UK retailer signs massive deal with Australian AI firm RocketBoots – is this the future of loss prevention?

RocketBoots Limited, an Australian software company specialising in AI-powered retail solutions, has successfully secured its first significant international contract with The Southern Co-Operative Limited, a major UK grocery retailer. This deal marks a pivotal moment in RocketBoots’ expansion strategy, reinforcing its presence in the competitive UK retail technology market.

The contract, valued at up to AUD$1.8 million, involves the deployment of RocketBoots’ Loss Prevention software in a phased approach over a period of four years, with an option for a two-year extension. The agreement will see RocketBoots’ technology rolled out in three stages, with the initial Stage A valued at AUD$648,000, excluding VAT. This initial phase is set to commence later this year, focusing on eight pre-selected sites within The Southern Co-Operative’s extensive network.

RocketBoots’ Strategic Expansion into the UK Market

RocketBoots has been actively executing an international expansion strategy, particularly targeting the UK, EU, and US markets. The agreement with The Southern Co-Operative Limited is a critical step in establishing RocketBoots’ foothold in the UK retail sector. This “beachhead” contract not only validates the company’s technological solutions but also paves the way for future growth within the region.

According to RocketBoots Chief Executive Joel Rappolt, this deal represents a significant milestone for the company, demonstrating its capacity to convert trial engagements into long-term contracts. Rappolt emphasised that the contract with The Southern Co-Operative is an essential step towards securing more deals within the UK retail grocery sector, where RocketBoots sees substantial potential for its AI-driven solutions.

Financial Impact and Growth Potential

The new contract is expected to substantially boost RocketBoots’ Annual Recurring Revenue (ARR). Stage A alone will increase ARR by AUD$160,000, while the completion of Stages B and C is anticipated to further increase ARR to approximately AUD$450,000. This growth will nearly double RocketBoots’ current ARR, based on its reported revenue for the year ending 30 June 2024.

The company’s robust sales pipeline includes engagements with 30 potential customers, representing over 10,000 retail sites. Of these, nine customers are in advanced stages of either trialling RocketBoots’ technology or negotiating multi-year contracts. RocketBoots is confident in its ability to convert these trials into contracts, citing a strong track record of delivering measurable returns on investment.

Expert Opinion: RocketBoots’ AI-Driven Future in Retail Technology

Industry experts see this contract as a significant validation of RocketBoots’ technology and strategic direction. The company’s AI-powered software addresses key challenges facing modern retailers, such as reducing theft at self-checkout points, managing staffing costs, and ensuring consistent customer service quality. By targeting these pain points, RocketBoots positions itself as a vital partner for retailers looking to optimise their operations amidst growing challenges in the retail landscape.

The UK retail market, particularly in the grocery sector, is fiercely competitive and demands innovative solutions that provide clear returns on investment. RocketBoots’ approach to leveraging AI for loss prevention and operational efficiency is well-timed, given the industry’s heightened focus on technology-driven solutions to combat shrinkage and enhance customer experiences.

As RocketBoots continues to expand its presence in international markets, this deal with The Southern Co-Operative is likely just the beginning of a broader push to establish itself as a leader in retail technology. The company’s ability to adapt and innovate will be crucial in securing further contracts and expanding its market share.