cip multichannel retail webcast 091112 (2)

© Grant Thornton LLP. All rights reserved. 1

Consumer & Industrial Products Practice

Webcast:

Multichannel Retail – More than Clicks and Bricks

If you experience any technical difficulties,

please contact 888.228.0988 or [email protected]

October 4, 2012

1:00 pm – 2:30 pm CT

© Grant Thornton LLP. All rights reserved. 2 2

Awarding CPE for this session

In general The rule

Respond to all polling questions Respond to at least 75% of the

polling questions to pass with full

credit

Group participation will not

receive CPE

You have to be logged in individually

to receive credit




Addressing your questions through Q&A

Step 1

Step 2




Other helpful features you can use

If attending from outside a Grant Thornton office,

be sure to shut down all other applications to

allow more Internet bandwidth.




For best connection results do the following



• Use a wired Internet connection from your local office.

• Close all other applications for optimal viewing speed including

Outlook.

– If you must use Outlook during the webcast, use the web-based

version available at HTTPS://IEMAIL.GTUS.COM/Exchange

• Don’t use VPN if you are outside your local office.

https://iemail.gtus.com/Exchange


Our values are CLEARR

Unite through global Collaboration

Demonstrate Leadership in all we do

Promote a consistent culture of Excellence

Act with Agility

Ensure deep Respect for people

Take Responsibility for our actions


Multichannel Retail Webcast Panel

Giles Sutton

National Retail

Tax Practice

Leader – Dallas

Danny Miller

Principal –

Philadelphia

Mark Sullivan

National Retail

Practice Leader -

Chicago

Lawrence Griff

Audit Partner – New

York

Jan

Hertzberg

Managing

Director –

Chicago


Objectives

•Learn about key trends in the multichannel retail environment

•Understand the evolving tax risks in relation to nexus, apportionment,

global retailing and third party relationships

•Determine the risks and benefits involved with using social media to

achieve business objectives

•Identify data security and fraud risks; the role of SOC 1, 2, 3 and PCI

compliance

•Discover best practices that leading retailers are employing


Agenda

1. Current multichannel retail trends

2. Tax nexus and related issues

3. Social media and its associated risks

4. Multichannel processes & controls

5. Data security & fraud risks


Agenda







1.0 Multichannel Retail Trends

Multichannel includes:

• Stores

• E-Commerce

• Mobile

• Social Media

• Couponing


1.2 Multichannel Retail Trends – e-Commerce Share


1.3 Multichannel Retail Trends – e-Commerce Growth


1.4 Multichannel Retail Trends - Mobile


1.5 Multichannel Retail Trends – “Showrooming”


1.1 Multichannel Retail Trends

• Retail websites deepen relationships with customers

• Smartphones change the retail experience

• Social media is becoming integral to the consumer

experience

• Internet coupons gain popularity

• Multichannel retailing gives rise to more third-party vendor

relationships

• Internet and mobile does not respect borders


Poll 1

Have you updated accounting and inventory systems,

processes and have them integrated to handle

multichannel retail transactions?

A. Yes, completely

B. Our systems and processes are updated, but not

integrated

C. Are systems are integrated, but need to be updated

D. Our systems and processes are not updated nor

are they integrated


Agenda







2.0 Tax Nexus and Related Issues

• Nexus Issues

• Apportionment

• Global Retailing

• Digital & Intangible Products


2.1 Remote seller nexus − "Amazon rule" and affiliate

nexus

Notes:

(1) Washington, D.C. has “remote-

vendor” collection requirement

for Internet sales that is

contingent on local SSTP-type

reforms being enacted;

(2) Penn. is based on administrative

authority, legislation has been

proposed;

(3) Vt. Amazon rule becomes

effective when at least 15 states

have adopted similar rule


2.2 Apportionment & Global Issues

Miami New York Madrid


2.3 Digital & Intangible Products


Poll 2

Have you considered the financial impact that state tax

law changes will have on your business?

A. Yes

B. Somewhat

C. No


Agenda







Poll 3

Have you successfully integrated social media into your

organization's business plan?

A. Yes, we have implemented a social media policy and have

been engaging customers

B. We are currently working on the best way to leverage

social media

C. We have not yet integrated social media fully into our

business plan, however, it is one of our goals

D. Social media isn't something that fits with our

business plans


Agenda







3.0 Multichannel Process & Control Drivers

Opportunities

• Increasing online consumer activity and purchases

• Mobile customers

• Mobile POS

• Expanding reach

• Changing to a showroom model

• Enhancing customer service

• Providing educational online content

• Gathering market intelligence

• Wi-fi in Stores


3.1 Process & Control Challenges & Risks

Challenges and risks

• Managing interactions and transactions across channels

• Adapting performance metrics

• Responding to in-store comparison shopping

• Data security and fraud risks (next section)


3.7 Third Party Relationships

Opportunities

• Tap into third-party

expertise

• Speed to market

• Scalability

• Potential cost savings

Challenges and risks

• Data security

• Service reliability

• Impact of third-party

errors or failures

• Contractual compliance


Poll 4

Do your contracts with third-party vendors clearly

stipulate tax responsibility?

A. Yes

B. Not clearly

C. No


Agenda







4.0 Data Security & Fraud

• Security highlights for retail enterprises

• Data security life cycle

• PCI in retail


4.1 Security Highlights in Retail

• Mobile applications

• Social Media

• Credit card processing

• Cloud computing

• In-store wi-fi

• Mobile POS

• Third parties


4.2 Data Security Lifecycle

1. Creation

5. Archive

4. Share

3. Use

2. Storage 6. Destroy


4.3 PCI

Accepting Mobile Payments with a Smartphone or Tablet


Poll 5

Are you exclusively using PCI-compliant applications and

processes to collect, transmit and store cardholder data?

A. Yes

B. Not sure if we are 100% PCI-compliant

C. No


Any questions?

Please type your questions or comments into the Q&A


Resources that can be accessed at

www.GrantThornton.com

• Multichannel retail: More than clicks and bricks (white

paper)

• Gift cards: Opportunities and issues for retailers (white

paper)

• 6 Steps to Secure Big Data (podcast)

• Social media and its associated risks (white paper)

• Merchant card and third-party payment network transaction

reporting requirements (white paper)

http://www.grantthornton.com/portal/site/gtcom/menuitem.91c078ed5c0ef4ca80cd8710033841ca/?vgnextoid=fd5b7e88547e4310VgnVCM1000003a8314acRCRD&vgnextfmt=default

http://www.grantthornton.com/staticfiles/GTCom/CIP/Retail/Gift Cards - Opportunities and Issues for Retailers_FINAL.pdf

http://www.govinfosecurity.com/interviews/6-steps-to-secure-big-data-i-1529

http://www.grantthornton.com/portal/site/gtcom/menuitem.91c078ed5c0ef4ca80cd8710033841ca/index6738683b7ec35f6138379fdd9e93285f.html?vgnextoid=324b4c0939f73310VgnVCM1000003a8314acRCRD

http://www.grantthornton.com/portal/site/gtcom/menuitem.91c078ed5c0ef4ca80cd8710033841ca/?vgnextoid=ed4f3aa60c8de210VgnVCM1000003a8314acRCRD&vgnextfmt=default




cip multichannel retail webcast 091112 (2)

Documents

actions grant thornton

share grant thornton

growth grant thornton

borders grant thornton

grant thornton office

retail experience social

tax nexus

associated risks