Case Study: S-Group and Naveo Commerce Partnership leads to a world-class on-demand experience Naveo Commerce Naveo Commerce

S Group A world-class on- demand experience for S-Group

“S Group is a multibillion-dollar company where decisions and new ventures take their time. The operations are heavy and in large scale. Quick ideas are not born in that kind of environment and if they are, they’re not quickly implemented.

The Challenge The Journey The Journey How to make the shift to digital, create With its revolutionary behavioral product Naveo Commerce offered us the perfect opportunity value to on-demand shoppers while recommendation engine, the Naveo supporting and enhancing the journey of shopping planner quickly became a hit. to utilize the agility and innovation of an the brick-and-mortar customers. It provided customers recommendations Personalized shopping list mobile of just the right products and recipes energetic start-up and carry it out under our own application • Multiple internal legacy systems not matched to their taste profile and optimized for digital operations shopping patterns. It also enabled brand. All of a sudden we had the chance to launch • Traditional corporate structure not them to add items of their favorite ideal for quick ventures recipes effortlessly to the shopping list. a new kind of a mobile service that is unique on a • Hundreds of stores with diverse This brought the everyday shopping assortments; hundreds of thousands experience of the brick-and-mortar global scale. Everyone involved quickly understood 900 of products customers to a new level while leveraging stores on the platform, full price • No resources for on-demand service the new digital age where people use this was something that could dramatically help and development their phones for solving problems and to simplify the everyday lives of our customers.” facilitate everyday tasks. But this was only the beginning for S Llkka Alarotu Grocery eCommerce for web and Group: the strategic partnership with Senior Vice President mobile with store fulfilment Naveo Commerce continued, and S-Group was soon able to provide its mobile users with real-time product and price information from all of its stores Dark store for high-capacity picking with high-quality images of each product. and order fulfilment The service was first of its kind in the world. Such transparency and accurate product information made shopping planning and comparing prices easy for S Group customers, increasing their loyalty In-store digital touchpoints to and engagement. engage customers in-store

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The service covers all S Group stores The Results The Results under four different banners consisting The results of the co-operation have of convenience stores, super- and been substantial in every aspect. , available on the web and Deploying Naveo’s fulfillment solution via iOS, Android and Windows native has enabled a rise of 50% in S Group’s 500 000 applications. picking efficiency. The Foodie.fi service active monthly users (10% of the now has more than 1.5 million registered country’s population) The next phase was the deployment web and mobile users of which 500 000 of Naveo Commerce’s eCommerce are active monthly. The average price of capabilities to selected S Group stores, their eGrocery basket is 2-3 times bigger leveraging both web and mobile compared to brick-and-mortar. S Group’s touchpoints. Along with eCommerce on-demand sales have seen a yearly rise 30% operations, S Group launched delivery of 50% and the best performing stores increase of store sales on the and Click & Collect services in most have increased their overall sales by best performing stores major cities in . Finally, to increase 30%. S Group dominates the on-demand its capacity in 2014, S Group opened grocery sales in Finland with a 56,9% Finland’s first dark store to serve the share. growing customer base, specifically 50% catering to home deliveries. The dark yearly increase in on-demand store runs on Naveo Commerce’s highly revenues optimized order management software and has enabled S Group to reach picking efficiencies of up to 200 items per hour.

50% The latest additions to our collaboration rise in picking efficiency are the new in-store touchpoints running on digital kiosks to enable true connected commerce. The touchpoints offer S Group the ability to provide their 56.9% customers an ‘endless aisle’, expanding share of on-demand grocery sales the store inventory. Orders placed in Finland through the kiosk can be delivered directly to customers from the retailer’s or supplier’s warehouses.

“The Naveo Commerce application has found its way to every Finn’s pocket as their trusted shopping app. We are constantly improving and adding to the service in close collaboration with Naveo Commerce, the key focus being on improving the customer’s shopping experience.”

IIkka Alarotu Senior Vice President of SOK

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Facts Additional Services We Offer S Group • 900 S Group stores on the platform • Strategic Planning • 1.5 million registered users • Technical Consultation • 100 000+ products with accurate • Content Creation & -Management price information, product data and • Data Monitoring & Enrichment high-quality pictures on web and • 6AM-6PM STORE Store Manager mobile Phone Support • Fulfillment from 20 stores • 24/7 Store Manager Online Support • 20 Click & Collect pick-up-points • Once-a-Week Brainstormeing • 8 stores offering home delivery Meetings • Average basket size 120€ • Online Marketing Planning

“We have reached the point where creating a dark store substantially improves the picking efficiency, logistics and quality of operations. The dark store is located close to an existing store giving us great synergy with the existing structures, logistics, flow of goods and staff without significant investments. Naveo’s solution supports seamless transformation from store based fulfillment to more optimized dark store operation.”

Jukka Tanua eCommerce Development Manager for HOK-Elanto

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About Naveo Commerce The Perfect End to End eCommerce Partner

For retailers – big and small – for whom success depends on growing online, we provide the perfect End to End platform: a cloud-based SaaS solution, with Headless commerce engine, OMS and Fulfilment technology. The solution is ideal for , SMB’s and Enterprise across all vertical markets.

Since the beginning we had a dream – it was We work closely with our customers to help them simple – to make buying online as smooth and realise their potential online growth through easy as possible. Digital Goodie was founded by a connected commerce. group of friends and entrepreneurs back in 2009. Ten years on and Digital Goodie acquired Maginus The Naveo Commerce platform has won awards in 2019. In September 2020, the two products for the best user experience in 2015, best online combined and Naveo Commerce was born! Our store of the year in 2013, and comet of the year in partnership with Magento and Episerver continues 2012. Our proprietary recommendation technology as a core consulting arm under Maginus, a Naveo is praised by IGD Retail Analysts. What’s more, Commerce brand. we are listed alongside leading applications in the Gartner Digital Commerce Vendor Guide and Naveo Commerce is venture-backed by the US eConsultancy’s Top 100 Digital Agencies Guide – based eCommerce growth fund Black Dragon both for two years in a row. Capital. Today we employ retail industry experts and technology specialists in two different continents across three locations.

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Tel: +358 20 794 0850 naveocommerce.com

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