 rounds in 2H 2023 and three rounds in 1H 2022. Provider of computer-vision-powered self-checkout solutions Autonomo received USD 2.6 million led by Potter Ventures and River Capital to introduce computer-vision-powered self-checkout solutions in the UK, while online marketplace provider Veo raised USD 1.7 million from Innovate UK for expansion purposes. 

• Furthermore, there was also a significant decline in early-stage funding rounds compared with the seven recorded in 1H 2023, during which startups collectively raised over USD 215 million. There were only three early-stage rounds this period including Aisles’ USD 30 million Series A funding, Crisp’s USD 30 million Series B funding, and retail software player Pear Commerce’s USD 10 million Series A funding.

• Moreover, there was only a single growth-stage funding round, similar to 1H 2023, also involving Aisles, which raised USD 100 million in a private equity round. This also highlights Aisle's progression from early-stage to growth-stage funding in the first half of the year, underscoring growing investor confidence in the smart carts segment.

• Overall, the shift toward fewer but larger funding rounds at later stages reflects a strategic approach by investors to support sustainable growth and innovation in the evolving Retail Tech landscape. 

• Resultantly, the average deal size slightly decreased to USD 21.6 million from USD 22.3 million in 1H 2023. This was mainly due to four small deals below USD 5 million in 1H 2024 compared with one deal below USD 5 million in 1H 2023.

Total funding vs. number of rounds vs. average deal size (1H 2024)

Product updates: Notable launches from incumbents; growing adoption of smart carts and GenAI while self-checkouts face mixed reactions

Analyst Take: Incumbents lead the charge in retail tech innovation, aiming to enhance customer shopping experiences and operational efficiency through frequent product launches. Startups, while active, showed less activity compared with established players. In the Automated Stores space, there is increasing adoption of smart cart solutions to improve shopper experiences and reduce wait times. Meanwhile, self-checkout systems are being deployed among large retailers. However, security concerns have prompted some to remove these systems, highlighting the need for improved solutions. Additionally, we also observed that during 1H 2024, the adoption of GenAI in the Retail sector surged, fueled by the demand for enhanced customer experiences, improved operational efficiency, and personalized marketing strategies. In the Industrial Robots space, autonomous cleaning robots and inventory management robots have garnered more interest and development, while limited developments were seen in robotic technologies like micro-fulfillment and customer assistance and analytics.

• During the first half of 2024, we observed 19 product launches, with companies primarily introducing solutions targeting automated stores (10 updates). Most of these were from incumbents such as Amazon and Aldi and focused on smart carts (5) and self-checkout (3) solutions. The Retail Industry Robots space had only nine product updates and most of these centered around floor-cleaning robots (3) and inventory management (3). 

Smart carts

• Growing transition to smart carts for enhanced shopping experience
  • Industry incumbents are taking the lead in this space, focusing on developing features like real-time recommendations and personalized interactions to directly cater to consumer demands and enhance the shopping experience. They are integrating advanced technologies such as computer vision, AI, and RFID into smart cart solutions.
  • During 1H 2024, Amazon announced plans to revamp its Amazon Fresh grocery stores by replacing Just Walk Out technology with its smart cart solution Dash Cart. According to Q1 2024 data, Dash Cart received a 98% customer satisfaction rating, with 80% of users being repeat shoppers. Consequently, Amazon announced Dash Cart will be deployed nationwide by late 2024, driven by customer feedback requesting real-time visibility of spend during shopping.
  • Meanwhile, incumbent A2Z Smart Technologies Corp. launched Cust2Mate 3.0, a smart cart solution featuring an interactive touchscreen panel for traditional shopping carts to offer personalized product recommendations and promotions. Deployments began in April 2024 at Israeli supermarket chain Yochananof, with plans for expansion to Morton Williams and Monoprix. The technology also integrates theft mitigation solutions using computer vision, RFID, AI anomaly detection, barcode scanning, and weight sensors.
• Kwikkart launched AI-based device to transform traditional grocery carts into smart carts
  • Amidst the adoption of smart carts by major retailers, startup Kwikkart announced the launch of a self-checkout device that can be attached to traditional shopping carts. This device integrates AI and computer vision to assist grocery delivery drivers, ensuring accurate item selection and facilitating real-time digital payments. The device is set for private testing in 2024.

Self-checkout

• The Retail Tech industry has seen significant advancements and mixed reactions to self-checkout kiosks this half. Major supermarket chains and retail giants focused on enhancing customer experience through self-service technologies. However, some operational challenges still persist in their adoption, hence some retailers are scaling back.

• Growing adoption of self-checkout kiosks by retail giants for a faster, contactless, and more efficient checkout process
  • Aldi Ireland is rolling out self-checkout kiosks in 21 stores following a successful pilot in County Kildare. These kiosks support cash, card, and contactless payments while retaining traditional checkout lanes.
  • Target plans to implement a policy limiting self-checkout to 10 items or fewer, following a successful pilot across nearly 200 stores. This move aims to expedite the checkout process and reduce wait times. The company plans to roll out the process in most of the 2,000 Target stores nationwide.
  • Amazon has introduced self-service checkout for return items launching automated return kiosks (ARKs) in its Amazon Fresh UK stores, facilitating label-free, box-free returns. These kiosks complement existing self-serve pick-up lockers, promoting a seamless, contactless experience.

• Operational challenges in billing and security persisted with transitioning to the self-checkout process
  • Walmart, Target, and Safeway announced removing self-checkout solutions at select locations to prevent disruptions and manage risks such as theft. Walmart also faced overcharging issues due to a software malfunction, leading to the retraction of self-checkout lanes in several locations including in Missouri, Cleveland, Los Angeles, and New Mexico.
  • Target removed self-checkout lanes in its busy Emeryville, California, store due to anincrease in shoplifting. This decision follows Target’s plan to increase adoption and the restriction of self-checkout usage to purchases of 10 or fewer items.
  • Safeway also decided to remove self-checkout kiosks in several San Francisco Bay Area locations due to theft concerns.

Floor cleaning

• Three advanced autonomous floor scrubber robots with enhanced functionality launched
  • Chinese incumbent  Keenon Robotics introduced the KLEENON C30, a robot capable of sweeping, vacuuming, and dust mopping up to 1,500 sq m on a single charge, featuring manual and automatic cleaning modes.
  • Another incumbent, Tennant, introduced the X4 ROVR, its first exclusively autonomous floor scrubber using computer vision technology for navigating narrow spaces, equipped with a 10-gallon solution tank and claiming a productivity rate of up to 20,000 sq ft per tank. The operating system of the robot is built by Brain Corp, enhancing operational efficiency in retail and other environments.
  • Meanwhile, startup Avidbots introduced the Kas, an autonomous floor scrubber featuring 15 sensors for obstacle avoidance and dynamic planning. It is designed to serve diverse sectors including retail, transportation, healthcare, and education.

Inventory management

• Cloud-based software solutions and autonomous robots leveraging RFID, AI, and computer vision for better inventory management 
  • Sensormatic Solutions introduced new cloud-based SaaS solutions, namely the "Shrink Analyzer Application" and "Store Guest Behavior Analytics," which use computer vision analytics (CVA) and RFID technology. These innovations focus on inventory loss prevention and provide insights into customer behavior. 
  • A startup developing autonomous inventory robots, Simbe Robotics, also launched its inaugural intelligence platform designed for large-format retail environments. This platform integrates its autonomous inventory robots, known as "Tally," with advanced computer vision technology. This integration enables real-time capture, analysis, and management of inventory data, enhancing operational efficiency and accuracy in retail settings.

Micro-fulfillment

• Solutions with continuous innovation in shelving and order management. However, benchmarks set by retailers are not met.
  • Fabric, a provider of micro-fulfillment solutions for retailers, secured a patent for an innovative automated storage and retrieval system (ASRS), uniquely designed to accommodate various tote sizes within a single shelving unit. This breakthrough promises to optimize space utilization, broaden product range capabilities, and significantly enhance stock management efficiency, particularly beneficial for micro-fulfillment centers and retail stores.
  • GreyOrange, a provider of AI-powered solutions for fulfillment automation, unveiled "gStore," an advanced store execution and retail management system leveraging RFID technology. This comprehensive solution is aimed at streamlining operations and elevating efficiency across retail environments through automated processes and real-time inventory management capabilities.
  • In contrast, Kroger made headlines with the closure of three ecommerce fulfillment facilities in Texas and Florida. These facilities, equipped with automated micro-fulfillment centers (MFCs) provided by Ocado, were shuttered due to their failure to meet Kroger's stringent performance benchmarks.

Full automation

• Retailers turned to AI-based solutions for full automation of the retail process
  • Sam's Club, a Walmart subsidiary, introduced AI and computer vision technology at store exits for automated receipt verification, piloting it in 10 locations alongside its "Scan & Go" mobile checkout solution.
  • Meanwhile, Amazon upgraded its palm payment technology, Amazon One, allowing users to sign up from home via a new AI-based app. Users upload a palm image, link a payment method, and verify their identity through near-infrared imagery. As of 1H 2024, Amazon One has reportedly been used over 8 million times, with over 80% of users opting to use the service repeatedly. Amazon also took several steps last year to expand its Amazon One launch. This includes launching its solutions into all Whole Foods locations in Massachusetts (November), integrating its payment system in FreedomPay's commerce technology platform (September), and partnering with Panera Bread (March).

GenAI and Retail Tech 

• Retailers leveraged GenAI for virtual assistants and product visualization
  • Building on our previous insight: The future of shopping: Exploring GenAI's influence on retail, we have now conducted an updated analysis, identifying 12 key developments in this area during 1H 2024. The most common use cases include virtual assistants, product virtualization, and marketing content creation (see Appendix I for more details on the use cases). 
  • Of the 12 updates, six involved the development and adoption of virtual assistants for customer interaction, answering product queries, facilitating product discovery, and enhancing the overall shopping experience. This includes Amazon’s Rufus, Ikea’s ChatGPT-based platform, Walmart’s shopping assistant supported by Microsoft Azure,   Best Buy’s in-house developed AI assistant, and Michael Kors using Mastercard's Dynamic Yield.
  • Another growing area of focus is the use of GenAI for product visualization, with three updates highlighting enhancements in online shopping through virtual try-ons, personalized recommendations, and immersive experiences. Key retailers adopting this technology include Victoria's Secret & Co. (using Google AI Vertex) and Puma (using Accenture and Microsoft's Gen AI). Notably, Algolia announced its Gen AI tool, offering retailers advanced solutions for personalized and immersive online shopping, including generative product comparisons, enhanced product reviews, AI-powered buyers' guides, and proactive query refinement.

Partnerships: Increasing adoption of full automation solutions and smart carts drives partnership activity

Analyst Take: Partnership activities were high in the Automated Stores space, driven by the full automation and smart cart segments. Similar to product updates, most of the activity came from incumbents and consisted primarily of sales partnerships, indicating widespread adoption and acceptance of automated store technologies. Startups were more involved in product development partnerships, particularly in the Industrial Robot space, mainly focusing on inventory management. 

• We observed 31 partnerships within the sector with incumbents accounting for nearly 52% of them. Much like the product updates, we observed a higher level of activity in the Automated Stores space, where full automation solutions saw the most partnerships (12), followed by smart carts (6) and self-checkout (6). Meanwhile, sales partnerships (22) were the most common, compared with product partnerships (9).

Notable collaborations by incumbents

Notable collaborations by disruptors

Full automation solutions

• Incumbents and startups drove sales partnerships to deploy cashier-less stores 
  • There were 12 partnership activities in 1H 2024 (mostly sales partnerships), with incumbents and disruptors driving them. Amazon took the lead in the number of sales partnerships for its “Just Walk” technology. Despite removing the technology from Amazon Fresh grocery stores, Amazon continues to deploy it in venues that require faster checkouts and has seen success in doing so. 
  • During 1H 2024, Amazon implemented its Just Walk Out technology at Paradies Lagardère's travel retailer locations, SSE Arena’s indoor arena in Europe, The O2 arena in London, Orlando City Soccer Club's The Den, Canberra Institute of TechnologyI (CITSA)’s campus store, and SimplyFresh’s three independent store locations.
  • Following suit from Amazon, the rest of the players, including startups such as Zippin and Trigo, also partnered with retailers and foodservice players to develop frictionless and cashierless stores. Zippin partnered with Aramark UK to introduce DUPLO Coffee Co., a frictionless and cashierless store at LEGOLAND Windsor Resort, while Trigo partnered with REWE Group to deploy a hybrid autonomous store in Düsseldorf, Germany, and a cashier-less store in Bucharest, Romania. AiFi partnered with Acrisure Arena to launch two AI-powered grab-and-go concession stands at Acrisure Arena, while Grabango partnered with Aldi to install an automated checkout system at an Aldi store in Chicago, Illinois. Meanwhile, Adroit Worldwide Media partnered with Choice Market to integrate frictionless checkout technology in Choice Market's automated convenience stores.

Smart carts 

• Incumbents secured sales partnerships, signaling growing adoption of smart cart solutions across large retail stores 
  • Six key partnerships were seen in this space led by incumbents. Instacart notably took the lead, securing sales agreements to provide its smart cart solutions to large supermarket chains. A2Z Smart Technologies Corp. also formed sales partnerships, though with undisclosed players.
  • Instacart partnered with Wakefern Food Corp. (to implement Caper Cart smart shopping cart technology in ShopRite supermarkets), Price Chopper (to introduce Caper Cart technology in Price Chopper stores starting June 2024), and Save Mart Companies (to deploy Caper Cart technology in Save Mart stores beginning May 2024). It also launched an advertising feature for Caper Carts in collaboration with CPG brand partners like Del Monte Foods, Dreyer's Grand Ice Cream, and General Mills. 
  • A2Z Smart Technologies secured a purchase order for 2,000 smart carts from an Australian retail chain with over 1,000 stores, while it also received a purchase order for 500 Cust2mate smart carts from a Belgian retail chain.

Self-checkout

• AI-based startups entered into product development partnerships to improve their self-checkout solutions
  • We observed six partnerships in the self-checkout solution space, primarily centered around AI startups collaborating with tech and manufacturing partners to enhance their offerings. Mashgin, an AI-powered self-checkout provider, was a notable player, forming product development partnerships to reduce wait times, ease the payment process, improve its solutions, and expand deployment. 
  • Mashgin partnered with Keyo to launch an AI-powered palm scanner solution for self-checkouts, integrating its technology with Keyo's Wave palm technology, reducing checkout time to under 10 seconds and saving 15%–30% of total transaction time compared with traditional methods. It also partnered with Verifone to integrate its AI-powered self-checkout kiosks with Verifone's Commander site management solution to manage payments and operations. Mashgin also secured a sales partnership deploying self-checkout kiosks at Dartmouth Tuck School of Business' dining and catering facilities following a successful pilot. 
  • Shopreme, another self-checkout startup, partnered to integrate Nexi's payment technology with Shopreme's mobile self-checkout solutions, enabling a checkout-free shopping process.
  • While incumbent activities were limited, Toshiba partnered to expand its self-checkout solutions to retail following successful trials. It partnered with Chedraui (to deploy "Self Checkout System 7" technology at Chedraui's stores) and Metcalfe's Market's stores (to deploy "Self Checkout System 7" technology across all Metcalfe locations), signaling the growing success of these technologies despite certain operational challenges.

Inventory management

• Startups secured partnerships for the production and deployment of autonomous inventory management robots 
  • Partnership activities in inventory management automation were relatively less and primarily involved startups. Simbe Robotics partnered with Plexus for the production and distribution of its retail robot, Tally,  globally. It also extended its partnership with SpartanNash to incorporate Tally into 60 more stores following a successful pilot in 15 stores. 
  • Startup Zippedi partnered to deploy Autonomous Mobile Robots (AMRs) in six Unimarc stores across Chile. Meanwhile, Brain Corp, secured a product partnership with Dane Technologies to launch an autonomous inventory scanning robot "Dane AIR" using the BrainOS Inventory AI Suite.
  • Only one incumbent, Sensormatic, was active in this space. It deployed its RFID-based inventory management system to improve item-level inventory tracking between Allbirds warehouses and stores.

Floor cleaning and micro-fulfillment

• Partnerships focused on autonomous cleaning robots and order-picking platforms
  • Activity in these segments from incumbents and startups was limited. ICE Cobotics secured a sales partnership to deploy the "Cobi 18" floor scrubber robots at J&H Family Stores' network of more than 75 retail locations.
  • In the micro-fulfillment space, incumbent Fives announced a partnership to automate Carrefour's new order-picking platform in Bourges.

M&As: Cantaloupe makes acquisition to expand its self-checkout solutions for the sports, entertainment, and restaurant sectors

Analyst Take: There was only one notable acquisition observed during 1H 2024. The acquisition of Cheq Lifestyle Technology by Cantaloupe is expected to support the latter’s expansion into sports, entertainment, and restaurants. The move aims to help Cantaloupe capitalize on emerging trends and demands, potentially setting new standards in self-service and mobile payment technologies.

• In February, Cantaloupe, a developer of AI-powered self-checkout solutions and kiosks, completed the acquisition of Cheq Lifestyle Technology, a provider of mobile ordering and payment solutions for sports and entertainment venues. Cheq’s technology is used by professional sports teams, entertainment venues, and festival operators, including notable names like the Washington Commanders (NFL), Florida Panthers (NHL), Philadelphia Union (MLS), Miami Marlins (MLB), CFG Bank Arena in Baltimore, and Loud & Live (Festivals). Cantaloupe expects to leverage the acquisition to expand its self-service solutions to these players across different sectors. 

Appendix

Appendix I: Key GenAI updates with use cases

Appendix II: Funding rounds in 1H 2024

Appendix III: Product updates

Appendix IV: Partnerships by incumbents

Appendix V: Partnerships by disruptors