Grosvenor Group backs NearSt in £2m round to capitalise on burgeoning demand for footfall boosting technology
- Google uses NearSt’s technology to show physical shop stock directly in search results and on Google Maps. NearSt also recently started working with Facebook to help drive the social network’s local shopping capabilities forward.
- The startup’s technology enables physical retailers to show live in-store inventory to people searching online nearby and is used by convenience stores such as Nisa, Londis and Budgens, through to luxury boutiques like Creed, Christopher Kane and Hirsh.
- Tripling in demand during 2020, the start-up’s software has proven to be a life-line for bricks and mortar retail during Covid as shoppers go online in unprecedented numbers to find out what’s in stock in nearby shops.
LONDON: Google-backed, NearSt, a British retail technology business driving more people onto the high street has raised £2m in seed funding from one of the world’s largest privately-owned international property companies to fuel footfall into bricks and mortar stores at a critical time for physical retailers.
The London-born startup witnessed a tripling in demand from shoppers seeking out local product availability in 2020, as the pandemic shifted traditional shopping behaviours online; including the way people shop with local stores.
The latest funding takes the total raised by NearSt to £5m – following an earlier £2m raise in February 2020 – and brings in finance from the Grosvenor Group, retail specialists True Global, consumer tech specialists YYX Capital and Moscar Capital.
Founded in 2015 by Max Kreijn (37) and Nick Brackenbury (32), the duo developed technology that makes products on physical store shelves visible to shoppers searching online nearby. Businesses like Google use the technology to show real-time local product availability directly in search results.
As millions more people turned their attention online during Covid, NearSt’s technology helped redirect them back to the nation’s high streets – locating items they were searching for online in nearby bricks-and-mortar stores.
The tech is helping shoppers realise that buying local is often faster and easier than ordering on Amazon and providing a welcome boost for convenience stores such as Nisa, Londis and Budgens and luxury boutiques like Creed, Christopher Kane and Hirsh.
Marking Grosvenor Group’s first direct investment into the tech sector, the international property company is already using NearSt’s technology across it’s Mayfair and Belgravia estate, with plans to expand internationally.
The British retail tech startup has seen a 3-fold increase in local product search demand throughout 2020, and will use the cash injection to accelerate uptake by retailers in the UK with a wave of new hires, and launch the startup’s offering internationally.
“NearSt’s funding comes at a time of seismic shifts in how we shop and what it means to be a retailer.” said co-founder Nick Brackenbury.
“We all know that the pandemic has driven shopping behaviours online; what’s often overlooked are the millions of people now going online to search for things locally on the high street.”
“We’ve witnessed extraordinary growth in ‘local-availability’ searches throughout 2020. In the first lockdown customers searching for products nearby surged 620% compared to February levels, before levelling off at a 270% increase between July and September.”
“While this most recent lockdown has driven another 500% surge, what’s clear is that shoppers are getting used to going online to find things in the local businesses they prefer to buy from.”
“Online shopping is often positioned as the death knell for the high street – we think it’s far from this, and will rather be the foundation of a vibrant and healthy future for brick-and-mortar shops.”
The footfall boosting technology is used by Google to display in-store products in local listings directly on the main search page, as well as across Shopping, Google Maps, and other Local Listings.
NearSt has also recently started working with Facebook on their Commerce Accelerator to help drive Facebook’s local shopping capabilities forward.
With almost a third of all Google searches relating to location and over 80% of all retail spending still taking place in physical shops, NearSt believes there is a lot to win in the high street’s fight against the online giants.
Ian Mair, Managing Director of Digital Innovation at Grosvenor Group, added
“Digital technologies and the changing customer expectations will radically change the property industry over the next decade.
“We are putting the customer at the heart of our thinking and are creating innovative ways to make the physical shopping experience more efficient and enjoyable. Making it easier for customers to find items they are looking for in local shops will encourage them on to their local high street rather than ordering online.”
“We have already seen the benefits of NearSt on Grosvenor’s London Estate and as part of our wider innovation agenda across the Grosvenor Group, we will look to roll this out to other retailers in the locations that we operate.”
“Google already sees the impact live in-store inventory data can have. This is a multi-billion dollar market that technology has barely touched, and NearSt has the potential to truly transform how we all interact with physical retail.”
How NearSt Works
Shops install a small piece of powerful software that automatically connects to any type of shop point of sale or inventory management system. Shortly after stores start seeing their entire in-store inventory appear in local search results, sending nearby shoppers in-store who might otherwise have ordered online.
The technology has seen widespread uptake by British retailers as a low-effort but powerful tool to fight back against the likes of Amazon, with retailers spanning convenience, DIY and garden centres, health, pharmacies, and even luxury fashion and jewellers all using the platform.
Speaking to three independent store owners, Steve Tonks, of Lincolnshire–based DIY shop, Tonwood Home Hardware said,
“It took us a year to upload 500 products on our website, compared to using NearSt which uploaded 29,000 online instantly.”
“By having our products at the very top of the Google search results, people can see what they want is in our shop – an instant gratification that even Amazon can’t deliver.” added Karen Heriot, from Edinburgh-based gift shop Daisy Cheynes.
Marine Vincent from London-based pharmacy Make Me Feel continued,
“I got phone calls from new customers asking about products they saw online. I wondered how they knew about this as we didn’t show these items on our website. Then I realized it was NearSt!”
NearSt first struck a partnership with Google in 2018, pioneering a solution enabling local shops to automatically list live inventory in Google See What’s In Store and Local Inventory Ads.
Other notable investors include: Will Hobhouse (Heal’s, Jack Wills, Whittard of Chelsea), Ben Laurie (Google Research & Machine Intelligence) alongside senior engineers from pioneering AI firm DeepMind.
Today shops pay a one-time connection fee of £399 and then NearSt’s core search product is free, with the option of purchasing weekly add-ons to drive additional local visibility. In addition to listing a shop’s products in Google, NearSt also provides detailed insights to the retailer about what’s popular with customers searching nearby.
Retailers who are interested in joining should visit near.st to begin their quick and simple setup.
For more information contact:
Notes to Editors:
About NearSt (www.near.st)
NearSt was founded in 2015 by Max Kreijn and Nick Brackenbury, who had worked together developing digital experiences for major brands at a top global agency. Kreijn came up with the concept in a literal lightbulb moment, when a bulb went in his flat and he searched online to see where he could buy a replacement.
“I was shown lots of places where I could order it online, but I couldn’t find out which local shops had one for me to pop out and buy.” he recalls.
The pair started out by spending 2 months cycling around London on Boris Bikes visiting hundreds of shops to understand why no one had solved this, before starting work on the first NearSt prototype.
The result was a tiny piece of software that can link any shop till system to a powerful central platform, and automatically send live barcodes and stock data to be transformed by a closely guarded algorithm into rich product information with pictures and descriptions, ready to be streamed into Google.
Once connected, if a customer near the store wants to buy – for example – a particular brand of moisturiser, when they search in Google he or she is shown live product and availability information from beauty shops that stock it nearby.
The technology has enabled NearSt to create the most detailed, extensive and live picture of what is available on the high street ever.
In 2019 the technology collected a host of top industry awards, including Retail Tech Startup of the Year at The Europas, In-Store Technology of the Year at the Retail Systems Awards, and Top European Startup at the Emerce E-Day Awards.
- One in ten shops now lay empty as high street slumps (12 Aug 2019 – British Retail Consortium and Springboard)
- Searches for “shopping near me” have grown 200% in the past two years (Google Data, March 2018)
- 46% of Global shoppers confirm inventory online before going to store (Google Data, 2019)
- 83% of online shoppers are willing to go in-store if they can confirm a product’s availability beforehand (Frederic Clement, Increase Footfall In Your Store With Google Local Inventory Ads)
- 85% of UK consumers still prefer to physically purchase products in-store, and 78% like to see and feel products in person before buying online (marketingsignals.com)
- More than half of UK consumers (55%) prefer to buy local brands (IRI European Shopper Insights Survey, 2020)
- 90% of Global Shoppers who visited a store in the last week said they used online search prior to going in-store (Google Data, 2019)
- 80% of customer go into stores to buy when they need something immediately (Google Data, 2019)
About Grosvenor Group:
Grosvenor Group is a privately-owned international property company.
With a track record of over 340 years, we develop, manage and invest with a purpose of improving property and places to deliver lasting commercial and social benefit.
This is achieved by adopting a farsighted perspective, by being locally engaged and sharing and benefitting from our international experience – we call this our Living Cities approach.
Through the activities of Grosvenor Britain & Ireland, Grosvenor Americas, Grosvenor Asia Pacific and Grosvenor Europe we diversify the Group’s property portfolio by geography, sector, activity, currency and management teams. Our Indirect Investment business further diversifies the Group’s property interests by backing specialist third-party management teams. It invests Grosvenor’s capital in Africa, Australia, Europe and North and South America.
To read more about Living Cities please click here
*See our Net Zero carbon commitment here
Follow us on:
Linkedin: Grosvenor Group