GK Software has set its sights on the Benelux. The internationally operating specialist in store automation expects its cloud solution to add value for retailers in various sectors. Simac has recently been acting as GK Software's forward post in the Netherlands and Belgium.
GK Software has become big in food retail. The German software house has long been automating the shopping processes of large supermarket chains such as Lidl and Edeka.
"In addition, we have been supporting retailers from other segments such as fashion, DIY and electronics for many years. The focus is on large, often internationally operating retailers, but with our CLOUD4RETAIL platform we can just as easily support the activities and processes of smaller retailers."
Needless to say, store automation today encompasses much more than just a traditional point-of-sale solution. A modern store has many more "touchpoints," ranging from self-checkouts to displays to mobile apps to electronic shelf labels. Retailers want an open IT platform that supports all those touchpoints. "In addition, think about omnichannel solutions. Consumers want to be able to order their products online and pick them up or return them in store. To enable that kind of process, we have built interfaces with all known e-commerce platforms."
Scanless stores
In response to developments in society, GK Software invests a lot of time and money in innovation. Dimde mentions the increase in working from home, which is increasingly intertwining people's working and private lives. At the same time, he sees that people are increasingly busy and therefore have less time to visit the store. "As a result, the need for self-services is growing, ranging from self-scanning and self-checkouts to 'frictionless shopping' and 'scanless stores.' Our answer to that is GK GO, a solution that allows consumers to check in, grab products and just walk out again."
The changing behavior of consumers also means that mobile solutions are becoming more important. After all, it is no longer the retailer but the consumer himself who chooses which channel to use. Even if it has succeeded in bringing consumers into the store, it does not mean that they will also make their future purchase there.
"Another issue is hyper-personalization. We must no longer divide our customers into segments, but into individuals who want a personalized approach. Data is crucial for that. The question is how to collect, analyze and translate that data into personalized actions. That requires new functionality in terms of loyalty programs and dynamic pricing."
To the cloud
In recent years, the pace of innovation has accelerated. New entrants are entering the retail market with innovative, disruptive business models. At the same time, online marketplaces such as Amazon and bol.com are becoming increasingly powerful. "The only thing retailers can do is respond to this at lightning speed and innovate themselves. This is only possible with flexible and scalable IT solutions. That is why we have completely revamped the technology behind our retail platform and moved it to the cloud. Retailers can therefore scale up quickly and adopt new innovations immediately."
A full cloud solution comes with risks. What if the connection to the cloud is unavailable for some reason? "That's why we have set up our platform so that we can also support stores in an offline mode at any time. If the Internet connection is down, customers can still checkout at the checkout." Another differentiating factor is that GK Software is hardware-independent. Many store automation vendors originate in hardware. GK, on the other hand, was founded as a software house. "Our platform works with any hardware that retailers want to deploy," he said.
New market
GK Software has 15 offices in nine countries, including the United States and South Africa. Currently, the company is setting up offices in Asia and Australia. "We ended 2021 with sales of 130 million euros and want to grow to at least 160 million euros by 2023. This can only be achieved by strengthening our position in current markets and entering new ones." One of those markets is the Benelux.
"A new market means a new culture, a new language and a new network. We have seen in many countries that the retail sector operates as one big family. Everyone knows each other, including competitors. As a world leader that is among the fastest growing in its industry, GK is well positioned to enter the Benelux market. Nevertheless, we went looking for a strong, local partner. We found that in Simac: a strong player that maintains good relationships with retailers."
The fact that Simac, like GK, is a certified SAP partner factored into the decision. "We are a SolEx partner of SAP, which means we provide a 'solution extension.' Retailers using SAP in the back office can have a fully integrated store automation solution with our software. So we complement each other well at the SAP level as well. That creates a win-win-win situation: profit for us, for Simac and for our joint customers."
In conversation
Talks about closer cooperation started early last year, leading to a full-fledged partnership. Jean-Paul Lardenoije, sales manager at Simac: "We have good connections with retailers in the Netherlands and Belgium. That makes it easier to knock on their doors to talk about the possibilities of GK's CLOUD4RETAIL platform. We are now in talks with some retailers." Simac also plays an important role once retailers have decided to invest in CLOUD4RETAIL. Dimde is thinking about setting up joint teams for implementation of the software, rollout of the realized solution to all stores and first- and second-line support. "Simac has a wide range of services that we as GK do not offer ourselves and that we do not consider our core business."
"Many retailers in the Benelux are expanding their operations abroad. As a result, the need for solutions that are supported globally is growing. Moreover, many existing solutions are based on outdated architecture. Those who want to be ready for the future need a modern cloud solution that answers the questions retailers are struggling with."
