Investing in Skupos
We’re investing in Skupos as a play on our vision of the future of retail. Skupos’ real-time inventory data fundamentally changes the game for convenience stores (c-stores), distributors, and brands. Automated retail and same day delivery are the future of commerce, and Skupos enables its customers to benefit from these shifts.
Skupos leverages scan data from c-store transactions that, in our view, will play a crucial role in the emergence of cashier-less commerce and same day delivery from c-stores.
The $50B Automated Retail Opportunity
In 2016 there were 3.5 million cashiers in the U.S., according to the Department of Labor, with an average salary of $13,574 (Data USA). That represents a nearly $50 billion opportunity in cashier-less retail. Of those 3.5 million cashiers, 323,000 are convenience store or gas station employees, 9% of the cashier workforce.
Same Day Delivery Isn’t Solved Yet
Just 12% of Americans live within 5 miles of one of Amazon’s 194 fulfillment centers, according to data from Piper Jaffray. Including the 427 Whole Foods Market stores as “Amazon fulfillment centers” increases that number to 30%; expanding the distance to 20 miles increases the number of Americans that live near an Amazon fulfillment center or Whole Foods to 63%.
Amazon’s network is impressive, but not good enough. It’s why we still see $35 minimums and $5 on-demand delivery fees.
By contrast, 93% of Americans live within 1 mile of one of the 155,000 convenience stores in the U.S., according to the NACS.
93% of Americans live within 1 mile of a convenience store.
Imagine the power of leveraging convenience stores as nodes on a same-day-delivery distribution network. Suddenly, it’s feasible to deliver a can of Coke and a Snickers bar instead of 6 twelve packs of Coke and a dozen Snickers bars, just to meet a minimum. Skupos’ real-time inventory data will enable convenience stores to join the same day delivery distribution network.
The Value of C-store Scan Data Today
C-store scan data is also incredibly valuable today. Skupos gives retailers, distributors, and brands real-time insights into sales and product velocity. Since launching in 2016, the company now tracks and analyzes over 2 billion c-store transactions per year for over 2,000 customers.
We’re proud to partner with Jake, Mike, Linh, and the rest of the Skupos team to help build the future of retail.