at the right price.

at the right time

to the right place

in the right quantity

the right product

Offer…

Millennials as a key buying segment

Consumer expectations that stores and online destinations will offer appealing product assortments tailored for them

Constant pressure from hyper- promotionalism on gross margins

New pressure on retailers to order and allocate the right mix of products in the right quantity for the right location

"We find that consistent sales performance is an outcome of a differentiating set of thought

processes, strategies, and tactics. We call sales overperformers Retail Winners."

– Retail Systems Research (RSR)

A PATH TO OMNICHANNEL SUCCESS

Omnichannel's driving forces:

Keys to Retail Success: Where the Winners Shine

But how do you become a retail winner?

Technologies That Make a Difference for Retail Winners: Predictive at the Core

How important are the following to your retail success? (”very important”)

Mission Accomplished?Retail Winners are up to twice

as likely to have implemented

and be satisfied with core

technologies such as:

Merchandising technologies rated as "high value"

Omnichannel Success for Retail Winners: A Blend of Art and Science

Characteristics of Retail Winners who:

Customer analytics early in the demand forecasting process, not as a "sanity check" later

77% of Retail Winners see "a lot of value" in customer analytics

IMPLEMENT: THE RESULT:

That past year or season sales aren't always predictive of future sales and demand

DON'T just check a box saying youunderstand those capabilities

DO take the time to understand howto leverage analytics

DON'T expect an analytics magic bullet

DO learn what analytics tools can doand can't do

DON'T view omnichannel as justa challenge

DO recognize it as an opportunity

UNDERSTAND:

Demand and fulfillment can be in different places — on-line or in-store

We're in an age of 24x7 anytime and anywhere shopping

BE A "RETAIL WINNER"

In-season demand forecasting

Initial demand forecasting as a basis for next year's plan

IN-SEASON DEMAND FORECASTING FOR PRICE, PROMOTIONAL, OR ASSORTMENT

Retail Winners 69%Others 45%

ASSORTMENT OPTIMIZATION

Retail Winners 67%Others 52%

INTEGRATED PLANNING, ALLOCATION, AND REPLENISHMENT SYSTEMS

Retail Winners 56%Others 28%

Attribute-based merchandising planning systems

Assortment optimization

Integrated planning, allocation, and replacement

#1

"Customer insights are as important as product sales

trends and rankings"

– Brian Kilcourse & Paula Rosenblum,

Managing Partners, RSR

Use demand forecasting, capturing demand data with new degrees of granularity

They look at where it was generated, not just SKUs

They understand what created demand

They use analytics to understand demand patterns over time

Leverage customer analytics

They don't fall for generalizations such "all millennials like…"

They understand the buying behavior of subsets of customers

They don't get distracted by "squeaky wheel" data

Recognize and optimize localized assortments

They base merchandise plans on where demand was sourced, not where it was fulfilled

They use analytics to find the best place to sell the ideal product the soonest

They phase merchandising buys, allocation, and replenishment over time

SOURCE: Retail Systems Research survey of 108 qualified retail respondents, sponsored by SAS

Read the full report, Merchandising & The Omnichannel Impact

To learn more, visit sas.com/retail

CUSTOMER ANALYTICS

Retail Winners 77%Others 48%

RETAIL FORECASTING

Retail Winners 74%Others 58%

LOCALIZED ASSORTMENT

Retail Winners 59%Others 48%

SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. 109217_G66974.1217