AUSTIN, Texas, Dec. 10, 2019 /PRNewswire/ -- Popspots is building the operating system for grocery retail to improve the way brands and retailers manage and market their products in store. Founded in 2016, the retail tech company solves core challenges in the grocery industry like out-of-stock tracking, planogram management, and in-store marketing. With over 25 retail partners and on track to be in over 1,500 stores nationwide within the next year, Popspots is expanding their operations with a $5 Million Series A funding round led by Silverton Partners.
Popspots smart displays provide video advertising (under the trade name 'Grocery TV') in grocery checkout aisles and merchandising services such as out-of-stock tracking and planogram management. Brands and retailers use video advertising on the displays to engage customers at the checkout and lift sales on average by 13%. The displays also use integrated cameras to monitor the shelves for missing or out-of-stock items.
"Out-of-stock products cost retailers billions each year, so we created a product that not only reduces losses, but also encourages sales at the checkout," said Popspots Co-Founder and CEO Marlow Nickell. "We chose that location because every customer visits the checkout and spends more time there than any other area of the store."
Paired with the displays, the Popspots web platform gives brands and retailers visibility into how their products and advertising campaigns are performing in stores. On the advertising platform, brands like Red Bull and Ferrara create campaigns, track engagement with creative, and view audience targeting. On the merchandising platform, brands and retailers like Bashas' and SpartanNash monitor out-of-stock and planogram compliance rates at the retailer, store, and product levels.
"Popspots is disrupting the way manufacturers and retailers manage their products in store," says Cort LaMee, Divisional Vice President at the Meredith Corporation. "Their merchandising product has been a game-changer for Meredith by providing timely and actionable reporting on retail planogram, fixturing, and product placement issues. All of these metrics directly affect both our top and bottom lines," he continues.
Silverton Partners led Popspots' Series A round alongside private investors including Texas-based accelerator Capital Factory. Based in Austin, TX, the VC firm works with entrepreneurs in high-growth industries to build lasting companies.
"We're impressed by the growth Popspots has achieved both with brands and retailers so far. Our team is excited to be their partner, and support them as they continue to scale." -Roger Chen, Principal at Silverton Partners
Led by co-founders Marlow Nickell, Donald Oelke, and Edward Cates, the team of 14 includes two grocery veterans, Lance and Crest Oelke with over 40 years of industry experience. Their expertise has supported the company in creating a product that simplifies retail. While they are initially focused on solving a specific set of core issues at the checkout, Popspots aims to streamline product management and marketing throughout the store.
"The checkout is just the starting point," Nickell said. "We see Popspots centralizing all of the disjointed processes involved in grocery retail."
About Popspots: Founded in 2016, Popspots is building the operating system for the next generation of grocery retail. While initially focusing on streamlining merchandising and marketing processes at the checkout, their long-term vision is to optimize the processes involved in managing and marketing products across the store. Their custom hardware and software tracks out-of-stock products and planogram compliance, while also serving as a digital advertising space (Grocery TV). Please reach out to Ashley Nickell ([email protected]) for press inquiries.
About Silverton Partners: The Silverton team works with early-stage companies who are dedicated to tackling growth markets and building lasting companies. In partnering with Silverton, companies benefit from its vast network and expertise from decades of growing and investing in successful businesses. Founded in 2006, Silverton Partners is based in Austin and was the initial investor for Convio, WP Engine, SpareFoot, SailPoint, Silicon Labs, TurnKey, The Zebra, AlertMedia, SpyCloud, Convey, Aceable, Big Squid, and Billie among others. For more information, visit www.silvertonpartners.com.