A leading Scottish independent retailer is using artificial intelligence (AI) to drive repeat sales and grow basket size.

Mo Razzaq, who runs a Family Shopper store in Blantyre, has launched an app to build on the success of his Privilege loyalty card.

Working with tech company Velocity Worldwide and its Darius for Retail programme, Mr Razzaq is able to combine five items of data to identify selling opportunities.

For example, his data identified that Booker’s pizza and alcohol meal deal works better with a soft drink from Monday to Friday.

AI also helps Mr Razzaq to predict demand for his fast-growing delivery service, which is underpinned by his Subway franchise.

“My average basket is £7.99,” he told RN at the NFRN Scottish conference in Inverness this week. “For loyalty customers, it is £12.59. For delivery, it is £16.69. Technology is helping me to increase the frequency of shopping visits and basket size.”

The process starts by offering customers free WiFi in-store. He uses data from this, Zapper transactions, delivery orders, Privilege card users and social media interactions to predict what shoppers will buy.

His confidence in AI is such that he has invested £11,500 in new chillers to improve his chilled offer, which he says is essential for a successful delivery business.

He is also opening a dessert bar in-store to add higher margin food to go to his mix.

“Charles Wilson told me four years ago food to go was the future,” said Mr Razzaq. “I took his word for it. Today, using loyalty schemes and AI in partnership with Velocity, I can predict the future for myself.”

His Privilege scheme, set up with Velocity, has paved the way for launching an app in partnership with city search platform CityVago.

“I see delivery as being a great niche for independent retailers,” said Mr Razzaq. “We can deliver in an hour and Asda cannot match that.”

Find out how to make digital innovations work in your store here