Retail Tech Innovation Programs: A Comprehensive Guide
In the fast-paced world of retail, innovation isn’t just a buzzword – it’s a survival necessity.
With technology reshaping how consumers shop as we approach 2025, leading retailers and brands are turning to Retail Tech Innovation Programs and corporate venture capitals (CVCs) to stay ahead. These initiatives bridge the gap between cutting-edge startups and established businesses, fostering a pipeline of fresh ideas, tools, and technologies that transform the way they work from operations to marketing and beyond, and drive overall growth. Whether it’s reducing inefficiencies, leveraging AI, or creating new shopping experiences, innovation programs are redefining the future of retail.
To shed light on this dynamic landscape, we’ve curated a selection of standout retail tech innovation programs. For startups, these programs present invaluable opportunities to collaborate, scale, and innovate alongside industry leaders. For corporates, they provide a glimpse into how peers are harnessing innovation to address challenges and drive growth. If you’d like to explore the full list, simply leave your details below.
Image Source: Insead
What is a Retail Tech Innovation Program?
Retail tech innovation programs are structured initiatives by retailers and brands to collaborate with startups and emerging technologies. These programs aim to drive transformation across areas like customer experience, supply chain optimization, sustainability, and digital engagement. By creating dedicated accelerators, corporate venture capital (CVC) funds, or open innovation labs, these companies foster external innovation while staying competitive in the evolving retail landscape. Venture capital investments in Q2 2024 reached $55.6 billion, with a significant portion directed at AI in retail and other industries, reflecting a strategic focus on emerging technologies to drive growth. The grocery sector in particular is seeing a $4.2 billion in tech innovation investments in 2024, which underscores the increasing focus on retail tech innovation. This is likely because In the grocery sector, partnerships and accelerators play a vital role in maintaining competitiveness
Source: EasyPicky
What are some different types of Retail Tech Innovation Programs?
Accelerators: Short-term, cohort-based programs offering mentorship and resources. These programs that offer mentorship, resources, and funding to startups to pilot and scale their innovations (e.g., Unilever Foundry, LVMH’s La Maison des Startups).
Corporate Venture Capital (CVC): Investment funds aimed at high-potential startups. Corporate venture capital funds’ ongoing investments in 2024 have targeted over 8,000 portfolio companies with a focus on innovation and AI advancements. These are funds to invest in startups, focusing on strategic alignment with business goals (e.g., W23.vc, Carrefour’s Dastore).
Open Innovation Platforms: Collaborative spaces where startups and corporations work together. These could be innovation labs and nternal teams or spaces dedicated to exploring and prototyping new ideas (e.g., Tesco Labs, Lowe’s Innovation Labs).
Hackathons and Pilots: Events or projects designed to test innovative concepts in real-world scenarios.
Scouting Initiatives: Programs that actively seek startups with disruptive potential to integrate into existing systems (e.g., Sonea’s BRPX).
Why are these Retail Tech Innovation Programs Important?
Retail companies are responsible for approximately 15% of global CVC investments, which highlights the strategic role retail companies play in CVC initiatives, with an emphasis on enhancing operational efficiency and customer experience.
As such, retail tech innovation programs are critical for maintaining competitiveness in an industry rapidly disrupted by technology. They allow brands to:
Stay Ahead of Trends: By identifying and adopting emerging technologies like AI, robotics, and IoT.
Solve Operational Challenges: For example, such programs can help solve issues with supply chain visibility and inventory management.
Enhance Customer Experience: Programs often focus on personalization and omnichannel solutions, which are increasingly vital as online shopping soars.
Retail companies have been significant contributors to CVC activities. For instance, in Q3 2023, CVC-backed retail tech funding increased quarter-over-quarter for the first time since Q1 2022, indicating a strategic focus on tech innovation within the retail sector.
Retail tech innovation programs can also give a final boost to startups competing in a busy holiday season, which we have earlier discussed.
Source: Silicon Valley Bank (SVB)
Source: Silicon Valley Bank (SVB)
Bridging Startups and Retail Giants: Exploring Retail Tech Innovation Programs in 2025
While there are evidently many retail tech innovation programs, here we are higlhighting a select few that are commendable in the space. For a comprehensive list of which ones can work best for your startup, feel free to contact us.
As expected, the retail sector is also very prominent in retail innovation programs, comprising of many in the consumer and grocery space, which makes up for one of the largest subsets of investments in 2024.
Tesco Labs: Tesco Labs explores emerging retail technologies, piloting innovations like AI-driven grocery platforms and voice commerce through Google Assistant. It has been pivotal in testing checkout-free shopping experiences, and focuses on identifying and piloting cutting-edge retail technologies to enhance the shopping experience and operational efficiency. Recent initiatives include a partnership with Trigo, leveraging AI-driven checkout-free technology, and collaborations with Starship Technologies for autonomous delivery solutions.
Target Accelerators: Target’s program helps startups and entrepreneurs build retail partnerships while providing mentorship and funding. Recent investments and collaborations include Hydrow, an at-home rowing machine, and Minnidip, a luxury inflatable pool brand.
Amazon’s Alexa Fund: Amazon’s venture arm focuses on voice technology and smart home innovations. Investments include Ecobee, a smart thermostat company, Ring, a home security system, and Tobii Dynavox, a company specializing in eye-tracking technology.
Carrefour Dastore: Carrefour’s €80 million CVC fund, Dastore, invests in digital commerce startups that align with its retail strategy. It supports innovations in areas like omnichannel retail, logistics, and AI to enhance Carrefour’s competitive edge in global markets.
W23 Global: Established by five major grocery retailers spanning continents like the US, Canada, and Europe, W23 invests in startups pushing boundaries in retail tech. It is particularly active in Israel’s tech ecosystem, funding innovations in supply chain, AI, and shopper engagement to enhance grocery operations.
Sonae BRPX: Sonae’s venture arm, BRPX, focuses on disruptive technologies in retail and adjacent industries. It integrates innovative solutions into Sonae’s operations, driving transformation in areas like supply chain management, digital payment systems, and in-store tech.
Disrupt Retail: This initiative is a joint effort by four leading grocery retailers aiming to identify groundbreaking tech solutions. The program emphasizes fostering startups that can address real-world challenges in grocery retail, from inventory optimization to sustainable supply chain practices.
A large number of consumer product companies and multinationals are also focused in the grocery sector, coming from multinationals that have an array of brands in the category.
Unilever Foundry: Unilever collaborates with over 10,000 startups globally to pilot cutting-edge technologies that address key priorities like sustainability, wellness, and digital engagement. Since its launch, it has initiated over 200 pilots and scaled more than 30 innovations into its operations, driving impactful changes in product offerings and supply chain efficiency. Recent investments include BlueNalu, a cell-cultured seafood company, Instacart, a grocery delivery platform, and Olio, a food-sharing app aimed at reducing food waste.
PepsiCo Ventures Group: PepsiCo invests in innovative food and beverage startups with an emphasis on health, sustainability, and consumer engagement. Notable investments include Health Warrior, a superfood snack company, Spudsy, a brand creating sweet potato-based snacks; and PrizeLogic, a marketing services provider.
Coca-Cola Ventures: Coca-Cola invests in beverage startups to expand its portfolio and enter emerging categories. Recent investments include Dirty Lemon, a functional beverage brand; Aloe Gloe, a premium aloe water and Suja Juice, an organic cold-pressed juice company. Learn more at coca-colacompany.com.
Heineken Brewhouse: The Heineken Brewhouse innovation platform connects startups with leading tech partners like SAP, Microsoft, and Accenture. The initiative focuses on enhancing customer engagement, operational efficiency, and sustainability, using co-innovation to create future-ready business solutions.
There are also programs focused in the beauty, apparel, wellness or luxury sector.
L’Oréal’s BigBang: A regional innovation program for the South Asia Pacific, Middle East, and North Africa (SAPMENA) regions, BigBang nurtures startups specializing in beauty tech, digital services, and consumer engagement. This initiative aligns with L’Oréal’s mission to lead the beauty industry in digital transformation and customer-centric innovation.
Nestlé Health Science: Nestlé’s venture arm targets nutrition and health startups, focusing on personalized wellness solutions. Recent investments include Persona, a personalized vitamin subscription service, Vital Proteins, a collagen supplement brand and Aimmune Therapeutics, a biopharmaceutical company specializing in food allergy treatments.
LVMH’s La Maison des Startups: This accelerator supports 50 startups annually, connecting them with LVMH’s extensive portfolio of luxury brands. Startups gain access to mentorship, testing opportunities, and funding, enabling them to revolutionize areas such as customer personalization, in-store experiences, and sustainable packaging solutions. Recent investments include MadHappy, a modern lifestyle brand, Stadium Goods, a marketplace for sneakers and streetwear and 24S, LVMH’s luxury e-commerce platform.
Macy’s Ventures: This focuses on fostering diversity and inclusion within the retail ecosystem. Through its S.P.U.R. Pathways program (Shared Purpose, Unlimited Reach), it aims to support underrepresented businesses by investing $30 million over five years in three financing channels, including loans and growth equity, to close wealth gaps and support retail innovation. Recent initiatives include partnerships to empower entrepreneurs in sustainability and diversity.
Sephora Accelerate: Sephora Accelerate is designed to support female founders in the beauty space, providing mentorship, funding, and retail distribution opportunities. Its primary focus is on empowering founders from underrepresented communities. Recent cohorts include brands that emphasize clean beauty, inclusivity, and sustainability, such as EADEM (melanin-rich skincare) and Kulfi Beauty (inclusive makeup).
Marks & Spencer Founders Factory: Marks & Spencer collaborates with Founders Factory to invest in innovative startups focused on retail tech and sustainability. This partnership aims to incubate and scale businesses that address pressing challenges in retail, such as supply chain optimization and waste reduction. Recent investments include E-farmz, which specializes in sustainable delivery, and Greyparrot, a platform for AI-driven waste management.
H&M CO:LAB: This is the investment arm of H&M Group, backing startups that drive sustainable innovation in fashion and retail. The program prioritizes technologies in circularity, material science, and customer experience. Recent investments include Renewcell (textile recycling technology) and ThreadUp (resale as a service).
Source: Retail Next
Need to know more on Retail Tech Innovation Programs?
Retail tech innovation programs are reshaping the industry, driving efficiency, enhancing customer experiences, and opening doors to collaboration. To explore a detailed list of programs and their impact, get access to our comprehensive guide on Re:Tech and stay ahead in the retail innovation game.
Yael is the CEO at Re:Tech, Israel's biggest community of retail related tech companies and industry leaders. She is also the CMO of buywith, the leading Livestream shopping platform, and an advisor to ReturnGo and Belle AI.