In association with Mobility Reinvents Retail Harnessing the power of mobile in a disruptive retail market January 2017 1
REINVENTING RETAIL THE POWER OF MOBILE IN A DISRUPTIVE RETAIL MARKET Contents 1. Consumers in the driver s seat 2. Modernizing the store 3. Moving beyond silos 4. Recommendations Miya Knights Technology Research Director miya.knights@planetretail.net @mazzaknights All images Planet Retail Ltd unless otherwise stated. 2
1. Consumers in the driver s seat 3
REINVENTING RETAIL CONSUMERS IN THE DRIVER S SEAT The Customer takes control - retailers become inspirational curators Customers are looking to retailers to provide visibility and control over the shopping process. DIGITALLY-EMPOWERED CONSUMERS Well-informed and always online Non-linear shopping journeys Infinite choice Time-challenged Short attention spans Seeking best price, quality and service Shoppers at Darty outlets in France scan tags using their phone to access more information about a product. CONNECTED RETAILERS Provide transparency on merchandise Connectwith shoppers across all channels Curate a relevant, engaging shopping experience Make shopping easy and convenient Meet demand immediately Personalise offers based on data analytics Target s Cartwheel app leverages in-store beacons to communicate recommendations and deals to shoppers. 4
REINVENTING RETAIL CONSUMERS IN THE DRIVER S SEAT Mobile drives customer expectations Top three mobile shopping applications: 1 2 3 Price comparison Store finder Product information Source, Planet Retail Shopology, Base size: n=63,500, 4,500 per market, YTD 2016 90% Proportion of sales completed instore, where over half are influenced by digital + new example Over 70% of orders put through Walmart.com during Black Friday 2015 were via a mobile device. Nordstrom delivers an instantaneous path-to-purchase by connecting customers with a personal shopper via mobile. Lowe s Vision app using Google Tango allows shoppers to tackle home projects with their mobiles. 5
REINVENTING RETAIL CONSUMERS IN THE DRIVER S SEAT Digital transformation the single most disruptive driver of retail change The impact of digital on customer expectations is transforming retail operations. Retailers should focus on three strategic areas: TECHNOLOGY Empower sales assistants to speed and improve customer service PROCESSES Connect online with offline by digitally expanding availability, range and choice and reserve or click & collect services. PEOPLE Cloud, mobility and location-based/ proximity deployments; Loyalty and promotions; and, payments are key areas of practical focus. Source: Planet Retail sponsored retailer survey 6
2. Reinventing the store 7
REINVENTING RETAIL MODERNIZING THE STORE The store continues to play a vital role during shopping journeys, but needs a revamp Top three reasons for losing customers instore Personalising every touch point and contextualising experiences is essential. Mobile is a key tool throughout the path-to-purchase and for better understanding the shopper. Fulfilment is an important differentiator. 1 2 3 Inventory stock-outs Limited store associates knowledge Lack of customer preference & purchase awareness Honeywell Source, Planet Retail Shopology, Base size: n=63,500, 4,500 per market, Q3 2016 8
REINVENTING RETAIL MODERNIZING THE STORE Harnessing digital engagement Consumers expect well informed and empowered store associates. Provide real-time access to customer information as well as product and inventory data; Improve conversion rates provide more info on product specifications; Enable personalised offers and services assess customer preferences and purchase history; Save the sale order out-of-stock items from endless aisle applications; Cash or cashless payments bagging and de-tagging processes; click & collect. 56% want retailers that offers good customer service, including knowledgeable staff and engaging personnel Source, Planet Retail Shopology Q. What encourages you to choose a retailer? Base size: n=63,500, 4,500 per market, Q3 2016 9
REINVENTING RETAIL MODERNIZING THE STORE Meeting demands, exceeding expectations TOP 3 REASONS FOR USING CLICK & COLLECT 1 To avoid home delivery charges Use a mobile-first approach to enable consistent, end-to-end customer experiences that span their physical and digital channels. Harness the power of mobile to smooth and enhance the connected shoppers cross-channel experiences. Build a unified view of the customer across channels and digital touch points to further personalise experiences. 2 3 It was more convenient than home delivery I was more confident that I would receive my items Albert Heijn offers its customers mobileenhanced click & collect services for Bol.com The AI-driven Macy s on Call mobile assistant can provide information related to a store s product assortment, services and facilities. Honeywell Source: Statista 2016 10
3. Moving beyond silos 11
REINVENTING RETAIL Connecting up customer and operational touch points 39% of shoppers want a compelling store environment with lots of tech (linked to online, etc.) MOVING BEYOND SILOS Top 5 technologies to drive instore engagement 1 Secure customer Wi-Fi 2 3 4 5 Stock look-up and/or endless aisles Mobile app integration Mobile point of sale Self-service scanning For Macy s, item-level RFID tagging is bolstering its omni-channel strategy, ensuring demand can be fulfilled irrespective of the channel. The Schwarz Group banners Lidl and Kaufland are using SAP s HANA inmemory database technology to evaluate merchandising performance from key data in real time. 12
REINVENTING RETAIL MOVING BEYOND SILOS Boosting efficiency behind the scenes TOP 5 TECHNOLOGIES TO IMPROVE SUPPLY CHAIN/ LOGISTICS EFFICIENCY 1 2 3 4 5 Warehouse management Warehouse automation Labour management Distributed order management Fleet and transport management Honeywell 13
REINVENTING RETAIL MOVING BEYOND SILOS Amazon is at the bleeding edge of retailing To catch up, retailers must increasingly invest in innovative technologies Amazon Cutting-edge logistics not only drones Warehouse automation Amazon Amazon Amazon Amazon Conversational Commerce Automated home replenishment Seamless shopping experience and checkout-less stores 14
4. Recommendations 15
REINVENTING RETAIL RECOMMENDATIONS Harness the benefits of connected retail IT systems Connect, monitor and integrate data from every touch point. The Connected Retailer checklist: Single source of truth for sales, inventory and customer data Mobile-enabled access to relevant, timely business information Advanced analytics to support optimised operational efficiency Data-driven insight to fine tune supply to customer demand Support for next-best action automation and decision-making 16
REINVENTING RETAIL RECOMMENDATIONS Use digital shopping convergence to create connected customer touch points Technology Value to consumers Value to retailers Maturity of technology Ease of implementation Cost effectiveness Retail sectors/ Formats Urgency (out of 5) Sales Assist (product lookup) Department stores, fashion, electronics 1 Clienteling (save the sale) Department stores, fashion, electronics 1 Mobile POS Big box, dept. stores, fashion, QSR, electronics 2 Mobile Payments All 3 Location-based Services All 3 Wish Lists Big box, dept. stores, fashion, QSR, electronics 4 Gift and Wish Lists Dept. stores, fashion 5 High Medium Low 17
REINVENTING RETAIL RECOMMENDATIONS Planet Retail s Top Five enabling technologies for connected retailing in 2017: Mobile development 6 12 months Big Data & Predictive Analytics 12 18 months Machine Learning & AI 18 24 months Internet of Things 24 months 2 years Robotics 3 years Apps Apps Apps Apps Apps Loyalty Mobile POS Self-scanning Promotions Geo-location Price Range Availability Promotions Innovation Footfall Shrinkage Fulfilment Promotions Traceability Virtual assistants Self-healing systems Personalisation Service Inventory Replenishment Fulfilment Warehousing Cost $ $ Cost $ $$ Cost $ $$$ Cost $ $$$ Cost $ $$$$ 18
Questions? 19
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