Digital allrounder: from price tags to self-checkout
q.beyond invests in self-checkout specialist Snabble
q.beyond AG is acquiring a 25.4-percent stake in Snabble GmbH. Snabble has already demonstrated the functionality and market maturity of its proprietary scan-&-go solution at major retailers such as IKEA, TeeGschwendner and tegut. This new financing round will enable the start-up, which was founded in 2018, to extend the scope and functionality of its product. q.beyond will integrate the innovative solution into “StoreButler”, its own highly scalable retail platform, and thus access further growth opportunities.
q.beyond covers the entire shopping experience
Thorsten Raquet, a member of q.beyond’s management, stresses the strategic significance of the new investment: “Store digitalisation is currently the number one topic for retailers. Our StoreButler retail platform now covers the entire shopping experience with integrated solutions – from digital price tags to self-checkout.”
The two companies are already working together on initial projects and this investment will now firm up the links between q.beyond and Snabble. The contract they have signed provides q.beyond with the option of increasing its shareholding from 2023 and acquiring a majority stake. The parties to the contract have agreed to maintain confidentiality about the specific terms.
Scan-&-go solution increases customer satisfaction and purchase values
The Snabble app enables customers at stores to scan purchases themselves and to pay for them directly via the app. The solution can also be integrated into self-service checkouts. In practice, this accelerates the payment process by up to 60 percent, with a noticeable increase in customer satisfaction and average purchase values. To acknowledge this, in spring 2021 the prestigious EHI Retail Institute singled out Snabble for the reta award as “Top Supplier Retail”. q.beyond also received the reta award as “Top Supplier Retail” for its StoreButler retail platform.
Sebastian Mancke, Snabble’s founder and CEO, welcomes q.beyond’s investment: “Our success story can continue. Together with q.beyond, we will take digitalisation in the retail sector to a new level.” Opportunities would result above all from the higher selling power and the integration of the Snabble solution into q.beyond’s StoreButler.
Disproportionate growth with retailers
By making this investment, q.beyond is extending its innovative lead in the retail sector and tapping additional growth potential. The StoreButler will act as a key growth driver in this respect. “The platform business is highly scalable”, stresses Thorsten Raquet. This primarily benefits those customers who wish to turn all their existing space into a digital store in just a few days and then manage this centrally. Fressnapf, the European market leader for pet supplies, uses the platform to reduce its losses with perishable pet food, for example, and thus make its merchandise cycle more sustainable. q.beyond benefits in parallel, as rising revenues in the platform business lead to disproportionately higher earnings contributions.
Highly scalable platforms increase profitability
q.beyond is currently also working on digitalisation platforms for its three other focus sectors, namely manufacturing, energy and logistics. Jürgen Hermann, CEO of q.beyond, points to the future prospects: “Our digitalisation platforms offer a superb foundation for strong and profitable growth beyond 2022 as well.” For 2022, q.beyond has budgeted revenues of € 200 million, a sustainably positive free cash flow and an EBITDA margin of more than 10 percent.