The Store Of The Future: 150+ Startups Transforming Brick-And-Mortar Retail In One Infographic

Brick-and-mortar retail is a high-stakes business. And, while it might seem as if e-commerce has taken over, Americans still do roughly 90% of our shopping in physical stores. In fact, one of the latest trends in retail is the launch of physical stores by digital-native companies, including Amazon, Bonobos, and Warby Parker.

To help retailers bridge the gap between digital and physical commerce, and keep up with e-commerce competitors, dozens of startups have developed in-store technology ranging from shelf-stocking robots, to augmented reality displays, to Wi-Fi-based beacons that collect data on shopper behavior. Many companies focus on optimizing existing store operations with the injection of cloud-based software and mobile apps, helping retailers manage things like employee scheduling, mobile payments, coupons, and shelf stocking. Others have paved entirely new paths for data collection and shopper engagement — startups in the most crowded categories in the market map, specifically location analytics & proximity marketing, use IoT hardware and/or smartphone-sensing software to track shoppers throughout the store.

Others leverage frontier technologies such as artificial intelligence, augmented/virtual reality, and robotics. InContext Solutions, for example, helps retailers and brands plan better store layouts and displays in virtual reality, while Satisfi leverages AI from IBM Watson to develop real-time, in-store chatbots for retailers.

Using CB Insights data, we identified startups enhancing the in-store experience with digital tools. Our market map spans companies targeting retailers broadly, including apparel and luxury retailers, grocery stores, and department stores. We previously looked at startups serving grocery businesses here (many of which are included in this map), and separately, looked at startups serving restaurants here. Scroll down to view the infographic and read more about the categories we identified.

Our market map includes private companies that have raised funding since 2013. This infographic is not meant to be exhaustive of companies in the space. This post was updated in May 2017.

Please click to enlarge.

Category breakdown

Augmented/Virtual Reality Tools – Startups that leverage augmented or virtual reality to aid retailers in layout of stores and the design of promotional displays. InContext Solutions, which has worked with clients like Walmart, Nestle, and Kellogg’s, lets brands visualize marketing concepts and test new designs on shoppers in virtual reality to gauge their efficacy before launch. Augment aims to help brands, such as General Mills, L’Oreal, and Coca-Cola, pitch their vending machines, kiosks, or merchandise displays to retailers by showing how they would look in augmented/virtual reality.

Customer Loyalty – Reward and loyalty platforms for retailers. Thirdshelf provides white-label loyalty program software, while Dealyze installs tablets by the cash register to encourage loyalty program signup and let customers track their rewards. LevelUp lets customers pay by phone and earn rewards.

Digital & Interactive Displays – Companies that provide stores with connected digital signs to advertise products inside stores, provide shoppers with product information, or let stores adjust product pricing in real-time. For example, Ksubaka provides “playSpot” kiosks with gamification features on tablets advertising products. Ksubaka works with brands such as Coca-Cola, Nescafe, Dove, Colgate, and Kellogg’s in stores throughout Asia. Enplug, with over $2.5M in disclosed funding, offers digital display screens to stores and outdoor malls.

Dressing Room Tech – These startups produce technology to be used in the dressing room. Oak Labs created an interactive, touchscreen mirror that lets shoppers request new items, adjust fitting room lighting, and see outfit recommendations. The mirror can sense which products the shopper brought into the room using RFID technology, and then present related products, save the items to shoppers’ online accounts, or display related items. Oak has worked with retailers including Polo Ralph Lauren.

Guest Wi-Fi – Startups that enable free in-store Wi-Fi for retailers. The companies generally use the Wi-Fi to track shoppers and provide stores with customer analytics. Zenreach, for example, has raised $80M from investors including First Round Capital, Bain Capital Ventures, and 8VC. Cloud4Wi, with its Volare guest Wi-Fi and analytics platform, works with Clarks, Bulgari, Armani, Prada, and retailers.

In-Store Bots and Chatbots – Fellow Robots and Simbe Robotics launched robots that can act as store associates, checking store shelves and guiding customers throughout the store. Fellow Robots recently launched its Navii robot in 11 Lowe’s stores in California, while Simbe has tested its Tally robot in Target. Satisfi, on the other hand, provides a mobile app leveraging artificial intelligence to help shoppers in-store; it recently piloted its app in conjunction with IBM Watson in Macy’s.

In-Store Financing – Startups that let shoppers instantly apply for and receive loans or installment plans while shopping in-store. Blispay, with $14M in funding from investors including NEA, lets users apply for financing on their phones while in-store.

Inventory Management – Startups that help stores track inventory and optimize merchandising, generally use cloud-based software. Some, such as Celect and Blue Yonder, also use artificial intelligence to provide predictive merchandising analytics.

Location Analytics & Proximity Marketing – Companies that provide hardware and software to help stores track visitors. Many focus on data collection for internal analytics, such as merchandise tracking, adjusting staffing levels, monitoring promotions, etc. Euclid Analytics, for example, tracks visitors to monitor the impact of promotions on driving store visits and to better understand when people visit stores and specific aisles. Others focus on proximity marketing to shoppers while in or near stores. For example, Estimote provides small, colorful beacons that send push notifications to users’ phones about products or promotions when it senses someone near. This category includes the most well-funded company in the graphic: RetailNext, with $189M in funding, offers traffic sensors, customer route mapping, mobile marketing, and more.

Music Systems – Startups that help stores manage their in-store music playlists. Soundtrack Your Brand is backed by Spotify.

Omnichannel Analytics – Platforms integrating in-store and e-commerce analytics for a more seamless shopper experience. For example, ShoppinPal helps retailers digitize their store and payment management and integrate inventory across brick-and-mortar and e-commerce channels. OneView Commerce aims to better engage multi-channel shoppers.

Packaging Tech – Startups that add features to product labels to provide more information for shoppers. Label Insight, which has raised $12.9M, automatically generates QR codes for CPG products, which the shopper can scan to see detailed ingredient and nutritional information.

Pop-Ups & Kiosks – Startups creating new models for the layout of physical retail. Withme, with $32.8M in funding, manages high-end pop-up shops for retailers and brands, while B8ta ($17M) operates several retail locations focused on “showrooming,” a changing selection of tech products to try to help retailers benefit when shoppers view items in person and then buy online.

Shopping Cart Tech – Startups that outfit shopping carts with digital features. For example, Focal Systems aims to equip existing shopping carts with computer tablets, which can use machine vision to monitor the shelves as the cart moves through the store, and also display digital ads to the shopper.

Smart Reciepts & Ratings – Startups that provide digital add-ons to the checkout process for customers in-stores. TruRating and Wyzerr solicit satisfaction ratings from shoppers at the checkout counter. FlexReceipts and Ecrebo can add personalized offers and incentives to shoppers’ receipts, aiming to attract return visits.

Shelf Monitoring – Startups that help consumer packaged goods brands monitor the presentation of their merchandise on store shelves and track the results of in-store promotions and visual displays. Some rely on in-store cameras and artificial intelligence features, while others leverage crowdsourced intelligence from shoppers and store associates. For example, Repsly, with $3.5M in disclosed funding, offers a SaaS platform for field teams that captures visual data inside retail stores. Eversight, which raised $25.2M and hit a valuation of $50.8M in 2016, monitors the performance of products on shelves and uses machine learning to optimize product promotions.

Store Management/ POS Systems – Broad platforms that help retailers manage merchandise, process payments, manage employees, etc., allowing for the handling of many of the operations of the store from one application. These startups include some of the most well-funded in the category, including Lightspeed POS with $126M, and Shopkeep POS with $97.2M.

Workforce Tools – A variety of messaging tools and planning platforms for retail store staff. Branch, for example, offers internal messaging networks for retail employees, and Salesfloor provides software that helps associates maintain consistent relationships with customers across store and online channels.

Company list

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