Delivering easy-flow solutions ITAB

DELIVERING EASY-FLOW SOLUTIONS

ITAB Shop Concept AB of Sweden is Europe’s market leader in the design and delivery of check-out systems and interior shop solutions. Philip Yorke takes a closer look at the company’s futuristic ‘selfcheckout’ technology and its strategy for further growth.

ITAB designs, manufactures and installs shop fitting concepts throughout Europe, the Nordic countries and the Baltics. The ITAB Group is one of the largest of its kind in the world with sales organisations in 18 countries and 14 major production facilities.

The ITAB Group has seen dramatic growth since the turn of the century through a combination of organic growth and strategic acquisitions. ITAB is also the market leader in Europe for the design, manufacture and installation of advanced check-out systems and solutions for both food and non-food supermarket retailers. ITAB can count amongst its customers many of Europe’s largest supermarket retailers.

Today ITAB Shop Concept AB has over 1,500 employees and is listed on the OMX Stock Exchange in Stockholm. In 2010 the ITAB Group recorded sales of more than SEK 2.7 billion. World first

ITAB’s commitment to investing in innovative new technology has resulted in it achieving a world ‘first’, a fully automated check-out system that is able to identify products without the need of a bar code. The ITAB EasyFlow™ advanced check-out system, uses break-through technology that will soon be showcased at the forthcoming ‘Euroshop’ Trade Fair in Germany in February. ITAB’s, EasyFlow™ system has an accuracy of more than 99 per cent.

This futuristic technology is based on a unique combination of six different technologies, including image processors, weight assimilators, object sensors, and spectroscopy scanners. The various methods of recording information are processed and converted into nine distinct classifiers, where each has a unique, optimised algoritham for the identification of each product. The entire identification process takes less than a second to complete. Furthermore, EasyFlow’s unique technology is able to identify and differentiate between products such as fruit and vegetables and is able to calculate the weight and price of any loose product without the need for weighing machines. This advanced system can even identify different varieties of the same fruit.

EasyFlow is fully compatible with existing POS (Point of Sale) systems and its first shop installation is scheduled for summer 2011.

ITAB is the clear market leader in Europe for check-outs, with more than 20,000 units being delivered to its customers each year. The company manufactures equipment in wood and metal and provides design, development and project management, as well as installation expertise and services. ITAB’s diverse product range includes all forms of

display equipment, shelving, entrance systems and trolley parks, as well as store protection and peripheral equipment.

Value-creating acquisitions

Whilst the ITAB Group continues to see strong organic growth, it is also looking to accelerate it further through strategic acquisitions. With a firm commitment to enhance its product offering to its customers and to further strengthen its comprehensive range of services, the company recently acquired a leading shop lighting company, the Nordic Light Group. This high technology group develops and manufactures quality lighting systems for the food and non-food retail industries. With its two large factories in Suzhou and Shenzhen in China, the acquisition will enhance ITAB’s strategy for the growth and development of its production and logistics operations in Asia.

This latest acquisition is fully in line with ITAB’s strategy to offer a complete, one-stopshop service. That service includes lighting, shop fitting, check-outs, installation and project management. Ulf Rostedt, ITAB Shop Concept Group’s CEO said, “This acquisition strengthens both ITAB’s and Nordic Light Group’s complete offer. Together we will be able to meet our customer’s increasing demands for a complete concept service from one supplier”.

Growth in the food retail sector

ITAB is continuing to see significant growth in its provision of installation and project management services to Europe’s largest retail food outlets. In the UK, ITAB has secured a long-term contract with the country’s leading supermarket chain, who decided to select ITAB as its main supplier and project leader for their on-going expansion programme. According to ITAB, the contract was signed because this customer required a strategic, reliable and flexible partner as part of its store expansion plans. This ‘blue-chip’ contract includes production, logistics, installation, project management and product development services and is estimated to be worth more than SEK 500 million during the years ahead.

Another UK retail giant, Sainsbury’s has also signed an agreement with ITAB as its main supplier for shop fittings and the project management of its new construction and renovation programmes. ITAB will be the main supplier to Sainsbury and has already supplied almost half of the retail chain’s interiors in recent years. This latest contract with Sainsbury is expected to increase the company’s order volume by over SEK40 million.

In the Nordic region, the Swedish Coop Store and Supermarket chain, CBS, has signed an exclusive agreement with ITAB as its main supplier for a pilot scheme involving the installation of new store check-out systems. Initially the order from CBS includes the delivery of 10 MoveFlow™ units for two of its premier stores and is a test installation before a larger roll-out programme. The company confirmed that this agreement is of strategic importance and ITAB considers it a milestone, as it is its first self-checkout order to be installed in Sweden. n