REMA 1000 invests in digitalization and long-term benefits

The grocery chain, REMA 1000, owned by Norwegian company Reitan, was founded in Trondheim in 1979. At that time, the store was called REMA 600, as it had 600 items in stock. In 1980, the name was changed to REMA 1000 (today, the company sells more than 1000 items), and in the mid-90s, the chain expanded to Denmark, where it now operates 361 stores with around 15,000 employees.

When REMA 1000 needed to further digitize to support business innovation and growth, they turned to their long-standing partner, Cepheo.

IT Development Manager at REMA 1000, Lars Ruben Hansen, talks about the benefits of having a long-term relationship with the same IT partner.

"It's all about mutual understanding and knowledge of the IT solutions in use. It has been beneficial to have a partner with an in-depth understanding of our business because it allows us to come up with useful solutions more quickly."

The importance of an IT partner that provides consultancy, development and operations

For several years, Cepheo has been a strategic partner for REMA 1000 during their digital transformation journey, with the goal of creating new business opportunities.

The IT partner has not only provided support but also developed, implemented and managed solutions tailored to the company's requirements, needs and desires. This has allowed REMA 1000 to achieve its goals of incorporating the chain's values and corporate culture into its business.

Fundamentally, it's about sustainability, social responsibility, environmental considerations and making life easier for customers.

"We are keeping up with societal developments and striving to adapt to the needs that both current and future customers may have," says Lars Ruben Hansen.

Innovation that pays off

REMA 1000's dedication to meeting customer needs is exemplified by its provision of the latest digital payment solutions. This commitment has proven highly beneficial, as the grocery chain now boasts the second-highest number of MobilePay transactions in Denmark. To maintain this achievement, it is imperative that the digital payment solutions consistently perform seamlessly.

That is why REMA 1000 stores employ a Point of Sale solution developed by Cepheo, integrated into the Cepheo Payment Connector. This integration ensures that cash registers can always accommodate new payment methods without requiring extensive implementation and adjustments.

Through Cepheo Payment Connector, REMA 1000 receives updates that ensure that their payment solution remains up-to-date, benefiting both the chain and its customers.

In addition to the ongoing digital transformation of cash registers, Cepheo has also developed an integration for a unique payment solution and self-scanning app called "REMA Scan Selv." The aim is to save time for both customers and store personnel.

The app works by allowing customers to scan items using the app and pay via their mobile phones. The solution was launched in April 2022 and is expected to be implemented in all stores by September 2022.

"Before launching the self-scanning app, we conducted tests in selected stores and the response from customers has been nothing but positive," emphasizes Lars Ruben.

Cepheo also assists REMA 1000 with the stores' back-office ERP solution that uses Microsoft Dynamics NAV. This means that each store owner (REMA 1000's business model is franchise-based) can access and collect data for improved decision-making and streamline time-consuming administrative tasks, enhancing their customer focus.

"Our systems have been continually updated with the solutions offered by Cepheo," adds Lars.

An example of this is REMA 1000's online platform, "REMA 1000 med Vigo," where customers can meet and help each other with grocery shopping. Through collaboration and development with Cepheo, it became possible to integrate the Vigo solution directly with the debtor solution at the cash registers. The REMA 1000 med Vigo concept allows customers to order groceries online, which are then purchased by a registered buyer, possibly even the customer themselves, at a local REMA 1000 store and delivered to the customer's home.

This Year's Retailer makes life easier for customers

Loyalty Group is a consulting firm and market analyst that conducts annual surveys on customer satisfaction and loyalty in various industries in Denmark, Norway and Sweden. They examine parameters such as product- and service-quality, value for money, image, judgment, complaint handling and present awards such as the Loyalty Award each year. REMA 1000 has ranked No. 1 in customer loyalty for seven consecutive years.

"We owe our customers a big thank you for their support and the award, which brings immense pride and motivation to our 15,000 employees ‒ both in the stores and in the back-office ‒ who work hard and stay focused every day to provide our customers with a great experience. This first-place ranking provides even more motivation to continue this work," says Anders Rene Jensen, the chain's Director of Purchasing and Marketing, to Loyalty Group.

What makes REMA 1000 so successful that they have managed to stay in the top spot for seven consecutive years?

A good customer experience combined with sustainability and social responsibility are areas that have become increasingly important for retailers in recent years to meet customer expectations. So, the answer might lie in the values, company culture and the sensitivity to customers that Lars Ruben mentioned earlier. Innovation and digitization could be another factor, with the modernized store cash registers and the Vigo delivery app being examples of this. According to the Head of IT Development, customer satisfaction is evidence that everything is functioning well.

"You can’t single out one thing and say there is a connection. It's more about the overall impression customers have of the company."

Next on the shopping list

REMA 1000 is in the process of upgrading both its business system and the cash registers in its stores. The grocery chain's own shopping list includes a modern business solution that will better meet the needs of tomorrow.

"We still expect to invest in digital solutions, and if Cepheo has the best expertise in the relevant areas, they will, of course, be part of the solutions," concludes Lars Ruben Hansen regarding future digital investments.

One thing is certain: the company will continue its digital development while never forgetting that the customer experience is paramount. They are preparing for the future and making life easier for their customers.