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Magnit has created a retail technology laboratory

«Магнит» создал лабораторию розничных технологий

The Magnit company has created a laboratory at 20 stores to test new solutions and improvements in the operating model of retail outlets. This model for testing innovations will increase the number and speed of experiments for further rapid scaling of successful hypotheses throughout the entire network.

Источник: «Магнит»

Source: "Magnit"

To create a laboratory of retail technologies, convenience stores were chosen – the most popular retailer format. When forming a pool of stores, criteria such as turnover, location, redesign factors, etc. were taken into account. The selection was carried out in such a way that the tested hypotheses could be applied to the entire network. As a result, the laboratory included 10 retail outlets in Moscow and Voronezh.

The hypotheses that Magnit is testing as part of this project relate to the organization of staff work, the formation of an assortment, the management of stock and losses, as well as display, pricing and other processes that affect the turnover and efficiency of stores. For example, in the laboratory, the company is testing a new approach to assortment formation – based on modern artificial intelligence models that take into account detailed analysis of customers, demographic factors, geoanalytics, location potential, etc.

Other experiments include optimizing the discreteness of deliveries, adjusting the auto-order mechanism for goods, creating digital twins of stores to improve the efficiency of managing operational processes, and much more. The lab is currently exploring more than 25 hypotheses across the entire spectrum of day-to-day retail operations. When choosing hypotheses, laboratory specialists focus on the needs of Magnit’s key business functions and work in close collaboration with colleagues from various departments: commerce, IT, human resources, etc.

“Retail is changing rapidly, and the rate of change in the industry is only accelerating over time. Therefore, today, more than ever, it is important to quickly and flexibly adapt to the external environment, to the buyer, improve, and introduce modern business processes and technologies at retail outlets. For this purpose, we created a retail technology laboratory, which included 20 stores. Based on them, we will be able to experiment, quickly conduct tests, improve the experience of our customers and, based on the test results, introduce new approaches and solutions throughout the network. Our task is to make our stores the most attractive to customers. Together with all functions of Magnit, we test and offer effective solutions to optimize key business processes based on digital store models, big data, AI and other modern technologies,” said Ekaterina Vinogradova, director of the retail technology laboratory of the Magnit chain .

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