AEON Co. Ltd. and Alibaba Group Holding Ltd.-backed technology startup DeepBlue Technology will form a joint venture in April to co-develop artificial intelligence-powered stores in China, the Nikkei Asian Review reported March 19.
The Japanese retailer reportedly is looking to use DeepBlue's technologies, which already produced a model of an unmanned convenience store, to develop its own small-format stores and shopping locations. AEON will invest $1 million in the project and hold a 65% stake, the Nikkei said.
The venture includes ideas for smart malls, which will have sensors and cameras to detect which items a customer picks up, robot vacuum cleaners, and a system that directs cars to available parking spaces, according to the report.
The project reportedly seeks to rival Amazon.com Inc. and other companies' high-tech store formats. The South China Morning Post last month reported that self-service retail is gaining ground in China, with retailers including Tencent Holdings Ltd., Alibaba, JD.com Inc. and Suning Commerce Group Co. Ltd. launching self-checkout retail initiatives.
Meanwhile, AEON, which operates about 430 supermarkets and convenience stores in China, is also considering a similar partnership with Japan's SoftBank Group Corp., the report said.
