what will drive the retail technology in 2015-2016

What will drive the

Retail Technology in

2015 - 2016

Evaldas BudvilaitisCEO, New Vision Baltija UAB

SHOP PAY

BE

REWARDED

How future

consumers will

SHOP, PAY and

WANT TO BE

REWARDED?

PSI Group strategic outlook

SHOP PAY

BE

REWARDED

How future

consumers will

SHOP, PAY and

WANT TO BE

REWARDED


Pay

Reward

Shop1. BALTIC RETAILERS MOVE TOWARDS

OMNICHANNEL RETAILING• Consumers can now buy virtually

anything, any time, and have it delivered from anywhere in the world.

• Store-based retailers continued their move into the online

• Offering an Omni channel shopping experience by using the same database of products, prices and promotions across all channels simultaneously allows retailers to track their customers across all channels in order to gain a better profile of their needs and preferences

Pay

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Global trends

6

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Reward

Shop2. MOBILE WILL BE IN THE CENTRE

OF NEW RETAIL TECHNOLOGIES

Point of

Sale moves

to…

Point of

Service

Self

Service

PayShop

4 % of all Internet sales in Lithuania is done

with smartphones

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Reward

ShopCustomer acceptance is the Key

Sample - Self scanning app usage patterns

(Italy)

App downloads driven by curiosity and fun

Drop-out rate between downloads and

registrations is relatively low, less than 50%

Active users (at least 1 shopping session or

payment / month) are about 30% of

registered users

The number of active users per store has

reached several hundreds in well-advertised

stores

3. CREATING PERSONALIZED EXPERIENCE

Reward

Role of

Customer

data and

insights

What are their

needs and

how is best to

address?

How and

when is most

efficient to

reach them?

In what

lifestage

they are?

What are

my most

valuable

customers?

11

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ShopStore ajusted to customers shopping missions

(“Store within store”)

PayShop

Parcel Lockers

Refrigerated

Grocery Lockers

PayShop

PayShop

4. MIX OF DEVICES INTEGRATED INTO

ONE SYSTEM DELIVERING PERSONALIZED

EXPERIENCE

PayShop

20%

10%

10%

60%

Enhancing Customer Experience

Brand Awareness

Staff Training

Return on Investment

Digital Signage Association

Reasons Retailers invest in Digital signage

16

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Shop

5. DYNAMIC PRICING

6. STORE ANALYTICS

Ranking selected KPIOwn score vs. the bestRanking selected KPI

Own score vs. the best

Sales competition, ranked result

selected Item/SKU

Sales competition, ranked result

selected Item/SKU

Sales; today, yesterday, week

and month

Sales; today, yesterday, week

and month

Score “Store Olympics” –

selected criteria's

Score “Store Olympics” –

selected criteria's

SHOP

BE

REWARDED

PAY

How future

consumers will

SHOP, PAY and

WANT TO BE

REWARDED


Pay

Reward

Shop

7. SELF SERVICE CHECKOUTS

RETURNING TO BALTICS

Pay

Hypermarket with 6 SSCO, 3 months after go –

live, based on payroll logs:

Labour usage before the project 1.308 hours. / week

After project 1.061 hours / week

Savings: 247 hours / week

Annual savings: 12.844 hours

• Number of Self Checkouts: 6

• Number of traditional tills: 22

• Open 24 hours

SPAR Supermarket St. Petersburg

• 50% transactions goes thru Self Service

Boots Bishopsgate London

Boots Flagship store Format

Located nearby Liverpool St Station– huge hub of

commuters and tourists

9 Self-service Checkouts

Operates with minimal but effective use of

attendant

Liverpool St. – Circle/Cent./Met./Hamm.

Store Format Health & Beauty

No. of SSCO Units 9

Self service – only store

New Layout concepts Dominant customers outflows

� Improved

utilisation due to better queue management

� Ability to draw customers from other lanes

� Improved staff productivity & shrink management

� Faster clearance for Interventions

� Single Exit Point with automated opening gate

� Better customer service

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Pay

Reward

Shop8. NEW SELF-SERVICE CONCEPTS

Optimised Layout for Convenience

• Queue busting when calling staff from shop filling

• Self service and the fractional attendant model

Visibility and accessibility of the SSCOs is key

� Ease of Store Management

� Improved overall store Efficiencies and Customer Service

� Now always have 3-4 lanes open

� Fractional Attendant Support

RAP Station

PayShop

9. CASH AUTOMATION

1

2

3

4

Helps cut cash handling related cost up to 30%

10. VENDING INTEGRATION INTO

CHECKOUT PROCESS

Choose product as a product

card in the shelf

Or choose product on the Kiosk

Retrieve

your

products

from the

dispenser

Scan the valid

receipt

at the

dispenser

Hand in the Kiosk receipt or

the product card and pay at

the cashier

1 2 3

4 5

11. MOBILE PAYMENTS

- Issues to be solved

• Lack of standard platform

• Costs of updating

infrastructure

• Debates over fee structure

• Privacy and security fears

• Customers are not aware

• Inertion to current models

• No clear reason for customers

to adopt

Source: Euromonitor, Collis

12. PAYMENTS BECOMES MORE INTEGARTED

INTO WHOLE SHOPPING JOURNEY

Payments are just one component of the

consumer transaction

SHOP PAY

BE

REWARDED

How future

consumers will

SHOP, PAY and

WANT TO BE

REWARDED


13. SHIFTING FROM JUST POINTS TOWARDS

ENGAGEMENT ON THE INDIVIDUAL LEVEL

• Personal deals

• Rewards not just for purchases but for

other activities –visiting the store

(IKEA), other gamification elements

• Experiential rewards (free cofee,

exclusivity, etc.)

• 2 ways communication

14. MOBILE LOYALTY

• The first ever completely

cardless customer loyalty

scheme launched in Sweden by

the Willys supermarket chain.

• Starbucks successfully used

their customers loyal

behavior to drive mobile

payment usage

Lwallet in Lithuania

Months

after go live

Tx

0

500

1000

1500

2000

2500

3000

3500

1 2 3 4 5 6 7 8 9

Purchanses at POS made with Lwallet

STRATEGY

INTEGRATION

TO

SYSTEMS

INTEGRATED

INTO PROCESS

3 components for success

INTEGRATION

TO

PROCCESES

STRATEGY

21years of experience within complete integrated retail management solutions

In-housesoftware development competence

190experiencedprofessionals comprising the largest provider of retail software and hardware solutions in the Baltics

Key solution areas Key segmentsOffices

OUR COMPANYA LEADING PARTNER FOR RETAILERS IN BALTIC COUNTRIESWHOLY OWNED SUBSIDIARY OF PSI GROUP ASA, AS OF JULY 3, 2014WWW.PSIGROUP.NO, COMPANY LISTED ON OSLO STOCK EXCHANGE

International retailers

Food retailers

Domestic speciality

retailers

Hospitality Chains

Enterprise solutions

Store solutions

After sales service

FI

RU

LVEE

LT

Self service andcheckout efficiency

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PSI Group mission

“Driving Retailers’ profitability by providing inno vative integrated technology solutions”

- enabling storeowners to reach their full potential

PSI LABELSPSI TECHNOLOGY PSI RETAIL

Sales & marketingSystem integrationProject planning & roll outsInstallation & educationService & support

Sales & marketingDesign

R&DResearch & DevelopmentManufacturing Vendor Partner – Value added reseller Manufacturing

PSI - team of more than 540 profesionals

NEW VISION SOLUTIONSA HOLISTIC APPROACH

ERP&BI

Midware

Data collection and

transaction handling

MS Dynamics NAV and LS Retail, BI solution Retail Back office and Loyalty systems

POS Front office SW, data transfer solutions, IP video and analytic solutions, specialized software solutions, mobile apps, self service platform and etc

POS systems, Fiscal solutions, scales, Barcode systems, Warehouse automation products, PC & servers, peripherals, networks, IP cameras

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ISO CERTIFICATION TO PROVE HIGH QUALITY SOLUTION DESIGN, IMPLEMENTATION, SYSTEM INTEGRATION AND SERVICE

ISO 9001 - Quality Management System StandardISO/IEC 20000 - IT Service Management StandardISO 27001 Information Security Standard

Understanding and satisfying theconsumer is more complex than

before

Multichannelbecomes omnichannel

Self Service – new way to be Retailer and improve consumer

service

Impl

icat

ion

Tren

ds/d

river

s

• New opportunities with mobile devices for retailer staff

• New generation of ERP and Retail solutions, with integration to various external solutions, will requireproviders with integration experience

• Large variances within ERP SW whether they are adapted to newchannel strategies

• Suppliers must be Experienced independant solution providers with knowledge in Self Checkout, Self scanning on mobile and traditional one are well positioned for growth

• Providers with business consultancy tools and know how on how to organize check out for general retail will be sought after

• Consumers needs personalizedapproach, means moresophisticated systems for retailers

• Traditional HW and POS SW providers can‘t meet needs of retailers

• Traditional ERP companies don‘t have required retail know how

RETAIL ENVIRONMENTNEW VISION / PSI GROUP READY TO DELIVER

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Thank you