VenHub, developer of fully autonomous and robotic plug-and-play Smart Stores, aims to dramatically reshape the retail landscape with its innovative technology. These Smart Stores can be delivered, unpacked, and merchandised virtually anywhere in the world within a few days. However, some industry stakeholders have raised concerns about the potential implications of this transformation.
One major concern is the potential for increased theft. According to the National Retail Federation, theft costs retailers more than $100 billion annually, largely due to shoplifting. These losses are particularly burdensome for traditional brick-and-mortar retailers operating on tight margins. VenHub addresses this issue by designing its modules with insulated walls, monitoring systems, and bulletproof glass, making them resistant to theft, riots, and fires. This enhanced security is expected to reduce operating expenses and expand margins for retailers.
Another objection is the potential for job losses due to automation. McKinsey & Company notes that retail has traditionally experienced high employee turnover, often exceeding 60%. VenHub argues that its technology will create more high-paying jobs than it displaces. As the industry evolves, the need for highly skilled workers to manage and maintain these autonomous stores will grow, potentially offering better wages than the low-wage jobs that might be replaced.
Concerns about consumer adaptation to new technology are also prevalent. At the end of 1999, online sales accounted for just 0.6% of all retail transactions in America, but today they represent about 16%, totaling more than $289 billion. VenHub's Smart Stores offer similar benefits to online shopping, such as convenience and avoiding crowds, making it likely that consumers will adapt to this new retail format.
Some believe that people are not ready for a fully autonomous shopping experience. Research from Deloitte indicates that retailers must explore new business models and change the mechanics of their operations. VenHub allows retailers to customize their Smart Stores to meet local market demands, combining the strengths of both physical and digital retail.
There is also skepticism about the viability of fully autonomous stores in rural communities. The U.S. Department of Agriculture (USDA) notes a significant decrease in rural grocery stores since 1990, often replaced by convenience stores. Additionally, 80% of Americans in rural areas must drive five miles or more to reach the nearest grocery store. VenHub's Smart Stores can be solar-powered and located closer to these communities, offering tailored merchandise to meet local needs.
To date, more than 800 VenHub Smart Stores have been pre-ordered globally. These stores use an app-based ordering system, making items available to consumers 24/7. Leveraging artificial intelligence and smart inventory management, the stores generate revenue around the clock. The prefab VenHub Smart Store is an expandable 800-square-foot plug-and-play storefront technology that can be installed in just a few days.
As VenHub prepares to issue shares to the public in a Regulation CF offering, facilitated by Issuance Express, the company stands poised to revolutionize the retail industry with its autonomous Smart Stores, addressing many current retail challenges and paving the way for a new era of shopping.
