RetailTechNews rounds up some of the biggest stories in the European retail technology space. In this week’s edition: Machine Learning & Voice Search High on Retailers To-Do List; Nextail Receives £7.59m Initial Funding; Zalando Expands Tech Hub in Lisbon; and Simility Acquired by PayPal.

Machine Learning & Voice Search High on Retailers To-Do List

Transformative technology such as machine learning and voice search are a priority for many retailers, a new study by QueryClick finds. Surveying over 150 CMOs of UK consumer brands with a revenue of over £150m and an e-commerce offering, the study found that two-thirds of those surveyed are planning to invest in machine learning within the next 12 months, in a bid to enhance their digital marketing strategies.

Number two on the retail leaders’ list: voice search. According to the survey, more than half (53%) of retailers will invest in voice search technology in the coming year – an unsurprising move, considering that forecasts place the voice-recognition market at a value of USD$601m (£456.1m) by 2019. Overall, three-quarters of the respondents said their brand will change its SEO strategy to suit voice search results, with 43% of those respondents planning to do so within the next 12 months. Only 3% of brands surveyed have already adapted their SEO strategies to ensure their brand appears in voice-led search results.

“An investment in digital, including machine-learning technology, that allows retailers to track and unify the customer journey across all channels, and allows them to deliver timely, targeted messages to capture demand, is fundamental to their success”, says Chris Liversidge, founder and CEO, QueryClick.

Retailers are currently also continuing to invest in influencer marketing, with 63% of CMOs for large retailers planning to invest in influencer marketing within the next 12 months.

Nextail Receives £7.59m Initial Funding

Spanish retail tech provider Nextail has just announced their first successful funding round. The Series A round was led by Keen Venture Partners and will bring USD$10m (£7.59m) into Nextail’s coffers. Other participants in the funding round are Sonae Investment Management and existing investor Nauta Capital.

The Series A funding round is a significant stepping stone for Nextail, particularly in view of their expansion plans, says Carlos Miragall, CFO and co-founder, Nextail. “In addition to the extra backing from Nauta Capital, we’re excited to have received funding from Keen and Sonae IM. Their belief in our technology and scale-up potential will enable us to truly drive global expansion, as we support brands in new geographies, specifically the U.S. and the UK.”

Nextail provides a cloud-based platform that is based on artificial intelligence and prescriptive analytics in order support retailers in their inventory management and store operation needs. Nextail provides retailers with data-driven suggestions when they buy new collections and distribute products. “Agile and data-driven decisions help organisations meet customer demands”, explains Joaquín Villalba, CEO and co-founder, Nextail. “We help our clients with smarter use of inventory, so that they can focus on delivering better products and experiences to their customers.”

Zalando Expands Tech Hub in Lissabon

After Dublin and Helsinki, German shoe retailer Zalando has been operating a third tech hub from Lisbon since the beginning of 2018. With 17 employees on board, the tech department is now looking to expand their operations.

Zalando tech hub in Lisbon

Focusing mainly on new developments for Zalando’s digital fashion experience, i.e. influencer and brand collaboration, the company is hoping to have a team of 35 by the end of the year. Philipp Erler, SVP Digital Experience, Zalando, comments: "It is so important to develop, grow, and engage a diverse pool of tech talent within Zalando, to ensure we can provide the best and most personalised digital experience to our customers.”

The company is actively recruiting frontend software engineers and full-stack engineers, working closely with the Digital Experience team in Berlin and teams in Zalando’s other hubs in Dortmund, Hamburg, Helsinki, and Dublin.

Simility Acquired by PayPal

Days after PayPal’s acquisition of the Hyperwallet platform made the news, the payment provider is announcing another takeover. PayPal is paying USD$120m (£91.1m) for retail-focused risk management and fraud-prevention platform Simility.

In 2017, PayPal invested in Simility, amounting to a share of 3% in the company. The acquisition of Simility is to provide commercial PayPal users more transparency and control, based on the machine-learning capabilities of Simility’s fraud-prevention technology.

“Digital commerce has exploded, and fraudsters have taken note, adapting and developing new methods to carry out their crimes. PayPal has been at the forefront of developing innovative fraud-prevention and risk management solutions for nearly 20 years, but, until now, merchants haven’t been able to configure those solutions to manage the unique complexities of their businesses”, says Bill Ready, COO, PayPal. “Together with Simility, we will be able to put more control in the hands of our merchants to fight fraud while helping make commerce experiences faster and more secure.”

The transaction is expected to close in the third quarter of 2018, subject to approval and certain adjustments, according to PayPal.