EXTENDED RETAIL SOLUTIONS
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Selling Process
EXTENDED RETAIL SOLUTIONS
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WHAT ARE WE SELLING?Look to Technology to Enable a RetailTransformation.
•Our Offer: A free Insight Day for a retailer at a CGE&Y Accelerated Solutions Environment (ASE) that gives them theopportunity to leverage the combined product roadmaps of Intel, Cisco Systems and Microsoft put in a retail contextby CGE&Y to determine how they can best position themselves to take advantage of new and emerging technologies.•We recently conducted a highly successful Insight Day for a $35B US Supermarket Chain anchored by knowledgebursts such as:
–Item Velocity Monitor/Real Time Retail–RFID–Connected Customer/Store as Media–Wireless, Mobility and Voice over IP
•Concepts, case studies and research:–PC Volume Economic Model–Metro AG Store of the Future–ERS Consumer Shopping Satisfaction Research Study
•Deliverables:–Transformation Map–Proof of Concept–Event Journal (CD ROM with all event content distributed upon conclusion of event)
•Outcome: Five initiatives that the Supermarket Chain wants us (ERS Partners) to assist with were identified, the firstproposal was delivered within two weeks of the event.
EXTENDED RETAIL SOLUTIONS
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Presentation You Can Use With Clients
EXTENDED RETAIL SOLUTIONS
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The capability andperformance of people
needs to be enhanced todrive down operational
costs
Impacting market share andprofitability
Impacting operational cost
Current Retail Situation…
Research shows:Consumers have becomeincreasingly demandingand frustrated with their
in-store experience
SCM needs to be improvedto improve margins
Retailers want to have 100% visibility inthe SC; minimal stock, max. availability;
reduce supplier lead times, eliminatepossibility of human error….
Retailers want to get moreout of technology assetswhile driving down TCO
RetailToday
EXTENDED RETAIL SOLUTIONS
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• Consumers have become increasingly demanding and frustrated with theirin-store shopping experience
• Consumers will reward retailers that help them save time and treat themwith respect, honesty and fairness
• Increased competition is driving the need for higher service levels andgreater differentiation
• Labor issues continue to plague the retail industry and impact service
• Recent research indicates that customers are willing to use technology-oriented features and services if available in a store*
* Source: CGE&Y, Cisco Systems, Intel and Microsoft consumer research, 11/02
The Consumer Climate
EXTENDED RETAIL SOLUTIONS
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New Standards and Technology ProvideOpportunities and Challenges
Technology Horizon:•Store as Media: Exciting new rich-media self-service applications and devices withcinema-quality graphics providing game-like interaction and changing the in-storeexperience
•Wireless networks are available to connect and mobilize all in-store devices providingstore planners with near-total flexibility and allowing for the reinvention of processesand roles for store employees
•14-character product codes and global data standards need to be rapidly adoptedacross multiple entities within the organization
•RFID is comingChallenges for Retailers:• Processes, roles and business rules defined without mobility, real-time data and self-service in mind•Creating a new shopping experience that matches the consumer relevant brandattributes•Defining an adaptive architecture that enables ever-increasing performance,functionality and interoperability with decreasing total cost of ownership•Graceful migration away from aging proprietary legacy systems
EXTENDED RETAIL SOLUTIONS
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The ERS Ecosystem
ExtendedRetailSolutions is aninitiativespearheaded byIntel, Cisco,Microsoft andCGE&Y createdto provide theglobal retailcommunity withan openstandards-basedalternative totoday’sproprietarytechnologylandscape.
Intel
CGE&Y
Cisco
Processors, Architecture, Innovation, G lobal Tech Support
Lab, Business Case, Technology Roadm ap, IntegrationIn-Store Netw ork, Enterprise Netw ork, Netw ork Adm in, Security, Content Storage
HP, Fujitsu, NCR, Sym bol,
Radiant, W incor
POS Devices, M obile Devices
HP, Dell In-Store Servers, Enterprise Servers
EMN8, HP, Radiant,
NCRCustom er Service Term inals (som e w ith POS capabilities)
Radiant, Triversity, NCR, JDA,Teradata
Softw are: POS, Inventory Mgm t & Replenishm ent, W orkforce Mgm t, eLearning, CRM, Analytics
Microsoft Operating System s, EAI, Database
EMN8 Softw are: Custom er Interaction, Experience Managem ent
HP Support Services
EXTENDED RETAIL SOLUTIONS
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Look to Technology to Enable a RetailTransformation
•Our Offer to you: A free Insight Day at a Cap Gemini Ernst & Young AcceleratedSolutions Environment (ASE) that gives you the opportunity to leverage the combinedproduct roadmaps of Intel, Cisco Systems and Microsoft put in a retail context byCGE&Y to determine how you can best position your company to take advantage of newand emerging technologies.•We recently conducted a highly successful Insight Day for a $35B US SupermarketChain anchored by knowledge bursts such as:
– Item Velocity Monitor/Real Time Retail– RFID– Connected Customer/Store as Media– Wireless, Mobility and Voice over IP
•Concepts, case studies and research:– PC Volume Economic Model– Metro AG Store of the Future– ERS Consumer Shopping Satisfaction Research Study
•Deliverables:– Transformation Map– Proof of Concept– Event Journal (CD ROM with all Event content distributed upon conclusion of Event)
EXTENDED RETAIL SOLUTIONS
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Appendix: Consumer Research Results
EXTENDED RETAIL SOLUTIONS
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We asked 1,000 US consumers about theirshopping experience…
•What’s important to them?
•What frustrates them most?
• How do these frustrations impact their shopping habits?
• How willing are they to use technology-based features andservices to address these in-store issues?
• And how would the presence of such features and servicesimpact their shopping habits?
Source: CGE&Y, Intel, Cisco and Microsoft
EXTENDED RETAIL SOLUTIONS
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10. Having employees who are knowledgeable aboutproducts and/or the store – 54%
• Being able to locate items in the store – 56%
• Being able to get through the checkout quickly and/orwithout hassles – 57%
• Being able to find employees to answer questions orassist in purchase – 60%
6. Being able to communicate with employees – 66%NOTE: % of respondents saying “very important.” Source: CGE&Y, Intel, Cisco and Microsoft
The shopping experience IMPORTANTtop 10…
EXTENDED RETAIL SOLUTIONS
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The shopping experience IMPORTANTtop 10…
• Being able to return products to the store withoutdifficulty – 67%
• Having the products you want to purchase be in stock –68%
• Having prices visible on products or shelves – 70%
• Getting respectful treatment from employees – 75%
1. Having products priced the same at checkout as on theitem or shelf – 79%
NOTE: % of respondents saying “very important.” Source: CGE&Y, Intel, Cisco and Microsoft
EXTENDED RETAIL SOLUTIONS
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Consumers are most FRUSTRATED by…
• Difficulty getting through checkout quickly and/or withouthassles – 61%
• Lack of visible prices on products or shelves – 56%
• Difficulty finding employees to answer questions or assist inpurchase – 55%
• Lack of employee knowledge about products and/or store –52%
• The product you intended to buy was out of stock – 48%
• Difficulty locating items in the store – 45%NOTE: % of respondents saying “occasionally,” “often” or “always.” Source: CGE&Y, Intel, Cisco and Microsoft
EXTENDED RETAIL SOLUTIONS
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The impact…
61%said the problems caused them to
stop shopping or shop less frequentlyat that store
Source: CGE&Y, Intel, Cisco and Microsoft
EXTENDED RETAIL SOLUTIONS
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Consumers are willing to use technology-based features and services if available
9. Self-service computer screens throughout the storeproviding information about how to use products – 61%
8. In-store computer screens to order a product(s) not availablein the store – 63%
7. Self-checkout at the main bank of registers – 63%
6. Self-checkout at different department locations throughoutthe store – 65%
5. Self-service computer screens throughout the storeproviding information about products – 68%
NOTE: % of respondents saying “yes” when asked if they’d use the features/services if they were available in a store.Source: CGE&Y, Intel, Cisco and Microsoft
EXTENDED RETAIL SOLUTIONS
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Consumers are willing to use technology-based features and services if available
4. Computer screens providing special promotions anddiscounts – 69%
3. Self-service computer screens to help you determinewhether you had all the products necessary to complete aparticular project – 70%
2. Self-service computer screens providing location ofproducts in the store – 73%
1. Clerk-assisted checkout available in different pointsthroughout the store – 89%
NOTE: % of respondents saying “yes” when asked if they’d use the features/services if they were available in a store.Source: CGE&Y, Intel, Cisco and Microsoft
EXTENDED RETAIL SOLUTIONS
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With positive purchasing results…
78% might buy a higher-quality item if they learned of it
59% would be more likely to spend more time in the storeduring each visit
48% would tend to spend more money
44% would be more likely to shop in that store
Source: CGE&Y, Intel, Cisco and Microsoft
EXTENDED RETAIL SOLUTIONS
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Do demographics matter?
Source: CGE&Y, Intel, Cisco and Microsoft
Men more likely to …
Stop shopping as aresult of frustrations
in the store
Trade up to ahigher-quality product
Younger Middle Older
Willingness to use technology:
AgeGender
Men
TechnologyNeophyte
Even those who DON’Town a PC or haven’t
made an online purchase still indicated
willingness to usein-store technology
Technical Familiarity