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Self Service 2020 Retail Trends

Craig Allen KeefnerChief ManagerKiosks.Org LLC

A snapshot picture of Kiosks,Technology and theRetail side of the business….

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OverviewOutline

Introduction Retail Market Technology Trends Rationales for Retail Retail Landscape Final Thoughts Questions and Comments

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Introduction...We are Kiosks.Org

Kiosks.Org Established 1994 1M hits in 1999, 6M in 2000 1995 - 12 companies & 200 hits/month

2000 110+ members & 500K hits/month 400+ participating companies

Industry data Retail Clicks and Mortar European Pavillion

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Retail MarketLet’s Try And Quantify It.

Market Data various sources Summit Research Frost and Sullivan Computer Economics Price Waterhouse Retail Technology Netshift NCR

Kiosks.Org Data

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Retail Market Market Data (Worldwide Numbers)

Number of Kiosks Worldwide 2001 - 520,000

US is 44% Europe 25%

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Retail Market Market Data (Worldwide Segments)

Revenue by Segment Retail - 44% Banking - 20% Other - 17% Travel/Enter. - 14% Government - 5%

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Retail Market Market Data (Worldwide Revenue)

2000 2001 2002 2003

1997 1.5B 2B 2.5B 3B

1998 2.4B 3.2B 3.9B 4.6B

1999 1.1B 1.5B 2.0B 2.7B

Worldwide revenue forecasts

Source: Frost and Sullivan

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Retail Market Kiosks.Org Data (Background)

Data from last 2 months Half of dataset recorded Market field Overall Budget Overall Units Expected 400+ base dataset

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Retail Market Kiosks.Org Data (Segmentation-Budget)

Budget by Segment Retail - 50% Health - 21% Other - 4.3% Tourism - 10.2% Entertainment - 2.5% Government - 12.5%

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Retail Market Kiosks.Org Data (Segmentation-Units)

Units by Segment Retail - 28% Health - 1.7% Other - 3.5% Tourism - 13% Entertainment - 9.5% Government - 44%

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Retail Market Kiosks.Org Data (Segmentation-Unit Cost)

Calculated Unit Cost per Segment Retail - $1200 Health - $7000 Other - $800 Tourism - $500 Entertainment - $300 Government - $300

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Retail Market Kiosks.Org Data (GeoMarket)

Geographically by way of Olympics…

Let’s eliminate the highs and lows

and conservatively what does the indicator say.

USA: 275 Million this year and 80,000 units Non-USA: 300 Million and 100,000 units

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Retail Market Kiosks.Org Data (World Revenue)

Test Case 2001 Market: 600 million Growth: 40%

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Technology Trends Impacts

Internet Network: localized & commoditized Content: Dynamic and Synchronized Infrastructure: Pipes, Ports and POPs Data Centers: Connecting, Warehousing and Data Mining Personal: Persistent, Preemptive & Prioritized Standards: XML, Post-WAP, CUSS Training: ATMs, Mobile Devices, Fuel Pumps Ways to Get & Go: Fulfillment & Delivery Options New Methodology Models: Biologic and Genomic?

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Technology Trends Tools & Carriers

Internet Terminals and Kiosks Web Sites Mobile Devices Televisions All forms of transportation

(Telematics) Games and “Chat” Partners and Branding Partners and

their carriers.

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Rationale For Retail What Needs to Happen

Retailers must be Customer-Centric Integrates with current business mechanisms MUST BE Fast and Reliable Creates Positive Experience for Customers Simplifies the Retail Process Understands the Hybridization of Customers

(net,kiosk,store,home,mobile)

Expands the Multi-channel Environment Delivers Investor and Market Appreciation

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Rationale For Retail How Will We Do It?

Same look throughout multi-channel environment Tri-Generational Coverage

Threading Targeting Teaching

More options For more customers At more stages

Leverage channel content Greater return on web development

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Rationale For Retail What’s Important?

1999 2000

Provide self service 71 81

Provide Information 77 63

Generates Revenue 67 50

HR Services 13 19

Staff Shortage 3 19

Reduce Salary Expenses 10 6

Reduce inventory 25 6

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Rationale For Retail What’s Important?

Sales Tool 35%

Increased Sales 28%

Kiosk Sales > Website 13%

Source: Summit Research Associates, Inc. 2000“Retail Kiosks Report: October 2000”

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Retail LandscapeThe Airlines

Northwest Airlines 1999 200,000 check-ins “so far” 19 stations

Northwest Airlines 2000 300,000 check-ins a month 212 stations

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Retail LandscapeThe Airlines

Enhancements Dual check-in with partners (CO) which provides

access to 425 stations in 60 airports Interline E-Ticket eliminates paper tickets thus

more check-ins Kiosk technology going online by December 1,

2000 to allow internet check-in to/from any destination in 50 states. First day of rollout in MSP, over 400 check-ins

Source: Al Lenza, VP Distribution Northwest Airlines

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Retail LandscapeThe Airlines

Of Particular Note This migration of the Check-In Kiosk Application to

the Internet/Home User is example of how leveraging content works both ways.

Target Clubb Wedd is another recent example.

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Retail LandscapeThe Convenience Group

Equilon - Shell & Texaco Food Marts - 6500 stores 7-Eleven - 6300 stores Mobil - 3630 stores Tosco - Circle K, 76 -- 3100 stores BP Amoco - Express, Split Second - 3000 stores

Source: Convenience Store News

Major application areas: ATMs, Gaming/Lottery and Gas Pumps

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Retail LandscapeThe “Super Retail” Group

Walmart - 2400 discount stores worldwide Target - 900 discount stores Costco -- 335 stores -- 130K sq. ft. Walmart Supercenters - 1100 worldwide -- 190K sq. ft. Sams Club - 515 worldwide SuperTarget -- 30 stores -- 177K sq. ft. Kmart Supercenters -- 110 stores

Focus for Growth: Virtual One-Source for Entertainment,Convenience, Food, Complete Experience

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Retail LandscapeRestaurants

Burger King Virtual Fun Center created for children aged 4-10 and recently updated by Frank Mayer. Has 16 fun and games. Built-in camera allows kids to pose for picture that can be placed into different games on the screen. Single or double units. 150 launched in August.

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Retail LandscapeAutomated Check Out Machines (ACMs)

ACM is self checkout system for any size order for any shopper. Shoppers scan items, then use cash, credit or debit cards. The system is equipped with both touch screen and voice synthesized assistance. Fully integrated with store POS systems for real-time price and description verification.

Cash Acceptor LE3900 from MEI.

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ConclusionsFinal Thoughts

Customer-centric Convenience Channels Community Connected Coverage

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Questions and Comments... For Craig Special supporting data providers

Summit Research Kevin O’Keeffe, Derek Stewart, Tim Daw and Nigel Seed

For more information http://www.kiosks.org/events.html And/or email us at netshift@kiosks.org

Kiosks.Org thanks You For Your Participation in Internet Kiosk World 2000! Special thanks to Netshift and Kevin O’Keeffner for making it all possible!

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