Sogo & Seibu Partners with ROUTE06 to Launch Innovative OMO Store

Open innovation drives development of new department store formats

Sogo & Seibu Co., Ltd. (Head office: Chiyoda-ku, Tokyo; President: Takuji Hayashi; hereinafter "Sogo & Seibu") and ROUTE06,Inc. The new business of Sogo & Seibu, "CHOOSEBASE SHIBUYA," is a store development project. The store will be developed in a RaaS format¹ utilizing cutting-edge technology to create encounters between the digital native generation and emerging brands. We aim to provide new value through open innovation between department stores and startup companies.

Features of "CHOOSEBASE SHIBUYA

CHOOSEBASE SHIBUYA is a media-driven OMO store that offers a dynamic shopping experience, continuously introducing customers to new brands and products²." The store proposes the next generation of "encountering meaning and buying will" (EC site opens today, September 1, and the real store is scheduled to open on September 2).

The OMO store system, which integrates in-store and EC systems and operations, allows customers to freely move back and forth between online and offline. The OMO store is a rare example in the department store sector of a complete inventory linkage between stores and EC, and pursues a customer-oriented purchasing experience in which customers can purchase products they have seen in stores online after returning home, or receive products purchased online at the store.

Sogo & Seibu also adopted the RaaS format for the first time. By taking care of all operations other than system registration and delivery of products for sale, we have created a system that makes it easy for brands with little experience in opening brick-and-mortar stores to open their own stores.

Main features of "CHOOSEBASE SHIBUYA"

• Contactless checkout system integrated with digital catalogs
• In-store data analysis (traffic/visits/purchases) using AI cameras
• Complete real-time inventory linkage between in-store and EC
• Receiving/delivery system including BOPIS and in-store delivery
• Data platform integrating in-store/EC/Web media

Background of collaboration - Open innovation with startups

CHOOSEBASE SHIBUYA" is pursuing the next generation of digital-based shopping under the mission of "FUTURE OF RETAIL". To realize this mission, it was necessary to design a UI/UX that comprehensively encompassed both stores and EC, develop systems, and build logistics, all without being constrained by existing mechanisms.

ROUTE06 is a startup with knowledge of business and logistics in the retail industry, and is challenging to realize DX for major companies with cutting-edge technology. In the fluid project of a new business, ROUTE06's expertise and mobility as a startup matched the concept of "CHOOSEBASE SHIBUYA" and led to this collaboration.

Details of the collaboration

• RaaS business development
• Digital UX design and UI design
• Store and EC operations and logistics design
• System architect and agile development
• Technology partner selection and API provision

Comments from a representative of Sogo & Seibu and ROUTE06

Kentaro Ito, Director, CHOOSEBASE, Sogo & Seibu Co., Ltd. We believe that the mission of department stores from now on is to pursue the purchasing experience sought by customers. We are delighted to have been able to shape Sogo & Seibu's new endeavor with ROUTE06. As a leading store in the future of retailing, we are committed to providing new value to both our customers and the brands in our stores."

Takafumi Endo, CEO, ROUTE06,Inc. We're thrilled to partner with Sogo & Seibu and to have collaborated with the dedicated CHOOSEBASE team on this innovative store launch. We are confident that OMO stores in department stores will become the industry standard in the near future. We are committed to providing exciting experiences and opportunities for CHOOSEBASE customers and the brands that will be opening stores in the future.

Outline of CHOOSEBASE SHIBUYA Store

Store name：CHOOSEBASE SHIBUYA Opening date: EC site, Wednesday, September 1, 2021; real store, scheduled for Thursday, September 2, 2021
Location: Seibu Shibuya parking building, 1st floor
Area: approx. 700 m2
Exhibitors: 54 companies
Number of items: approx. 400
Items handled: Western goods and sundries, etc.
Official website: https://choosebase.jp