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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<ul><li><p>The Retail Store of the Future</p><p>White Paper</p><p>Americans love to shop. Its no secret that measures of how </p><p>muchsuch as dollars spent and year-over-year spending </p><p>patternsare keys to understanding the nations economic </p><p>health. While that truth isnt likely to change, the shopping </p><p>experience itself is changing rapidly. Indeed, the shopping </p><p>experience of tomorrow will be a lot different from todays. </p><p>Retailers are adapting quickly. They are seizing new ways </p><p>to attract customers, engaging them before and after </p><p>they arrive in their stores. They are multiplying potential </p><p>customer touch points through a variety of targeted methods </p><p>including electronic media and social networking. Perhaps </p><p>most importantly, they are discovering new ways to enhance </p><p>customer loyalty by increasing their ability to stay connected </p><p>after the sale.</p><p>At the heart of this transformation are Internet-based </p><p>technologies and networks that can extend the shopping </p><p>experience outside the traditional bricks and mortar </p><p>environment. Harnessing them for maximum business </p><p>impact represents a major opportunity for retailers, </p><p>underlined by the dynamics of the new shopping </p><p>tastes of the connected consumer. In a report by </p><p>PricewaterhouseCoopers and TNS Retail, the next </p><p>generation of consumers contains a more tech-savvy and </p><p>more diverse group that holds different values than its </p><p>parents. The report goes on to say that the one-size-fits-all </p><p>approach of the mass chain store format will not be viable. </p><p>Stores able to respond to individual tastes will become </p><p>dominant.1 </p><p>In this new environment, effective online strategies are </p><p>critical. According to market research firm Forrester, by </p><p>2013 more than 50 percent of all retail transactions will be </p><p>affected by the Web. Consumers have more access points </p><p>than ever before and are demanding convenience, choice, </p><p>and variety in their shopping experiences. Companies will </p><p>need to continually shift spending towards enabling online </p><p>channels or risk losing their competitive positions. The </p><p>future will be about delivering a customer experience that </p><p>seamlessly transitions between online and offline channels, </p><p>no matter where individual transactions take place.</p><p>A second trend is real-time analytics. In order to create </p><p>customized shopping experiences, retailers will by necessity </p><p>process ever more information through their networks, </p><p>tailoring interactions to individual customers. According to </p><p>Nigel Fenwick at Forrester, socially empowered customers </p><p>are also influencing retail merchandising, with a major </p><p>shift in increased reliance on technology to analyze rapidly </p><p>changing consumer trends as they happen, which empowers </p><p>retail merchandisers to make quick decisions.2 </p><p>1 Ben Steverman, The Future of Retail, BloombergBusinessWeek, April 15, 20092 Nigel Fenwick, Industry Innovation: Retail, Forrester, July 28, 2010</p></li><li><p>THE RETAIL STORE OF THE FUTURE www.hughes.com</p><p>White Paper</p><p>A third trend is the extension of the shopping experience </p><p>that goes beyond the store to reach consumers before </p><p>they go through the doors, and after they are finished </p><p>shopping. PSFKs recent report, The Future of Retail, </p><p>describes a new retail environment where store fronts and </p><p>mobile applications build relationships even before the </p><p>customer steps in the door and walks down the shopping </p><p>aisle. Moreover, once inside, interactive displays and </p><p>mobile applications will enable retailers to customize each </p><p>experience, deliver superior customer service, and glean </p><p>valuable customer feedback for the persons next purchase.3 </p><p>At the heart of this experience is technologytechnology </p><p>that increases a sales associates ability to help customers </p><p>and close sales. As demonstrated through these trends, </p><p>much of the technology revolves around a stores ability </p><p>to securely manage multiple flows of information across </p><p>multiple networks. The following are just a few of the </p><p>developments that are either in stores today or coming to </p><p>stores in the near future.</p><p>In-Store Shopping Assistant and Kiosks Shoppers </p><p>enter stores today with more knowledge than ever before. </p><p>Retailers can embrace this rather than fear it by providing </p><p>relevant product information through multiple possible </p><p>channels. For example, it is likely that a store will offer </p><p>patrons an in-store shopping assistant via their mobile </p><p>devices. Consumers will walk down the aisles and as they </p><p>see items they want, scan the products with their mobile </p><p>3 PSFK, The future of retail, 2009, http://www.psfk.com/future-of-retail</p><p>The Retail Storeof the Future</p><p>Break RoomTraining</p><p>Retail DigitalSignage</p><p>Digital PhotoKiosks</p><p>AutomatedInventory</p><p>Management</p><p>Loss Prevention/Video Surveillance</p><p>Auto</p><p>In-StoreConcierge</p><p>Mobile Workforce/Handheld POS Mobile Ordering/</p><p>Local Pickup</p><p> POS/RegisterPCI CompliantArchitectures</p></li><li><p>THE RETAIL STORE OF THE FUTURE www.hughes.com</p><p>White Paper</p><p>devices either through camera barcode readers or the </p><p>camera itself. With the barcode or picture, a dedicated store </p><p>application will display product descriptions, reviews, and </p><p>how to videos to demonstrate the product in action. For </p><p>those who do not have mobile devices, one will be provided </p><p>via a dedicated booth or through customer service.</p><p>A frequent point of frustration among consumers is the </p><p>inability to get in-store assistance. In the retail store of the </p><p>future, that problem may disappear. Live customer support </p><p>kiosks were one of the newest technologies showcased at </p><p>the National Retail Federation convention in January. A </p><p>customer picks up a telephone at a kiosk and is immediately </p><p>connected through live video to an expert. The expert is </p><p>armed with a variety of tools to satisfy customer questions, </p><p>ranging from store maps to product details, inventory status, </p><p>and access to the Web. </p><p>Electronic Shopping List Mobile applications will also </p><p>serve as in-store e-shopping carts, allowing consumers to </p><p>place items there instead of lugging them around the store. </p><p>When it is time to go, consumers can decide to purchase </p><p>the items and take them home, or to have the store deliver </p><p>them from their online store.</p><p>In-Store Electronic Concierge At the end of every aisle </p><p>and throughout the store, consumers will find touch screen </p><p>displays. By tapping the screen and searching for an item, </p><p>the electronic concierge will tell the consumer where the </p><p>item is, and in the event it is out of stock, which nearby </p><p>stores have it.</p><p>Mobile Ordering, Local Pickup Consumers are busier than </p><p>ever with lots of shopping to do and not much time in which </p><p>to do it. Retailers will help consumers save time by enabling </p><p>them to make purchases using their laptops and mobile </p><p>devices, securely transmitting data to the store for order </p><p>processing. By the time customers get to the store, their </p><p>purchases will be waiting.</p><p>Video Employee Learning Centers Since consumers now </p><p>have product information at their fingertips, retail staff will </p><p>have to be more knowledgeable than ever. If an employee </p><p>doesnt know the answer to a customers question, it is </p><p>increasingly likely the customer will be turned off to a sale. </p><p>To give staff the knowledge they need to help retailers </p><p>succeed, before every shift store employees will check in </p><p>at an interactive video display area. There they will hear </p><p>about the days promotions and get updates on the stores </p><p>activities. Additionally, employees can text in questions and </p><p>get answers back from management via their cell phones. </p><p>Automated Inventory Management Inventory management </p><p>will be automated. Goods will be on automated inventory </p></li><li><p>White Paper</p><p>2012 Hughes Network Systems, LLC. Hughes is a registered trademark of Hughes Network Systems, LLC. All information is subject to change. All rights reserved.</p><p>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.</p><p>H44675 DEC 12</p><p> 11717 Exploration Lane Germantown, MD 20876 USA</p><p>For additional information, please call 1-888-440-7126 or visit business.hughes.com/enterprise.</p><p>racks so that management always knows when and what </p><p>to order. Branch stores will talk to each other, enabling </p><p>managers to quickly and easily shift inventory from one </p><p>store to another to make sure they optimize supply across </p><p>stores.</p><p>Transaction-Based Video Surveillance Video monitoring </p><p>for security and to reduce shrinkage and sales irregularities </p><p>will be based on activity. For example, video capture would </p><p>occur when there is a no sale transaction at a register </p><p>or when certain inventory is accessed. By making video </p><p>capture activity-based, management will not have to weed </p><p>through hours of tapes to find out what happened with </p><p>inventory or at the cash register. This will not only reduce </p><p>shrinkage, but also will help gather marketing intelligence </p><p>on what does and does not appeal to customers.</p><p>Security of Multiple Data Streams, Multiple Networks </p><p> All of the data running through multiple data streams </p><p>and networks needs to be secure. Payment Card Industry </p><p>(PCI) compliance requires a high level of security for each </p><p>transaction and the ability to guard against threats both </p><p>wired and wireless. Information needs to be able to flow </p><p>securely and efficiently with built-in redundancy. Self-</p><p>configuring VPNs and firewalls using intelligent routers </p><p>will make the whole process of becoming and staying PCI </p><p>compliant easier.</p><p>At Hughes, were working with many of the leading names </p><p>in retail to build this new technology infrastructure that </p><p>will support the retail store and shopping experience of the </p><p>future. And because these technologies are so important, </p><p>we are building them with increased reliability, higher </p><p>performance, and greater security than ever before. For </p><p>over a generation we have helped the worlds leading </p><p>retailers use information technology as a competitive </p><p>advantage. As retailers become more sophisticated in the </p><p>use of technology to boost sales and increase their stores </p><p>efficiency, Hughes is well-positioned to help retailers build </p><p>their own store of the future.</p></li></ul>