Bildbeispiel. Retail in Competition. Prof.Dr. Bernd Hallier, Prague Research Conferences Publishing Trade Shows

Transcription

1 Research Conferences Publishing Trade Shows Bildbeispiel Retail in Competition Prof.Dr. Bernd Hallier, Prague

2 Is there the ideal store? Page 2

3 If there would be a concept of an ideal store perhaps communism would have been succeeded! Page 3

4 Demand never is homogenous, but heterogenous and changing all over time The wheel of retailing (Mc Nair, 1931/Nieschlag, 1954) Hallier Pyramid - Bernd Hallier Page 4

5 Hallier Pyramid Aggregation Level Society Nation Segment Company Challenged by Industrial Innovation (Kondratjeff) Location challenged by Geopolitical Changes (Hallier II) Retail Business: Challenged by business type, store formats, changes of technology and taste/habits (Hallier Ia) Micro Business/Company Level challenged by lifecycles (Schumpeter) Number of players Page 5

6 EHI-Data about Supermarkets, Hypermarkets and Discounters Page 6

7 Supermarkets (800m 2 ) Total assortment Average number of articles Percent of total articles Total assortment 9, % including : fresh products frozen food dry assortment 1, ,911 15,2% 4,2% 43,2% Total Food 5,669 62,6% Page 7

8 Discount market (600 m 2 ) Average number of the articles Percent of the total articles Total assortment % including : fresh products frozen food dry assortment ,5% 6,1% 43,2% Total Food ,8% Page 8

9 Hypermarkets (approx. 6000m 2 ) Total assortment Average number of articles Percent of the total articles Total assortment 51, % including : fresh products frozen food dry assortment 2, ,142 5,4% 1,3% 17,8% Total food 12,598 24,5% Page 9

10 Store types in comparison Sales area Number of products Percentage food Discounters 775 m ,1% Supermarkets 940 m ,2% Hypermarkets 6,920m ,8% Source: Retail Factbook 2005/2006 Page 10

11 Costs of personnel in comparison (related to the gross sales) Discounters (soft) 7,1% Supermarkets 15,0% Hypermarkets 9,4% Source: EHI Page 11

12 Costs in comparison Supermarkets Discounters (soft) Personnel 15,0% 7,1% Rent 5,9% 3,9% Further store costs 6,0% 3,8% Turnover per capita in Euro Stock per sq.m in Euro Turnover of stock per year Source: EHI 164, , ,0 25,2 Page 12

13 But Supermarkets still can survive as the Annual Supermarket Show in Germany demonstrates Page 13

14 And again in that competition the figures demonstrate the individuality of concept and locations. Page 14

15 One example for a soft factor is Globus which is trying to position itself in Germany with the best wine-competence organising beside other things wine events! Page 15

16 Another example is the discounter Lidl which is exhibitor at the international Green Week (an agricultural fair) to gain a better profile of good agricultural practice within its supply chain with fruit and vegetables. Page 16

17 How far can technological innovations influence the efficiency of the markets? Page 17

18 The success depends on the assortment and the technical status quo. Page 18

19 The German discounter ALDI was quicker at the check-out manually than with scanners! Page 19

20 According to EHI-studies retailers spend 1 percent of their turnover in IT. What does that mean? Page 20

21 1 Percent of annual turnover invested in electronic data processing for selected companies Company WalMart Carrefour Metro Auchan Coley Myer Number 10 Germany Number 20 Germany Number 1 Turkey Absolut Amount million dollar 790 million dollar 600 million dollar 320 million dollar 180 million dollar 50 million dollar 16 million dollar 11 million dollar Page 21

22 What does the Future Store concept mean? Page 22

23 Future (Store) Technology Concepts Distribution Packaging Industry Consumer products Industry Wholesale (Depots) Retail Redistribution Redistribution Page 23

24 The decrease of costs in the depot is about 20 percent. But more important is the handling of the Total Supply Chain! Page 24

25 How is the innovation within the store? Page 25

26 METRO Group Future Store: Everything under a single roof! Link to central merchandise management system Wireless workplaces Customer PDAs Access Points Smart Scales RFID Multimedia shelfs Employee PDAs Wireless Bluetooth peripherals Information Terminal Self Check-out Smart Trolley Advertising Displays Page 26

27 What kind of technologies is under discussion at Metro, WalMart, Tesco and other innovative players? Page 27

28 Tool Box of Modern Technologies visibility Merchandising, Category analytics and Optimization Promotion Optimization Labor Management & Scheduling Tools In-Store Wireless (Customer Facing) Integrated Demand & replenishment Planning Digital Signage Product Content & Data Management Technology Trigger Contactless Payments RFID (Item) Store Task Management Java-Based POS Software Multichannel Integration Biometric Identification Peak of Inflated Expectations RFID (Asset) Markdown Optimization Global Data Synchronization RFID (Case/Pallet) Price Optimization Electronic Shelf Labels Corporate and Store Business Intelligence Mobile POS Trough of Disillusionment maturity CRM Self-Checkout Kiosks Retail (Supplier) Extranet Collaborative Planning Slope of Enlightenment Key: Time to Plateau Less than two years Two to five years Five to 10 years More than 10 years Merchandising POS In- Store Wireless (Store Operations) As of July 2005 Plateau of Productivity Page 28

29 What can research do? Page 29

30 Three core areas of the Future Store strategy Increase attraction for customers Basic challenges for retail Increase efficiency Reduce costs Customer Employees Processes Mobility Individualization Self-service Information Flexibility Speed Efficiency Transparency Realtime Page 30

31 Customer survey on multimedia shelf in the Future Store* Salience More than half of respondents noticed the multimedia shelf Appeal The shelf was perceived as modern and eye-catching by all age groups Impact on sales Sales of Coke increased by 8.67 percent (3.47 percent more than in comparable control stores) Impact on demand Distinctly higher increase in demand as compared to control stores due to communication of the special offer price via the screen *The study was commissioned by Coca-Cola Deutschland Verkauf GmbH & Co. KG. 108 consumers were questioned in Rheinberg in the period August 18 to 20, Page 31

32 RFID: significant improvements are possible In-store processes Time savings Goods receipt 25 % Verify DESADV 75 % Improvements retail unit Process efficiency incoming merchandise and shelving 12% to 17% Loss/theft depending on the merchandise category 11% to 18% Merchandise availability reducing of OOS 9% to 14% Page 32

33 What EHI Retail Institute can suggest is a Czech Retail Competence Centre for data mining. Page 33

34 We are happy that VSE is member of our European Retail Academy and therefore our academic network partner. Page 34

35 European Retail Academy Page 35

36 Thank you! Speaker: Prof.Dr. Bernd Hallier EHI Retail Institute Spichernstraße Cologne Page 36