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As in-house innovation labs falter and the competitive landscape picks up, retailers are buying up technology companies to gain an advantage — and take back control.
- This week, McDonald’s purchased Dynamic Yield, a marketing technology and data processing company, for $300 million in order to get customers smarter product recommendations online and in the drive-thru lane.
- In February, Walmart purchased Aspectiva, an AI solution that collects product reviews to offer customers more personalized recommendations.
- In 2018, Nordstrom acquired two technology companies, BevyUp and MessageYes, two customer service messaging platforms, to connect store employees with customers to respond to questions and give styling tips in the Nordstrom app.
- In November, Ulta bought QM Scientific and GlamST, two AI and augmented reality startups, to build in new technologies into its digital experience.
- Kroger bought data technology firm 84.51 in 2015 to support its marketing business.
- Target bought last-mile delivery service Shipt in 2017 to help figure out localized deliveries and store fulfillments.
Analysts expect more retailers and retail brands to buy up tech players that have spent years establishing themselves as market leaders in categories like ad tech, big data processing, AI and machine learning, personalization, delivery and cross-channel capabilities — anything retailers and brands aren’t inherently skilled at, but need to master now to compete in an era where Amazon dominates the industry.