- 2 days ago
Over the past two decades, the rise of e-commerce has created new standards for personalization capabilities. Today, physical retail is entering its own new chapter. As connected infrastructure transforms every touchpoint in the store, from price tags to shopping carts, the physical aisle is becoming as responsive as any digital experience. The challenge is building the tech foundation to make it work at scale, securely and responsibly. How do you bring the depth of personalization that exists online into a supermarket? How do you deploy that infrastructure across thousands of stores? And as the store becomes conversational, how do retailers ensure it genuinely helps consumers make better decisions rather than just driving transactions? Vusion is helping answer those questions, one connected store at a time.
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TechTranscript
00:20So, good afternoon, everyone.
00:23It's a real pleasure to be here again at Viva Tech.
00:26I hope you enjoy the show, and I hope you've enjoyed your visit to the Vision booth where
00:33we are reimagining retail.
00:36I'm extremely happy and proud to share the stage with someone that needs very little introduction
00:45here, obviously.
00:47He's one of, probably one of the most famous retail leaders in Europe.
00:54He's very well known here because he was the CEO of Carrefour France.
01:00And so, thank you and welcome, Ramy.
01:04And I think we can all welcome him back in Paris.
01:07Merci beaucoup.
01:11And also a great Vision customer.
01:14Ramy, before we talk about, you know, how we are reimagining stores and how you are doing
01:21that in the UK, I'd like to start a little bit with your journey.
01:25You are one of the very few, you know, retailers, retail leaders who have built an incredible
01:33international career from Carrefour to now Morrisons.
01:37Can you just, you know, tell us a bit about your journey, briefly?
01:42Yes, of course.
01:44Hello, everyone.
01:46I love retail.
01:48You know, retail is a people business.
01:51Retail is about product and about technology.
01:56And I started in Carrefour 30 years ago in the store as a student.
02:01And then I evolved as Carrefour in the store and head office.
02:05After Carrefour France, I went to Poland.
02:08Then I went to Turkey, Romania, and my previous employer wanted me to, and so my capacity to
02:20turn around businesses.
02:22So I was asked to go and turn around our business in Taiwan and then Carrefour business in Argentina.
02:29Coming back to Europe, to Spain, and then ending back to Carrefour France, where I started in 2020, actually.
02:38So I came back to Carrefour France and I managed Carrefour France for three years.
02:43Three years ago, I was called by Morrisons that is owned by private equity CDNR in the UK to lead
02:53the
02:53turnaround of Morrisons in the UK.
02:56Well, great.
02:57So you've been working in so many different, you know, markets, Asia, we mentioned, South
03:03America, obviously Spain, France, now the UK.
03:07Did it teach you anything universal about retail?
03:11Is there anything that is really universal about retail?
03:15For me, there's three things that I love about retail.
03:18They are really universal.
03:20Number one is the people business.
03:22So it's all about the customer.
03:24Customer centricity is absolutely true, whether it is in Taiwan or in Argentina, in France, or now in the UK.
03:33It's about colleagues, colleagues' empowerment.
03:36This is absolutely important.
03:38And this is universal.
03:40And also, it's about technology, because technology, it is the way for the retailers to improve productivity and innovation, so
03:51we keep up to date with the customer behavior changes.
03:55And do you, well, there is another thing a bit universal about retail, is that retail is a little bit
04:00under pressure, right?
04:02So maybe we can discuss briefly, you know, what do you think are the key, you know, challenges that are
04:09facing retailers today, before coming to the UK, just general challenge?
04:16Well, I mean, I can say the customer behavior changes, the customer, the consumption behavior changes.
04:26But this is not new.
04:28It has always been the case.
04:29But now with the digital evolution, the digital development, now the customer is changing very fast.
04:36Also, there is a social development, the social evolution in the societies.
04:40We can see the size of the families.
04:43We can see the way the families, they used to shop, and now they shop.
04:47We used to see years ago, the shoppers coming in the weekend to shop big trolleys.
04:54Now the shoppers, they shop online immediately.
04:57When they go to the store, they shop smaller basket in the closer store, and the categories that they used
05:05to shop, now they shop differently.
05:07That's why I was talking about innovation, which is absolutely important to keep the company, retail sector, up to date
05:15with the consumer behavior.
05:19But also, the regulation and all the legal taxes, all the laws about retail, I mean, all of this is
05:31disrupting the sector.
05:34Today, as we speak, I mean, in France, I used to work in France, and a lot of laws about
05:42EGALIM, EGALIM 1, 2, 3, perhaps now more.
05:46And in England, more taxes coming on the retail.
05:51So all of these changes, actually, require from retailers to put people, customers, employees, colleagues, and innovation as priority.
06:07Any other thing that you would say is specific to the UK market in that respect?
06:14The UK market, actually, the advantage of the UK market is the disadvantage of the UK market.
06:22It's a very free market.
06:24You can do anything you want freely in the market.
06:28So the managers, when we manage a company in the UK, we can decide many things in our office.
06:35We don't need a lot of procedures, legal procedures, consultations, etc.
06:40So, yes, we can sell any product at loss.
06:43If you want to sell any product at loss with no margin, you can do that.
06:47You can do more promotions.
06:50You can start the clothing discount at any time.
06:55So the market is very free.
06:57The disadvantage is that the market is free for everyone.
07:02So everyone can do it.
07:04So you need really to belong to a premiership because it's free market.
07:09It's easy market to operate because everything is allowed.
07:12You can change the size of your team.
07:14You can downsize.
07:15You can hire.
07:16You can do a lot of things.
07:18It's a very flexible market.
07:20But this flexibility is given to everybody.
07:23So the discounters, they can really express their strength about the value.
07:32The quality retailers, they can express their strength about the quality.
07:37So when we want to play in the UK market and serve the British customers, we absolutely need to be
07:46ready to play the game, fair game.
07:49But you need to be up to the level.
07:50So it's very intense competition, basically, what you're saying.
07:54It's extremely intense competition in terms of value.
07:58Yes.
07:59In terms of value for money, the British market is one of the most competitive markets I have ever experienced.
08:06Yes.
08:07And actually, in that light, I'd like to mention also the remarkable results that you announced yesterday,
08:18which I think amazed a lot of people because when you made that choice of going to the UK and,
08:24you know,
08:25become the CEO of Morrison's, probably not so many people would have bet that this would be, you know, successful.
08:33And looking at those Q1 and then yesterday Q2 results, it looks like now you're really successful in achieving this
08:40turnaround.
08:40And it's so whatever, I mean, in what shape was Morrison when you joined, actually?
08:46So thank you for this.
08:48A lot more to do.
08:50Really a lot more to do.
08:51More opportunities to come.
08:54Morrison's required.
08:55Morrison's is 100,000 colleagues.
08:58Morrison's, we are vertically integrated.
09:00We have 16 factories.
09:02We produce the product that we sell.
09:04We have abattoirs.
09:06We have 3,000 farmers who work for Morrison's.
09:09We have Market Street.
09:11We have butchers.
09:11We have bakers.
09:12We have fishmongers.
09:13We are the only retailer in the UK with Market Street, with fishmongers, butchers.
09:21So we are differentiators.
09:24Morrison's is 127 years in the UK.
09:30Wow.
09:30I joined Morrison's, when I joined Morrison's, it's required to turn around.
09:35But I joined Morrison's because they wanted, they needed to turn around.
09:40And I love turning around because, as I said, I love technology.
09:46I love people, customers, and colleagues.
09:49And these are the ingredients we need to do the turnaround.
09:52So, the result that you talked about yesterday, and for the last two years, let's say, so we
09:59announced a 14th consecutive like-for-like, positive like-for-like, a quarter.
10:06We announced positive EBITDA growth, 5 plus upon 7%.
10:11We announced positive cash, plus 100 million more cash than last year.
10:17We announced NPS, customer NPS, which is the fastest growing in the UK, plus 15 points, that put us in
10:25online.
10:25Just after Tesco, three points away from Tesco.
10:28So, our size is not Tesco.
10:31So, we are only 10% of the market, 13% in online.
10:36But our energy and our momentum is going, is heading in the right direction.
10:44And there is a lot, lot more to do and more opportunities and more customers to serve.
10:51When you joined, what have been your priorities?
10:54I mean, seeing the situation in which Morrison was, what has been your priorities?
10:59And can you tell us a little bit about your approach to create momentum, your 5-5-5, you know,
11:05very well-known sort of method?
11:09So, number one, it's my eighth market.
11:12So, every time I join the market, and mainly the Morrison's, I try to understand the DNA of the company.
11:19And I protect the DNA.
11:22I don't change the DNA.
11:23I change the culture of the company.
11:25I adjust the culture of the company.
11:28If there are weaknesses, we need to adjust the culture of the company.
11:32But we don't touch the DNA.
11:34So, number one, understand the company.
11:36Understand your customers.
11:38And don't touch the DNA.
11:40Protect the DNA.
11:41And change the culture.
11:43So, in terms of culture, I wanted to put a customer-first culture.
11:48So, my first meeting on Monday morning is with customers.
11:53Digitally connected, dialed in.
11:55Customers, we talk to them what we did well, what we need to improve.
11:59And then, with the data, this gives us the awareness and tells us the truth about what the customers think
12:07about us for the future.
12:09Number two is talk to colleagues.
12:12What do you like about Morrison's?
12:14What do you don't like about Morrison's?
12:15If you were me, what you would change?
12:18And here, they give you a lot of operational things that you can start sorting out at the moment, the
12:25same day.
12:25So, and you simplify the processes.
12:29Teams empowerment.
12:31We, some leaders are afraid to give empowerment to the team.
12:36I believe that team empowerment is one of the solutions to turn around companies and to make them sustainable for
12:43the future.
12:44And third is to look at every area to improve my productivity, including technology solutions, including using AI solutions.
12:54And this has helped me make a huge difference in the market.
13:01So, for example, I'm using AI algorithm to reduce my total loss, theft, waste, what we call yield, etc.
13:08Over the last six months, we improved by 30 million pounds versus last year, which is an astronomic number and
13:18more to come.
13:20You mentioned about the 555.
13:22Actually, it's an approach that I wrote with a store manager in Turkey 10 years ago, or perhaps more.
13:31However, when your strategy is known, we know where are we heading to.
13:38We know what do we want.
13:40So, our strategy is to be the best and fresh in the country, is to win more missions than customers,
13:46is to save, to invest, and to have the holistic objective to grow market share, grow EBITDA, grow cash, and
13:57grow customer satisfaction.
13:58So, this is the strategy.
14:00Now, the 555 helps me translate this long-term strategy in day-to-day operational actions.
14:08So, this is the idea of the 555, is how can I make sure that the long-term strategy is
14:15something that everyone can understand in the day-to-day business.
14:21And you are, in doing that, so we understand this very strong belief that it's a people-first business, whether
14:28it's shoppers or associates, you are very technology-driven.
14:31I think it's important to remind that you have been, you know, I think, back in 24, introducing electronic shelf
14:38labels in Carrefour.
14:41And now, you are a pioneer in electronic shelf labels in the UK because you will be the first supermarket,
14:50grocery supermarket chain to have completed a full-chain rollout by the end of next year, which is really...
14:56So, you are, again, a pioneer, and you want to use where...
15:00So, we are embarking on a new program.
15:02And I'll just quote you because I think it was really interesting when I met earlier with Ramy about the
15:11new phase of the program, which is a bit similar to the one that we are embarking with Worldmark and
15:17Carrefour.
15:19Ramy said to me, he said, look, it's very simple.
15:22There are two areas in technologies.
15:24One is going to be, you know, the operations.
15:26The other one is changing the, you know, the journey of the shopper.
15:31However, first is operation.
15:33It's very simple.
15:34I want every minute of labor, every inch of shelf space, every unit of stock to perform at its highest
15:43potential.
15:44I remember this sentence.
15:46I made it mine because it's a great, you know, way to summarize what you want to do with computer
15:52vision, with electronic shelf labels, with all the, you know, the guided picking environment to increase e-commerce, et cetera.
16:00And this, so I'll just let you, and I will talk about the shopper because it's really exciting too.
16:06But look, you remember that sentence, right?
16:09Absolutely, 100%.
16:09So, just back in the days, when I started at Carrefour, I was a student.
16:15I was given the paper to place the order for my aisle, and it took me three hours to place
16:21the order manually at that time.
16:23I didn't want to spend three hours placing the orders manually.
16:27So, I developed at that time algorithm on Lotus 1, 2, 3 at that time.
16:33And it helped me automate all the other proposal system.
16:38And until now, Carrefour still use this algorithm, of course, in more developed technology platform.
16:47But this was the start.
16:48So, yes, I'm technology-orientated manager and now CEO.
16:53CEO is not because of the beauty of the technology, but because it provides me a competitive advantage versus my
17:04competition in a very tough market.
17:06And you talk about pressure.
17:07So, talking about the electronic shelf label, I was the first one putting the electronic shelf label in Carrefour in
17:142004.
17:15And now, with all the technology and the digital development, I feel that this is the right moment for me
17:22to make it happen in the UK.
17:25The labor cost is getting higher and higher.
17:27There is no way in five years that the labor cost will get lower.
17:31When we listen to the customer, what are your main pebble on the shoes?
17:35What are the main problems you face when you are in the store?
17:39Remember, the store are still important for 90% of the customers.
17:44So, it is where things happen.
17:46I am very good in online.
17:49We are performing very well online.
17:51But we need to perform excellently in the stores.
17:56So, when we ask the customers what you dislike about the store, they say, we love your stores.
18:01And arguably, when I listen to these customers in Taiwan, in Japan, in Argentina, in Spain, it's always the same.
18:12They say, your prices are not clear enough.
18:15I can't understand your prices.
18:18There is no price.
18:20The price between the checkout and the shelf are different.
18:24You are lying to me.
18:25With the electronic shelf life, you avoid the labor cost increase impact in the future, but also you delight your
18:35customers, but also you delight your colleagues.
18:38The last week, my colleague said to me, thank you very much for this electronic shelf label that flash, actually,
18:44to help the picker online to pick the item easily.
18:48So, there are so many things, and this electronic shelf life, the future for it in the coming years is
18:57to connect this small screen to your screen, to the customer mobile phone,
19:04and then this connection will eliminate the pebble in the shoes, and then will understand the customer, because we know
19:12the customer through the loyalty card.
19:1480% of our sales, they go through the loyalty card.
19:17Yes.
19:17So, all of this together will allow us to serve the customers more, and then the customers will buy more
19:25in our stores.
19:26Just to give you an example, Colgate is like a normal product that is international.
19:32Everybody knows Colgate.
19:3418% of Colgate consumers, they don't buy Colgate in Morrison's, and they are very loyal to Morrison's customers.
19:44So, they are very loyal to Morrison's, but they don't buy Colgate in Morrison's.
19:51They buy it outside.
19:52So, if one day we can connect the electronic shelf label to my loyal customer's mobile phone with a specific
20:03offer,
20:04I'm sure that we will recover a big chunk of the 18% we're talking about.
20:10Absolutely, and you're talking about something that was a bit promoted by Carrefour this week or last week,
20:17because you've seen these hyper-localized and hyper-personalized promotions in-store, in the aisle, at the shelf,
20:24which is exactly the capability you're talking about.
20:27I remember, again, you saying to me, you know, okay, that's one thing, the operations,
20:32but now I want the shoppers in the future to be feeling the store is as personalized and as user
20:42-friendly as a website.
20:44And that was one of the capabilities were coming.
20:47You said, so we need to be making the store interactive, making the shelf interactive.
20:52That's the new program we're embarking now, which will allow, actually, the shelf to talk to your loyalty app,
21:00because I think Morrison's, what's great about Morrison's, you have 8 million members on more of the app,
21:07so you have incredible value in understanding the customer.
21:12But now you need to connect that to the shelf where everything happens, the moment of truth, right?
21:17I mean, this is the solution.
21:19Let me share with you some concrete data.
21:22So Morrison's online and our 500 supermarkets and 1,800 proximity stores, convenience stores,
21:30we are, in terms of net promoter score, number the fifth out of ten, fourth, fifth, where we come from
21:39in terms of stores.
21:40Online, we are second.
21:42The difference between the online and the store is what the customers, they say,
21:48the price clarification and the clarity, with the connection with the customer, with my loyalty card.
21:57And they say all the shippers, the cages that they can find in the store, but this is another story.
22:02By helping our stores to have this connection between the shelf labels and the mobile phone,
22:11and to have this connection, the price clarification will be in the store as it is on the website.
22:19So in terms of customer satisfaction, in terms of sales and growing the margin is an immediate solution for us,
22:27without talking about retail media, because behind every screen, you rent retail media,
22:33you talk to your suppliers, and your suppliers are very happy to support retail media.
22:40Yes, and I remember you said, you know, the store must be an omni-channel asset,
22:46the store must be, obviously, a data asset, and there is a lot to do with the collaboration with brands,
22:52and the store must be a media asset, because that's where the traffic is, that's where the sales are,
22:58and so making the store a media asset is going to be one of the new programs that you are
23:04going to embark,
23:04is to increase the retail media in-store, digital retail media in-store.
23:09There are many square meters in every market now.
23:13The markets are saturated, and there are new players like a media scenario.
23:18You have Uber Eats, Just Eat. We need to think about them.
23:21We have the onliners, Amazon, etc.
23:24And the number of square meters, those who will remain and stay in the future,
23:30are those who can connect with the customers, those who can connect with the colleague,
23:36and those who can connect with the innovation.
23:38Of course, the quality of the product is absolutely key.
23:42The quality of the service is absolutely key.
23:45But these mentions, actually, they will allow in a consolidating market, let's say,
23:51because consolidations is every day happening in every market.
23:54Those who will win the future are those retailers who will win this battle about the customer,
24:01about the colleagues, and about innovation and technology.
24:06I think we're close to the conclusion.
24:09Thank you very much, Rami.
24:11I think it's really exciting what you're doing in the UK.
24:14It's just fantastic.
24:16And we're going to follow you very closely because it looks like this turnaround of Morrison
24:22is going to tell us a lot about the future of retail.
24:25Thank you very much and welcome.
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