Out The Box

WHAT IS IT?

Self-described as a “one-stop shop for food and non-food”, the concept was developed by Chinese e-commerce giant JD.com, responsible for the debut of the contactless Amazon Go brand last year in the UK.The two new stores (in Leiden and Rotterdam), called Ochama (a shrunk-down combination of ‘omnichannel’ and ‘amazing’), are the company’s first physical stores in Europe and are entirely operated by robots.

They contain both food and non-food items, with eleven product categories at launch including anything from fresh fruit and vegetables to office furniture, available for pick-up or delivery.

HOW DOES IT WORK?

The stores aim to allow shoppers order products online through Ochama’s app, where the full range of products are offered, before the automated warehouse at the physical stores take care of the rest.

It is only available to members, who can join for as little as €10The ‘futuristic’ pick-up shops include a fleet of robots, such as AGV (automated ground vehicles) and robotic arms amongst others, to pick, sort and transfer the products. By scanning the QR code provided in the app, shoppers can watch as their orders are carried to them on a conveyor belt.

WHAT’S IN IT FOR RETAILERS?

Ochama’s Chief Operation Officer Markden Butter noted that by fully tapping the technologies in logistics and supply chain management, the shops “can bring down the product price by an extra 10% at the benefit of the chain’s member customers”.

The format also brings together online ordering and pick-up in a way that is quite popular in China, but has not yet made its way as successfully in Europe.

“With rich experience in retail and cutting-edge logistics technologies that the company has accumulated over the years, we aspire to create an unprecedented shopping format for customers in Europe with better price and service,” said Pass Lei, General Manager of Ochama, JD Worldwide, added.

The concept also hopes to help create a greener environment in urban locations. “There will be no queue and fewer traffic jams to do the chores as they can go for convenience, benefits and everything in one stop at Ochama,” said den Butter. “No more driving across town, and going from shop to shop to get various products.”

WILL THIS CATCH ON?

Judging by JD.com’s previous innovations, this has the potential to be a gamechanger for Europe. Sure, Argos has used conveyor belts for decades, but this is automation on a different level.

The new concept promises to add even more item categories, making Ochama a true one-stop shop, mirroring a wellknown trend in JD.com’s native China. What’s more, retail digital innovation involving robotic autonomy, including Amazon Go, has been grabbing retailers’ attention and is fast evolving as an attractive concept that promotes convenience.

It’s hard to know what the next big thing will be, but this one has been in the works for quite some time, with more retailers adopting it around the world.