Retail Trends & Technology Evolution

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Post on 05-Dec-2014

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<ul><li> 1. Agenda1. Retail Market Trends2. Self-Service implementations examples3. Technology evolution </li> <li> 2. The elusive consumer A Here And Now culture with unlimited access and choice Consumers want store 70% of consumers associates to bedont have enough time technology-enabled and to be as knowledgeable Time Digitally as they are. starved empowered Shop-Driven by value hopping Impact of the economy causing consumers to cut discretionary spending and shop for deals </li> <li> 3. 76% of retailers say their #1 use of in- store technology is to improve the customer experience Focus on in-storeSmaller store formats experience Growth in mobility Reduce costs, and improve service channel convergence Self-checkout provides: Up to 40% queue reduction 70% of smartphone owners A 20% throughput increase will use their phones while Over 400 labor hours reduced/redeployed per week shopping in the store A 7% revenue increase per labor hour due to labor redeployment back into the store </li> <li> 4. NCR SelfServ Checkout Global Reach 165 Retailers 13 segments 29 countries &gt;110,000 units NCR Ships 2 out of 3 Self Checkout Units Worldwide </li> <li> 5. The World of SelfServ Checkout Over 110,000 NCR SSCO Units Installed Globally Approximately 140 Million Customers Per Week Are Using NCR SSCO Serving Over 7 Billion Customers Per Year! </li> <li> 6. Macro-Trends North Europe Big is bad Lower impact by economical Small is good crisis Overcoming Common Objections Focus on customer experience Store format rethinking Cashier shortage South Europe High impact by economical crisis Focus on labor productivity and operational costs Store format rethinking </li> <li> 7. Macro Trends What ishappening Lower purchasing power Only required purchases (strict shopping list) Purchase postponing Preference for store with faster check out Basket evolution Lower average value Lower number of items Increase on number of transactions Higher frequency Promotion driven (Cherry Picker) Lower store revenue generation </li> <li> 8. Retailers conventional reaction 1. More promotions 2. Stop in spending 3. Sales driven actions Price war Results? Lower margin Lower improvement capability No improvement on operational costs </li> <li> 9. A different approach Attention to consumer needs and demands More services Fidelization Revenue Increase More references More services Operational Cost reduction More flexibility on store management Margin improvement </li> <li> 10. Traditional checkout lane evolution Small Baskets Express Service (SSC or Assisted) Large Baskets - In-Aisle Shopping Kiosks (e.g. productive tobacco sales) Converged Channel Retailing (collect and pay) Dynamic CheckOut Convertible Lanes </li> <li> 11. Implementation Examples </li> <li> 12. Asda WalthamstowAsda, 19 Selborne Walk Shopping Centre, London, E17 7LS Walthamstow Central - Central Store Format Supermarket No. of SSCO Units 20 SSCO Version V.4 No. of Main Tills 5 Store re-designed to optimise SS potential Offer a blend of self service solutions permanent availability attendant zoning Assess the regular lanes usage specialization / free up the shop floor Facilitate the access to the self service area + queuing Optimize the additional merchandising space Benefit from impulse merchandising (low racks) Guide the customers with the proper signage Leverage of self service at kiosk area </li> <li> 13. Boots BishopsgateBoots, 200 Bishopsgate London EC2M 4NR Liverpool St. Circle/Cent./Met./Hamm. Store Format Health &amp; Beauty No. of SSCO Units 9 SSCO Version V.5 Boots Flagship store Format Located nearby Liverpool St Station huge hub of commuters and tourists 9 Self-service Checkouts Self Service checkout well located near Operates with minimal but effective use of attendant Operation optimised to maximise SSCO </li> <li> 14. Tesco CommercialStreet ExpressTesco Express, 116 Commercial Street, London, E1 6NF Shoreditch High St. Central Store Format Convenience No. of SSCO Units 3 SSCO Version v.4 No. of Main Tills 4 Tesco Express (Convenience Format) in busy commuter and residential district 7 Total Lanes - 3 SSCO Lanes embedded alongside main till bank Operates with a fractional attendant (multi tasked cashier) Always open tills are self checkout Operation adjusted to fit self checkout </li> <li> 15. Tesco MetroTesco Metro, 6 Eastcheap, London, EC3M 1AE Monument Circle/District Store Format Small Supermkt No. of SSCO Units 12 SSCO Version v.5 No. of Main Tills 5 Located in business district main customers are professionals alongside steady flow of tourist traffic Store has substantial peaks and flows in trade very busy between 12-2 and 5-7, quiet outside of these times SSCO has precedence over main bank, customers pass through SSCO to reach tills Open SSCO exit causes confusion over queuing entry points </li> <li> 16. Boots PaddingtonBoots, Station Concourse, Paddington Station Paddington Circle/Met./Hamm./BakerlooLondon W2 1HB Store Format Health &amp; Beauty No. of SSCO Units 4 SSCO Version V.5 No. of Main Tills 1 NCRs worlds first smallest footprint SSCO Located in one of the worlds busiest train stations 4 self service checkouts with 1 main till Self Service checkout well located and strong customer visibility Operates with minimal but effective use of attendant Space utilisation optimised to leverage smaller footprint SSCO offer Store also has 2 tills within dedicated pharmacy area </li> <li> 17. Decision Impulse point merchandise opportunitiesOff-peak queue Queue entrance entrance </li> <li> 18. Sacoph Rome Store Format ConvenienceNo. of SSCO Units 2 SSCO Version V.5 No. of Main Tills 4First implementation in Italy for small storesLocated in residential area 2 self service checkouts with 2+2 main till (normally 2 lanesopened) Self Service checkout well located and strong customervisibility Operates with fractional cashierAttendant used on peak time </li> <li> 19. Technology Evolution </li> <li> 20. Express SSCO (Basket Over Bag) - 33cm4 3 2 1 Standard 1-bag UnitRedesigned Bagging Module1. Cabinet 2. Scale Platform 3. Standard Bag Rack 4. Basket Shelf </li> <li> 21. Retrofit Existing 1 Bag Units Same Kit for Left and Right Hand Units. On site field retrofit possibleNew BasketOver Bag Kit.Not Connected to Security Scale Standard Bag Rack PID = 7350-K509 Available in WOT Standard 1 Bag Bagging Area </li> <li> 22. SelfServ Checkout FlipCashier Mode PINpad and 2nd display on swivel mount Folding platform Direction of customer traffic </li> <li> 23. SelfServ Checkout Convertible Self-Checkout Mode Input PINpad and 2nd display belt or on swivel mount basket shelf Single bag rack 3 bag, bag wellDirection ofcustomer traffic </li> <li> 24. Raised Platform for Cashier mode Direction of customer trafficDirection ofcustomer traffic Self-Checkout Mode Cashier Mode </li> <li> 25. How it works </li> <li> 26. Thank youa.santalucia@nv-inco.com </li> </ul>