■Business Overview

3. Innovation business

The innovation business of Signpost ＜3996＞ develops products and solutions that contribute to social development by solving corporate management/business issues and social issues, such as development of products and technologies that increase the productivity of BtoC operators, business creation through open innovation, starting with TTG, and application of solutions for BtoB.

Specifically, starting with image recognition technology and object tracking technology using the proprietary artificial intelligence “SPAI,” an installable AI-equipped self-checkout “Wonder Cash Register” developed in-house for the retail industry by utilizing elemental technologies such as multi-payment technology, weight sensor technology, barcode recognition technology, character recognition technology, etc., self-checkout “Wonder Regi-BOOK” for bookstores, compact self-checkout “EZ cash register” with POS function, completely through unmanned payment systems” They are developing “Super Wonder”, etc. In 2020/3, a capital and business alliance was formed with NSD and NSD Advanced Technology Research Institute in order to strengthen efforts aimed at popularizing “Wonder Cash.”

Furthermore, with regard to the unmanned payment system “Super Wonder,” after a demonstration experiment (2017/11) at a special store within JR Omiya Station and a demonstration experiment (2018/10/12) at a special store within JR Akabane Station, TTG was established in a joint venture with JR East Startup in 2019/7, and the development and sale of “Super Wonder” was transferred. It promotes rapid social implementation through open innovation with JR East, and is provided to retailers as products and solutions that aim to save labor in store operations and improve convenience for users. The company earns royalty income from TTG by collaborating on development aspects such as technology provision.

Currently, the company is developing an installable AI-equipped self-checkout “Wonder Cash Register,” a self-checkout “Wonder Cash Book” for bookstores, and a compact self-checkout “EZ cash register” with POS function, and TTG is developing an unmanned payment system “Super Wonder.”

The installable AI-based self-checkout “Wonder Cash Register” was announced in 2017/3 with the aim of improving the efficiency of store operations and resolving labor shortages faced by retailers. Since it utilizes the uniquely developed artificial intelligence “SPAI” and image recognition technology to specify products, it is characterized by the fact that multiple products and barcodes can be collectively recognized and settled simply by placing the product on the “cash register stand inside the housing.” Users can easily do self-shopping by simply “placing the product and touching the screen.” In 2018/6, 3 units were introduced for internal bento sales by major companies, and actual use began.

Examples of introducing “Wonder Cash” include the cafeteria at the JCB Takadanobaba office, Nanmoda Department Store Niikappu Head Office, the restaurant “Triz Kitchen” west concourse store in Resonac Dome (home stadium of Oita Trinita), Yokohama Takashimaya “Foodies' Port2,” and the serviced small-scale office “H1O Nihonbashi Muromachi,” “H1O Nihonbashi Kobunecho,” and the satellite shared office “H1T Shinjuku Nishiguchi” There are such things as”.

The self-checkout “Wonder Cash Register” for bookstores was developed in August 2021 as a “wonder cash register” equipped with a book sales function. It is a self-checkout where multiple books can be read at once and easily purchased simply by arranging the books purchased by the customer on the cash register table, pressing the start button, and proceeding according to the instructions on the screen. In November 2021, it was set up at the long-established bookstore “Kyobunkan” in Ginza, and operation at physical stores began. After that, it was introduced to the “WonderGoo Tsukuba Store” operated by REXT Holdings Co., Ltd. in 2021/12, introduced to the “Ogaki Shoten Aeon Mall Kyoto Katsuragawa Store” operated by Ogaki Shoten Co., Ltd. in 2023/1 (the second store was introduced as an Ogaki Bookstore), and introduced to “TSUTAYA Lake Town” operated by Meibundo Planner Co., Ltd. as a franchisee in 2023/9. Furthermore, new functions have been gradually added and evolved, and a security tag unlocking function was added in 2023/6.

The compact self-checkout “EZ cash register” with POS function was developed in July 2021. With small to medium retail stores as the main target, it was narrowed down to simple functions to achieve a low price starting at 9,800 yen per month, and the hurdles for introducing self-checkout were drastically reduced. In addition to being introduced to 4 mini convenience stores (Honda Technical College Kansai campus kiosks, etc.) operated by Goodlife Co., Ltd., it was introduced to the unmanned second-hand clothing store “SELFURUGI” operated by AVEND in 2022/3 (same), and to the manga specialty bookstore “Manga Night BOOKS” within the Miraku Department Store in 2022/4. Furthermore, in 2023/4, a business alliance was formed with AVEND, and they are aiming to develop a franchise of 100 stores nationwide using “EZ cash registers.”

The unmanned payment system “Super Wonder” is a completely through-type unmanned payment system that does not require cash register work. Settlement is performed automatically each time the user picks up or returns a product purchased in the store, and when passing through the settlement gate, a payment method such as a transportation IC card or cash is selected to complete settlement. The user can make a payment simply by picking up the product. No membership registration is required, anyone can use it, payment methods can be selected according to the user, excellent cost performance, etc. are differentiating points from competitors.

TTG is developing its business under product names such as the convenience store-type unmanned payment system “TTG-SENSE,” the unmanned payment store system “TTG-SENSE MICRO” for extremely small stores, the unmanned order payment system “TTG-MONSTAR,” and the gate controlled entrance/exit system “TTG-GATEWAY.” Also, in 2024/6, the “TTG-SENSE SHELF,” which enables use in a more space-saving manner, will be released. Since it can be configured from 1 product shelf, it can be used in a wider range of business categories.

Furthermore, TTG is strengthening capital and business alliances with various companies, such as forming capital and business alliances with FamilyMart Co., Ltd. (2021/3), capital and business alliances with Toshiba Tech ＜6588＞ (2021/9), capital and business alliances with Glory ＜6457＞, and raising funds (2021/10) from KDDI Open Innovation Fund No. 3 to accelerate the spread and expand business volume of unmanned payment systems.

Examples of TTG implementation include JR Takanawa Gateway Station premises, FamilyMart Sapia Tower/S store, FamilyMart Iwatsuki station store, Kinokuniya's small unmanned payment supermarket KINOKUNIYA Sutto Mejiro store, ANA FESTA GO Haneda B1 floor store, Tomony Nakai Station store, and Mitsubishi Corporation Energy Tatsuno in Chiba New Port. Furthermore, the opening of stores in a new business category is also being promoted, and in 2023/5, it was introduced to the Granduo Tachikawa store as an unmanned cosmetics dealer “ORBIS Smart Stand” (introduced to a total of 4 stores as of the end of 2024/4), and in 2024/4, it was introduced to TOKYO BANANA Express on the Tokaido Shinkansen platforms 16 and 17 at JR Tokyo Station. FamilyMart is actively promoting an unmanned store strategy, and it was introduced to the FamilyMart Hamura Station/S store (JR East Hamura Station) in 2024/3 and the FamilyMart JR Ukimafunato Station/S store in 2024/4, bringing the number of stores operating at FamilyMart to 37.

In addition, new entrants are expected to emerge in the future as competitors for unmanned cash registers and unmanned store payment systems, but the market itself related to unmanned cash registers and unmanned store payment systems is an untapped market, and the company has advantages leading the way in the development of installable AI-based self-checkout “Wonder Cash Register”, “Wonder Regi-BOOK” for bookstores, compact self-checkout “EZ cash register” with POS function, and the completely through unmanned payment system “Super Wonder” There is. Also, taking into account the fact that introduction by TTG is accelerating, we believe that the immediate market competition risk is small.

(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)