5 steps to impletmenting endless aisle technology
TRANSCRIPT
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5 Steps To Implemen1ng Endless Aisle Technology
Welcome Webinar A>endees
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IHL Consulting: @jerrysheldon
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Panelists Debbie Hauss Editor-In-Chief
Retail TouchPoints
Jerry Sheldon Leading Analyst IHL Consulting @jerrysheldon
Eric Stachowski President iQmetrix
The Changing face of Today’s Retail Landscape
Jerry Sheldon, IHL Group
Rapid Project RFP Toolkits (with C-Core Consulting Group) POS, WFM, ERP, HW Maintenance, Fresh Item Mgt.
Research and Advisory Services POS, POS Printers, Self-Checkout, Kiosk, Digital Signs, Mobility, etc. POS by Vendor Share
Sophia - Technology Data Service WorldView IT Sizing Models IT sizing for hundreds of Retail/Hospitality Technologies
Worldwide Quarterly POS Vendor database Custom Surveys Custom Analysis
About IHL
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Sample Clients
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Around the Globe
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Unrest prevalent Israel, Ukraine, Libya, Pakistan, Nigeria, Iraq, Syria, Venezuela, Argentina, Brazil, etc.
ISIS Threatening Malls in US, Canada and Europe Retail Sales: EMEA â2.5%, APAC á4.6% Euro continues to weaken, dissatisfaction á Emerging Markets slowing rapidly
Exception is some parts of Africa Falling oil prices bring significant economic uncertainty in Russia, Middle East and Venezuela
Key Notes on Holiday Sales
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Sales up 4.5% Online up 13.9% Mobile up 50% 84% of shoppers use digital tools before and during their trip to a store (Deloitte) Lower Fuel prices meant extra $22B in consumer’s wallets for holidays
IT Spending Defines Priorities: Data Security
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Data security now a board level discussion
% of IT Budget is on Data Security
% Data Security taken up by PCI
Overall 14.1% 37.7%
Tier 1 (Over 1B) 13.8% 32.6%
Tier 2 (500m-1B) 13.3% 40.6%
Tier 3 (<500m) 15.1% 42.3%
IT Spending Defines Priorities: EMV
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October deadline driving tremendous spending and IT focus
4.8%
6.6%
7.3%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
Payment Acceptance
Network Security
Payment Security & EMV
Payment & Network Spend Growth
Source: IHL Group
IT Spending Defines Priorities: DOM/POS/mPOS
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4.6%
5.2%
4.9%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Distributed Order Management
Mobile POS
Core POS
Point of Sale Spend Growth
Source: IHL Group
IT Spending Defines Priorities: Future POS
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81% of retailers saying future POS will be a single transaction engine
IT Spending Defines Priorities: eCommerce
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3.3%
3.6%
7.8%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%
Social Media
Marketing Systems
eCommerce/Mobile Commerce
Other Technology Spend Growth
Source: IHL Group
IT Spending Defines Priorities: Big Data/Analytics
Customer Intimacy
Supply Chain
Store
Mobile
Social Media
Web
Others
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Big Data: Data, Data Everywhere
$7.9 Billion – Projected WW 2015 BI Spend CAGR over 9% yearly Opportunity only beginning IoT will be a continued driver for Big Data Currently we know more about online shopping activity than in the store
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Evolution of Omni-Channel Multi-Channel: Multiple methods of consumer engagement Cross-Channel: Some degree of interaction and crossover between channels, yet each operates as a separate silo. Omni-Channel: Fully integrated, multi-channel environment.
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Omni-Channel: Saving the Sale
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Out of Stock & Still Buy?
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Are Deals Delivering?
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IHL’s Inventory Distortion Research
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Forthcoming 2015 research from IHL Group Overstock: When the item is put on clearance, spoils/expires, or when the system says “we have too many in stock” Out of Stock: Items unavailable for immediate sale in a store
Inventory Distortion-Overstock + Out of Stock
Inventory Distortion would be 16th largest country based on GDP
23 Source: IHL Group Retail Worldview IT Spend Model & Inventory Distortion Report, 2013 International Monetary Fund
$16.8 Trillion GDP
$9.5 Trillion GDP
$1.8 Trillion GDP
$1.3 Trillion GDP
WW Inventory Distortion- $941 Billion
Inventory Distortion – Segment Impact
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Contact Information Jerry Sheldon
IHL Group 321-453-5870 (o) 615-576-0397 (m)
www.ihlservices.com [email protected]
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We are one of the leading providers of retail management and customer experience technology for the North American industry. At iQmetrix, we create great experiences for retailers, their people, and their customers. Our solutions bridge the gap between physical and digital retail and give retailers the tools necessary to deliver a seamless experience.
About iQmetrix
Saying Goodbye to Single-Channel Retail
Sources: A.T. Kearney in the Omnichannel Shopping Preferences Study,2014 Motorola Solutions Shopping Study, McKinsey & Co. report Making Stores Matter in a Multichannel World.
90% 67%
of shoppers would be satisfied if the store could
arrange home delivery for an out-of-stock item.
71%
would accept a promotional offer to return to the store when the item comes in.
of all U.S. retail sales currently are completed in brick-and-mortar stores.
“More than half of consumers now research their retail purchases online, making purely in-store purchase decisions the shrinking minority.”
5 Keys to Reimagining the Physical Store
One
Blending the physical and digital worlds
Two
Digitally extending the store’s shelf space
Three
Saving the sale with endless aisle solution
Four
Maintaining brand consistency across channels
Five
Optimizing product merchandising using shopper data
Blending Physical With Digital
Sources: 2014 Motorola Solutions Shopping Study,
of shoppers use smartphones.
use them for shopping-related activities.
check for sales, specials or coupons.
are browsing.
are using mobile coupons (text or email messages)
are comparison shopping and/or looking for competitive pricing information.
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Blending Physical With Digital
Interactive sales aids create the ultimate product expert Handheld Devices or Self-Serve Kiosks
Sources: 2014 Motorola Solutions Shopping Study,
Digitally Extending Stores’ Shelf Space
Zappos to deploy kiosks in partner retail locations (as well as at pop-up Zappos stores), offering same-day shipping.
Local ‘reach’: personalized service, product curation and order fulfillment.
Sources: 2014 Motorola Solutions Shopping Study,
Saving The Sale Via Endless Aisle Solutions
Footlocker makes entire inventory available across all stores to all customers.
A multichannel mindset must be embedded in the store design and in employees’ new ways of working.” Louise Herring, Tobias Wachinger and Chris Wigley, Making Stores Matter in a Multichannel World
Saving The Sale Via Endless Aisle Solutions
New Pickup and Delivery Options Improve Customer Service
Sources: Retail Systems Research’s (RSR) Nikki Baird and Paula Rosenblum in The State of Home Delivery 2014: Issues and Answers
Two Major Challenges:
of the RSR survey’s retailer respondents identify their home delivery offering as a competitive differentiator.
Mastering logistics of the “last mile.”
Doing so profitably.
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Maintain Brand Consistency Across Channels
Sources: Cisco
Optimize Product Merchandising Using Shopper Data
Brand consistency does not mean giving up local personalization. Agile Retailing:
• Responsive promotions address high/low inventory levels across stores
• Match product assortments to local • Shopper profiles • Deeper understanding of regional or • Store-specific buying habits
Next Steps Review digital content strategy
Determine inventory and merchandising strategy
Rethink the role of associates
Enable omnichannel with a platform approach
Evaluate and refine shopper data
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The rapid and far-reaching industry changes have given retailers the
motivation — and in some cases the permission — to radically rethink the purposes of their brick-and-mortar stores.
Eric Stachowski President, iQmetrix USA
iQmetrix.com | 1.866.iQmetrix
Rapidly Changing Retail
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Q &A // Panelists Debbie Hauss Editor-In-Chief
Retail TouchPoints
Jerry Sheldon Leading Analyst IHL Consulting @jerrysheldon
Eric Stachowski President iQmetrix
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