Local Shopping • 08.12.2016

Lokaso Siegen effectively strengthens the regional retail sector

Stepping stone into e-commerce with measurable success

Local commerce approaches are a dime a dozen these days. Yet none of them are effective enough to where brick-and-mortar retailers actually benefit from them. Patrick Schulte of billiton is someone who has recognized this and created Lokaso, a new system that puts the focus back on regional products.

Mr. Schulte, what is the objective of the Lokaso Siegen platform and why did you develop it?

Schulte: The overriding objective is obviously to strengthen the retail sector in the Siegen region. I have looked at different concepts and attended various events, but was not able to find a system that actually works.

Retailers basically have two objectives: they want to generate revenue and be involved as little as possible in the process. They are experts in their field but generally don’t know much about e-commerce. If they already have their own store, they often lack the exposure to be noticed and bought online. Lokaso solves this problem without creating a hurdle for the retailer or end consumer.

Patrick Schulte is one of two CEOs hat Lokaso GmbH....
Patrick Schulte is one of two CEOs hat Lokaso GmbH.
Source: Britta Krämer, billiton GmbH

What came next?

Schulte: We developed a system that shows via search engine which products are available in the region and can be subsequently purchased online.

We launched the development stage at the end of 2015/start of 2016. Our primary goal was to show the variety of products. That’s why we personally take care of every retailer’s data connection. We automatically receive updated inventory quantities via an inventory management system interface. This increases our inventory but is always tracked in real-time to ensure that products indicated in the system are actually also available and in stock. Obviously, there are also retailers who don’t conduct inventory management or have digital inventory. We offer two solutions for them to use: a small iPad POS system and a somewhat larger system that enables retailers to digitally manage the process in the store.

What additional services do you offer retailers?

Schulte: We want to take everything off the retailer’s hands and make sure he or she does business and makes money. We achieve this via the digital connection but also by handling all of the marketing. We also take product photos or write short texts for retailers with limited inventory. The complete package in Siegen runs between 99 and 149 Euros per month – of which a large part is used for marketing in the region. We also use a small percentage of sales from an order to cover the delivery service cost. If a customer only reserves an item online, there are obviously no sales-related costs. We also emphasize this aspect. We prominently display the contact details and also provide a link to an external store if needed. This also supports the retailers in the brick-and-mortar realm.

What’s more, the entire order process is handled by Lokaso: we get the order and send it to the retailer. We also let the retailer know when the products will be picked up at his or her store. Generally, the retailer has about an hour to package the products.



Source: Screenshot "www.siegen.lokaso.de"

How were you able to sell local retailers on the Lokaso concept?

Schulte: By aiming at redirecting one percent of the already existing e-commerce sales in the region into the region. That’s currently approximately 350,000 Euros per day – extrapolated based on German statistics – and would mean, we redirect 3,500 Euros into the region every day. Given 50 to 60 retailers and a shopping cart value between 50 and 60 Euros, we would generate about one order per retailer per day. This allows for a realistic assumption pertaining to the approximate volumes a retailer can expect. 

38 retailers can yet be found on Lokaso. A total of about 650 orders were...
38 retailers can yet be found on Lokaso. A total of about 650 orders were already placed.
Source: Screenshot "www.siegen.lokaso.de"

Can you already draw some early conclusions?

Schulte: At the beginning of September 2016, we went online with the platform. After 10 weeks, we have successfully processed about 650 orders with 38 retailers. This is a great achievement if you look at other comparable regions. After one year, they didn’t even have 100 orders.

The scope is still manageable and obviously still needs to be expanded. We presently have 700 registered users but we are addressing 150,000 potential customers. That’s actually a good thing because the system was programmed from scratch of course. Things need to be corrected and improved. Given the customers we currently have, we can monitor exactly where the problems are and at what point we act in real time. This lets us adapt our system and accommodate delivery of specific articles by days or even by time windows.

What are the advantages for the user?

Schulte: We have free same-day delivery if you spend a minimum of one Euro. Customers actually expect this since they are already familiar with this convenient aspect thanks to amazon or Zalando. Like I mentioned already, the delivery is paid for by the retailer based on a percentage of merchandise logistics. The merchandise that the customer orders at the retail price is being picked up at the vendor and delivered to the customer’s home.

Same-day delivery was the first and only option for us since we also ship fresh produce and refrigerated items. If you order by 10 a.m., the items will be delivered between 1 and 3 p.m. If you order by 3 p.m., the items will be delivered between 6 and 8 p.m. Returns can be made at the local retailer or through Lokaso. At the customer’s request, we also take back deposit bottles or reusable packaging from a coffee shop for example.

Lokaso stands out from market by offering same-day delivery....
Lokaso stands out from market by offering same-day delivery.
Source: Jessica Moos, Lokaso GmbH

Who can customers contact if they have questions?

Schulte: Our “fairy godmothers“ handle these customer inquiries. Our in-house associates take the customer questions and forward them to the retailer and back. Or vice versa: if something is not available, it is reported to the fairy godmothers and they talk to the customer and offer alternatives. 

Payment often makes or breaks the decision in favor of a specific platform. Which payment method did you choose?

Schulte: Consumers and retailers requested payment via Euro debit card in this case. That’s why we gave drivers the respective terminals and also included an automatic safety feature for customers: you only pay if you hold the items in your hands. Needless to say, we also have requests for payment via credit cards and PayDirekt, a solution offered by German banks. We will add these options since many customers have items delivered to their office or have them delivered to a neighbor for example.

Why do customers order via Lokaso?

Schulte: Ultimately, there are different incentives to order via Lokaso. Some people simply want to save time. Others say, they get better products and service this way – both on-site and online. Then there are reasons such as immobility. Lokaso offers customers the opportunity to take a look at products on location and to ultimately order them online, so they don’t have to carry the items home.

Who generally utilizes this service?

Schulte: Initially we thought this offer would appeal to those over 30. But that’s actually not the case. Even students and older persons use Lokaso.

How do other regions perceive Lokaso?

Schulte: During the development phase, we were already approached by other regions that expressed interest in our system. This resulted in us providing the system with multi-client capability, so we are able to carry it over. Interested regions can subsequently utilize it through an operating company. Presently there is no region that is as far along as Siegen, but many intense discussions are already taking place.

What’s next for Lokaso?

Schulte: We already signed more than 30 additional contracts with retailers that will soon be available on our website. Services is another area we are currently expanding. In this case, we are catering to beauty salons, real estate agents, travel agencies or insurance companies. Needless to say, we are unable to sell individual services at Lokaso but we are at least able to establish contact and set up appointments. We would also like to include farmer’s markets in the future.


Author: Melanie Günther; iXtenso

related articles:

popular articles:

Thumbnail-Photo: All knitted and sewn up: an online yarn retailer takes a stationary...
13.07.2020   #online trading #brick and mortar retail

All knitted and sewn up: an online yarn retailer takes a stationary foothold

iXtenso’s interview with Joachim Hansen, retail manager at Hobbii

It’s all about yarn at Hobbii. From now on, the Danish retailer does not just sell exclusively online but also in physical stores. Joachim Hansen describes how digitization and personal contact interact in the retail stores. ...

Thumbnail-Photo: Retail Asia Conference & Expo 2020 rescheduled to 11-13 November...
18.09.2020   #online trading #retail

Retail Asia Conference & Expo 2020 rescheduled to 11-13 November

New spacious exhibition location

Informa Markets, the organiser of Retail Asia Conference & Expo 2020, announced that the event will be further rescheduled from 17-19 November 2020, to 11-13 November 2020 at the Hong Kong Convention and Exhibition Centre (HKCEC), Hong Kong.The ...

Thumbnail-Photo: SALTO releases the SALTO Neo Cylinder
18.08.2020   #access control #access control systems

SALTO releases the SALTO Neo Cylinder

State of the art, wireless access control technology

SALTO Systems, a leading manufacturer of electronic access control solutions, has released the SALTO Neo Cylinder – a new electronic cylinder that offers more features and better functionality than any other cylinder on the market. ...

Thumbnail-Photo: New chain of toy stores in strong collaboration...
29.09.2020   #brick and mortar retail #digitization

New chain of toy stores in strong collaboration

Kids Coolshop is booming with new toys stores in a pressured market where competition is fierce

The chain has started installing electronic shelf labels in its physical stores. The electronic price tags are linked to a strong e-commerce engine and must help ensure competitive prices across all channels.Kids Coolshop was launched in 2017 ...

Thumbnail-Photo: Digital access controls support distancing requirements in the era of...
06.07.2020   #brick and mortar retail #retail

Digital access controls support distancing requirements in the era of Corona

Essential staff are relieved and the risk of infection is reduced

Since the beginning of the pandemic, larger supermarkets and discounters have been imposing entrance restrictions to ensure that only a certain number of people are allowed within their Stores. Usually the access management is carried out by ...

Thumbnail-Photo: New SALTO Neo Cylinder Microsite
11.09.2020   #access control #access control systems

New SALTO Neo Cylinder Microsite

Overview of main features and benefits

To enable potential users to discover more about its SALTO Neo electronic cylinder SALTO Systems, a leading manufacturer of electronic access control solutions, has launched a new microsite dedicated to the product.The compact SALTO Neo Cylinder is ...

Thumbnail-Photo: Safe in the office
01.07.2020   #security #personnel management

Safe in the office

„SpitProt-Office“: variable protective walls from POS TUNING

The corona virus has taught us a few things in the past weeks and months: We have to be flexible, rethink and question our working life and our usual activities. ...

Thumbnail-Photo: Smart solutions for the retail of tomorrow
28.09.2020   #video surveillance #video cameras

Smart solutions for the retail of tomorrow

Increase sales in retail?

Use intelligent technologies to set the right buying impulses at the stationary PoS by continuously adapting advertising messages to the situation in real time.Learn more about it in the video! ...

Thumbnail-Photo: Quantity discount on the WIMIsys PT51!
05.08.2020   #POS systems #displays

Quantity discount on the WIMIsys PT51!

From now until September 30th: 10% discount on the WIMIsys PT51 POS System when purchased together with a Swissbit TSE solution

Are you looking for TSE compliant POS solution for your customers in bakery, restaurant or retail shop? ...

Thumbnail-Photo: Retail shrink totaled $61.7 billion in 2019
16.07.2020   #e-commerce #security

Retail shrink totaled $61.7 billion in 2019

Rising employee theft and shoplifting/ORC

Theft, fraud and losses from other retail “shrink” totaled $61.7 billion in 2019, up from $50.6 billion the year before as industry security executives reported increases in the number of shoplifting, organized retail crime and employee ...


Gewerbering 1
84072 Au i.d.Hallertau
Apostore GmbH
Apostore GmbH
Uferstraße 10
45881 Gelsenkirchen
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Adasys GmbH – a Poindus Company
Adasys GmbH – a Poindus Company
Max-Planck-Straße 10
70806 Kornwestheim