verifone your european payments partner
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verifone your european payments partner
April - May 2013 FIRST CHOICE FOR TECHNOLOGY PURCHASERS IN IN MULTI-CHANNEL MULTI-CHANNELRETAIL RETAIL FIRST CHOICE FOR TECHNOLOGY PURCHASERS VERIFONE YOUR E U R O P E A N PAY M E N T S PA R T N E R mastheads.indd 2 11/04/2013 13:46:23 FOUNDED IN 1981 TRUSTED BY EUROPE’S LEADING RETAIL AND FINANCIAL BRANDS A COMPREHENSIVE WE’RE LOCAL PORTFOLIO FOR PAYMENTS IN EUROPE PRODUCT AND SERVICES 25 OFFICES www.verifone.co.uk LARGE OR SMALL WE SPEAK YOUR LANGUAGE MOBILE POS, ONLINE, APPS, E-COMMERCE, LOYALTY, CROSS-BORDER, NFC, MANAGED SERVICES... The European payments industry is no stranger to change. Current consumer behaviour, sales channels and service requirements are placing new demands on retailers. Respond to these challenges with a payments partner that understands. One that thinks beyond the now, embraces innovation and helps safeguard your business long term. A partner that matches vision with capability, delivering globally proven solutions backed by local support. One that is flexible enough to respond to your specific payments needs. One that invests in future technology, via R&D and product innovation. +44 (0)8444 828 2 0 0 info-emea@v erifo n e. co m @VeriFone_EME A www.facebook.c o m /Veri F o n e www.verifone.co.uk Enable your business to survive and thrive in the face of change. VeriFone offers the widest range of payment devices and multi-channel payment services in Europe. We deliver an extensive regional footprint, with over 25 European offices. Our solutions are powering payments at some of the biggest brands in Europe – and beyond. Our growing family of companies – including mobile retail systems provider VeriFone GlobalBay – take your payments even further. April - May 2013 FIRST CHOICE CHOICE FOR FOR TECHNOLOGY TECHNOLOGY PURCHASERS IN MULTI-CHANNEL MULTI-CHANNEL RETAIL FIRST PURCHASERS IN RETAIL Rise of the pop-up shop With big name retailers like John Lewis embracing the concept, the pop-up shop has entered into the mainstream. What technology is driving this new breed of store? www.retail-systems.com Retail Business Technology Expo (RBTE) review • Appointments • Social media supplement • Multi-channel news • 3D printing feature RS Editor Karen Moss [email protected] Contributing writers David Adams, Glynn Davis, Wayne Tuckfield, Ellie Robinson, David Howell and Liz Morrell Design & production Jason Tucker Advertising Lisa Gayle [email protected] contents Cover Story April - May 2013 FIRST CHOICE CHOICE FOR FOR TECHNOLOGY TECHNOLOGY PURCHASERS IN MULTI-CHANNEL MULTI-CHANNEL RETAIL FIRST PURCHASERS IN RETAIL Rise of the pop-up shop With big name retailers like John Lewis embracing the concept, the pop-up shop has entered into the mainstream. What technology is driving this new breed of store? www.retail-systems.com Retail Business Technology Expo (RBTE) review • Appointments • Social media supplement • IMulti-channel news • 3D printing feature 34 Popping up all over As multi-channel becomes ever more central to retail operations, store estates are slimming down. We are now witnessing the rise of the pop-up shop, says Liz Morrell Features 36 Big brother is watching Is higher shrinkage inevitable in a global recession or are there was to combat it? Glynn Davis takes a look at the security systems protecting retailers Subscriptions Joel Whitefoot [email protected] General enquiries - 0208 950 9117 [email protected] 38 expect the unexpected Dave Adams investigates how retailers are protecting themselves against business continuity incidents that can cause store and supply chain chaos Subscription rates £98 p.a. in the UK £140 p.a. elsewhere Cheques must be made payable to: Perspective Publishing Limited and addressed to the Circulation Dept. 42 Stranger than fiction Occasionally there are steps forward in technology that sound like science fiction. With 3D and 4D printing, could we witness a new industrial revolution? Main Switchboard: 020 7562 2401 Supplement Main Fax: 020 7374 2701 26 Moving in social circles More consumers these days are using social media as the channel of choice for enquiries and addressing complaints. Ellie Robinson asks; have retailers embraced social customer service? Advertising Telephone: 020 7562 2400 Advertising Fax: 020 7374 2701 Subscriptions Telephone: 28 From Facebook, with love A new trend for digital gifting via social networks like Facebook and websites such as Wrapp and Gifted2You, is gathering pace. Wayne Tuckfield explores how social gifting can benefit retailers 020 7562 2420 Managing Director John Woods Publishing Director Mark Evans Postal address: 30 social shopping With the rise of social media networks, the phenomenon of social shopping is now a force that no retailer can ignore. Dave Howell reports Perspective Publishing, Sixth Floor, 3 London Wall Buildings, London, EC2M 5PD 11,500 average net circulation for the period Jan to Dec 2011 All rights reserved. The publishers do not necessarily agree with the views expressed in this journal. Also in this issue 06 08 10 11 15 Comment News Multi-channel news Diary RBTE review 45 47 48 50 59 At a glance Book reviews Letters to the Editor Appointments Retail worlds ISSN 1369-5037 Printed by Warners (Midlands) plc All rights reserved April - May 2013 RS 03 RS comment editor’s letter Bonus round Next boss, Lord Wolfson, declined his £2.4m bonus to share it among staff, prompting both praise and scorn I Perhaps a few City chaps could take a page from the book of Next boss, Lord Wolfson, who declined his £2.4 million bonus to share it with company workers Karen Moss is Editor of Retail Systems. Her blog on all things retail tech-related can be found at: http://retail-systems.blogspot. co.uk. She can be contacted at: karen. [email protected] 04 RS April - May 2013 think I must kick off my editor’s letter for this issue with a few words about our first female Prime Minister, Margaret Thatcher. Whatever your opinion about the Iron Lady and her politics, the affect she had on the business world cannot be denied – not just in the UK but globally as well. When she liberalised City working practices in London she turned our financial centre into the driving force of the economy. Some see this as the beginning of irresponsible lending and the worst excesses of bankers and financial institutions. However, you could argue that many of the tech jobs that make up the readership of this magazine might not exist without the capital that flowed into the country after Maggie deregulated our stock markets. For me, coming from Northern Ireland, the lasting memory of the Iron Lady will always be her signing the Anglo-Irish agreement and paving the way for the Good Friday agreement in 1998. I bought one of every newspaper at my local shop the day that document was signed, it seemed historic to me and like a step that I never imagined I would see in my lifetime had been taken. Speaking of bankers and excess, perhaps a few City chaps could take a page from the book of Next boss, Lord Wolfson, who declined £2.4 million of his bonus and plans to share it among the company’s workers. Lord Wolfson of Aspley Guise, chief executive of Britain’s second-largest fashion chain, said in a letter to staff that one element of his incentive plan had become ‘more valuable than I could possibly have expected’ and that he had already benefited directly from the rise in the company’s share price. It came as the Conservative peer enjoyed a 13 per cent pay rise to £4.6 million, including £2.5 million in shares from a long-term incentive plan and a £1.1 million bonus. The payment of the share-matching element of his remuneration to staff who have worked at Next since June 2010 equates to a 1 per cent one-off bonus for 19,400 of Next’s 55,000 employees. This is about £130 each to staff working full-time on the minimum wage. In a letter to workers, Lord Wolfson wrote: “The exceptional gain in our share price has meant that this award has become more valuable than I could possibly have expected. As I am a shareholder, I have also greatly benefited from the increase. So, this year, instead of accepting this reward, I have asked the board if they will share it out between all the people who have worked for the company during the three-year SMP qualifying period.” The move comes a year after Lord Wolfson returned £640,000 of his long-term incentive bonus after deciding to cap the payment at £2.5 million. His £714,000 base salary is 27 per cent below that of M&S’s Marc Bolland. While most will find this gesture extemely noble and deserving of praise, GMB Union have another – possibly equally valid – interpretation of Lord Wolfson’s cash giveaway. GMB will campaign that Next should pay a living wage of £7.45 per hour (£8.55 in London) and hours of work that pay enough for people to live on. Paul Maloney, GMB regional secretary for Southern Region, said: “PR gestures from Tory peer Lord Wolfson sharing £2.4 million of his already sky high pay with some 35 per cent of NEXT employees is no substitute for paying staff a living wage to all 55,000 staff. “Over 30,000 mainly young Next staff with less than three years’ service will get nothing. This is hardly fair. The other directors from their £4.6 million bonus should make a similar gesture to help them. A recent GMB report found vast majority of jobs Next currently offer are for 12 hours or less per week. “It is high time profitable employers like Next paid a living wage.” Mick Rix, GMB National Officer for retail staff, added: “Next staff do not need charity hand outs from Lord Wolfson or his board. Next makes huge profits from clothing made in the third world. It should employ workers in the UK on proper working hours and pay a living wage and stop behaving like a ‘breadline Britain’ company. “ FIRST CHOICE FOR TECHNOLOGY PURCHASERS IN MULTI-CHANNEL RETAIL Designing email campaigns with conversion in mind According to Forrester the typical shopping cart abandonment rate online is 88 percent. In this exclusive webinar, retail experts will address the issues surrounding conversion and share their thoughts on how retailers can tip the scales in their favour. Mark your calendar: 18 June at 3:00! Topics covered include: • • • • How more targeted email marketing helps remedy basket abandonment online. How retailers use email campaigns to reward their loyal customers and at the same time pull in new shoppers How retailers use email marketing to promote multi-channel conversion, both in-store and online In the future will we see an increase in the use of proximity and real-time marketing to shoppers who are in or near a retail store? Presenter: Susan C. Wall, VP, Marketing, Bronto Moderator: Karen Moss, Editor, Retail Systems Magazine Speaker: Sarah McVittie, Co-founder, Dressipi Speaker: Kestrel Lemen, Marketing Strategist at Bronto More speakers to be announced! Karen Moss is the editor of Retail Systems, the number one magazine for technology purchasers in multi-channel retail. She has been with the magazine for almost two years, providing comment and analysis on industry trends and the future of retail technology. Donna is a co-founder of Dressipi, an online personal shopping and styling service. Prior to cofounding Dressipi Donna was Head of EMEA at IMG where she oversaw all the multi-platform technology and content strategy for the breadth of IMG clients and companies in the areas of Fashion, Entertainment, Sport and Social Networks. Multi-award winning, she has a proven track record in the development and launch of new initiatives and has launched a number of ‘firsts’ across mobile, web and broadband. As a Marketing Strategist at Bronto, Kestrel Lemen has had proven success working one-on-one with clients to assess areas of improvements and design custom strategic action plans to help them achieve their revenue goals. Kestrel is also fluent in other digital marketing tools such as social media, SEO, PPC tools and content marketing. 18th June at 3:00 PM Register at: www.retail-systems.com/conversion RS comment On your marks Trenton Moss, founder of Webcredible, explains how Burberry won gold in the ‘Omni-channel Olympics’ I Mobile payments uptake has stuttered because of technology and user perception. But with the right innovation, these issues can be laid to rest. Here are five trends I predict this year... Director and founder of customer experience design agency Webcredible, Trenton is one of the most recognised names in the user experience industry and is a regular public speaker, helping to drive best practice and innovation in the industry. 06 RS April - May 2013 t’s 2013, and understanding customer behaviour is essential in order to provide the best possible shopping experience. Consumers want to interact with brands seamlessly across platforms, wherever and whenever they wish. This is the ultimate goal of omni-channel. Brands cannot continue to adhere to a strictly platform-based strategy as they have done in the past – it is no longer good enough to think about ‘mobile’ and ‘tablet’ as isolated concepts, because that is not how customers use them. The line between platforms must blur to create a seamless brand experience. In its simplest sense, omni-channel starts with understanding the needs and behaviours of customers, then designing experiences that fit in with their natural habits and day-to-day lives – it’s a holistic approach that requires thinking about all channels as a whole. Burberry has by far the most linkedup customer experience approach. The luxury retailer has an obvious and dedicated investment in customer experience, particularly with regard to digital technologies. The brand incorporates the latest technology with a flawlessly consistent brand look and feel across all channels, as well as offering sophisticated personalisation options. In the luxury market, customers are more likely to have higher than usual expectations of consistency and service – so not only does each platform need to excel individually, the transitions between them must also be effortless. For example, although not limited to this type of customer, people buying luxury products often expect to be able to look at a product on their mobile phones, then save it and see the same product on their laptops at home, or to go into a store and try it on. Burberry has clearly spotted an opportunity and made efforts to fulfil this need among its target audience. The key omni-channel element that Burberry addressed was to bring the online experience instore, and vice versa. Customers want the best parts of both worlds to seamlessly collide – in doing this, Burberry showed that it is looking beyond individual technologies in favour of a more customer-centric approach. Burberry’s new flagship store on Regent Street is currently the best example of a true omni-channel instore approach. The design of the garment displays and the way in which staff interact with customers are deliberately aimed at replicating the at-home online shopping experience – staff carry iPads to allow customers to log in and access their ‘My Burberry’ account to remember which items they’ve previously viewed online, and gain from personalised recommendations based on their browsing behaviour. The removal of tills and the need to queue, with plenty of ‘break out’ areas, means customers can enjoy browsing without the usual stresses associated with in-store shopping. For me, this was Burberry’s most inspiring omni-channel initiative, similar to the Apple Store’s approach, but tailored to the needs of fashion retail. While it’s true that Burberry has invested heavily in digital technology, that doesn’t mean everyone has to – this is by no means the focus of an omni-channel approach. The key is to know your customer, and how they prefer to shop. Luxury market consumers, like Burberry’s, are more likely to be ‘early adopters’ of technology, so developing a tech-based approach was a great way for the brand to get ahead of the competition. Not all businesses or target audiences are the same, however, so research is essential to ascertain what is most important to your customers. This could be something as simple as prioritising excellent customer service over social media campaigns. It is vital that your customers can access products and services in whatever way they want, be it through a website, mobile site, social network, in-store or over the phone. An omnichannel approach gives businesses the ability to meet these needs. The omni-channel approach begins and ends with customer experience. But it’s early days, and for the majority of retailers, company culture, structure and processes still need to evolve. comment Store strategies Tim Deluca-Smith, of WDS, warns mobile operators not to think about closing their physical stores just yet T he rise of online has driven exciting measured purely against customer acquisition, revenue growth and is drawing consumers away from the High Street in greater not lifetime customer profitability. By altering store performance management, and a closer numbers. This evolution in buying behaviour is binding to their own online channels, operators also impacting mobile operators. The UK’s four major players Vodafone, EE, O2 and 3 all have can reduce the threat of ‘showrooming’. Physical stores cannot match the web for nationwide coverage in the major towns and convenience. The core differentiator for the cities. The question is, will they have a future store is its ability to deliver a personalised, or will they suffer the same fate as other fallen iconic High Street brands? The relationship between the operator and branded and guided experience that twins the consumer with mobile products and services that match their requirements. With a the customer is shifting. It is becoming more complex because multiple brands, such as the handset manufacturer and application provider, customer relationship that spans several years, surprisingly few mobile operators analyse the role their High Street assets play in retention are influencing customers’ wireless experiences. In order for the operator to retain relevancy, and ensure long-term customer loyalty, the role and customer lifetime value. There needs to a physical retail environment where customers can access support, explore and discover new convenience. The core the traditional shop plays must also change. services and pick up online purchases. The in-store relationship has always been pivotal in cementing the bond between an These changes must also be aligned to operators’ own multi-channel ambitions. store is its ability to operator and its customer. However, the role Customers want a differentiated experience of the High Street presence rarely extends the value of new customer relationships beyond the first few months. The only exceptions are through physical stores, but they expect consistency as they move between channels. The information, pricing and support must visits for technical support, or to purchase accessories. To increase their impact as a be consistent, wherever the destination. This necessitates closer integration between revenue generating resource, retail shops must become integral across the customer lifecycle. Mobile operators are one of the few High operators’ marketing and merchandising teams. Currently, many mobile operators will be questioning the function, and viability, of their Street retailers able to adopt such a strategy to defend their bricks and mortar position. Unfortunately, the rate at which operators can make changes is often impeded by legacy practices. The main culprit is stores being stores. However, they should consider the value a bricks and mortar presence can deliver across the customer lifetime. The physical store remains one of the few touch-points where face-to-face engagement is possible. Physical stores cannot match the web for differentiator for the deliver a personalised, branded and guided ownership experience Tim has been vice president of marketing at WDS for the past six years. Prior to his tenure with WDS, Tim had several roles in the IT/telecoms marketing communications and public relations sectors. He has a background in media studies. RS news RS IN BRIEF CASH Access Online cash payment provider, Ukash announced a unique service providing the facility to access cash without needing a debit or credit card. The new Cash Withdrawals service, which went live in April provides a convenient and easy way to turn gaming winnings or spare Ukash back into cash at more than 24,000 PayPoint locations across the UK. Bybox expands ByBox embarked on a £2 million development programme that has seen its network of locker solutions grow across the UK. The installations are the latest part of an on-going initiative with Peel Land and Property. The installation further increases ByBox’s coverage in the Manchester area. V.me wallet The V.me by Visa will be available from and promoted by RBS, NatWest and Nationwide. The digital wallet service allows consumers to pay through the internet browser on a PC, laptop, tablet or smartphone. Users can store their debit, credit and prepaid cards into the wallet and use them to pay at accepting retailers without entering card details. e-paper displays German pharmacy, SaniPlus Apotheken Lauterbach e.K., has implemented ZBD’s e-paper system in all its stores. The pharmacies, located in Munich, previously used segment electronic shelf labels, which include a paper element. All stores have now switched to ZBD’s fully graphic e-paper displays to update and manage pricing and product information. Handheld devices The Co-operative has rolled-out new Elf wireless handheld devices across its entire food store estate to improve customer service, following a £6.5 million investment. The retailer worked with BT Expedite and Datalogic to introduce more than 6,500 Elf handheld terminals at over 2,800 food stores. 08 RS April - May 2013 Mission impossible? It seems that entrepreneurs and private firms are on a mission to rescue failing retailers. Will they succeed? T he last month has brought us welcome news that Jessops and HMV will not disappear from our High Streets. HMV will be given a lifeline after a rescue deal which could save 2,500 jobs and up to 136 stores. The deal, struck with restructuring specialist Hilco, will ensure that the famous brand remains on the nation’s High Street following the announcement that it would go into administration in January. Dan Wagner, CEO and chairman of mPowa and Powa Technologies, which is responsible for implementing online and mobile retail platforms, said: “The way consumers engage with retailers is undergoing seismic shift driven by innovations in technology. Only those retailers that embrace and move with these changes will survive and grow in a rapidly changing marketplace. “This deal will present HMV with a valuable opportunity to address the problems that forced it into administration earlier this year and present a store that is revived, refreshed, and most importantly, profitable. There is still a great deal of value and heritage in the HMV brand so it is beneficial to the UK’s economy that a store with such legacy continues to trade.” Dan concluded: “It is hugely important now that HMV widens its perspective and creates a shopping experience that ticks all the right boxes in terms of interactivity and personalised service. Consumers looking squarely at price will be tempted by the likes of Amazon and iTunes. “The place where HMV has the advantage is through the added value it can give to shoppers through the marrying of its online business and its high street offering. Shopping no longer needs to take place in a linear format and so options should be considered to redesign store layouts, payment systems and in store facilities to create a more modern shopping experience.” Peter Saville, partner at advisory and restructuring firm Zolfo Cooper, commented: “HMV lives to fight another day. This is really positive news for the chain and the wider UK retail sector. Hilco understands the market well and is a seasoned high street veteran. The news that HMV is to continue trading will also be welcomed by suppliers as an over-reliance on online channels may be uncomfortable. “The test now is with the consumer. Following the public’s outcry at the demise of HMV, consumers need to start shopping in the stores again in order to secure its future on Britain’s High Streets.” Dragons’ Den And less than three months after its scollapse Jessops will be back on the High Street under the ownership of Peter Jones, the Dragons’ Den entrepreneur. The photography retailers will return as a streamlined chain of around 30 to 50 stores by the end of May. Wholly owned and funded by Mr Jones, who has taken over as CEO and chairman, Jessops aims to bring in £80 million of revenue in its first year. The retailer’s £60 million debts have apparently been wiped out. Flagship ‘kiosks’ for its new, internet-weighted business model reopened in Birmingham and Oxford Street in central London in April. Jones says: “I’m hoping that we will be more successful than Jessops has ever been in terms of profitability. They were in a tough market with underperforming stores and a real estate that needed a lot of work doing on it. “I’m very big on the High Street in terms of my belief that retail works there. I think you can’t take away the value of the touch and feel of the shopping experience, but you’ve got to change the backroom set-up to make it work.” The chain collapsed into receivership in January. Mr Jones bought the brand from administrators PricewaterhouseCoopers for £5 million three weeks later. He is gambling that focusing on fewer high street shops with a greater online presence will make the once-sprawling business more efficient. Will these ventures be successful? We will have to wait and see. sango An irresistible EPOS system with an exclusive, innovative concept designed to free up space beneath your terminal’s touchscreen! w w w. a u r e s . c o m irresistible epos RS multi-channel news IN BRIEF DATA Capture Multi-channel retailer, Halfords, chose Heiler Software’s Product Information Management (PIM) to help deliver efficiencies in the product data capture process from the supplier to the customer. The solution provides a central database of sales and marketing assets to be utilised by the support centre functions and significantly simplifies supplier’s contributions to the process and dramatically reducing margin for errors. One consumer: One commerce Karen Moss brings you the highlights from the Cegid Retail Connections conference in Venice Cloud pos Clothing retailer, Fat Face, completed the roll-out of a new cloud-based version of BT Expedite’s Store 6.3 point of sale (PoS) solution. The solution was rolled-out across all 206 of Fat Face’s stores in time to support a record Christmas sales peak for the retailer, with double digit sales growth. From design to completion, the project took a record nine months – typically similar scale bespoke deployments can take up to 18 months. holistic view British clothing brand, Joules selected MICROS Retail Merchandise Planning to enable them to support their growing multi-channel business. Joules identified a need for a merchandise planning solution that could consolidate all trading aspects of their multi-channel activity. MICROS enablse them to plan stock and sales across channel and season, providing a holistic view of their business activity and enabling them to make swifter, informed decisions. Engaging shoppers JD Williams, a subsidiary of the N Brown Group, selected eGain for multi-channel customer engagement. JD Williams wanted to implement a scalable customer engagement solution to support over three million shoppers across 25 online brands. With the understanding that shoppers have gone multi-channel, the company sought a solution that would enable smart, context-aware customer journeys across touchpoints. 10 RS April - May 2013 I ncreasingly when retailers and vendors talk about multi-channel – or omni-channel as it is now being called – the channel they are looking to for big profits is international. Sure, there are big benefits to be had; access to growing markets and burgeoning middle class shoppers and selling to opposite seasons in places like Australia allows retailers to minimise sale stock. But all of this is being tempered with a cautiousness that retailers at the recent Cegid conference in Venice believe is necessary to survival when expanding overseas. The Cegid Retail Connections Conference held in March was opened by Patrick Retrande, general manager of Cegid. “The world is constantly moving and changing,” he said. “This presents challenges and opportunities. In five years there will be another billion people on the planet. The GDP of BRIC countries will eventually exceed that of developed countries. Because of this a number of our partners and retailers are going international. Things will not be the same as they were before. This digital culture is not a crisis, it’s a revolution.” Retrande went on to discuss the pace of the digital revolution, saying that if the internet economy were independent it would be the fifth largest in the world. He added: “Extraordinary change is underway, human beings are more connected than ever before and the countries who have invested in digital will be the ones leading in GDP; South Korea, China and the UK. Over the last three years the companies that have invested in technology have grown the most. Twice as fast as other companies in fact.” E-commerce is the driving force for the digital economy, just look at its importance in the UK economy. More shoppers are researching online and purchasing offline. According to statistics presented by Cegid in Europe 32 per cent of consumers only go in-store, 19 per cent go only online and 49 per cent go online and in-store. However 60 per cent of consumers expect transparent integration. Retrande believes mobile has further changed the retail landscape. We have witnessed a decline in sales for PCs, and with the rise of the tablet he believes it won’t be long before we see devices like the iPad exceed sales for television sets. Corentin Violle, CIO, of Longchamp, who attended the conference took a few moments to speak to Retail Systems about the retailer’s international plans. “We now have two stores in London,” he noted. “Soon to be three. We’re in the process of opening a flagship store on Oxford Street. And a concession at Harrods is still in the works, we are currently negotiating with the department store. We use Cegid in both our UK stores and will implement their software in our third store as well.” He added: “We are a long time Cegid customer and our goal is to expand outside EU, we have very ambitious plans for China, US, Japan and Korea. So we need retail systems that we can implement all over the world. We have an online presence in these countries as well. As far as the Paris and US online businesses are concerned, we view them as two additional stores, but we’re still at the beginning of the process. We’re taking baby steps. “We want our BI (business intelligence) to be really relative, so with Cegid we are killing two news birds with one stone. Customer data is captured from the PoS. When it comes to CRM (customer relationship management) we are using the customer database to email customers. When they receive the email and come in-store the customer ios recognised and there’s a pop-up at the PoS to say the customer received an email regarding new product. It’s still pretty new to us to have all this data, and trying to figure out how to make it work for us. “The journey is going to be more and more key for the customer experience. People will use your store like a showroom. Retailers need an increased awareness about digital world and how it interacts with traditional business. We need to interface with systems, sales and customers in 20 countries. Stock information updates in-stores is important as we are planning to implement Click & Collect in the EU in the future.” As part of a keynote panel entitled One consumer: One commerce, Agathe Boidin, managing director of Orchestra (a French children’s retailer), revealed the retailer’s multi-channel strategy. She commented: “We created the loyalty club three years ago, the membership gives customers a permanent discount and means client recognition. It can be used online and in-store and enables us to know what our clients have bought, the age of their children, what they bought last year. It means we can target the customer and that they are recognised for their loyalty, even when they go from store to online and vice versa. We want to make it as fluid as possible for them. “A few months ago we launched a new website. It gives us sales from four of our biggest stores. Through the data we discovered that a large percentage of our customers asked that items be delivered in store, the Click & Collect concept, so we were able to implement that. It attracts more people to our stores and two thirds of people who go to pick something up buy additional products. “I believe you learn more from failures than successes. At Orchestra we are still testing digital channels. We have a 3,200 square metres store were we have attendants help customers make gift lists for baby showers and they can make dditional sales if sizes are not available by having shoppers order from a kiosk in-store. That way they can buy it online while in-store and have the item delivered to their home. The challenge is to be able to adapt to change very quickly. At Orchestra stores still make a percentage of the sales but they need to be connected with other channels so they don’t just offer showrooming. People buy in-store because of the advice they receive and the full retail experience. At our stores you can test your baby seat in real car in-store or push pram on gravel and different surfaces. It’s a great experience for parents.” Michel Delbecq, IT director for Sephora, who also sat on the panel, added: “Our project, MySephora, is a product recommendation engine, which allows us to propose products to customers based on previous purchases. The app is available for the iPad in 90 stores this year. “It’s an application for sales attendants so that they can determine who the customer is before they come to the cash register. When you get to the point where the customer has handed over their bank card it’s a bit late to upsell to someone who has a gold card. This app lets staff know if the customer has a birthday gift they have not claimed yet and shows a shopping list of past purchases. People do not always remember what they have bought before, the exact fragrance or lipstick shade. This encourages additional purchases in-store. Sales assistants can tell people to buy a new bottle of perfume because they will be out soon. “We want to be as innovative in digital space as we are in-store, 50 per cent of our IT investment is in that area. IT services for resources depend on digital applications for sales staff in-stores because that’s useful for the customers too. Mobile payments solutions is another area of interest for us. It’s useful to increase payments where there is high footfall in-stores and increases sales in busy periods by five-10 per cent. Not everything works. There will be failures and companies need to accept that. It’s your job as IT experts to help in the decision. Deploying new solutions is complex, there’s a lot of change and you need excellent project management teams. What has worked for us are applications that offer mobile services in-store for store attendants. My advice is pilot first and then find the answer, you will need different solutions depending on the country.” multi-channel RS IN BRIEF Supply chain With a drive to fuel further omni-channel and international growth, Aurora Fashions selected Retail Assist’s supply chain solution, Merret. Following a competitive tender process, the womenswear fashion brands chose Merret to underpin their future strategies due to its inherent multiple channel functionality, scalability and international trading foundations. e-tail sales rise Online retail sales rose 16 per cent yearon-year in March, according to the latest results from the IMRG Capgemini e-Retail Sales Index. The results conclude what has been a very solid first quarter of the year, with online sales up 15 per cent on the same period in 2012, exceeding earlier expectations of 12 per cent. Despite snowfall in March the online clothing sector recorded growth of 15 per cent year-on-year – in contrast with the performance reported by several major UK High Street brands. Mobile site Usablenet created a mobile optimised website for HSS Hire, one of the largest tool and equipment hire and service companies in the UK. The mobile website marks the extension of the company’s core promise: to make it easy for customers to hire tools whenever, wherever. The site provides suggestions for other pieces of equipment that customers might need and allows users to reserve on mobile and ship tools to the nearest branch for payment and pick-up in-store. iPad apps The Arcadia Group launched five new iPad apps in collaboration with mobile experience specialist Red Ant. The group rolled-out iPad apps for Topman, Burton, Dorothy Perkins, Evans and Wallis in May – with Android versions following in summer. The apps allow users to browse the full catalogue in online and offline mode, so they can get their fashion fix even with limited or no internet connection. April - May 2013 RS 11 HOW SATISFIED ARE YOUR CUSTOMERS WITH THEIR CROSS CHANNEL EXPERIENCE? Proximity Commerce is the future of multi-channel retail. Customers are demanding a seamless experience whenever and however they engage with your brand and they expect an innovative experience on their mobile, on their tablet, at the store and across every other channel in-between. Get ready for the future now with Proximity Commerce. www.portaltechreply.co.uk CONTACT INFO [email protected] +44 (0) 207 730 6000 diary FOCUS REtail systems/fstech payments awards 2013 Deadline for entries: 6 June www.payments-awards.com/awards RS May TBC EPoS Roundtable Location: London Contact: Retail Systems Tel: 0207 854 8971 Retail Systems and FStech are pleased to 22 Payments in Retailing Location: London Contact: Vendorcom Tel: 07793 553150 announce that the inaugural Payments Awards are now open for nominations. The Awards recognise cards and payments excellence and technology innovation within the UK and EMEA. Entries 12-13 Retail Business Tech Expo Location: Earl’s Court 2, London Contact: Legend Exhibitions Tel: 020 8874 2728 are invited from financial institutions, retailers, telcos, issuers, acquirers, technology vendors and various payments 22 BRC Retail Lecture 2013 Location: London Contact: BRC Tel: 020 7854 8971 providers. It’s free to enter and you can put your organisation forward in as many as categories as you wish. The Payments Awards Gala Dinner and Ceremony will be held at Millennium Hotel Mayfair, London on 14 November 2013. The night will begin with a champagne reception, followed by a three course dinner, an 12-14 Pulse 2013 Location: Earl’s Court 1, London Contact: Clarion Events Tel: 0207 384 7821 30-31 World Department Store Forum Location: Istanbul Contact: WDSF Tel: +41 44 295 3080 Awards ceremony – hosted by a celebrity compere – and an after show party with dancing and a fun casino until late. June Sister titles FStech and Retail Systems are proud to join forces to deliver what we believe is a unique event, highlighting innovation and best practice within the cards and payments industries from the 6 International Retailing 2013 Location: Hilton Tower Bridge, London Contact: BRC Tel: 020 7854 8971 6 Environmental Business Forum Location: London Contact: Valpak Email: 08450 682 572 point of view of retailers, financial services, telcos, payments and technology providers. We look forward to receiving your entries which will be judged by an independent 12-13 Smart Data & Analytics Forum Location: London Contact: IQPC Tel: 1 800 882 8684 panel, chaired by Scott Thompson, Editor of FStech and Karen Moss, Editor of Retail Systems. We’ve already had a huge amount of interest in the Awards and are looking forward to receiving a large number of entries from across the UK and EMEA cards and payments industries. The Payments 25 Retail Symposium 2013 Location: Lancaster Hotel, London Contact: BRC Tel: 020 7854 8971 Awards 2013 is all set for a strong debut and we hope you will be a part of it. We look forward to receiving your entries. 6 Payments Awards 2013: Deadline for Entries Contact: Retail Systems Tel: 0207 562 2401 TBC Multi-channel Roundtable Location: London Contact: Retail Systems Tel: 0207 562 2401 April - May 2013 RS 13 RS advertorial Secure multi-channel payments with TNSPay Using P2PE and tokenisation to simplify your PCI compliance headache P rotection of cardholder data has been high on the agenda for retailers since the introduction of PCI DSS. However, while it has proven an effective security measure, achieving and maintaining PCI DSS compliance is widely regarded as costly and time consuming. The risk of fines for breach and non-compliance has driven retailers and solution providers to search for new technologies that can help simplify the process. One such technology is point-to-point encryption (P2PE), an integral part of the TNSPay multi-channel payment gateway. The TNSPay P2PE solution encrypts sensitive cardholder data on the PIN Entry Device (PED) for transmission to the PCI DSS certified payment gateway. When the secure reading and exchange of data (SRED)-certified PED is used as the sole means of card entry, this can remove the merchant’s access to cardholder data, offering the potential for greatly simplified PCI DSS compliance. Delivered by TNS, TNSPay is a PCI DSS certified managed payment gateway that provides merchants with a simple route to securely, reliably and cost-effectively accept payments across multiple channels. Pre-accredited with leading UK and Irish banks, TNSPay supports all major EMV card and transaction types, contactless payments, P2PE and offline authorisation. For further security, retailers can add another building block to their solution through tokenisation. Tokenisation is the process by which a primary account number (PAN) used in a payment transaction is replaced with a surrogate value called a ‘token’. Storing tokens instead of PANs is another option for merchants to help reduce the amount of cardholder data in their payments environment. Even though P2PE can remove cardholder data from the merchant environment, there is often a need for merchants to be able to initiate certain transactions that may require the use of unencrypted original cardholder data. Refund transactions are one such example. The TNSPay tokenisation solution allows merchants to store cardholder data securely on the TNSPay gateway to initiate future transactions whatever the payment channel. To meet this need, TNSPay supports two forms of tokenisation: • Transaction-level tokens which enable secondary transactions without storing raw card details, facilitates refunds, reversals, voice referral and sale completion. • Card-level tokens which enable storage of a card token for future use or internal fraud/velocity checking. The token is PAN-based rather than reference-based and this can allow existing tokens to be migrated on to TNSPay. TNSPay Estate Manager is another component of the TNSPay payment gateway that allows merchants to remotely administer and manage their PED estates, simplifying configuration and providing the ability to remotely upgrade PEDs, removing the need for costly site visits. TNSPay Estate Manager capabilities include PED registration and validation, firmware version control and firmware download. Merchants can add, update, search and swap existing and new PEDs or track a PED over its entire life span, allowing auditing and reporting of any movements or discrepancies. With the TNSPay solution, retailers: • Receive a fully managed point-to-point encryption solution for enhanced security • Can access TNSPay’s PCI DSS certified payment gateway to ensure cardholder data is safely decrypted for processing • Can remove access to cardholder data and reduce PCI DSS compliance scope • Can utilise TNSPay’s tokenisation solution and remove cardholder data from their payment environment Whether updating an existing EPoS system or deploying a new one, the TNSPay solution can be seamlessly deployed into your payments environment. For more information, please email us at [email protected] visit www.tnspay.com or call: +44 (0)870 787 5530 RBTE review RS Innovation is key at Earl’s Court 2 on Tuesday 12 and start to end, plays an integral role and retailers need to get onboard if they are to compete in the this volatile market.” Halford’s ex-CEO, Wild, noted: “If you want to win in retail, you have to understand your customer. Retailers need to recognise that consumers have product information and access to price comparison, they need to embrace that change is accelerating. Supply chain delivery must be geared towards customer requirements, cost effectiveness and availability. Retailers shoud use data to ensure that if a customers wants to collect a Wednesday 13 March purchase or have it delivered to their home or a collection point, that can be done. Karen Moss brings you the hightlights from this year’s Retail Business Technology Expo (RBTE), including keynote presentations. The event took place T his year’s RBTE was bigger and better than ever. Attendance was up 16.5 per cent with 7,188 industry types flocking to Earl’s Court 2 over two days (12 and 13 March), in spite of freezing temperatures and flurries of snow. There was a packed schedule this year with an emphasis on innovation in multi-channel retailing. Supply chain also took a front seat as retailers and technology vendors acknowledged its growing importance in delivering a true multi-channel experience for consumers, especially when it comes to international sales. The first keynote of the show was a panel organised by BT which delivered the results of a new report, Retailtopa2. The survey investigated how retailers need to evolve their supply chain operations to meet the increasing challenges of omnichannel retailing. The company launched its exclusive report, Retailtopia2 – produced by respected figures spanning supply chain, logistics, consumer packaged goods manufacturing and retailing – on Tuesday 12 March. The panel was chaired by supply chain industry figure and GS1 UK chairman, Jim Spittle, FCILT. The panel included: Tom Barry, managing partner, H&B Europe; Milton Guffogg, COO, GE Capital; Neil Ashworth, CEO, CollectPlus, ex supply chain director, Tesco.com and Woolworths; David Wild, ex CEO of Halfords, ex-president of Walmart Germany, former supply chain director at Tesco, non-exec director at Premier Foods; Marcus Hickman, director, Davies Hickman Partners LTD; Gary Sharp, vice president, UK business development, retail services and supply chain, BT Global Services and Josh Pert, CEO, BT Expedite & Fresca. Spittle introduced the panel, saying: “Today we want to discuss the integration between technology and consumers and the impact this will have on multi-channel retailing over the next 10 years and the role of the supply chain. Consumers are much more knowledgable now and retailers need to anticipate what they want rather than respond to it. The supply chain, from Challenge of returns “Returns are a difficult issue when it comes to e-commerce. But if you are a multi-channel retailer with physical stores, returns represent the opportunity to make a sale. Bricks and mortar retailers need to offer a great level of service, engaging consumers when they come in-store. A siloed approach won’t work, departments need to work collaboratively across offline and online worlds to give consumers what they need.” Collect+’s Ashworth added: “Retailers, for the first time, have the opportunity to be proactive. It used to be when building a supply chain that history was the best indicator of the future. Retailers didn’t use insight but hindsight. Today Big Data allows retailers to take information from various sources and create signals of pure demand. They can create a supply chain to respond to and maximise full value sales. Retailers can move from hindsight to insight and then foresight.” BT’s Sharp continued: “Big Data helps improve the effectiveness of the supply chain. It allows us a look at what’s happening with consumer buying behaviour. Due to smartphones a great deal of this buying behaviour comes well before they touch the retail physically. They seek advice from friends on social media, forums and chatrooms and this is April - May 2013 RS 15 RS RBTE review starting to shape demand.” GE Capital’s Guffogg said: “It’s very important that your data is accurate, otherwise it’s not practical or affective. Retailers need to understand the costs all the way through the supply chain. Returns for example is an area that still proves difficult for onlne retail. Sorting that returned merchandise and getting it back into the supply chain is a real challenge.” The panel also discussed the difficulties of personalisation at the point of delivery and the challenges of creating an efficient collection point in-store. The idea of embracing showrooming – some panel members believed the store will become a customer experience centre for the online environment and that the role of the store in the next five to 10 years will be to give advice to consumers and demonstrate products. Therefore stores need to be a fun and engaging environment to be in. Julian Burnett, head of IT architecture at John Lewis, spoke at RBTE about how technology innovations are powering a ‘retail revolution’. ‘Fail fast’ Burnett shared with attendees the John Lewis approach to trialling new technologies, as well as discussing the retailer’s popup store in Exeter and its Great British Technology competition. During his keynote presentation at RBTE on Tuesday 12 March, Burnett emphasised the need for retailers to ‘fail fast’. “Try a new technology by all means,” he said. “But be prepared to admit it if the technology doesn’t deliver the business benefits you had hoped. “We installed ‘Magic Mirrors’ in our Oxford Street store. These allow customers to virtually try on clothes and accessories. It was an entertaining in-store experience but it didn’t provide an uplift in sales, it didn’t create compelling and sustained engagement. It was a bit of in-store theatre, but not something we will be continuing with.” Burnett went on to talk about the department store’s popup style shop in Exeter, which is about a third of the size of a normal John Lewis store. He said that due to the reduction in floor space, the retailer had to become more ingenious in the 16 RS April - May 2013 way they used technology in-store. Instead of displaying multiple plates on offer, the Exeter store has a ‘plate wall’ with one of each dish and a kiosk alongside where consumers can order the number they want and have them delivered home. “Everything that we do is about creating an interactive, engaging and energising experience for our customers,” Burnett continued. “We are seeing a dramatic pace of change in the retail sector. Retailers need to decide what areas they want to focus on when it comes to acquiring IT assets. That’s why at John Lewis we made a conscious decision not to look at any technology unless it passes three tests. “First of all: Will it add value in all channels for customers? Will it streamline our organisation or will new business processes be required? How will existing systems be impacted and what integration will be necessary?” It was these questions John Lewis sought to answer when it launched its first Great British Technology Innovation for Retail competition last year. The contest aimed to establish long term working relationships with innovation technology partners. John Lewis held the innovation event to seek out firms with the technical solutions to real business challenges posed by the retailer. Seeking answers The three retail scenarios were: Customer collection within John Lewis shops – ways in which to improve the customer and Partner (staff) experience and increase efficiencies; John Lewis children’s shoe department – creating efficiencies around stock management and customer service and market-leading John Lewis Partner knowledge and service – how can this been replicated and communicated on our online channels. Black Marble’s submission tackled the second option for John Lewis children’s shoe department and its solution centred upon a ‘Help Us-Help You’ system for advance bookings via smart phones which aimed to enhance customer interaction in each shop and ensure customers are served as quickly and as efficiently as possible. The company also suggested an innovative back of house tracking system to better manage stock and inform customers of availability. Burnett also spoke about areas that John Lewis is currently investigating or trialling solutions for, such as geo location marketing and facial recognition technology, digital wallets and mobile payments. He also said a great deal was going on ‘behind the scenes’ with innovations in trial at the moment with Google apps. During his keynote, Graham Benson, CIO at MandM Direct, stressed the importance of aligning retailers’ IT and commercial teams. He believes that by putting your IT requirements in terms your financial director can understand you can secure more confidence and more investment in your team. RBTE review RS than using traditional unreliable methods Corsten recommends retailers use data analysis to ‘find faults in the processes’ they currently have in place. Chris Hockley, business analyst at Marks & Spencer, says that for improving on-shelf-availability at M&S he uses data analytics across the supply chain taking inputs from sources including sales data, wastage, and from any identifiable problems that occur within the supply chain. Big Data At M&S he says the decision on where to commit resource to analysis depends on: “Where the costs are that will lead to “I believe your people are your only assets,” Benson said. “If you want to achieve anything in business this is done through people and you need to secure the hearts, not the minds of your tean if you want sustainable change. I believe success will happen organically if you have the right people.” He went on to describe IT professionals as usually being ‘left brain’ people, who sell the idea of change based on quantifiable assets. However, Benson believes measuring metrics based on this like. how many hours of uptime this will give the website is meaningless. “We need to convert this into commercial terms,” he said. Thinking commercially “Telling your financial director that you lost 1,500 orders due to outage for an hour at peak trading time is much more effective and will help make your business cases much easier to sign off. Tell them how much it’s going to cost the business commercially not to do something, rather than how much the implementation will cost. “Often the commercial teams think that our requests for new technology is just IT geeks with propeller hats wanting the newest, shiniest gadgets. But if you put your requests into their terms and empathise with them your applications will be more successful. “Never underestimate using positive language. Always say; yes we can do this...if we have this, this and this. Don’t say; no we can’t do this...because we don’t have those things. I believe people buy into passion, be passionate about your projects and your team will follow your lead.” Retailers should view Big Data as a way of using existing data in their businesses to solve obvious problems and not be distracted into believing it requires the collection of other data from myriad sources. Speaking at RBTE Daniel Corsten, professor at Instituto de Empresa, suggested: “Retailers should concentrate on the data they have and not on acquiring more.” With this data he believes they should look to solve longstanding problems like out-of-stocks and shrinkage. Rather profits. I target analytics to where it will have an effect”. In partnership with Star Micronics, pioneering technology start-up Synqera showcased its retail solution for the first time at RBTE. Together they unveiled an in-store hardware device called the Synqera Loyalty Printer, which uses Synqera’s software and Star Micronics’ hardware to deliver bespoke, printed, personalised shopping lists, recipes, coupons and special offers to customers at the entrance to a retail store. Avery Dennison Retail Branding and Information Solutions (RBIS) introduced its smartest markdown management solution the Pathfinder™ 6140 Printer into the UK – the latest in its line of one-piece scan, print and apply price marking technologies. European customer interactions specialist, The Logic Group was selected by Weve as one of its first technology providers to help design and build its loyalty and coupon pilot. Weve is a joint venture between the UK’s three largest mobile network operators (MNOs) – EE, Telefonica UK (O2) and Vodafone UK – delivering a secure, highly integrated m-commerce platform based around mobile marketing and wallet services for businesses. The Logic Group and Weve technology collaboration will see the company designing and building the required central April - May 2013 RS 17 RS RBTE review database infrastructure to support Weve’s first loyalty pilot delivered via a wallet later this year. The customer behaviour insight generated through this pilot will help guide the future development and direction of Weve’s planned loyalty service. In addition, The Logic Group are also assisting Weve with business development activities around its loyalty services and are providing consultancy around the merchant EPoS environment. Mobile collaboration David Sear, CEO of Weve, said: “Part of our vision at Weve is to transform how the consumer can use loyalty on their mobile for their best advantage. That means having access to the cards they want to use at hand when they want to use them and understanding the benefits at that moment that using that particular loyalty programme can deliver. From a business perspective, a better understanding of how loyalty can improve and impact their engagement with their customers, based upon accurate and consistent insight into customer behaviour is imperative. A strong partner ecosystem is crucial to our success – including companies like The Logic Group who can support and partner with us in delivering our ambitions in the loyalty and coupon space.” Gareth Wokes, chairman and CEO at The Logic Group, said: “Weve has the potential to be significant and transformative for the British industry and consumers alike. The Logic Group is delighted to be able to participate in this venture as a technology contributor for managing the secure delivery of loyalty and couponing in Weve’s m-commerce platform.” Box Technologies, which works with leading retailers, banks and public sector organisations, launched its ‘Personal Stylist’, creating a truly interactive tool for today’s shopper. Through the Personal Stylist wall shoppers can view what clothes and shoes will look like on, as opposed to on the hanger, and they can also mix and match other garments to see what compliments the item they are looking to buy. Ian Patterson, executive consultant for retail at Box, commented: “The Personal Stylist tool is a real industry first, and we are excited about demoing it to retailers at the Retail Business Technology Expo. “Retailers must interact if they are going to win business in today’s competitive environment.” 18 RS April - May 2013 Box Technologies, which recently re-launched its website, believes that engaging customers and making them want to shop in a store can be a relatively simple and cheap process. Russell Willcox, chairman, said: “At the end of the day a store needs to be somewhere that the customer wants to visit. A happy and engaged customer will spend longer in store making purchases. Technology needs to bring the customer experience to life – which can often be achieved through low-level and careful investment.” Casio announced a new cloud module that enables retailers to manage their business better, anywhere, anytime and from any device. Guy Boxall from Casio, said: “Casio’s new cloud module brings complete sales understanding, home or away, as retail managers no longer have to wait for incremental reports from their store network, they can view all activity as it happens, even while on the beach with only their smartphone for company.” Omnico Group, the global retail technology provider, announced the launch of the Digipos Freedom Tablet, the world’s first dedicated tablet point of sale device that equips retailers for the mobile and omni-channel world. Leveraging over 20 years’ point of sale (PoS) and retail software experience, The Digipos Freedom Tablet has been designed to enhance the in-store experience, while joining up stores, e-commerce and mobile infrastructure. The tablet allows sales assistants to move in front of the till to serve the customer more personally, with access to real-time information on products, offers and stock. Cloud technology Cybertill spoke alongside Amazon Web Services (AWS) about ‘Managing Peaks, Troughs, Mobility and the Cloud in Retail.’ The seminar addressed how the retail model is becoming more agile, and how mobility is also central to the new model,and whether cloud technology address these strategic challenges as retailers turn to an omni-channel model. Ian Tomlinson of Cybertill said: “Our platform last year turned over £1 billion, processing over 51 million transactions. That’s five per second. Retailers coming into cloud have challenges to plan for and we have a best of breed platform across all channels.” K3 Retail, the UK’s No1 Microsoft Dynamics Partner, discussed what it means to be a dynamic retailer in today’s omni-channel world at this year’s Retail Business Technology Expo. Attendees learned how K3 and Microsoft’s vision for multichannel retail addresses the challenges of delivering a consistent in-store and online, mail order, mobile and social customer experience within one integrated and scalable solution. This year, K3 Retail also had an executive lounge, in-line with the champagne bar, where executive briefings with retailers will be held across the two days by the K3 team. They will focus on the future of retail today and placing your business ahead of the curve. Additionally, they will discuss how Microsoft Dynamics RBTE review RS can improve processes and save you money, including; software innovations, and the benefits of using mobile technology in a retail environment. Movers & Shakers And Retail Insider’s 2013 Movers & Shakers (sponsored by K3) report was officially launched. It identifies the top 100 individuals making a difference in multi-channel retail, as well as taking a view on the future of retail, omni-channel end-to-end and connecting channels without compromise. To generate interest around the M&S report and get industry peers nominating and identifying this year’s top 100 candidates, K3 Retail held a champagne launch in the executive lounge on the first day of RBTE, 11am– 12pm. Ingenico announced a new partnership with MONEX that will provide Dynamic Currency Conversion services for its customers throughout the UK and Ireland. Using Ingenico’s Axis platform, MONEX specialist Dynamic Currency Conversion (DCC) solution will allow merchant clients to yield lucrative additional revenue, whilst benefiting International customers to expand currency payment options. MONEX DCC will enable Ingenico’s client base to conveniently and transparently pay in the home currency of their credit card. MONEX DCC is an increasingly popular add-on customer service available to Acquirers, Merchants, eCommerce and ATMs worldwide. The synergy between Ingenico and MONEX means that travellers and consumers will no longer have to worry about calculating currency conversions as each receipt shows the amount in the merchant’s local currency and in the cardholder’s home currency. This makes it easier for travellers to reconcile purchases when paying card balances, greatly enhancing the in-store and online experience. The Axis platform, operated as a managed service, significantly optimises costs by centralising transactions, simplifying installations, maintenance and international updates, in addition to the guaranteed availability of the entire system. Proxama, the leading provider of near field communications (NFC) mobile wallet and mobile marketing technology, revealed that it is to partner with innovative sign and visual communications manufacturer Signbox, to develop smartposter campaigns for leading brands and retailers. The two companies anticipate working with leading consumerfacing brands to design and deploy NFC-based proximity marketing campaigns from early 2013. Signbox will deliver Enlighten, their stylish, eye catching range of back-lit NFC and QR code smartposters and Proxama will provide its NFC marketing management platform TapPoint™ as the tool for creating, managing, deploying and analysing consumer interactions for the smart poster campaigns. Both companies have been at the forefront of NFC developments, advocating the increased use of NFC-enabled devices as an effective way for brands to actively engage with their customers. NFC payments Commenting on the announcement, Miles Quitmann, managing director of Proxama said: “Over the last 12 months we have delivered a number of successful NFC marketing campaigns aimed at consumers for brands such as EAT., Very, Orange and Nokia which demonstrate the power of the location-based consumer interaction. By linking up with Signbox we can quickly launch NFC marketing campaigns for those innovative brands looking to get one step ahead of their rivals in a bid to gain consumers’ attention. We are now in a position to develop and deliver large scale campaigns that will provide brands with the very latest in customer engagement techniques. Our TapPoint™ campaign management platform also gives advertisers ‘real time’ analytics on performance, quickly enabling ‘test and learn’ strategies, to identify which locations and creative treatments perform best.” And STRATACACHE, a leading provider of scalable, highperformance digital signage, content distribution and enterprise video acceleration technologies, will showcase its latest customer engagement technologies at Retail Business Technology Expo in London. At the expo, STRATACACHE showcased its latest digital media solutions for the retail industry. Unique for consumers of all ages, STRATACACHE’s Digital Play solution displays interactive product and brand messages programmed to respond when a customer interacts with sales and marketing content via motion-based gestures. If you missed this year’s Retail Business Technology Expo for some reason, then never fear – the event is already scheduled to appear in 2014. The dates for next year’s RBTE have been announced as Tuesday 11 and Wednesday 12 March. Retail Systems will be there... April - May 2013 RS 19 RS focus feature sponsored by Brace yourself Karen Moss takes a look at how the payments landscape is changing, and quickly P The world of payments is shifting, as more consumers shop online, retailers have to walk a fine line between security and speed when it comes to online transactions Karen Moss is Editor of Retail Systems. Her blog on all things retail tech-related can be found at: http://retail-systems.blogspot. co.uk. She can be contacted at: karen. [email protected] 20 RS April - May 2013 ayments – the retail world simply wouldn’t go round without them. After all, what does it matter if a retailer has the latest digital signage or a cutting edge new mobile site with 101 features to entice customers to buy if, at the end of their journey, the shopper cannot make a transaction? Yes, they may not be glamorous, but payments underpin the entire retail industry. The world of payments is shifting, however. More and more shoppers in the UK, and increasingly in the rest of Europe, are avoiding the High Street in favour of shopping online. But e-commerce, while it is quick and hassle free with no queues or weary walks from store to store, comes with its own set of problems. Security, especially when the cardholder is not present, is always a risk. As much as we would all love to be able to pay with one click on every website, checks against card details must be carried out to protect not just consumers but retailers as well. The cost of fraud to the retail industry is huge, but so is business missed due to lengthy and over-complicated payment processes. The holy grail is striking the right balance between speed and security. According to figures from the British Retail Consortium (BRC), the total cost of e-crime to retailers in 2011-12 was at least £205.4 million. However, of this total, actual fraud losses accounted for £77.3 million, the rest related to missing out on legitimate business and prevention costs. We all know how impatient consumers today can be, if a page is taking too long to load online then they don’t hesitate in leaving that site to look for a product elsewhere. It is the same with payments. Checkout proceedures that take too long or are too complicated directly affect retailers’ basket abandonment rates. And as if online security weren’t complicated enough, over the last few years more and more devices are being used to pay with and a plethora of new payment methods, such as digital wallets, have entered the mainstream. With so much upheaval it is difficult to know which horse to back. Ogone, who were recently acquired by Ingenico, have been a major player in the online payments space for years. In this supplement they will explore how payments are becoming increasingly important and complex as retailers recognise the importance of multiple transactional websites – for their local customers, for those overseas, for tablets and mobile devices, perhaps through apps. The layers of complexity keep building. Not only are there different platforms to support, there are now a multitude of different payment methods to support as well. From the usual suspects like Visa and MasterCard to PayPal, Amazon one click, Google Wallet, iDeal and Ukash. iDeal is an online payment method developed by the Dutch banking community. Shoppers in many European countries are not as quick to use their credit and debit cards online as we are here in the UK. Bank transfers and even cash on delivery are used for e-commerce and, increasingly, m-commerce transactions. Of course you might be thinking, what does this have to do with the British retail industry? Well, our retail industry is increasingly becoming an international one. British brands are in high demand, not just in mainland Europe, but also in Australia and China. Having the local payment options to cater for your overseas consumers is a must for retailers. Not only do they need to offer a range of ways to pay, they also need to offer payment in different currencies and languages. E-commerce has never been more complex, but neither has there ever been such opportunity to expand and tap into new markets. For the retailers who get international expansion right the possibilities abound. But get the payments process wrong and you may as well shut up shop. Retailers transacting online, both at home and overseas, need the right mix of speed, flexibility and security when it comes to selecting a payment provider. Cross border sales require flexible, reliable and secure payments Companies seeking to expand in a difficult trading environment are looking to overseas markets and customers throughout Europe are now choosing to purchase goods online. To compete effectively you need access to payment solutions that meet consumer needs in individual countries, are quick and reliable and have security measures that counter the threat of card not present fraud. Looking forward, you also need to anticipate changes in the way people wish to pay in an increasingly mobile environment. A grOWing OppOrtUnitY Currently 15 percent of European companies sell their products online. This will increase to 33 percent by 2015, when 20 percent of European consumers will shop cross-border. With growing online sales, it makes sense for businesses to focus on cross-border e-commerce. The market is there but, for several reasons, 60 percent of cross border transactions fail. FleXiBle ApprOAch To offer your products and services cross-border you must understand the cultural differences. Apart from dealing with foreign currencies and languages, distribution logistics and local taxes, the ways people pay varies greatly. The UK credit card culture is not replicated across Europe, where consumers may prefer to use bank transfer mechanisms. In the Netherlands iDEAL is the favoured payment mechanism, representing 70 percent of transactions. In Germany, many use local payment methods such as bank transfer (Sofort / giropay), direct debit (ELV) and increasingly, open invoice (Billpay, Klarna and Ratepay). Between 30 and 50 percent of European consumers would choose to use their local payment methods for online purchases from foreign e-commerce sites. Research by Ogone (a leading European payment services provider working with over 42,000 businesses worldwide) reveals that merchants selling cross-border could increase their conversion rate by around 15 percent if they accepted the appropriate local payment methods. In unfamiliar markets a payment solution provider with experience of the various payments available can advise you regarding chargeback levels, pricing etc. Julian Wallis, Head of Sales UK and Ireland, explained “it is possible to manage local payment methods while minimising the risk of chargeback, in partnership with local banks that maintain close proximity to the consumer. Cross-border shopping is also made easier through reconciliation, automatic currency conversion and services being available in 20 different languages! With Ogone Collect you can speed up your international development and increase revenue by activating multiple payment methods with a single contract.” More information on www.ogone.co.uk Cross border sales require flexible, reliable and secure payments reliABle pAYMentS Transactions may also fail if your solution is not 100 percent reliable. Payment server outages cause uncompleted transactions and lost revenue – and consumers take their business elsewhere. Secretsales.com is a specialist ‘flash sales’ retailer offering cut-price designer goods to a member community for limited time periods – reliable payments are essential. Before working with Ogone Payment Services Secretsales.com suffered outages of up to 30 minutes between three and five times a month. Payment system downtime has been reduced to zero, customer satisfaction has improved and there has been a five percent increase in transactions processed. SecUre pAYMentS As e-commerce expands, fraudulent attacks increase in intensity; via card generators, phishing attacks or by fraudsters hacking into computers to obtain card details. the right BAlAnce Fraud costs go beyond the direct cost of chargeback. High fraud levels can increase the acquirer rate you pay. In addition to fraud prevention costs, an aggressive strategy involving strict acceptance rules could result in slower transactions and in some genuine transactions being blocked, resulting in lost revenues and diminished future sales. A Key challenge remains how to best counter fraud while allowing genuine transactions to be processed without unnecessary delay. Most merchants are not fraud experts and would have difficulty building a prevention mechanism ‘from scratch’. Best results will be obtained by combining the retailer’s knowledge with the fraud expertise and tools of a payment service provider, delivering a fraud detection strategy tailored to the business’s needs. Air India effectively managed fraud during a period of rapid expansion in cross-border business. The solution involved a mix of software and human intervention, using industry knowledge and shared expertise to generate rules that enable you to detect and highlight potentially fraudulent transactions. Fraud Expert also uses device fingerprinting to identify machines used to commit fraud. Working with Ogone, Air India significantly reduced its manual review rate, lowered chargeback to 3 percent of its previous level and increased sales revenue by 35 percent. More information on www.ogone.co.uk Cross border sales require flexible, reliable and secure payments AnticipAting chAnge Of 84 million UK mobile phone subscriptions, 43.1 million are smartphones. According to Google, more people will use mobile devices rather than a PC to access the Internet this year. Mobile payments are an indispensable component of any company’s ecommerce strategy as they will have a significant impact on the way we shop. Whether it is locating stores, comparing prices or making purchases, the mobile phone will become an important touchpoint. In some Southern European countries broadband penetration and online shopping are currently at a low level. Commentators believe consumers there could move straight to mobile ahead of web shopping. In developing an m-commerce strategy the two main options are creating your own application for installation on a mobile phone or providing a mobile website. Embedding an in-App payment library software component into your native mobile app is much faster to implement and will increase your conversion rates by enabling your customers to complete an online purchase within the app. If you choose to accept payments via your mobile website there are two alternatives. You can host your own mobile payment page or it can be hosted by your PSP. “Working with Ogone you can utilize our in-app solution, design and host your own mobile payment page, using our tokenisation to process the payments, or you can redirect your customers from your mobile website to our mobile payment page to process the payment” explained Julian Wallis. the ideAl pArtner Selling online cross-border involves embracing new payment mechanisms, encountering new types and levels of fraud and anticipating market trends in an unfamiliar environment. A partner that has experience and expertise in these areas provides the competitive edge necessary in a fast evolving e-commerce market. Ogone delivers local, customised, secure and future proof solutions. Your customers can pay the way they want, transactions are processed securely and without interruption, while you grow revenues and take advantage of new opportunities as they arise. Ogone United Kingdom Tel. +44 (0)203 147 4966 Ogone germany Ogone international Tel. +32 (0)2 286 96 11 Ogone Austria Tel. +43 (0)1 890 63 85 00 Ogone Belgium Tel. +32 (0)2 286 96 11 Ogone France Tel. +33 (0)1 70 70 09 03 Tel. +49 (0)221 455 30 180 Ogone india - eBS Tel. +91 (0)44 4488 7000 Ogone netherlands Tel. +31 (0)297 255 411 Ogone north America Tel.+1 (0)415 568 2151 Ogone Switzerland Tel. +41 (0)44 277 55 00 [email protected] | www.ogone.com Branch out CROSS BORDERS AND ENTER THE WORLD WITH A LOCAL PAYMENTS APPROACH Beginner or expert, local or multinational, thousands of merchants have chosen Ogone to manage online and mobile payments, prevent fraud and grow their business in new markets. Our extensive global network of acquirer connections means you can offer over 80 international, alternative and prominent local payment methods. Discover how payment methods increase conversion. Get your free trial account now on www.ogone.co.uk. Did you know you can already group most local payment methods in one single contract? € bank transfer EN TR bank banka transfer FR transfer IT bonificio virement bancaire NL PT bank overschrijving W O R L D O F L O C A L P A Y M E N T S – J U S T O N E C L I C K transferência bancária ES DE A bancario bank überweisung A W ADK Y transferencia bancaria bank overførsel supplement Social skills contents 26.....Moving in social circles More often these days social media is the channel of choice for consumers when addressing enquiries and complaints. Ellie Robinson asks; have retailers embraced social customer service? 28..... From Facebook, with love A new trend for digital gifting via social networks like Facebook and websites such as Wrapp and Gifted2You, is gathering pace. Wayne Tuckfield explores how social gifting can benefit retailers 30.....Social shopping With the rise of social media networks, the phenomenon of social shopping is now a force that no retailer can ignore. Dave Howell reports RS RS supplement social customer service Moving in social circles Retailers are increasingly aware that they have to reach their customers through channels consumers want to use. More often these days social media is the channel of choice for enquiries and addressing complaints. Ellie Robinson asks; have retailers embraced social customer service? R ather than putting their enquiries in a letter or email, or making the journey into a store, more and more people are using social media to communicate with retailers. To meet this changing behaviour among their customers, retailers are increasingly putting questions and comments received via Twitter, Facebook and other social media platforms at the top of their priority list. But are they missing an opportunity by not going one step further and using brand advocates and social media influencers to improve customer satisfaction? 26 RS April - May 2013 And what damage will be done to retailers who fail to embrace these channels and effectively ignore a growing portion of their client base? One company that has sought to capitalise on the increasing preference for social media is BT. It enhanced its contact centre portfolio, BT Contact, by integrating solutions from its strategic technology partner, Cisco. The new suite of products will help BT reach customers through new channels, such as social media and video, and enhance customer satisfaction. Joshua March, co-founder and CEO of Conversocial, which social customer service develops software to enable customer service in Facebook and Twitter says that retail has been one of the fastest industries to embrace social media as a customer service channel. Brand advocates He observes: “They jumped into social to promote their brands and products, but this opened the gates for public customer questions and complaints on their Facebook pages and Twitter accounts. “The large potential brand damage from this has meant that leading retailers have been investing in real social support over the last couple of years – we work with some retailers who have 30+ agents working purely in social channels (with special training on tone of voice, dealing with customers publicly, and handling crisis situations). “The upside is that companies doing this well are seeing a huge increase in positive sentiment and customer advocates in social. Customers who complain via social media channels are your most vocal customers – and so by giving them amazing service the effects are multiplied. “Retailers who don’t deliver good service over social are not only upsetting their customers, who now expect social service; but doing so publicly, damaging their reputation and putting them at greater risk of a social crisis going out of control.” Research conducted by Rakuten’s Play.com found that almost half of consumers around the world were actively recommending products on social media sites. Furthermore, the UK is seeing the second highest international growth in social shopping with over a third of Britons sharing products with their social network (up 11 per cent since August 2012.) Marketing director, Adam Stewart, explains that social media has clearly become an important platform to retailers; not only as a direct sales referrer and new customer acquisition channel, yet also for more immediate customer service queries and it is also playing a key influencing role in customers future purchases. He notes: “This social media channel and rich data it provides creates the new concept of modern CRM (it’s now not only email and mobile channels). “Our findings show that just under half of young shoppers turn to social when usual service channels fail in order to air their concerns publically. “Customer service is a pillar of the retail business and social has a huge role to play in this from brands responding to customer queries to sharing new products and promoting loyalty schemes. “Social media is becoming a preferable tool particularly for young shoppers and brands should not underestimate the importance of monitoring tweets and responding to customers quickly to prevent complaints escalating online. “The goal at Rakuten’s Play.com is to offer Omotenashi, a supplement RS Japanese service style which steps away from the vending machine retail model and aims to go the extra mile when delivering great customer experience. “Retailers must address the social channel if they are to connect with social media savvy consumers and convert them into online brand ambassadors.” Igor Sarenac, vice president, international business at Convergys, says that every retailer he spoke to tells him they are seeking new ways to enhance the value of their customer relationships while delivering a consistent experience across multiple channels. He adds: “As you can imagine, the rise and proliferation of social media has added a whole new dimension to the mix, a hugely popular channel that retailers simply can’t ignore.” But, while retailers are definitely embracing social media and many brands are eagerly opening up new social channels as a way of grabbing the attention of increasingly digitally savvy customers, just having these channels isn’t enough. Sarenac explains: “I’ve worked to help some retailers that have actually suffered at the hands of their enthusiasm. For example, one company had opened up a new social channel via Facebook chat and while activity immediately went up, they were surprised to see that customer satisfaction was dropping dramatically. “The problem was the customer service team wasn’t prepared or equipped to handle requests and solve problems via this channel.” Handling complaints He argues that, in this day and age, you need to have the right technologies in place to ensure the social customer experience is relevant and personalised to each individual customer – to extend the experience you would deliver over the phone to reach these new social channels. Convergys is working with retailers to provide the tools they need to process more, and better, data, so that they can create, capture, and analyse customer data whether it comes via a phone call, email or Twitter. It can also help retailers personalise the service and create effective and intelligent interactions based on that analysis as part of a multi-channel approach. Sarenac adds: “It’s about making their knowledge of the customer more transparent and relevant across these channels so they can anticipate consumers’ needs, spot opportunities and guide them to a positive result. “When done correctly, this can lead to great things in terms of being able to deliver excellent customer service in an increasingly digital world. “Ultimately, it’s about helping retailers to drive margins as well as long-term customer loyalty regardless of the channel the customer chooses to use.” April - May 2013 RS 27 RS supplement social gifting From Facebook, with love A new trend for digital gifting via social networks like Facebook and websites such as Wrapp and Gifted2You, is gathering pace. Wayne Tuckfield explores how social gifting can benefit retailers Y ou’re sitting at the desk, take a glance at the calendar, and realise you’ve forgotten a relative’s anniversary, or a colleague mentions they are celebrating a landmark birthday tomorrow. It is scenarios like this where the new market for ‘social gifting’ – which has been boosted by the entrance of Facebook – comes into its own. You can have ‘digital’ gifts sent through to a friend or loved one within seconds via an ever-growing range of websites and apps, or arrange a special present to be hand-wrapped and delivered the next day, depending on which service you want. Among the trend-setters for social gifting is Sweden-based website Wrapp, who allow people to send giftcards – whether paid-for or via a selection of free cards – to friends and family. The site, from entrepreneurs behind successful ventures like Spotify, Groupon and Soundcloud, launched in 2011, but have been followed by social network giants Facebook, who launched their own service for US residents last year, and new kids on the block Gifted2You, whose mobile app has been running for almost two months. One of the pioneers of the social gifting movement is Andrew Wilmot, founder and CEO of Gifted2You. “The first concept like this was Wrapp,” he says. “We tested their proposition and looked at what consumers wanted. They wanted choice and birthday reminder alerts. Some wanted to use Facebook to connect with social gifting, but some did not. They didn’t just want digital giftcards, they wanted physical gifts arriving wrapped up with their own message. They wanted a tool enabling them to do that and the option to post it to the recipient’s Facebook wall or keep it as a surprise. “With Gifted2You you, when you sign up and download the app you can either log in with Facebook – so it brings up your 28 RS April - May 2013 friends list and their birthdays, use contacts from your mobile or input details manually. “We have giftcards, which can be delivered electronically or as a plastic card with your message, but we want people to have choice – we also offer chocolates, Champagne, flowers or artisan hampers – whereas many other companies are working solely with virtual gifts or microgifts.” There are clear benefits for retailers as these services can run alongside the growing daily deals and freebee markets to raise awareness and allow firms to attract new customers. Wilmot notes: “In a recession when people are short of cash these deals are very attractive. We do sell giftcards of major retailers because they want to get their cards out there and social gifting is attracting those who wouldn’t have looked at that channel before. Someone who receives a social gift may then start buying social gifts themselves. It’s an incremental growth. “We’ve only been live for six weeks and downloads are going very well,” he adds. “Of our user community 30 per cent are active gifters. We’re confident our user base will grow very fast. social gifting supplement We have a growing fanbase on our Facebook page, which is increasing 20 per cent a week.” Ajay Sethi, retail and e-commerce expert at PrePay Solutions, is equally positive about the future of social gifting – especially with networking behemoths Facebook getting involved. “The latest figures put the number of Facebook accounts in the UK at 33 million, making it the seventh largest Facebook territory in the world,” he observes. “Of those 33 million accounts, over half are in the 18-34 age group, a group characterised as being time poor, cash rich and having broad social networks. “The advantages that digital gifting offers users are largely based around convenience. Within social gifting, an average Facebook user will tend to utilise the diary function as a record of birthdays and big occasions. The ability to review a birthday reminder and then instantly translate that into a personalised gift, without needing to divert the time and money required to do this manually, is a huge advantage. “In the instantaneous world of social media, this kind of advantage is not just extremely useful but, for retailers, can make the difference between a purchase and a missed opportunity.” But gifting bringing retail and social networks together will have a wider-reaching boost, he adds. “Despite the relatively open and public nature of most social media, it is still believed to be a private and personal environment by most users. As such, the introduction of any commercial interest may be perceived as an intrusion. “Social gifting works well at breaking this long standing barrier between brands and consumers because it puts the ball permanently in the consumer’s court. From conception to execution, the consumer is the driving force behind the interaction.” The attraction for both retailers and shoppers of combining through social media go far further than just ‘social gifting’, however. One of the other markets becoming evermore beneficial to both sides is digital couponing, allowing shoppers to cut the cost of their grocery trip before they leave their house. Coupons.com have been working with a range of retailers including Tesco, Waitrose and Co-operative Food to help distribute vouchers through social media without exposing themselves to the cost of a money-saving coupon going ‘viral’. Stuart Sankey, sales director for UK and Ireland, says: “If a retailer has its own social media platform, such as its own Facebook page, Twitter account or email, our technology can be integrated into it. You have to ask yourself what you are trying to achieve. Do you want to increase your ‘likes’? Is it to get more followers? Is it to generate fans? Is it to influence conversation? “Are you trying to get your existing fans to create new fans? Are you trying to promote a particular product to get people in-store? Your coupon activity will change depending on that. You may issue a coupon and gather some extra details if you want to find out more about your consumers. But if your aim is RS just to get ‘likes’ then you would make your coupon very simple. If you are trialling a particular product, you would be better off sticking to your existing audience and create a call to action in terms of value of offer. “But whatever your goal, ensuring you control the integrity of the activity by using a secure method is vital. The last thing you want is for the deal to go viral on money-saving or deals websites – then people don’t have to go to your Facebook page. The biggest risk is your liability if the number of vouchers being redeemed is uncontrollable.” One of their success stories was a link-up with Plum Baby, which allowed parents to download a coupon for one food pouch if they ‘liked’ the brand on Facebook. It was backed up by a series of YouTube videos by celebrity chef Rachel Allen on weaning your baby off milk. After six months of the campaign, a total of 7,250 coupons had been printed, with 4,776 redeemed – 66 per cent. The YouTube videos were viewed 15,000 times and Plum Baby’s Facebook page received 21,441 ‘likes’ – a 305 per cent increase. Anothe benefit of both social gifting and couponing is being able to gain information about who is buying what, and when. “Information is king,” comments Sankey. “Understanding people’s purchasing habits is imperative to engaging with consumers. People only want to be contacted when the offer is targeted and relevant. In order to push a purchase, retailers must make sure it’s relevant and they can only do that by knowing the customer’s shopping habits. It is crucial for the retailer to be able to have a positive conversation and influence over purchasing decisions. That’s why Tesco Clubcard offers are targeted at previous purchases.” While social gifting is getting increasing attention and more firms are entering the market, the UK Gift Card and Voucher Association are urging retailers not to forget about the important ‘physical’ gift cards that are still a popular seller. Director-general Andrew Johnson believes the social gifting market is limited, with a small number of retailers currently offering digital giftcards, but believes it will increase this year and open up important pathways. “I think there are some significant opportunities,” Johnson observes. “Over the next two to three years they could have a significant impact on their success by opening up this new channel. Immediate gifting means you don’t have to wait for delivery or go to the store and allows you to give instant rewards. Delivering it through platforms like Facebook makes gifting very visual and people will like their generosity being seen by everyone. “I wouldn’t advocate retailers dumping giftcards. Our advice is, to be really successful, you do need physical vouchers but it is important to have a digital offering too. People running down on Christmas morning to open their presents isn’t going to be replaced by going onto Facebook, email or checking texts.” April - May 2013 RS 29 RS supplement social networks Social shopping With the rise of social media networks, the phenomenon of social shopping is now a force that no retailer can ignore. Dave Howell reports T he social media networks now have a massive impact on the retail sector. The latest e-commerce survey from Rakuten makes for sobering reading if your business isn’t active across all the relevant social media platforms. According to the survey, over a third of Britons actively share information and recommendations about products. And with Britons also being the largest online spenders – averaging £1,088 per person per year – supporting their need to share, recommend, review and advocate must be a central component of all retail businesses. What is clear for all retailers is the leveraging their presence on social media networks has a clear commercial advantage. Indeed, eBay predicts that by next year social shopping will be worth £3.3 billion. “There’s a billion pound prize for UK retailers in using social to help customers make up their minds when they’re looking to buy something,” comments Petra Jung, head of mobile shopping at eBay. “Generating direct sales is part of the prize in social shop- 30 RS April - May 2013 ping but using peer-to-peer networks to influence purchasing decisions is the far bigger opportunity.” And one of the main factors for the rise in social shopping activity is the ease with which connections and purchases can be made. The smart phone and tablet PC have quickly become ubiquitous. A study by RichRelevance reveals that Britons are nearly twice as likely to spend on mobile as Americans, with nearly 10 per cent of all e-commerce revenue coming from mobile platforms. “Today’s consumers visit retail websites from multiple platforms throughout the day. Whether they are shopping from their desk at work, browsing on their mobile phone while in the queue at lunch or making a purchase at home in the evening from their iPad, they expect a consistent experience that is optimised for any device they choose,” says Darren Hitchcock, vice president of UK and European territories, RichRelevance. “This data demonstrates that retailers have an opportunity not only to provide that seamless experience to customers, but think about how customers are shopping at different times of the day and week and to personalise their merchandising strategy around that behaviour.” The recommendation economy Retailers have known for decades that developing a closer relationship with their customers is a commercial imperative. social networks Until the advent of social media this was an art that few retailers mastered. Today, brand advocacy and the nurturing of relationships are achievable with a well organised and executed social media campaign. What’s more, the phenomenon of social care is another facet of social media that retailers need to place within their sphere of influence. Increasingly consumers are turning to their favourite social media networks as the primary communications channel for customer services queries. Ask yourself if you read all the tweets and responses on your business’ blog. In many cases these go unanswered. Research by Evolve 24 shows that when these communications are responded to, over 80 per cent of customers will go on to become brand advocates. Giles Palmer, Founder and CEO of Brandwatch, observes: “Too often, when faced with a negative comment brands are too quick to ping back an automated message. Perhaps this is the industry’s fault for placing too much emphasis on speed of response. It’s not about speed: it’s about understanding what your customers are taking the time to tell you, learning lessons, and acting on this feedback.” Retailers can also go one step further and make the initial connection with their customers even easier by using social login. Your business wants to collect data about its customers, but if you allow social login this can have major financial benefits as Janrain discovered. Their research revealed over 85 per cent of respondents stating they want social login and that offering social login improves the brand image with over half of respondents stating they would return to a retailer’s website that recognised them via their social login details. It’s clear that retailers need to cultivate the communications channels that social media is presenting to them. Ignoring tweets, Facebook comments, image uploads on Pinterest will erode a business’ brand, but more importantly, disenfranchise the very people that businesses need to remain sustainable in the future. Social development Your business’ social media activity should start with listening. Pay close attention to the traffic that moves through the social media networks your business maintains a presence on. Analysis what is being said. Think about the sentiment and how this can be turned into action. Rushing into a conversation, or a knee-jerk reaction to a negative comment should be avoided. Take your time to formulate a response that is measured. Building customer loyalty and brand advocacy takes time and effort. Businesses that are too focused on the ROI of social media are missing a huge opportunity that may not pay dividends in the short term, but will certainly become a lucrative component supplement RS of all retailers’ operations in the future. What your business learns now via its social media networking will influence every aspect of your business moving forward. It also important to realise that social media networks are in flux. At the moment the leaders may be Facebook and Twitter, but in the future other networks may flourish. Visual shopping is waiting in the wings to become the next mass social network with Pinterest showing the way. Bizrate Insights last year showed that Pinterest is not just about window shopping but offers retailers a real-world link to consumers who are increasingly sharing images over content such as Facebook updates or blog post. This speaks volumes about how the social media retail landscape is rapidly evolving and how all retails must develop their social media platforms to match this tide of change. There is no denying that social media is a powerful tool. A report from Zuberance last year found that 16 per cent of consumers recommend 15 or more brands across their social networks. Developing these advocates for your business is critical. Planning is vital to get right, as too often, retailers will move into social media without a well-developed plan of action. Social media is no longer something that is done as an afterthought, but now takes its place at the centre of customer services and promotional campaigns. “Retailers have done a commendable job embracing social media - engaging their customers where it makes sense while keeping their brand relevant, interesting, appealing and exciting on each platform,” notes Shop.org executive director Vicki Cantrell. “Specifically, Pinterest has given retailers another channel to ‘listen’ to and interact with both existing and new customers, telling an ongoing visual story through images of their products and their brand ‘spirit’ – a story that customers can then tell again to their friends and family members.” Social commerce has many facets all of which retailers need to master if they are to engage with their customers and form long and commercial relationships with them. Facebook, Twitter, Pinterest, YouTube and Google+ are at the moment the social media touch points that retailers need to develop. Look closely at your business’ proposition. Then listen to your social media networks. Only then will you understand what is motivating your business’ followers. With this data in-hand, effective social media campaigns can be developed. But remember, social media isn’t just another sales channel. Businesses are still developing the rules of engagement. For now, look to develop relationships with your social media network users. Sales messages have their place of course, but always remember that your followers in essence want to share product information or their service experience. If you can make these positive, brand advocacy will develop that has a commercial value that no amount of money can buy. April - May 2013 RS 31 NEC Showcase NECSolutions SOLUTIONS SHOWCASE Tobacco Dock, London Tobacco Dock, London E1W E1W 2SF 2SF th th May 2013 Thursday 16 Thursday 16 May 2013 Register FREE on-line at www.showcase-nec.com for the Display Solutions Event of the Year INTELLIGENT RETAIL DIGITAL SIGNAGE AT THE NEC SOLUTIONS SHOWCASE In collaboration with our Solutions Partners, NEC Display Solutions presents fully integrated retail signage solutions to engage with your customers and increase sales. With a ‘thought leadership’ conference taking place alongside the Showcase and a full programme of technology briefings throughout the day, the Showcase delivers inspiration, knowledge, relevance and excellence. Audience analytics empowers targeted messaging for more intelligent signage and a measurable ROI Mobile interaction engaging with customers in-store through digital signage, mobile and social media In-store kiosks lead to sales uplift, enhanced in-store shopping experiences and reduced inventory costs Interactive retail mirror enhances the visual in-store experience with personalised shopping whilst collecting consumer analytics Interactive window signage customers browse, search and download information to email or to a smartphone via a QR code Augmented reality & gesture control innovative and inspiring interaction techniques to enhance the retail experience and engage with your audience Virtual changing room engage with customers to generate audience analytics whilst achieving brand endorsement through social media High quality HD signage promotes a high quality brand image Register FREE on-line at www.showcase-nec.com for the Display Solutions Event of the Year Register FREE on-line at www.showcase-nec.com for the Display Solutions Event of the Year The The Display DisplaySolutions SolutionsEvent Eventofofthe theYear YearReturns Returns This year the NEC Showcase is more about you than ever before with a focus on providing first class This year the NEC Showcase is more about you than ever before with a focus support for your challenges and projects and delivering hands on experience with the latest Display on providing first class support for your challenges and projects and delivering 2013 zones DooH | Retail | Transportation | 3D + Leisure Media | Healthcare | Education | 3D Cinema Corporate Communications | NEC Innovations Solutions innovations. Discover fully integrated solutions tailored for key vertical applications and raise hands on experience with the latest Display Solutions innovations. Discover fully your competitive edge through knowledge and thought leadership whilst taking advantage of this unique integrated solutions tailored for key vertical applications and raise your competitive Tobacco Dock, London E1W 2SF, Thursday 16th May 2013 networking opportunity. edge through knowledge and thought leadership whilst taking advantage of this unique networking opportunity. To make the event more interactive this year we are asking participants to field any specific questions or SAVE THE DATE register now at www.showcase-nec.com requests at the time of registering or on the day. Twitter: @NECShowcase specific questions or requests at the time of registering or on the day. Twitter: @NECShowcase To make the event more interactive this year we are asking participants to field any SAVE THE DATE register now at www.showcase-nec.com For an up to date list of Solution Partners check the NEC Showcase website www.showcase-nec.com on-demand on-demand on-demand For an up to date list of Solution Partners check the NEC Showcase website www.showcase-nec.com Retail Systems_NEC_Showcase_18thApr2013.indd 1 18/04/2013 13:43 RS feature pop-up shops John Lewis This coupled with the use of social media to market such short term stores and mobile payment solutions to facilitate their very existence as a credible store option is meaning that pop-ups are, quite literally, popping up faster than ever. John Lewis launched a pop-up shop in Exeter last year which acted as a Click & Collect hub during its six weeks of opening, while, at the other end large scale pureplayers, such as eBay and Ocado have also taken pop-up space to help them better explain their brands to customers. For smaller online only brands it is also an ideal solution to road test the proposition from tiny businesses that could have the potential of being High Street giants of the future. “For a lot of online retailers it’s a very low risk way to dip their toe into physical retailing,” says Katie Lucas, senior analyst at Pragma Consulting. Emma Jones is founder of Enterprise Nation and co-founder of Popup Britain – a business that has already helped more than 150 small businesses try out a High Street presence by leasing sections of its stores to small online businesses for a two week period and a £200 price tag. “We did a survey that showed 82 per cent of businesses wanted to go on the High Street but the cost put them off,” she notes. The venture has proved successful in helping retailers learn how to improve their offer. “These are online home based businesses and for many of them it’s their first High Street experience and a number have changed their pricing or slightly adjusted their product mix as a result,” explains Jones. She says on average around 12-15 per cent of her tenants are now looking for permanent stores. Of course the advantage of pop-ups is their short term nature meaning that retailers can pick and choose when to have them rather than pay the costs of a permanent store. “If you run a good online business you don’t actually need a store all year round but a shop at key points in the year or to build loyalty works really well,” observes Dan Thompson, author of Popup Business for Dummies and an experienced pop-up specialist. Dan Coen, director at advisory and restructuring firm Zolfo Cooper, points out that such stores are particularly useful for- Popping-up all over As multi-channel becomes central to retail operations, store estates are slimming down. We are now witnessing the rise of the pop-up shop, says Liz Morrell R etail is changing and as multi-channel becomes central to their operating strategies retailers are slimming down their property portfolios, giving rise to a glut of properties in shopping centres and the High Street alike. The shift in trading patterns has fuelled the growth of a previously quiet market, that of the pop-up shop where retailers take short term leases – sometimes of literally a matter of days or weeks – to test out markets or build a PR hype around their brand. Whilst pop-ups have long been around for independents to expand or test the market the increasing ease in which retailers or brands can move in and out with a temporary presence on the High Street has meant huge growth in the sector of late, particularly after a relaxation of property red tape last year. 34 RS April - May 2013 pop-up shops feature increasing or taking space at peak trading. “They also allow retailers to take advantage of increased footfall during major holidays and events such as Christmas or the Olympics last year,” he says. Other brands are using pop-ups simply to drive awareness and excitement about a brand. “It’s about immersing the customer with a full brand experience,” adds Pragma’s Lucas. And the benefits of that are wide-ranging according to Zolfo Cooper’s Coen: “Pop-up shops can offer an effective way to raise the profile of a brand, which will create value that goes far beyond any real-world sales completed on the day,” he notes. In March the opening of Land Securities’ new shopping centre Trinity Leeds has seen pop-up shops becoming a key part of offering something different to shoppers with a series of pop-ups to generate interest with leases ranging from three weeks to three months. One of the initial openings was Candy Kitten, an online confectionary and fashion business which was originally launched last May by Made in Chelsea star Jamie Lang. Ed Williams, brand director for Candy Kittens, says for his brand pop-ups are an integral part of the company’s PR campaign, rather than about testing the market for High Street stores. Although the retailer may consider a flagship at some point, he hints. The retailer opened its first pop-up store on London’s Kings Road last summer and was open for seven weeks. Its second store opened in London’s Carnaby Street at Christmas for four weeks and its third ran for three weeks at Easter within the Trinity Leeds scheme. The retailer then moved to Bath and Manchester respectively – opening for 10 days each. Pop-up stores in London, Edinburgh and Dublin are next on the list. He believes the retailer has learnt how to make the concept work best. “It’s important to keep these pop-ups short and sharp so that the buzz is still there,” he says. And he adds that social media plays a huge role in generating awareness, footfall and excitement. “We are trying to go in and be at our busiest from day one so we do a lot of marketing in the run up to opening including a lot of online competitions and work by picking popup locations that are suitable to our demographic and in areas where we are getting a lot of hits on our site,” Williams observes. “We have email marketing that goes out to invite those people down to the stores, as well as inviting local bloggers. Our social media following is very strong.” Indeed technology from social media to mobile payments is fuelling such growth. Popup Britain’s Jones recently introduced Intuit Pay within her stores but admits that previously staff were having to tell customers to visit the cash machine up the road. At Candy Kittens its iZettle solution, which launched in the UK late last year, allows it to take payments via mobiles. “We use a lot of open market technology to host a free app that allows you to use your smartphone or tablet as a till but also allows you to download your catalogue so you can use it as RS a PoS too. We also have a mobile chip and pin device that links to it,” comments Stewart Roberts, UK managing director of iZettle. He says so long as pop-ups can get a 3G or WiFi signal they can use the device and only pay as they go. For Candy Kittens the iZettlesystem helps set it apart according to Williams. “From the start we have tried to be a business that challenges existing ideas and by taking payments through iZettle that furthers that experience and is one more thing for customers to go away talking about. As a retailer it also allows us to log in remotely and see how much money is being taken,” he says. In-store technology Other retailers prefer to stick to more regular devices. Geoffrey Barraclough, head of corporate propositions at WorldPay, says ideally, when setting up a pop-up shop, retailers want to replicate the environment of a permanent store. “Using familiar card acceptance devices will reassure customers that, although temporary, your store is trustworthy and professional, increasing your potential revenue. If you have permanent stores also then using the same devices will make training of temporary staff easier,” he notes. He says mobile devices are available on a range of contract timeframes ranging from a week to 36 months meaning that fixed telephone or broadband lines aren’t necessarily required, whilst for larger retailers cloud based payment options such as WorldPay Total are also an option. Wincor Nixdorf general manager, retail UK and Ireland Martin Smethurst says technology is allowing the market to change and retailers to reassess their own use of space. “What is interesting is the fact that more traditional ‘bricks and mortar’ retailers appear to be considering the viability of stores within stores to extend their offerings, increase customer satisfaction and engagement. “This could also help them to adapt their shop layouts faster to suit customers’ fluctuating demands, not just for products but also product information too,” Smethurst observes. Marks and Spencer is using the company’s Polytouch multitouch system as part of its own pop-up shop within shop strategy. “These multi-channel devices can operate as an alternate way to take payments or, as Marks and Spencer is using it for currently, as an engaging multi-touch interface that allows customers to conveniently shop for items either in store or online,” he adds. However retailers are using pop-ups there is no doubt they will continue to grow. Coen believes it is an inevitable factor in survival and as part of retailer’s multi-channel strategies citing the John Lewis example as particular good practise. “It is innovative strategies like this that retailers need to adopt in order to beat the doom and gloom on the High Street and capitalise on the benefits of pop-up shops,” he says. April - May 2013 RS 35 RS feature retail security Big Brother is watching Is higher shrinkage inevitable in a global recession or are there was to combat it? Glynn Davis takes a look at the security systems protecting retailers A lthough the UK probably has the greatest concentration of CCTV cameras in the world, and retailers have used them for many years, few of these systems are integrated across their store estates and many still operate on old analogue video cassette technology. Simon Gordon, chairman and founder of Facewatch, says: “It is unbelievable. Retail is in the dark ages. The IT department has said they cannot use the internet for CCTV. Even though they have Wi-Fi in-stores they are not allowed to put CCTV on it. It’s on standalone computers and is not integrated at all.” CCTV The lack of access to the internet is a key reason that retailers have not been able to maximise the benefits of CCTV. But Gordon believes most retailers are working towards a connected system with the choice of either taking the outsourcing route via a monitoring station solution – supplied by the likes of Chubb and King’s Security – or by running an in-house central unit to oversee all camera footage from around the business. With integration across cameras and stores Gordon says there is the potential for merchants to then bolt on a system like Facewatch that enables stores to quickly recover footage of a criminal incident and send it directly in electronic format to the local police. It can also be sent to other retailers on Facewatch who are part of local Shop Watch groups to highlight criminals. “If an incident happens then the store will be able to call the monitoring station and tell them, say, it’s the camera above the door. They will then be able to log into the system and rewind the CCTV and find the incident. It can then be sent to the police,” he explains. Gordon says the system is unique in enabling a statement (from the victim) and an image from the scene (via CCTV) to be combined and sent as a crime report for immediate action by the authorities. And he says it is very cost effective at a rental of £3 per month per store. Its functionality will be enhanced greatly when face recognition is introduced as frequent offenders will be identified when they enter a store. 36 RS April - May 2013 “It can reduce security guards and absolutely revolutionises the way security works as it will stop crime before it happens rather than waiting for a crime to be committed and for the criminal to have left the store. It’s a huge deterrent,” suggests Gordon. Symon Millward, managing director of SG Systems, believes that the present standalone nature of CCTV, and the continued use of old non-digital systems, means these outdated solutions are no longer any form of deterrent to criminals. But he believes things are changing and the falling price of digital technology is one driver. One area where change is certainly happening is with merchandising point-of-sale security solutions which enable goods to be securely made available for customers to use in-store. “It’s not about technology, it’s about having more products out in front of the consumer because then retailers can sell more that way,” he notes, pointing to John Lewis and Dixons Retail as progressive operators. The newer systems being specified by SG Systems for these more pro-active merchants involve integration with smartphones and iPads to enable remote access to CCTV footage via the internet. Tagging is also becoming more integrated into other store systems whereby it can provide analytics functionality including basic people counting. Such additional benefits have become essential because security solutions – especially CCTV – do not directly drive retail security feature revenues. In order for the required return on investment (ROI) to be achieved they have to be sold on the basis of giving retailers multiple benefits. “CCTV has to be sold as a management control tool, and as a health and safety solution, as well as a security system,” suggests Millward. Greg Alcorn, senior vice president of global sales at Oncam Grandeye, recognises this situation and suggests that solutions that can offer benefits to marketing departments are particularly strongly placed. “We’re seeing another side to security solutions, which offer intelligent marketing – with traffic flows and people counting [capabilities]. The marketing teams have 100 times the budget of the security departments in retailers,” he observes. Greg suggests the Oncam Grandeye solution is potentially much more than simply a 360 degree digital camera that can replace existing fixed cameras as part of a retailer’s CCTV solution. When hooked up to the relevant software in a business’s video management system it can be used as a forensic tool to undertake path analysis. Unlike with multiple fixed cameras it is significantly easier to track an individual in a store using a single 360 degree camera as it can cover the whole floor. Alcorn says the company can create ‘threat profiles’ for retailers that help it to identify frequent security issues and use its technology to address the problem through its path analysis capabilities. Tom Downes, chief executive of Quail Digital, is also selling his company’s product on the back of its multiple benefits. The company’s headsets are used as general communicational tools – that can help improve staff efficiency and potentially remove headcount in some stores – as well as being used for security. RS The Co-operative uses the Quail Digital solution in some of its smaller stores where there are limited numbers of employees and so an aid to communication is therefore a great boon and can deter theft. To such an extent that a survey within the grocery business found 73 per cent of store managers believed security had improved following its introduction. The solution allows headset users to speak with each other and for pre-recorded messages to be sent to them following a specific action or incident in-store. This could be a message that indicates a checkout assistant needs assistance or that an EAS (Electronic Article Surveillance) tag has activated an alarm at a specific security gate. Such tags have been used in retail for many years but the RFID (Radio Frequency IDentification) variety has not been quite as revolutionary on either the supply chain or on security as many people in the industry had earlier predicted. However, professor Joshua Bamfield, from the Centre for Retail Research, says: “There is lots of evidence that fast fashion chains are using them on their biggest selling items as a way to get rapid feedback. There is evidence that RFID use is being driven by commercial needs – to improve sales and replenishment – but you can also get loss prevention data from it.” RFID It also ensures that as the likes of Zara and H&M source goods from around the world they know exactly where their products are within their global supply chains. When RFID is combined with the minimum stock holdings of these fast fashion businesses then Bamfield says any theft will ‘throw their systems right out’ so there is obviously a security benefit to be enjoyed from the use of such technology within these businesses. What might prove a challenge for such fashion chains and other retailers is when they develop further into being multi-channel operators, because Bamfield says most merchants are developing separate security systems for each of their channels. With the growth of cross-channel activities such as click & collect and proximity marketing via mobile phones he predicts potential trouble for retailers adopting non-integrated security strategies. “Traditional security departments find it hard with e-commerce as they’ve not got the [required] skills. This is an issue because it means retailers have got two-headed security systems. Nobody at this stage has overall command of risk, fraud and security across channels,” he warns. This suggests there is a lot more work to be done by the majority of retailers who need to move well beyond their analogue video cassettes and adopt digital security strategies that straddle their multiple channels. April - May 2013 RS 37 RS feature business continuity Expect the unexpected Dave Adams investigates how retailers are protecting their businesses against business continuity incidents that can cause store and supply chain chaos R etail can be an unpredictable, deeply stressful business at the best of times, without the additional problems caused by business continuity (BC) incidents. Unfortunately, such incidents do happen, in forms ranging from adverse weather to an IT or telecoms failure; and can cause chaos in stores and the supply chain if a retailer has failed to put adequate plans in place to protect the business. In January 2013 the Business Continuity Institute (BCI) Horizon Scan 2013 Survey revealed the continuity threats that concern some retailers most. Twenty retailers questioned for this part of the report, based in countries including the UK, USA and South Africa, listed threats including unplanned IT and telecom out- 38 RS April - May 2013 ages, data breaches, supply chain disruption, adverse weather, cyber attack interruption to utility services and fire. They also listed increasing supply chain complexity and use of the internet to launch malicious attacks among the top three ‘trends/uncertainties’ in BC. That’s a lot of things to worry about. But how well-developed is the practice of business continuity within the UK retail sector? The Retail Business Continuity Association (RBCA) offers members including Tesco, John Lewis, Next, Marks & Spencer, Asda and the Arcadia Group a useful forum to exchange ideas and benchmark practices. But progress made by these companies does not necessarily indicate progress in the wider retail sector. Whatever the size of a retailer, fundamental imperatives drive BC practice in retail. “The retail sector is obsessed with keeping the doors open, keeping footfall high,” says Will Brown, head of business resilience for KPMG UK. Retailers are also very much aware of the importance of brand reputation, so have have developed sophisticated product recall and crisis management processes. But money is tight. “Retailers are completely focused on revenue generating activities, so BC budgets are squeezed,” notes Brown. “Organisations with existing plans and capabilities that used to spend a lot on third party assurance and testing are now doing a lot of that work in-house, which creates challenges for them.” And retailers can be affected indirectly if their suppliers have been forced to cut back on BC and disaster recovery (DR) provision too. Even larger retailers are cutting BC budgets, according to a senior BC manager at a major UK retailer who wishes to remain anonymous. “[Senior executives] see the importance of BC plans, but they don’t see me bringing money into the business,” he explains. One response to financial difficulties is to try to get better value for money out of planning and recovery arrangements, not just to cut the budget. In some companies this has encouraged use of cloud computing. But in some cases retail legacy infrastructures actually help improve business resilience: if, for example, a retail system in the store only communicates with central office once a day. “So if you lose your central systems to an extent it doesn’t matter; you’ve got survivability in the stores,” observes Mike Osborne, managing director, business continuity, at Phoenix IT Services. “But if you’ve got dumb terminals in the shops linked to a business continuity feature central system in the cloud you’ve introduced more risk.” Osborne believes the growth in online retail has forced many retailers to review BC and DR planning, with competitors just a click away if their own site is down. At the same time, adds KPMG’s Brown: “information protection and data security issues are becoming more and more relevant in retail”. These issues also need to be considered within a business resilience programme. Cyber attacks are a growing threat, including not just Denial of Service (DoS) attacks perpetrated by ‘hacktivists’ for political – or occasionally somewhat random – reasons, but also more subtle, sophisticated attacks, including so-called Advanced Persistent Threats (APT). But it is difficult to protect systems from malicious attack if an organisation lacks a good understanding of those systems. One further unfortunate consequence of a move into the cloud, for all the cost and efficiency savings it can bring, is that virtualisation can make achieving such an understanding more difficult. “Increased virtualisation is reducing organisations’ control and understanding of their IT and systems,” says Brown. Virtualisation may also undermine BC/DR testing. “With shared, virtualised environments it is much more difficult to do complete, integrated, end to end testing, where you’re failing the app and the infrastructure that the app is sitting on.” In all these situations retailers need to be able to make informed decisions as they try to balance risks with efficiency gains. Nowhere is that more true than in the supply chain, arguably the one factor which makes BC more of a challenge for retailers. Yet the extent to which many retailers now depend on their supply chain so dedicate resources to it may actually help to make some companies more resilient. A lack of integration and control can nullify these in-built advantages. Andrew Rose, principal analyst, security and risk at Forrester Research, cites the recent horsemeat scandal as an example of what happens when the supply chain becomes ‘so complicated that no-one has a clue what’s going on’. Again, sometimes it is a drive to improve efficiency and cut costs that reduces visibility and increases risk. The supply chain can also be vulnerable to factors which come along more frequently than freak weather events. Some retailers blame the weather for problems too often, suggested the KPMG/Synovate Retail Think Tank (RTT) in a November 2011 white paper, which argued that improved forecasting and risk management would reduce the weather’s impact. But weather can have an impact on the supply or demand of almost any retail product, as has been demonstrated from the fortunes of the retail sector over the past 18 months or so, through the hot March of 2012, the wet and cold summer that followed; and the seemingly endless winter of 2012/13. All had some impact on many retailers. Smaller-scale, shortlived weather events can have a noticeable effect too: when heavy snow prevents staff getting into stores, but means customers can’t RS get there either and shop online instead, for example. All these factors need to be considered during BC planning. Whatever the cause of unpredictable demand and supply, the supply chain needs to be flexible enough to meet the retailer’s needs, underpinned by a strong sourcing strategy, suggests Lee Gill, vice-president for retail strategy, EMEA, at JDA Software. The most basic components are duplicated lines of supply, with, for example, clothing suppliers in the UK or western Europe able to step in when demand for certain product lines rises too quickly for suppliers further afield to deliver. Software such as that provided by JDA can help, providing visibility and facilitating collaboration between retailer and supplier. There’s no doubt that improved control and visibility of the supply chain, along with more accurate weather forecasting, can increase business resilience and help retailers exploit commercial opportunities. As with IT security, when it comes to coping with an incident, prevention is better than cure; and the best way to ensure prevention is embed good BC practices across the organisation. At Sainsbury’s, as Louise Gravina, head of risk and resilience, explains, Business Divisions have ownership and accountability for their own BC programmes, including developing, testing and maintenance of plans, training and awareness, risk assessment and impact analysis. A Business Continuity Steering Group (BCSG) has responsibility for policy approval, compliance and collating a view of overall BC risks. If reported incidents are thought unlikely to have more than minimal business disruption impact, the incident is managed and overseen either at a local level or by a Serious Incident/Issues Committee. A Business Continuity Management Team (BCMT) of senior executives responds to more significant events and oversees deployment of BC plans. Optician and eyewear retailer Specsavers is also seeking to embed BC more deeply within the organisation’s culture, says senior business continuity manager, Kevin Bennett. It already has its own dedicated workplace and IT recovery location for its head office in Guernsey; and uses facilities provided by Phoenix to recover two main UK sites in Hampshire and Nottingham. “Specsavers is a growing business and change is a major factor with new services and systems being implemented and a move into the hearing aid market,” notes Bennett. “We have processes in place to capture all these changes and use the ClearView BC software tool to help maintain plans, exercises and [business impact analysis (BIA)].” For some smaller retailers little of this will be relevant, as they struggle to survive and can afford to do little more than to back data up off-site. But even the smallest retailer will sometimes be carrying out BC planning or resilience-improving activity without being aware of it, says KPMG’s Brown. “Supply chain risk and resilience activity needed is, for many retailers, business as usual,” he explains. After all, as with retail in general, BC is really about dealing with the unexpected. Even in hard times, investing in these capabilities is money well spent. April - May 2013 RS 47 RS advice In association with Tackling retail challenges, armed with Clausewitz T he evidence is in front of us: The retail scene has been redefined and retailers must adjust their businesses to the new reality. There has been a clear shift in customer spending patterns – consumers buy less on impulse. If it is not essential, they now think twice. Consumer spending over the last two years has been flat in most OECD countries (0.5 per cent growth) and has declined by 3% in the UK. Forecasts for 2013 are not much better. If nothing else goes wrong, retail sales are expected to be flat this year, with mild growth (one to 1.5 per cent) in 2014. Last year, KPMG said that the biggest issue facing retailers this decade is sustainability. I don’t agree. Anyone who just tries to survive by waiting for better times to come back will most likely perish. In his classic book On War, the military strategist Carl von Clausewitz said that ‘the best form of defence is attack’. So maybe it’s time to start thinking about growth instead of survival. Clausewitz also warns about inaction: “It is even better to act quickly and err than to hesitate until the time of action is past.” and reliable system. One of Retail Directions’ customers reported an annual net profit increase of £120,000 per store once they deployed our software. True, they are very good retailers, but only once they got the right system were they able to release the latent capabilities within their business. Eliminate waste and reduce expenses Few would argue that the key success factor in retail is the right stock. If the retailer has what the customers want, at the right price and the stock is available when required, it is difficult not to do well... unless the retailer’s costs are too high. Furthermore, since some of the merchandising decisions will inevitably be wrong, the required margin buffer must be large enough to compensate for the errors. This leads us to the first fundamental truth applicable to every retail business: You cannot do well if your costs are too high. Many retailers have inherited a bloated cost base from the ‘good old days’ before 2008. This is why senior executives in retail must focus on eliminating waste and reducing operating costs. Clausewitz stressed that it is essential to ‘pursue one great decisive aim with force and determination’, and this is clearly such an aim. Process-oriented business management At this point comes the final, third step to create a smooth operation: process-oriented business management. Most managers in retail are not familiar with Total Quality Management. This management methodology allowed Japan to increase their GDP 10-fold within less than 40 years. TQM has many parts to it, but one of the most important is the ability to distinguish between process issues and incidents. The former needs process improvements, the latter requires case-by-case handling. If you are not familiar with TQM, I urge you to study it – there is real gold there, but it requires different thinking. Once you master this approach, you will be able to take your business to the next level. How can you best eliminate waste and reduce expenses? Some of the largest cost components in retail are systems and data communications. However, we need to be concerned about more than just costs of information technology in the business. The other parts of the organisation can only be as efficient and effective as the systems allow them to be. In other words, you cannot keep your costs down without a moderately priced, highly capable Get your logistics right Once the systems, your backbone, are under control, the second fundamental is to get your logistics right. Clausewitz said: “There is nothing more common than to find considerations of supply affecting the strategic lines of a campaign and a war.” This is true today as it was in 1830s when Clausewitz wrote his famous book. Most retailers have clunky supply chains. One of Retail Directions’ customers saved £0.48 per item within the supply chain by putting our software into their warehouse. With two million items moving through their warehouse, this translated into nearly £1 million extra at their bottom line. For them, this was a 20 per cent improvement. See the results Finally, when all the handbrakes on your business are released, you will be able see the results of being a good merchant and a great trader. It won’t be easy. Clausewitz said: “Everything in war is very simple; but the simplest thing is difficult.” This is true in this case too. When the going gets tough, remember that Clausewitz also said: “If the leader is filled with high ambition and if he pursues his aims with audacity and strength of will, he will reach them in spite of all obstacles.” news RS Business is booming John Lewis announce that its online sales passed the £1 billion mark O nline sales at John Lewis passed the £1 billion mark on a rolling 52 week basis, alongside a successful launch of a new multimillion pound web platform. The milestone came in April, a year ahead of the retailer’s forecast, which had estimated reaching £1 billion of sales in 2014. The department store has invested nearly £40 million in its new website during the three year project, which is the foundation for future online growth and its customer-focused omnichannel strategy. Mark Lewis, who has recently joined the retailer as online director, says: “Passing the £1 billion milestone almost an entire year ahead of schedule is a fantastic achievement for us, and a reflection of how central online shopping has become to our customers. “We have a leading omni-channel strategy which our customers love, but to continue to deliver the service our customers want, we need a website which will serve us as well as the old one did, and maintain our position as a leading innovator in online retailing.” The new website features new functionality including an enhanced wish list function, search history, and more inspirational content, with more customer-focused functionality planned for the future. With mobile now accounting for over 25 per cent of traffic to johnlewis.com, the retailer has also revamped its mobile offer to mirror the creative design of the main site, and plans to launch a new app with details to follow later this year. Paul Coby, IT director at John Lewis, says: “With sales up over 40 per cent for johnlewis.com in 2012, we are seeing an unprecedented pace of online growth and customers are making more demands on our website, than ever before. “The billion-pound success of johnlewis.com is a reflection of our strategy to put the customer at the heart of our online operations. Early testing at every stage of the build, and inviting over three million customers to use our beta site before full launch, has resulted in what we believe will be an outstanding experience and journey for customers. We have designed the new site to incorporate the best features of our previous site making it not only easy and intuitive to use, but inspiring to shop.” The site also features a prominent feedback form, which generates around 300 pieces of feedback a day, which the retailer will use to prioritise issues and spot trends. April - May 2013 RS 41 RS feature 3D printing Stranger than fiction 3D printing is the process of making a three-dimensional solid object of virtually any shape from a digital model. The technology, which has been around for years, is used to make scale models and is increasingly being used to make consumer products. Companies such as Nokia, Disney and London-based start-up MakieLab – who sell 3D printed, customisable dolls – all Occasionally there are steps forward in technology that sound like science fiction. With 3D and 4D printing, could we witness a new industrial revolution? I ’ve always been a fan of science fiction; books, films, graphic novels – you name it. The possibilities when it comes to technology are endless in these imaginary worlds. I’ve often wondered why modern life is so slow to catch up to the ideas proposed by science fiction writers. Look at Bladerunner, for instance, that film (based on the essay by Philip K Dick) is set just six years in the future in 2019. How likely is it that Earth will have colonies on other planets or androids in six year’s time? It seems unlikely. Occasionally, however, there are steps forward in technology that sound just as remarkable as science fiction. I’ve discussed 3D printing in this magazine before but I felt it was time to revisit the subject due to some amazing advances over the last year, not just for retail but for medicine, manufacturing and other industries. In fact the idea of 3D printing has evolved into 4D printing. Carlos Olguin is working on this in his role as the director of the Bio/Nano/Programmable Matter Group at software giant Autodesk. He believes that in the not too distant future consumers will be able to buy a chair from Ikea and then watch it assemble itself. The same technology is also being used to research cancer fighting nano-robots that are implanted in the body to find and destroy cancerous cells. Suddenly Bladerunner is sounding more and more plausible. 42 RS April - May 2013 offer 3D printed items. The solid object is achieved using an additive process, where successive layers of material are laid down in different shapes. A materials printer usually performs 3D printing processes using digital technology. Since the start of the twenty-first century there has been a large growth in the sales of these machines, and their price has dropped substantially. In January this year Nokia released design files that will let owners use 3D printers to make their own cases for its Lumia phones. Files containing mechanical drawings, case measurements and recommended materials were released by the phone maker so customers could create a custom-designed case for the flagship Lumia 820 handset. The project made Nokia one of the first big electronics firms to seriously back 3D printing. John Kneeland, one of Nokia’s community managers, revealed the Finnish phone maker’s decision to release the 3D drawings. “Nokia’s 3D printing community project is a simple concept with exciting potential,” he says. “Our Lumia 820 has a removable shell that users can replace with Nokia-made shells in different colors, special ruggedised shells with extra shock and dust protection, and shells that add wireless charging capabilities found in the high-end Lumia 920 to the mid-range 820. But in addition to that, we are going to release 3D templates, case specs, recommended materials and best practices – everything someone versed in 3D printing needs to print their own custom Lumia 820 case. We refer to these files and documents collectively as a 3D-printing Development Kit, or 3DK for short.” Speaking about the potential of 3D printing Kneeland adds: “When I first saw 3D printing in action, I felt how I imagine people felt when they saw the very first steam engines. The earliest examples of steam engines were incredibly expensive, finicky, and quite limited in what they could actually do. Every great invention starts out as but a faint shadow of what it will become. Today we can print cases made of only one or two materials, and the machines are limited in what they can make, but that 3D printing feature itself is incredibly exciting—and the future even more so. “My own view is that the hype is justified, and that 3D printing is indeed A very big deal. I don’t think it’s an exaggeration to call it the sequel to the Industrial Revolution. However, it’s going to take somewhat longer to arrive than some people anticipate, and that may disappoint people. For now, it’s a bleeding-edge technology for bleeding-edge early adopters—which is exactly where Nokia is aiming its 3D printing community efforts.” Some of those disappointed people have already taken up the cause of the slightly more controversial side of 3D printing online. Defcad, operated by Defense Distributed, is a makeshift site that hosts mostly firearms-related 3D files. The site’s founder, Cody Wilson, says Defcad was started in response to MakerBot’s decision to remove 3D gun files from its catalogue. He believes Defcad represents true freedom of information and says they won’t bow to copyright laws. Jackie Maguire, CEO, Coller IP, observes: “When it comes to protecting intellectual property and 3D printing there are quite a variety of different things to consider. The 3D printers themselves and software behind that, templates and operating and the materials that are used. “People using personal 3D printers at home might be reproducing designs of products that are protected by registered 3D trademarks. Some perfume and whisky bottles, for example, have 3D trademarks. Jean Paul Gautier’s perfume bottles are very characteristic, or the coke bottle; you recognise it as soon as you see it. Recently there was a case in China brought by Chivas Whisky because their distinctive whisky bottle was being reproduced. The bottle has a registered 3D trademark so the case was brought to court and damages paid. “In relation to 3D printing it’s not the label they put on the bottle it’s the shape of the bottle itself. Before consumers buy a design, a template off the shelf to produce at home, they are going to need to check that they are not infringing copyrights. This could be difficult to police, however. The end user could request infringement free templates, or whoever sells the template may have to provide insurance that they are free from infringements. Or the right to sell on to other people would need to be obtained through a licence. “3D printing is certainly exciting,” she continues. “It bring customisation to a whole new level, but protecting intellectual property may require a different approach. There is a debate in IP world generally between control or open source. I think for the 3D printing revolution to take place there will have to be a paradigm shift in peoples’ ability to gain access information. The internet shifted the way the world works and legally we have accommodated that. There is no reason why 3D printing cannot takeoff, but in compliance with the law. “Of course, when it comes to the internet, the illegal download of music and films is still ongoing. These sites are gaining great cash value through infringement. There is great RS commercial potential in 3D printing and the end user gets flexibility of use and choice of what they can have. They can design their own furniture or kitchen gadgets and decide on the colour and size they want to have. “When you are looking at consumer goods it’s not too difficult to imagine a complete step change in the way that goods are sold. 3D printed products are not as neat and tidy at the moment as they could be. But it’s not beyond the imagination to think of a home having its own 3D printer. It is even possible to print cheese and chocolate now. At the moment 3D printing is more about the creative use of the technology. But you can imagine the creative technology that would someday be able to make you a sandwich. Still a way to go yet, but not out of reach.” Disney have already started to use 3D printing as part of their toy manufacturing process. Printed Optics is a new approach to creating custom optical elements for interactive devices using 3D printing. A Disney spokesperson explains: “Printed Optics is part of our long term vision for the production of interactive devices that are 3D printed in their entirety. Future devices will be fabricated on demand with user-specific form and functionality. Printed Optics explores the possibilities for this vision afforded by today’s 3D printing technology.” London-based, MakieLab, have taken the process a few steps further and offer fully 3D printed, customisable dolls called Makies, through they transactional website. That site launched in alpha in May 2012, the company raised $1.4 million from earlystage investors in June that year, and in March 2013 MakieLab released an iPad app called Makies Doll Factory to help people make and order Makies from their tablet. Granted there are problems to be ironed out when it comes to 3D printing. Control or open source, copyright infringement, the decline in manufacturing and design jobs that could potentially come about. Yet for multi-channel retailers 3D printing could offer a level of instant consumer service never seen before. Imagine not having to wait for delivery when you buy an item online. Imagine just being able to print it at home. It is still some way off, but with the price and size of 3D printers falling, it may not be long before we have one on our desktop sitting alongside our PC. April - May 2013 RS 43 at a glance MARCH The National Union of Students (NUS) created a new free app to support its NUS extra card, the number one student discount and lifestyle card in the UK. Created by digital agency Code Computerlove, the NUS extra Student Discount Companion App uses the latest geolocation/nearfield technology to allow students to find discounts near them. Interdirect has worked with John Lewis Partnership and wayfinding experts, Whybrow, to launch an innovative touch screen wayfinding system at the new John Lewis store in Exeter. The store, which opened in October 2012, has a touch screen on two floors providing customers with all the information they need to be able to find their way around the wide selection of departments. Aurora Fashions announced the next phase of a fundamental reshaping of its businesses, which will enable the brands to further embrace omni-channel. Coast will emerge as a standalone business and Oasis and Warehouse will be established under a single parent company, Fresh Channel. Liz Evans, managing director of Oasis, has been appointed as CEO of the new business. WorldPay acquired the YESpay group of companies, a leading payments services provider. The acquisition, made for an undisclosed amount, is in response to growing demand from WorldPay’s clients for truly integrated payment services. It also enables YESpay to significantly increase the deployment of its solutions. Cross-border sales in Europe will reach €36 billion in 2013 to account for 10.6 Rounding up all the major retail tech related stories per cent of total online sales in the region, according to IMRG. UK retailers are proving to be the most successful in trading across borders; in 2012 international consumers spent £7.4 billion on UK-based sites, with the total set to exceed £10 billion this year. Regent Street, London W1, launched 24/7, a bespoke social media hub accessed through regentstreetonline. com. The hub creates a virtual window where everyone can engage in real-time conversations with the Regent Street shops, restaurants, cafés, bars and hotels. Conversations appear on 24/7 from multiple social media platforms such as Twitter, Facebook, Instagram, Pinterest, SoundCloud and YouTube. Amscreen unveiled a seven week nationwide campaign with BlackBerry to support its experiential activity for its new BlackBerry 10 platform. As part of the BlackBerry Z10 smartphone’s initial launch activity, BlackBerry has utilised Amscreen’s national screen network to run time-specific ads at over 1,900 forecourt and convenience store locations. UK startup Droplet announced Chiltern Railways and Airparks as the first national organisations to adopt its m-payment platform. The company’s app allows people to load money onto their phones and send payments for free. The deals build on a beta trial in Birmingham, which has seen 2,500 users and 60 merchants adopt Droplet as a payment method. APRIL Morrisons Cellar chose MetaPack to facilitate the delivery of their new online wine offering. In response to a 10,000 strong survey in which wine drinkers explained their frustrations with the way wine is currently being sold in the UK, Morrisons decided to launch a new initiative, a‘Taste Test’ to help people find the wines they love at affordable prices. Debenhams, Expedia and Argos topped the UK Mobile Commerce study by EPiServer. The report scored the mobile websites and apps of 30 of the UK’s top retailers’ against a detailed best practice benchmark informed by research into current consumer attitudes to mobile usage and experience. at a glance at a glance RS Shutl announced that Jewson, the UK’s leading supplier of sustainable timber and building materials, launched the world’s fastest, most convenient delivery service from six of its London branches. The partnership will enable London-based Jewson customers to order from a participating local branch – either in person or by phone – and get their orders delivered in 90 minutes. John Lewis launched an interactive window display at its flagship Oxford Street store and its Peter Jones store in Sloane Square. The ‘BEAUTIFUL – On or Off’ campaign, was created by communications agency adam&eveDDB. The display will entertain shoppers and commuters with a memorable augmented reality experience, which has been audio-enabled using Feonic’s Whispering Window invisible speakers. And expanding global lifestyle brand, Cath Kidston opened two, wholly owned stores, in China’s prestigious Cloud 9 and Raffles City shopping malls in Shanghai, both powered by Futura’s international EPoS and merchandise management solution. April - May 2013 RS 45 A subscription to Retail Systems guarantees you regular access to the latest news and developments within the industry. So don't miss out, subscribe today to ensure you receive every issue. Simply complete the form below or call 020 7562 2420. DON’T MISS AN ISSUE! December 2012 - January 2013 FIRST CHOICE CHOICE FOR FOR TECHNOLOGY TECHNOLOGY PURCHASERS IN MULTI-CHANNEL MULTI-CHANNEL RETAIL FIRST PURCHASERS IN RETAIL Reinventing retail Mobile devices have helped create an empowered and knowledgable consumer. What does the future hold for retail technology as it tries to find ways to engage with this new breed of shopper? www.retail-systems.com Payments Technology Conference review • Appointments • Multi-channel supplement • eCommera profile • End of year review cover.indd 2 Invoice Details: 12/10/2012 10:46:23 AM I would like an annual subscription to Retail Systems (bi-monthly) Name ..................................................................................... o Please invoice me Job title ................................................................................. o Please find enclosed a cheque for Company Name .................................................................. £98 (UK)/£140 (Rest of world) Address.................................................................................. ................................................................................................. ................................................................................................. oPlease debit my Visa/Mastercard/Switch (Amex not accepted) o£98 (UK) o£140 (Rest of world) Postcode .............................................................................. 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Don’t forget traditional marketing methods like direct mail. Barling believes analytics are very important along with Search Engine Omptimisation, email and search engine marketing, using video and embracing social media. There are plenty of tips that apply to social networks, getting the most out of Facebook, connecting with your customers and understanding virality. But it is nice to see Barling’s optimism around the effect of social media on e-commerce tempered with words of caution. It seems to happen all too often these days that social media is believing its own hype. The Insiders Guide warns retailers not to give too much away. Exclusive content for fans is one thing, giving coupons and discounts to a legion of online followers doesn’t make financial sense. Barling also warns retailers not ‘over commit’ to social networks like Facebook. Use of the site is starting to plateau and online merchants need to decide what relevance these kinds of sites hold for them, if any. I think what I liked most about this guide is that is was so easy to dip in and out at various points and discover a little gem of knowledge. I couldn’t possibly go through all 440 of the tips contained in the book, suffice to say it is a comprehensive roadmap of pretty much everything you could need or wish to know when entering into the world of e-commerce. Winning without losing W hatever your job is, chances are you find it hard to switch off. Today, we work longer hours, at weekends, at home and on the move – while the office is only ever a click away via smartphones and the Internet. But as much as we assume that this is the price of success, it doesn’t have to be this way. Martin Bjergegaard and Jordan Milne are here to show you how to build your business into something big, sustainable and widely recognised – and still lead a happy, whole and balanced life. In a series of short insights, Winning Without Losing: 66 strategies for succeeding in business while living a happy and balanced life, reveals strategies and methods which will allow you to combine professional success with putting friends, family and happiness first. Their Efficiency Boosters will increase your effectiveness, while you’ll learn all about how to avoid Time bits and pieces T hankfully the Insiders Guide to E-commerce is actually written by an insider. Chris Barling has been around the digital block a few times with the company he co-founded in 1996, Actinic, which is now known as SellerDeck. The contents of his book are, therefore, thoughtfully and systematically laid out. In fact the step by step guide to setting up a store online seemed so simple that it had me wondering whether or not I might have a bash at the e-commerce game, rather than just writing about it. The book boasts 440 insights for the ambitious online retailer, most are fairly obvious and self explanatory but I’d like to share a few lesser-known facts that all prospective e-tailers should consider before setting up a virtual shop. Tip 7: Consider the ownership issue. Chris writes: “If you buy a solution that is fully hosted across the net, you are dependent on you provider, and the business that you painstakingly built could be gone in a flash.” Certainly we’ve all heard horror stories about the treatment some merchants have received so doing some background checks on e-commerce providers is good advice. There are a lot of good tips about marketing your website and company. Making use of Google Analytics, considering Pay Per Click, using blogs and social media, remembering existing customers, getting customer feedback etc. Perhaps a couple that fledgling e-commerce companies might forget are: Tip 40: Recover the ones that got away. Every e-tailer needs a Chris Barling and Energy Wasters and build a New Mindset that gives you to optimism and enthusiasm needed to succeed. So wave goodbye to guiltily checking your emails on a date, or getting home when your children are already in bed – this is your route to winning on every level. I must admit I don’t go in for all this self help nonsense but perhaps it is time to evaluate the work/life balance in all our lives. After all the last time I went on holiday and couldn’t get any internet access to check my emails I almost had a meltdown. And I have more than a handful of friends who have been in the same situation. Yet, I can still remember (somewhere in the back of my mind) a holiday when I didn’t have a mobile phone. It’s a distant memory for all of us but perhaps it is one we need to reclaim. I’m not positive a book could help me do that, but it’s a start. April - May 2013 RS 47 letters letters to the editor RS 48 RS April - May 2013 ENVIRONMENAL IMPACT OF E-TAIL Retailers including The Co-operative Group, Sainsbury’s and Nestle have committed to improving their environmental performance with the guidance of government body WRAP’s Product Sustainability Forum. The impact of retail, both High Street and online, on the environment is significant and one area that is particularly pertinent is how e-commerce affects the environment. This could be a wake-up call to look at ways of reducing environmental impact for sectors other than food and groceries. In sectors like clothing, garment return rates at their industry average of 25 per cent have a huge impact in terms of unnecessary transportation: with an average 27 per cent of those returned items exchanged for another size, retailers face making 132 deliveries and collections to successfully sell just 82 garments. On top of that, returned items usually mean new or additional packaging. On this basis, aiming to cut return rates can make a serious and visible contribution to a clothing retailer’s environmental initiatives at a time when it is high on the consumer agenda. There is obviously no ‘quick fix’ for this problem, but there are some important measures that retailers can adopt to reduce their real estate costs in order achieve crucial cost-savings. Retailers should begin by carefully analysing the number and size of the buildings they occupy, for example, and then consider whether they can downsize in some areas and maybe even close stores completely, if necessary. Energy management is another key area that, if controlled carefully, can achieve huge cost savings across a retailer’s real estate portfolio. By taking a closer look at their energy usage, retailers can very quickly identify any shortcomings in their energy and resource management, and can often achieve substantial savings by implementing some very simple changes to their daily working practices. However, retailers will need to begin this process by measuring and monitoring their current usage, so that they will be able to see the impact of any changes they make. Armed with this information, retailers will be in a much stronger position to make changes that really count – not only in terms of operational efficiency, but also as a way of cutting costs and improving the bottom line.” Heikki Haldre, founder and chief executive of Fits.me Tim Clapham, director at Planon Software GETTING ONLINE MARKETING RIGHT Morrison’s’ announcement that it will be opening an online sales channel to help boost its business is another strong indicator of how vital e-commerce and online marketing is in the retail space. But to get it right and make ‘online’ a commercial success email marketers must run their campaigns underpinned by the ‘engine room’ of email intelligence to drive the success and ROI of their online initiatives. The three vital ingredients that marketers must ensure they address in their email marketing programmes are as follows: Maximising Inbox Placement Rates: by understanding what satisfies the ISPs and having a strong sender reputation. Mastering Mobile Email: understand where, when and what device their subscribers are opening emails and tailoring campaigns accordingly. And email Security: avoiding phishing and spoofing attacks and protecting their subscribers and the brand. Get these key elements right and businesses like Morrisons stand the best chance of driving successful email marketing campaigns with engaged subscribers converting into strong sales figures. Richard Gibson, director client services, Return Path RENT CHALLENGES FACING RETAILERS One of the key challenges that retailers are facing is the soaring cost of rent, as most landlords are unwilling to adjust their rates to accommodate the distressed High Street. CONSUMERS EXPECT ONLINE OFFERS ShopperCentric has released its report on premium shopping, which reveals that 59 per cent of shoppers believe premium brands that never offer discounts are out of touch with customers. For years now, premium brands have worked hard to effectively position discounting and offers within a broader brand growth strategy but now, with consumer spending squeezed, customers are researching prices and looking to publisher sites before brand websites in order to find the best deal. It’s important that premium brands don’t underestimate the value of publishers that offer money off or cashback in order to meet shoppers’ changing appetites and taste for premium goods. However, brands must consider who they partner with carefully. It’s crucial to appear on sites that echo your own brand values, not only so that you are able to access the right target audience, but so that you can match your brand image wherever you appear on the web. Brand image is everything and premium retailers don’t need to compromise, they just have to get the balance right. Using a CPA network allows luxury and premium brands that chance to work with trusted advisors who will know which publishers represent the right opportunity for their brand. Mark Haviland, MD of leading CPA network, Rakuten LinkShare Letters to the Editor should be emailed to: [email protected] Publicise your event Got a retail technology-related conference/roundtable/exhibition to promote? Email the details to: [email protected] RS appointments People on the move Eduardo Sanchez RichRelevance has appointed Eduardo Sanchez as president. Sanchez brings more than 25 years of global leadership, operational and technical experience in enterprise computing, cloud services, mobile and social applications and data infrastructure to the company. He was one of the earliest members of the MicroStrategy leadership team and over his 16-year tenure played a major role in driving the development of the company, most recently serving as executive vice president of strategic development. Max Way K3 Retail has appointed Max Way as head of multi-channel retail to further develop its position as the leading authority and enabler in the world of multichannel retail. The role was created to ensure the K3 team broadens and deepens knowledge across all areas of retail; from marketing to finance and supply chain, through to PCI compliance and customer service excellence – adding value to customer projects through prior and on-going strategy support. Max brings more than 13 years of experience in the retail technology sector. Sir Terry Leahy Sir Terry Leahy, former CEO of Tesco, who became a MetaPack shareholder in June 2011, has now officially joined the board of directors. Sir Terry, who has been a regular advisor to the company since his investment, will now take up his official role to contribute to the strategic development of this fast growing firm. Bringing with him his expertise in international expansion, this is perfectly timed to coincide with MetaPack opening its first European office in Hamburg, Germany. Martin Hiscox Kewill Ltd has appointed Martin Hiscox, chairman and CEO of Masternaut, Europe’s largest telematics SaaS business, to its board as non-executive director. A well-known and respected industry figure, Hiscox is an experienced business leader. He brings to the Kewill Board in excess of 20 years’ experience of private equity owned IT businesses that he will utilise supporting the senior management team in creating and executing successful growth strategies. 50 RS April - May 2013 Jas Virdee Jas Virdee has joined Kurt Salmon as a partner, to lead its UK multi-channel practice. He has worked within the retail sector for more than 25 years, most recently as an executive board member of Mothercare, responsible for group strategic planning, which included accountability for business transformation, e-commerce and IT. Virdee has led many large strategic client assignments, including those relating to post-merger integration, global supply chains, international growth and the implementation of multi-channel solutions across Europe. Patrick Carney Vodat International has appointed Patrick Carney as business development manager in a bid to push forward and establish itself as a leading player in the hospitality and leisure sector. The international communications provider has made the appointment to focus on developing its work within the sector and drive forward Vodat’s new business relationships at all levels. His key responsibilities will be focused around identifying and opening new business channels while managing a number of existing accounts. Graham Halling Mobile shopping couponing company, Shopitize, has appointed Graham Halling as its commercial director. Halling takes up his appointment with immediate effect. He has been developing new business and strategies over the past 20 years at some of the biggest telecoms, media and marketing services brands in the UK and Europe including Wegener Marketing, News International and Saga. He has also undertaken numerous consultancy and non-executive roles. Andrew Livingston Kingfisher has named Andrew Livingston as the CEO of its Screwfix trade business. Livingston, who is Screwfix commercial and e-commerce director, replaces Steve Willett who was promoted to become CEO of group development and productivity at Kingfisher, a role which includes responsibility for developing the group’s multi-channel operations. Livingston’s previous roles include director of showroom at B&Q and chief operating officer at Wyevale Garden Centres. Multi-Channel Conference SAVE THE DATE 25 September 2013, London Stock Exchange FREE for Retailers and Consultants Register now: www.retail-systems.com/multichannel For event enquiries or to book your place please contact: For sponsorship enquiries please contact: Deputy Head of Events Hayley Kempen +44 (0)20 7562 2414 [email protected] Advertising and marketing Manager Lisa Gayle +44 (0)20 7562 2430 [email protected] For marketing opportunities please contact: Marketing Manager Sarah Whittington +44 (0)20 7562 2426 [email protected] Sponsored by: @RSMultichannel Senior Sales Executive Emma Stokes +44 (0)20 7562 2429 [email protected] directory RS Marketplace directory listing To Advertise contact Lisa Gayle Telephone: 0207 562 2428 Email: [email protected] To make the directory section as easy as possible to use, we have added an index of headings below. These are listed alphabetically in order for you to find the products and services you are looking to source. To list your company within the section, please contact Lisa on 020 7562 2428 or email [email protected] for a quote. The leading IT source guide for retailers CONTENTS address management software epos, store, head office, warehouse and web solutions business software international payment services delivery solutions payment processing solutions direct commerce software payment solutions e-commerce and head-office supply chain solutions (multi-channel) solutions epos, head office (multi-channel) and warehouse solutions epos, store, mail order, head office and distribution solutions store, head office and distribution solutions supply chain solutions epos hardware address management software Enigma House Elgar Business Centre Moseley Road, Hallow Worcester WR2 6NJ Tel: 0800 047 0495 Postcode Anywhere is a UK-based company well known for its award-winning “what’s your postcode” technology, used to quickly complete your address when buying online. The company’s range of services, all delivered online, are specifically designed to boost business efficiency and include route optimisation, international address auto-fill, data cleansing, business information services and lifestyle profiling. Over 8,000 customers worldwide use Postcode Anywhere for better data cleanliness, speedier form-filling and increased conversion rates. Postcode Anywhere processes over a million transactions a day. business software Keystone Software Development Ltd 4-5 Hill Court Grantham NG31 7XY Khaos Control is a leading business software solution, with a strong focus on the multi-channel retail industry. It is Sales Order Processing software, but with integrated and powerful stock control, purchasing, accounts, CRM, contact management, invoicing, marketing and promotions. It integrates with most e-commerce web sites, complementing them by providing a powerful back-office solution for controlling the picking, packing and despatching of orders and T: 0845 25 75 111 supporting the full range of customer services including returns/refunds. [email protected] It's modern, Windows based, scaleable and resilient. W: www.khaoscontrol.com delivery solutions MetaPack Ltd 12-16 Laystall Street London, EC1R 4PF Tel: 020 7843 6720 Fax: 020 7843 6721 Email: [email protected] Web: www.metapack.com MetaPack is the leading provider of delivery management solutions • • • • • • Best practise delivery solution – improve customer retention Single point of integration for all carriers Easily add new carriers and switch between them allowing for contingencies Complete tracking and extensive performance reporting Proactive customer care through email & sms messaging for shipments Reduce logistics costs through effective allocation Customers range from large and multichannel retailers such as John Lewis, ASOS, B&Q, Marks & Spenser and DGSi Group to smaller pure play companies. D I R ECTO RY O F K EY PLAYE R S call 020 7562 2428 l i s a . g ay l e @ r e ta i l - s y s t e m s . c o m fa x e-commerce and head-office (multi-channel) 020 7374 2701 solutions hybris UK Ltd. Holborn Tower 137 High Holborn London WC1V 6PW hybris is a leading vendor of multichannel commerce & communication software. Its clear vision T +44 (0)207 429 4175 F +44 (0)207 329 8291 [email protected] enabling companies to master the complexities of implementing and managing single site, Kudos Software Ltd Cliff House, Cliff Road Salcombe Devon TQ8 8JQ Kudos Software are specialists in retail and operational stock management software solutions Tel: 01548 843586 Fax: 01548 843503 E: [email protected] W: www.kudos-software.co.uk mail order operations, large unit sales (such as caravans and boats) and e-commerce. We about the need for consistency, co-ordination and personalization of information across all channels and throughout all phases of the customer lifecycle has resulted in the development of an integrated solution which supports the industrialization and automation of communication, sales and support processes both online and offline. It is spearheading innovation in this field, Nisyst Nirvana House 89 - 99 High Street Little Lever Bolton BL3 1NA Tel: 01204 706 000 E: [email protected] W: www.nisyst.co.uk multi-site and multichannel communication and commerce processes step-by-step without any compromises with 20 years experience in the retail industry and 300+ installed sites. Supporting single or multi-branch operations our feature rich EPOS tilling solutions increase efficiency, reduce admin and improve profitability. Kudos’ integrated systems are designed for retail shops, workshops, offer a complete solution from initial consultancy through to installation, hardware, training and support. Nisyst has over 20 years experience of developing and implementing EPoS systems for a range of retail users from multi-site, multi-channel operations through to small, single-site businesses. Nisyst delivers complete solutions from point of sale to back office, reporting and stock control systems, giving a real commercial advantage to your organisation. Its market leading solutions, NPoS Enterprise and NPoS Lite, can be fully customised to meet customer requirements, improve business efficiency and save costs. Key NPoS modules include full sales and marketing control featuring email and SMS integration, stock control, purchase ordering, instant reporting and analysis, and pre-built e-commerce integration for ordering and distribution. Nisyst systems operate on a comprehensive range of electronic point of sale systems, including the latest generation of contactless and mobile applications. Retail Assist is a leading retail-only solutions and services company, providing UK and international retailers with end-to-end business applications plus a comprehensive range of services that reduce costs, optimise retail operations and support higher revenues. Retail Assist Ltd The Hub 40 Friar Lane Nottingham NG1 6DQ T: 0115 853 3910 E: [email protected] W: www.retail-assist.com www.merret.com Our managed services offer 24/365 Help Desk, Technical Services, Operations, Data Centre Hosting, Hardware Maintenance and Disaster Recovery. Managed solutions offer hardware, software and services, based on a fully-managed and hosted "software as a service" model. Merret, our award-winning integrated supply chain solution covers all areas of stock control and retail supply for real-time multi-outlet, multi-channel merchandising and warehousing, plus business intelligence. Clients include La Senza, Aurora, Paperchase, World Duty Free, First Quench and Harvey Nichols. e-commerce, head-office MNP 91 Crane Street Salisbury Wiltshire SP1 2PU (multi-channel) and warehouse solutions Enterprise back office retail platforms for mid sized retailers, ActiveSeries comprises order management (OMS), warehousing (WMS) and purchase & merchandising solution (IMS) ensures real time multi channel inventory, operational efficiency with real time business intelligence. Interfaces into Torex, Island Pacific, RBS, Futura, Riva, Red Prairie, Hybris, Magento Tel: 01722 341342 and 30+ proprietary ecommerce platforms. Integrated with Channel Advisor, Royal Mail, Fax: 01722 341888 Metapack, GFS, Ebay, Amazon and many more third parties. E-mail: [email protected] Web: www.mnp-media.com ActiveSeries platform users include Lakeland Limited, Kurt Geiger, LK Bennett, Surfdome and Soletrader D I R ECTO RY O F K EY PLAYE R S call 020 7562 2428 l i s a . g ay l e @ r e ta i l - s y s t e m s . c o m fa x 020 7374 2701 ecommerce, store, mail order, head office and distribution solutions Sanderson Multi-Channel Solutions Sanderson House Manor Road Coventry CV1 2GF T: 0333 123 1400 E: [email protected] W: www.sanderson.com/elucid Contact: Lee Ashworth Elucid is our complete software solution for Multi-Channel Retailers that integrates store, web and mail order sales and back office fulfilment operations. Whether you’re looking for a consolidated view of customers or striving to fulfil orders from multiple stock locations and reduce delivery timescales, Elucid helps you to deliver a seamless customer experience. “Elucid has brought together our multiple sales channels and collective systems, providing us with a central hub that allows us to operate a true multi-channel sales organisation.” Patrick Walker, Beaverbrooks The Jewellers epos hardware Casio Electronics Co.Ltd Unit 6, 1000 North Circular Road London NW2 7JD Casio provides ruggedised hand-held terminals for the retail store and warehouse environment. Our terminals are used for logistics, shelf-edge labelling, stock control and PLU applications. Operating Windows CE or Mobile, our mobile terminals can include an auto-focus camera, WLAN/WWAN communications, GPS mapping, a barcode scanner, Tel: 020 8450 9131 E: [email protected] W: www.casio.co.uk/mobile contactless card reader and the brightest touch screen display available. Casio is a market-leader, with support and service facilities in London. Contact us for more information and a loan sample of our retail products - the DT-X7, DT-X30 & IT-800. World Headquarters Via Berettine 2 43010 Fontevivo Parma ITALY Tel. +39 0521 680111 Fax +39 0521 610701 [email protected] www.custom.biz CUSTOM : DESIGN AND INNOVATION FOR YOUR POINT OF SALE Custom’s main activity is to design, produce and supply solutions for the point of sale automation, the printing process automation for the industry, issuing solutions for tickets and travel documents, the point of sale automation for lotteries and betting. Custom stands out in the market for design, technology, innovation and range of products offered, especially in the Retail sector: receipt printers, portable printers, fiscal printers, touch-screen cash registers, POS terminals, customer displays, retail keyboards, digital signage. The mission is to provide innovative services and solutions able to satisfy all the needs of our Customers. DED Limited Harden Road Lydd Kent TN29 9LX T: 01797 320636 F: 01797 320273 E: [email protected] W: www.ded.co.uk Star Micronics Europe Limited Star House Peregrine Business Park Gomm Road High Wycombe HP13 7DL UK Tel: +44 (0) 1494 471111 Fax: +44 (0) 1494 473333 Email: [email protected] Web: www.Star-EMEA.com DED Limited distribute a wide range of EPOS hardware for a variety of applications. Products include: - Dot Matrix & Thermal Receipt Printers Label, Ticket & Kiosk Printers CCD & Laser Barcode Scanners Magnetic/Smart Card Readers & Writers Cash Drawers Customer Displays Star Micronics provides an extensive range of thermal and matrix POS printers designed for a variety of applications. Key products include: - The revolutionary TSP100 futurePRNTTM series offers a range of models, including the world’s first ECO POS printer, with a variety of unique software tools. This printer has been successfully installed by a number of major retailers worldwide including Harrods and Selfridges. - Award-winning TSP800II A4 replacement printer - High speed TSP700II combined receipt, ticket, label and barcode printer - Versatile FVP10 front operating, vocal direct thermal printer - Wide range of OEM kiosk printers - Card reader/writer systems designed to instantly erase, re-write or print up-to-date information. D I R ECTO RY O F K EY PLAYE R S call 020 7562 2428 l i s a . g ay l e @ r e ta i l - s y s t e m s . c o m fa x 020 7374 2701 epos, store, head office, warehouse and web solutions The BlueBox 85 High Street Tunbridge Wells Kent TN1 1XP United Kingdom Tel: 077 437 035 74 Email: [email protected] Web: www.blueboxonline.com Celtech Software International Ltd. East Point, Fairview, Dublin 3. Ireland T: +353 1 855 8200 F: +353 1 836 5509 E: [email protected] W: www.celtech.ie The BlueBox has been providing bespoke ePOS, warehouse/logistics and procurement software solutions since 1996 for small businesses as well as large brands like KFC. We are a small, customer-focused company who do not believe in the one-size-fits-all approach to system implementation. Our systems are 100% web/cloud based, requiring no software installation and ensuring all data is live and central at all times. However, our ePOS module works online as well as offline and is based on the best-of-both approach at the leading edge of current technology. ab-initio from Celtech Software is the ultimate real-time system suite for retail and wholesale multiples. From head-office to point-of-sale, from warehouse to web, individual ab-initio modules can be adopted and integrated with your existing systems to fulfil immediate business requirements, or we can run the whole suite as a complete end-to-end solution for you. ab-initio real-time will deliver more than just live visibility and control of your business – it will radically streamline your operations and opportunities. It will enable you to deliver unique customer experience initiatives over your competitors – better, faster, easier and cheaper. It will enable you to achieve maximum internal operational efficiency and cost savings. Contradictory? Proven! Don’t make a decision until you have seen the power of ab-initio. Eurostop West Africa House, Ashbourne Road, Ealing, London. W5 3QP T: 020 8991 2700 F: 020 8991 9561 E: [email protected] W: www.eurostop.co.uk Contact: Mr Phillip Moylan. Sales and Marketing Manager FUTURA RETAIL SOLUTIONS - DEDICATED RETAIL SPECIALISTS Founded in 1990, with operations in London, Singapore and Shanghai, Eurostop provides complete solutions for Retail Management for the Fashion, Footwear and General Merchandise sectors encompassing both hardware and software. Eurostop’s products include Head Office based software, EPOS, e-commerce, customer loyalty, fulfilment/ picking/warehouse management, mobile solutions, and comprehensive reporting facilities, all fully integrated. Eurostop EPOS software is installed on over 20,000 tills worldwide. Eurostop Limited, Contact: Phillip Moylan, Tel: 020 8991 2700, email: phillipm@eurostop. co.uk, www.eurostop.co.uk FUTURA RETAIL SOLUTIONS - DEDICATED RETAIL SPECIALISTS Futura specialises in making a difference to profitability - through rapid response to customers' needs, greater efficiency throughout leading to reduced stockholding to free up working capital. Based on an unrivalled understanding of retailer's needs, Futura offers the most robust, Contact: Paul Court Tel: 01189 841925 Email: [email protected] Website: www.futurauk.com sophisticated integrated solution available, suiting lifestyle retailers, fashion houses and department stores. Futura is proven, reliable and affordable and gives management greater vision and control, helping to optimise target levels, minimise losses and achieve a rapid return on investment. To grow your business, expand on the web or streamline your Head Office to increase profitability, call 01189 841925 today. K3 Business Technology Group plc Corinthian Court 80 Milton Park Abingdon Oxfordshire OX14 4RY Tel: +44 (0) 870 225 1390 Fax: +44 (0) 870 225 1391 Support: +44 (0) 870 225 1392 Web: http://www.theretailpeople.com “As a global leader providing ERP and Retail software solutions K3 have 25 years of specialist experience. K3 are a major provider of the award winning Microsoft Dynamics business solution and have been certified as a Microsoft Gold Partner and are an invited member of Microsoft’s prestigious 'Inner Circle'; K3's success has resulted in an enviable reputation for not only delivering some of the most complex solutions for our clients; we also back up our products and applications with high quality service and support. At K3 we believe that our success is supported by our values, fundamental in our processes and, ultimately, reflected in your business.” D I R ECTO RY O F K EY PLAYE R S call 020 7562 2428 l i s a . g ay l e @ r e ta i l - s y s t e m s . c o m fa x 020 7374 2701 epos, store, head office, warehouse and web solutions Prima Solutions Ltd Loughborough Technology Park Ashby Road Loughborough LEICS LE11 3NG T: +44(0)1509 232200 F: +44(0)1509 262323 http://www.primasolutions.co.uk Prima Solutions is widely regarded as one of the UK’s leading providers of complete multichannel business solutions for the clothing, footwear, bags and accessories marketplace. The Prima ethos is simple - by really understanding the business requirements and issues faced by each customer, we can work together to design practical, low risk solutions that add real value. Our aim is to work in continuous partnership with our clothing, footwear and accessory industry clients to deliver outstanding apparel solutions covering every aspect of the business from product development through to order management, stock control and planning, manufacturing and sourcing, wardrobe management, customer and supplier management, financial controls and business reporting. Customers include: Mulberry, Joules, Nigel Hall, Curvy Kate, Blue Max Banner, Dubarry of Ireland, Church’s Shoes, Wolsey and John Smedley. international payment services Ogone Payment Services Highbridge Oxford Road Uxbridge UB8 1HR United Kingdom M. [email protected] Tel. 0203 147 4966 www.ogone.co.uk Ogone Payment Services is Europe’s leading provider of international e-Commerce payment solutions for retailers that want to drive secure, compliant sales across European markets. The Ogone PCI-DSS compliant platform enables our customers to process payments from over 40 international and local payment methods in multiple languages and local currencies. Our approach is focused on helping retailers drive maximum revenue from multiple markets, with minimal effort. Dedicated in-market support and consultancy is provided across all major European countries to ensure your payment strategy consistently delivers. payment processing solutions PacNet Services Ltd. Payment Processing Contact: Brian Weekes Tel: +353 61 714360, E: [email protected] W: www.pacnetservices.com PacNet offers a global range of inbound and outbound payment processing services for electronic retailers. Enjoy easy access to credit card merchant accounts, electronic debits and credits, international payment types and the cutting edge RAVEN payment gateway. Lift sales by offering your customers relevant payment options in up to 130 currencies. There is no need to set up foreign bank accounts or contract with multiple providers – no matter what currency your customers use to pay, you will enjoy fast access to funds in the very same bank account that you use today. payment solutions Symphony House 7 Cowley Business Park High Street, Cowley Uxbridge, UB8 2AD, UK T: +44 1895 275275 E: [email protected] W: (www.verifone.com) VeriFone Holdings, Inc. ("VeriFone") (NYSE:PAY), a global leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow. VeriFone delivers solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. VeriFone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare. FIS Merchant Payments Tricorn House, 51/53 Hagley Road, Birmingham. B16 8TU United Kingdom. FIS Merchant Payments make it easier to accept a wide range of payment types more securely. Card payments can be processed from multiple store locations or ecommerce sites for authorisation, fraud detection and data storage. Our ClearCommerce solution is the world's leading ecommerce payment processing solution that detects and reduces payment fraud before you process the order. T: 0121 410 4357 F: 0121 410 4200 TRANSAXion is ideal if you operate many branch locations, offering one point of E: [email protected] contact for all your payment processing. We are PCI:DSS accredited. W: www.fismerchantpayments.com Contact: [email protected] The net results are proven to reduce your costs and protect your profits. Call us. D I R ECTO RY O F K EY PLAYE R S call 020 7562 2428 l i s a . g ay l e @ r e ta i l - s y s t e m s . c o m fa x 020 7374 2701 payment solutions Chase Paymentech Europe Limited Block K East Point Business Park Dublin 3 Ireland T: + 353.1.726.2900 w: www.chasepaymentech.co.uk Chase Paymentech is a global leader in payment processing and merchant acquiring and is a specialist in customer-not-present (CNP) transactions, capable of authorising transactions in more than 130 currencies. The company's proprietary platforms provide access to a wide variety of payment methods including credit and debit cards. In 2009, Chase Paymentech processed more than 18.0 billion transactions with a value exceeding $409.7 billion, including an estimated half of all global e-commerce Visa and MasterCard transactions. The company also provides a full set of solutions aimed at accelerating cash flow and managing transaction data. Chase Paymentech's unique combination of outstanding service, innovative solutions and financial strength offers solid benefits to companies both large and small. Chase Paymentech Europe Limited, trading as Chase Paymentech, is a subsidiary of JPMorgan Chase, N.A. (JPMC) and is regulated by the Central Bank of Ireland. More information can be found at www.chasepaymentech.co.uk. supply chain solutions ByBox Unit 1-2 Central City Industrial Estate Red Lane Coventry West Midlands, CV6 5RY Tel: 0844 800 5219 Fax: 024 7658 4278 E: [email protected] Website: www.bybox.com Manhattan Associates 2 The Arena Downshire Way Bracknell, Berkshire RG12 1PU Contact: Corinna Walker Email: [email protected] Tel: +44 (0) 1344 318074 w. www.manh.co.uk ByBox, the locker solutions specialist offers a complete end-to-end supply chain solution – from sourcing parts, warehousing, distribution, simple swap outs and non-intensive installations through to a bespoke high-end engineering solution for more complex tasks. Operating 7 days a week, 365 days a year, ByBox delivers 20 million items a year into its network of lockers which are situated at convenient locations such as petrol stations, supermarkets, train stations, sports grounds and shopping centres. Working with hundreds of companies in a variety of sectors, ByBox also manages the repair and return of any faulty items and operates an in house repair centre, where a fully trained workforce of repair technicians provides full repair, refurbishment and screening services. Established in 1990, Manhattan Associates provides supply chain solutions to organisations that consider supply chain software, processes and technology strategic to their market leadership. With over 2,000 staff supporting 1,200 customers globally, Manhattan Associates is well placed to serve the local and global supply chain needs of companies of every size in a wide range of industry sectors. The company's supply chain innovations include Manhattan SCOPE®, a portfolio of software solutions and technology that leverages a Supply Chain Process Platform to help organisations optimise their supply chains from planning through execution. Customers include Alliance Boots, Argos, Co-op, Debenhams, El Corte Inglés, Halfords, House of Fraser, Matalan, Mothercare, Mulberry, PUMA, Sainsbury’s, Staples, Tesco, Thorntons, Under Armour, Urban Outfitters, Vanity Fair Brands and World Duty Free. store, head office and distribution solutions BCP - Business Computer Projects Ltd BCP House, 151 Charles Street Stockport, Cheshire SK1 3JY United Kingdom T: +44 (0) 161 355 3000 F: +44 (0) 161 355 3001 E: [email protected] W: www.bcpsoftware.com Contact: Richard Marshall BCP is a leading supplier of Supply Chain software solutions to the Retail and Wholesale Distribution industry. Our Accord ® supply chain solution is a powerful, fully integrated system offering store automation, web, cash control, central store management, voice-directed warehousing, logistics, finance and business analytics. Based upon a modern, cost-effective, real-time technology and single architecture, Accord ® is an ideal solution for today's progressive retailer, empowering companies to improve business across all channels, facilitating overall growth in revenue and profitability. Over 8000 users across the UK and Ireland depend on BCP solutions to control their day-to-day business. supply chain solutions RedPrairie Ltd EMEA Headquarters: Beacon House Ibstone Road Stokenchurch Bucks. HP14 3AQ www.redprairie.co.uk/retail Tel: 01494 486500 [email protected] Contact: Natalie Green RedPrairie delivers productivity solutions to retailers to help manage workforce, inventory and transportation both in the supply chain and in-store. RedPrairie provides these solutions to enable retailers to support business strategies that increase revenue, reduce costs and create competitive advantage. With over 20 global offices and solutions that are installed at more than 34,000 customer sites in over 40 countries, companies trust RedPrairie workforce, inventory and transportation solutions to deliver an increase in productivity - with the flexibility to adapt, as business needs change. At RedPrairie, we understand today’s operational demands and we’re committed to delivering solutions that work. We’re committed to delivering solutions for the real world. IS YOUR PAYMENTS SOLUTION THE BEST IN THE INDUSTRY? OR ARE YOU INVOLVED IN THE IMPLEMENTATION OF AN OUTSTANDING PAYMENTS PROJECT OR INITIATIVE? Enter the Payments Awards 2013 The inaugural Payments Awards in association with FStech and Retail Systems are now open for nominations! The Awards recognise cards and payments excellence and technology innovation within the UK and EMEA financial services and retail sectors. We are calling all companies with outstanding payments projects to enter the Awards, including financial institutions, retailers, gaming companies, telcos, issuers, acquirers, technology vendors and various payments providers. The Awards are FREE to enter and deadline for entries is 6 June 2013. EE R F TO R TE N E In association with: www.payments-awards.com Awards Gala Dinner and Ceremony Thursday 14 November 2013 Millennium Hotel Mayfair, London retail worlds RS Dan Wagner Dan Wagner, CEO and chairman of mPowa and Powa Technologies, which is responsible for implementing online and mobile retail platforms. Retail Systems: How did you get started in retail? Dan Wagner: After leaving an advertising agency in 1984, I started one of the first online databases of newspapers, trade journals and periodicals. I was convinced technology would change libraries from unwieldy repositories of paper to computers accessing databases online. Having set up the first online information service five years in advance of the constitution of the world wide web, I had to move the company I founded, M.A.I.D., to the U.S. for it to really take off. But 10 years later it went public on the London Stock Exchange valued at £120 million. Following this, I created e-commerce business, Venda, 10 years before we started to use the term ‘cloud’ or ‘on demand’ software services. I have been working with many of the most prominent retail brands in the country ever since. RS: Who has been the biggest influence on your career? DW: Two friends who both started in business on their own at early ages. One was Julian Richer who set up Richer Sounds and for whom I worked for a while. The other started off with a market stall selling books and became a world-wide expert and successful antiquarian book dealer. Both of them showed me that if you believe in yourself, you can make things happen. RS: What do you enjoy most about your job? DW: I enjoy creating new business tools and services and making them indispensable for our customers; working with a team of talented professionals, motivating them to see and execute against my vision and I enjoy the challenges of overcoming the naysayers and speed bumps that slow our progress to success. RS: Is there anything that frustrates you about the retail industry? DW: I’ve worked in the technology industry all my life and one thing I find particularly frustrating is when online businesses trade on the ignorance of their customers by taking longer and charging more than necessary. There is a standard of service and a level of value for money, below which no decent provider should fall. RS: Who is your IT hero? DW: Larry Ellison, founder of Oracle, and Bill Gates, both for his business accomplishments and for his altruism. RS: What piece of technology can’t you live without? DW: The internet. I’m always online. The internet is my primary tool for work but I use it for downtime as well. I really appreciate the mobility element of the web and love the fact that it chimes with the worlds of my customers and the consumers they serve. RS: How do you relax? DW: By watching Arsenal FC – although I must say recently they have been playing so erratically that watching them is becoming a rather less relaxing experience! RS: What was the last purchase you made online/on the High Street? Were they positive experiences? DW: Yes, I bought a multi plug socket from eBay and the experience was excellent and rewarding. As I tend to do most of my shopping online these days, I haven’t made a purchase on the High Street in ages. April - May 2013 RS 59 awards 2013 Now open for entries Deadline: 25 July 2013 Celebrating Excellence and Innovation in the Field of Retail Technology Now in its eighth year, the Retail Systems Awards are FREE to as being the leader in their field. The Co-operative Group, enter and you can enter your organisation in as many categories Tesco.com, House of Fraser, The Post Office and Topshop as you wish. This year there are 20 categories, including three and technology suppliers such as ChannelAdvisor, Bleep UK, NEW categories ‘Online Retailer of the Year’, ‘Loyalty eCommera, Fujitsu and Red Ant were among the winners at the Programme of the Year’ and ‘Best Use of Technology for 2012 Retail Systems Awards. Personalisation’. The awards present an opportunity for We look forward to receiving your entries and seeing you on the organisations to gain the prestige of public acknowledgement night as we once again celebrate the stars of Retail Technology. Sponsored by Awards Gala Dinner and Ceremony 23 October 2013, Lancaster London Hotel, Hyde Park ENTER NOW: www.retail-system.com/awards MOBILE ENABLED DEVICES WILL UNLOCK MOBILISING FROM SMART PHONES AND NFC TO M-PAYMENTS AND M-POS, MOBILE IS SHAKING UP THE WAY WE PAY ACROSS EUROPE. EUROPEAN PAYMENTS MOBILE SPEAKS EVERYONE’S LANGUAGE Europe has: European countries 45 230 official languages 857 million people 741 million live mobile phones (i) mobile broadband 336 active subscriptions (i) Which means almost everyone in Europe has a phone AND nearly half can access the internet on them. AND THEY’RE GETTING SMARTER 1number billion + of smartphones globally (ii) 63.2% Spain has Europe’s highest smart phone penetration (iii) 61% of UK mobiles are smart phones (iv) OPENING UP NEW CHANNELS FOR RETAILERS $171.5b mobile payments worldwide in 2012 (v) $250b EUR/year – the value of m-payments in Europe by 2014; PAVING THE WAY FOR ‘WAVE TO PAY’ 285m $100b NFC-enabled devices will be shipped in 2013 (vi) global NFC mobile payments by 2016 (vii) NFC payments will account for of all mobile payments made in Europe in 2015 (viii) There will be mobile contactless payments issuers in Europe in 2013 (ix) 42.3% 40 By the end of 2013 around of smartphone will 80 types be certified by Visa (x) of all new VeriFone devices support 100% POS contactless and NFC NFC enabled VeriFone POS 1m shipped globally in 2012 all NFC handsets will 26% ofhouse a contactless ticketing application by 2017 (xi) TOP REVENUE FOR RETAILERS WAYS MOBILE WILL TRANSFORM PHYSICAL RETAILING M-POS AND QUEUE BUSTING 11.4% growth in Mobile POS hardware by 2016, reaching approximately $230 million (xii) VeriFone GlobalBay solutions support of smart device platforms - Apple, Windows, Android, and Blackberry 100% Mobile coupons are MVOUCHERS AND LOYALTY more likely to be redeemed 10 times than printed coupons (xiii) Shoppers will redeem discount coupons using their 10 billion mobile phones worldwide in 2013 (xiv) VeriFone’s VX POS solutions support mobile voucher systems TABLET INVENTORY CONTROL & ORDERING Inventory management ranks as retailers’ £££ NO 2 top investment focus 71% INSTORE INTERNET BROWSING 23% NFC TAGGING & MOBILE MARKETING By 2016, of smartphone users across France, Germany, Sweden and UK are researching potential purchases via mobile (xv) of UK retailers offer free Wi-Fi in store (xvi) 70% of NFC tags will be used for smart posters and mobile marketing The NFC tag market will be worth in next 5 years US$298 million +44 (0)8444 828 200 inf o-emea@ver if one.com @Ver iFone_ E ME A www.f acebook .com/Ver iF o n e www.verifone.co.uk (i). mobithinking.com/mobile-marketing-tools/ latest-mobile-stats/a (ii). www.businesswire. com/news/home/20121017005479/en/StrategyAnalytics-Worldwide-Smartphone-PopulationTops-1 (iii). techcrunch.com/2012/12/17/ smartphone-penetration-in-europes-big-5markets-now-at-55-apple-continues-to-feelthe-heat-from-fast-rising-samsung/ (iv). www. kantarworldpanel.com/Global/News/Windows- sees-strong-European-growth (v). www. telecomreview.net/index.php?option=com_co ntent&view=article&id=344:global-mobilepayments-to-top-171-billion&catid=1:latestnews&Itemid=62 (vi). www.abiresearch.com/ press/nfc-will-come-out-of-the-trial-phase-in2013-as-28 (vii and xi). www.abiresearch. com/press/nfc-mobile-payment-transactionspend-to-hit-the-10 (viii). www.nfcworld. com/2012/12/19/321635/frost-sullivan-nfc-toaccount-for-half-of-europes-mobile-payments/ (ix and x). www.visaeurope.com/en/newsroom/ news/articles/2013/annual_results_uk.aspx (xii). blog.vdcresearch.com/autoid/ mergers-acquisitions/page/2/ (xii and xiii). madmobilenews.com/mobile-couponredemption-growing-in-popularity-set-to-doublein-2013-353/#.UW-g4LXvvPo (xiv). www.retail-systems.com/rs/ Forrester_Tradedoubler_Mobile.php (xv). www. computerweekly.com/news/2240177289/ Retailers-eye-e-commerce-investment-amidimminent-store-closures (xvi). www.jda.com/ company/press-releases/pID/2171/?utm_ source=&utm_medium=News&utm_ campaign=mtec The global leader in innovative and easy-to-use payment devices for all types of card acceptance From September 2011September 2012, VeriFone shipped over 1,000,000 NFC capable devices FOR SOME OF THE LARGEST BRANDS VeriFone GlobalBay is at the forefront of mobile retailing software with solutions for clienteling, queue busting, inventory management, mPOS and more IN EUROPE, VERIFONE IS ENABLING RELIABLE, SECURE ...to deliver a seamless experience for customers AND HASSLE FREE PAYMENTS VeriFone’s contactless payment devices and mobile solutions are used by retailers large and small throughout Europe VeriFone’s managed service makes it easy for retailers to tie all the elements of a multi-channel strategy together VeriFone Sorts for Multi-Channel Rohan, one of the leading providers of outdoor clothing with over 60 outlets has deployed PAYware Ocius, VeriFone’s popular and proven multi-channel managed service platform. It’s part of a complete overhaul of Rohan’s eCommerce system. ‘‘VeriFone’s PAYware Ocius solution has had a hugely positive impact on our eCommerce business. Our online customers now experience quicker and safer transactions and no longer have to deal with the hassle of delayed feedback if they have an issue with their card. The VeriFone solution has increased customer card data security, sped up transaction times and ensured that customers experiencing card problems are notified immediately. VeriFone has proven itself to be a very proactive partner, offering support throughout the implementation process.” IT & Operations Director at Rohan To align the online and in-store environments, retailers are turning to VeriFone’s multi-channel managed services... For VeriFone, industry engagement is key, including involvement with SEPA/ OSCar, Vendorcom, PCI SSC, European Vending Association, EPASorg, Smartex and others. How Managed Payment Services Work for Merchants Download our white paper: www.verifone.co.uk/managedservicewp Payments as a service solutions are the future – they encompass a whole range of services integrating payments inside the retailer’s wider organisation, supporting multichannel commerce and engaging with customers. Payments as a service is a key opportunity for retailers as it helps to build a cohesive omni-channel strategy and covers all aspects of managing the customer’s transaction journey. Download our white paper to find out more on: unification, differentiation and simplification of payment solutions services beyond payments payments as a service for the customer journey an end-to-end total solution VeriFone’s PAYware Ocius is a complete payments as a service platform. For more information contact [email protected] +44 (0)8444 828 200 inf o-emea@ver if one.com @Ver iFone_ E ME A www.f acebook .com/Ver iFo n e www.verifone.co.uk