The Retail Store of the Future - Cloud Object Storage . While that truth isn ... PSFK’s recent report, “The Future of Retail,” ... In the retail store of the future, that problem may disappear. Live customer ...

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  • The Retail Store of the Future

    White Paper

    Americans love to shop. Its no secret that measures of how

    muchsuch as dollars spent and year-over-year spending

    patternsare keys to understanding the nations economic

    health. While that truth isnt likely to change, the shopping

    experience itself is changing rapidly. Indeed, the shopping

    experience of tomorrow will be a lot different from todays.

    Retailers are adapting quickly. They are seizing new ways

    to attract customers, engaging them before and after

    they arrive in their stores. They are multiplying potential

    customer touch points through a variety of targeted methods

    including electronic media and social networking. Perhaps

    most importantly, they are discovering new ways to enhance

    customer loyalty by increasing their ability to stay connected

    after the sale.

    At the heart of this transformation are Internet-based

    technologies and networks that can extend the shopping

    experience outside the traditional bricks and mortar

    environment. Harnessing them for maximum business

    impact represents a major opportunity for retailers,

    underlined by the dynamics of the new shopping

    tastes of the connected consumer. In a report by

    PricewaterhouseCoopers and TNS Retail, the next

    generation of consumers contains a more tech-savvy and

    more diverse group that holds different values than its

    parents. The report goes on to say that the one-size-fits-all

    approach of the mass chain store format will not be viable.

    Stores able to respond to individual tastes will become

    dominant.1

    In this new environment, effective online strategies are

    critical. According to market research firm Forrester, by

    2013 more than 50 percent of all retail transactions will be

    affected by the Web. Consumers have more access points

    than ever before and are demanding convenience, choice,

    and variety in their shopping experiences. Companies will

    need to continually shift spending towards enabling online

    channels or risk losing their competitive positions. The

    future will be about delivering a customer experience that

    seamlessly transitions between online and offline channels,

    no matter where individual transactions take place.

    A second trend is real-time analytics. In order to create

    customized shopping experiences, retailers will by necessity

    process ever more information through their networks,

    tailoring interactions to individual customers. According to

    Nigel Fenwick at Forrester, socially empowered customers

    are also influencing retail merchandising, with a major

    shift in increased reliance on technology to analyze rapidly

    changing consumer trends as they happen, which empowers

    retail merchandisers to make quick decisions.2

    1 Ben Steverman, The Future of Retail, BloombergBusinessWeek, April 15, 20092 Nigel Fenwick, Industry Innovation: Retail, Forrester, July 28, 2010

  • THE RETAIL STORE OF THE FUTURE www.hughes.com

    White Paper

    A third trend is the extension of the shopping experience

    that goes beyond the store to reach consumers before

    they go through the doors, and after they are finished

    shopping. PSFKs recent report, The Future of Retail,

    describes a new retail environment where store fronts and

    mobile applications build relationships even before the

    customer steps in the door and walks down the shopping

    aisle. Moreover, once inside, interactive displays and

    mobile applications will enable retailers to customize each

    experience, deliver superior customer service, and glean

    valuable customer feedback for the persons next purchase.3

    At the heart of this experience is technologytechnology

    that increases a sales associates ability to help customers

    and close sales. As demonstrated through these trends,

    much of the technology revolves around a stores ability

    to securely manage multiple flows of information across

    multiple networks. The following are just a few of the

    developments that are either in stores today or coming to

    stores in the near future.

    In-Store Shopping Assistant and Kiosks Shoppers

    enter stores today with more knowledge than ever before.

    Retailers can embrace this rather than fear it by providing

    relevant product information through multiple possible

    channels. For example, it is likely that a store will offer

    patrons an in-store shopping assistant via their mobile

    devices. Consumers will walk down the aisles and as they

    see items they want, scan the products with their mobile

    3 PSFK, The future of retail, 2009, http://www.psfk.com/future-of-retail

    The Retail Storeof the Future

    Break RoomTraining

    Retail DigitalSignage

    Digital PhotoKiosks

    AutomatedInventory

    Management

    Loss Prevention/Video Surveillance

    Auto

    In-StoreConcierge

    Mobile Workforce/Handheld POS Mobile Ordering/

    Local Pickup

    POS/RegisterPCI CompliantArchitectures

  • THE RETAIL STORE OF THE FUTURE www.hughes.com

    White Paper

    devices either through camera barcode readers or the

    camera itself. With the barcode or picture, a dedicated store

    application will display product descriptions, reviews, and

    how to videos to demonstrate the product in action. For

    those who do not have mobile devices, one will be provided

    via a dedicated booth or through customer service.

    A frequent point of frustration among consumers is the

    inability to get in-store assistance. In the retail store of the

    future, that problem may disappear. Live customer support

    kiosks were one of the newest technologies showcased at

    the National Retail Federation convention in January. A

    customer picks up a telephone at a kiosk and is immediately

    connected through live video to an expert. The expert is

    armed with a variety of tools to satisfy customer questions,

    ranging from store maps to product details, inventory status,

    and access to the Web.

    Electronic Shopping List Mobile applications will also

    serve as in-store e-shopping carts, allowing consumers to

    place items there instead of lugging them around the store.

    When it is time to go, consumers can decide to purchase

    the items and take them home, or to have the store deliver

    them from their online store.

    In-Store Electronic Concierge At the end of every aisle

    and throughout the store, consumers will find touch screen

    displays. By tapping the screen and searching for an item,

    the electronic concierge will tell the consumer where the

    item is, and in the event it is out of stock, which nearby

    stores have it.

    Mobile Ordering, Local Pickup Consumers are busier than

    ever with lots of shopping to do and not much time in which

    to do it. Retailers will help consumers save time by enabling

    them to make purchases using their laptops and mobile

    devices, securely transmitting data to the store for order

    processing. By the time customers get to the store, their

    purchases will be waiting.

    Video Employee Learning Centers Since consumers now

    have product information at their fingertips, retail staff will

    have to be more knowledgeable than ever. If an employee

    doesnt know the answer to a customers question, it is

    increasingly likely the customer will be turned off to a sale.

    To give staff the knowledge they need to help retailers

    succeed, before every shift store employees will check in

    at an interactive video display area. There they will hear

    about the days promotions and get updates on the stores

    activities. Additionally, employees can text in questions and

    get answers back from management via their cell phones.

    Automated Inventory Management Inventory management

    will be automated. Goods will be on automated inventory

  • White Paper

    2012 Hughes Network Systems, LLC. Hughes is a registered trademark of Hughes Network Systems, LLC. All information is subject to change. All rights reserved.

    Proprietary StatementAll rights reserved. This publication and its contents are proprietary to Hughes Network Systems, LLC. No part of this publication may be reproduced in any form or by any means without the written permission of Hughes Network Systems, LLC, 11717 Exploration Lane, Germantown, Maryland 20876.

    H44675 DEC 12

    11717 Exploration Lane Germantown, MD 20876 USA

    For additional information, please call 1-888-440-7126 or visit business.hughes.com/enterprise.

    racks so that management always knows when and what

    to order. Branch stores will talk to each other, enabling

    managers to quickly and easily shift inventory from one

    store to another to make sure they optimize supply across

    stores.

    Transaction-Based Video Surveillance Video monitoring

    for security and to reduce shrinkage and sales irregularities

    will be based on activity. For example, video capture would

    occur when there is a no sale transaction at a register

    or when certain inventory is accessed. By making video

    capture activity-based, management will not have to weed

    through hours of tapes to find out what happened with

    inventory or at the cash register. This will not only reduce

    shrinkage, but also will help gather marketing intelligence

    on what does and does not appeal to customers.

    Security of Multiple Data Streams, Multiple Networks

    All of the data running through multiple data streams

    and networks needs to be secure. Payment Card Industry

    (PCI) compliance requires a high level of security for each

    transaction and the ability to guard against threats both

    wired and wireless. Information needs to be able to flow

    securely and efficiently with built-in redundancy. Self-

    configuring VPNs and firewalls using intelligent routers

    will make the whole process of becoming and staying PCI

    compliant easier.

    At Hughes, were working with many of the leading names

    in retail to build this new technology infrastructure that

    will support the retail store and shopping experience of the

    future. And because these technologies are so important,

    we are building them with increased reliability, higher

    performance, and greater security than ever before. For

    over a generation we have helped the worlds leading

    retailers use information technology as a competitive

    advantage. As retailers become more sophisticated in the

    use of technology to boost sales and increase their stores

    efficiency, Hughes is well-positioned to help retailers build

    their own store of the future.

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