Retail TouchPoints' Connected Consumer Series session presented by iQmetrix #CCS15

1. #CCS15
5
Steps
To
Implemen1ng
Endless
Aisle
Technology

2. Welcome
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A>endees

3. #CCS15
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#CCS15
Retail TouchPoints: @RTouchPoints
iQmetrix: @iQmetrix
IHL Consulting: @jerrysheldon

4. #CCS15
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5. #CCS15
Panelists
Debbie Hauss
Editor-In-Chief
Retail TouchPoints
Jerry Sheldon
Leading Analyst
IHL Consulting
@jerrysheldon
Eric Stachowski
President
iQmetrix

6. The Changing face of Today’s Retail
Landscape
Jerry Sheldon, IHL Group

7. Rapid Project RFP Toolkits (with C-Core Consulting Group)
POS, WFM, ERP, HW Maintenance, Fresh Item Mgt.
Research and Advisory Services
POS, POS Printers, Self-Checkout, Kiosk, Digital Signs, Mobility, etc.
POS by Vendor Share
Sophia - Technology Data Service
WorldView IT Sizing Models
IT sizing for hundreds of Retail/Hospitality Technologies
Worldwide Quarterly POS Vendor database
Custom Surveys
Custom Analysis
About IHL
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8. Sample Clients
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9. Around the Globe
9
Unrest prevalent
Israel, Ukraine, Libya, Pakistan, Nigeria, Iraq, Syria, Venezuela,
Argentina, Brazil, etc.
ISIS Threatening Malls in US, Canada and Europe
Retail Sales: EMEA â2.5%, APAC á4.6%
Euro continues to weaken, dissatisfaction á
Emerging Markets slowing rapidly
Exception is some parts of Africa
Falling oil prices bring significant economic uncertainty in Russia,
Middle East and Venezuela

10. Key Notes on Holiday Sales
10
Sales up 4.5%
Online up 13.9%
Mobile up 50%
84% of shoppers use digital tools before and
during their trip to a store (Deloitte)
Lower Fuel prices meant extra $22B in consumer’s
wallets for holidays

11. IT Spending Defines Priorities: Data Security
11
Data security now a board level discussion
% of IT Budget is on
Data Security
% Data Security taken
up by PCI
Overall 14.1% 37.7%
Tier 1 (Over 1B) 13.8% 32.6%
Tier 2 (500m-1B) 13.3% 40.6%
Tier 3 (<500m) 15.1% 42.3%

12. IT Spending Defines Priorities: EMV
12
October deadline driving tremendous spending and IT focus
4.8%
6.6%
7.3%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
Payment Acceptance
Network Security
Payment Security &
EMV
Payment & Network Spend Growth
Source: IHL Group

13. IT Spending Defines Priorities: DOM/POS/mPOS
13
4.6%
5.2%
4.9%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Distributed Order
Management
Mobile POS
Core POS
Point of Sale Spend Growth
Source: IHL Group

14. IT Spending Defines Priorities: Future POS
14
81% of retailers saying future POS will be a single transaction engine

15. IT Spending Defines Priorities: eCommerce
15
3.3%
3.6%
7.8%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%
Social Media
Marketing Systems
eCommerce/Mobile
Commerce
Other Technology Spend Growth
Source: IHL Group

16. IT Spending Defines Priorities: Big Data/Analytics
Customer
Intimacy
Supply
Chain
Store
Mobile
Social
Media
Web
Others
16

17. Big Data: Data, Data Everywhere
$7.9 Billion – Projected WW 2015 BI Spend
CAGR over 9% yearly
Opportunity only beginning
IoT will be a continued driver for Big Data
Currently we know more about online
shopping activity than in the store
17

18. Evolution of Omni-Channel
Multi-Channel: Multiple methods of consumer
engagement
Cross-Channel: Some degree of interaction and
crossover between channels, yet each operates
as a separate silo.
Omni-Channel: Fully integrated, multi-channel
environment.
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19. Omni-Channel: Saving the Sale
19

20. Out of Stock & Still Buy?
20

21. Are Deals Delivering?
21

22. IHL’s Inventory Distortion Research
22
Forthcoming 2015 research from
IHL Group
Overstock: When the item is put
on clearance, spoils/expires, or
when the system says “we have
too many in stock”
Out of Stock: Items unavailable
for immediate sale in a store

23. Inventory Distortion-Overstock + Out of Stock
Inventory Distortion would be 16th largest country based on GDP
23
Source: IHL Group Retail Worldview IT Spend Model & Inventory Distortion Report, 2013
International Monetary Fund
$16.8 Trillion GDP
$9.5 Trillion GDP
$1.8 Trillion GDP
$1.3 Trillion GDP
WW Inventory Distortion- $941 Billion

24. Inventory Distortion – Segment Impact
24

25. Contact Information
Jerry Sheldon
IHL Group
321-453-5870 (o)
615-576-0397 (m)
www.ihlservices.com
jerry@ihlservices.com
25

27. We are one of the leading providers of retail
management and customer experience technology
for the North American industry.
At iQmetrix, we create great experiences for
retailers, their people, and their customers. Our
solutions bridge the gap between physical and
digital retail and give retailers the tools necessary
to deliver a seamless experience.
About iQmetrix

28. Saying Goodbye to Single-
Channel Retail
Sources: A.T. Kearney in the Omnichannel Shopping Preferences Study,2014 Motorola Solutions Shopping Study, McKinsey & Co. report Making Stores Matter in a
Multichannel World.
90% 67%
of shoppers would be
satisfied if the store could
arrange home delivery for an
out-of-stock item.
71%
would accept a promotional
offer to return to the store
when the item comes in.
of all U.S. retail sales
currently are completed in
brick-and-mortar stores.
“More than half of consumers now research their retail purchases online, making purely in-store
purchase decisions the shrinking minority.”

29. 5 Keys to Reimagining the
Physical Store
One
Blending the physical
and digital worlds
Two
Digitally extending the store’s
shelf space
Three
Saving the sale with
endless aisle solution
Four
Maintaining brand
consistency across
channels
Five
Optimizing product
merchandising using
shopper data

30. Blending Physical With Digital
Sources: 2014 Motorola Solutions Shopping Study,
of shoppers use smartphones.
use them for shopping-related activities.
check for sales, specials or coupons.
are browsing.
are using mobile coupons (text or email messages)
are comparison shopping and/or looking for
competitive pricing information.

31. Blending Physical With Digital
Interactive sales aids create
the ultimate product expert
Handheld Devices or Self-Serve Kiosks
Sources: 2014 Motorola Solutions Shopping Study,

32. Digitally Extending Stores’ Shelf Space
Zappos to deploy kiosks in
partner retail locations (as
well as at pop-up Zappos
stores), offering same-day
shipping.
Local ‘reach’: personalized
service, product curation and
order fulfillment.
Sources: 2014 Motorola Solutions Shopping Study,

33. Saving The Sale Via
Endless Aisle Solutions
Footlocker makes entire inventory
available across all stores to all
customers.
A multichannel mindset must be
embedded in the store design
and in employees’ new ways of
working.”
Louise Herring, Tobias Wachinger and Chris Wigley,
Making Stores Matter in a Multichannel World

34. Saving The Sale Via Endless Aisle Solutions

35. New Pickup and Delivery Options Improve
Customer Service
Sources: Retail Systems Research’s (RSR) Nikki Baird and Paula Rosenblum in The State of Home Delivery 2014: Issues and Answers
Two Major Challenges:
of the RSR survey’s retailer respondents
identify their home delivery offering as a
competitive differentiator.
Mastering logistics of the “last mile.”
Doing so profitably.
1
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36. Maintain Brand Consistency Across Channels
Sources: Cisco

37. Optimize Product Merchandising Using
Shopper Data
Brand consistency does not mean giving
up local personalization.
Agile Retailing:
• Responsive promotions address high/low
inventory levels across stores
• Match product assortments to local
• Shopper profiles
• Deeper understanding of regional or
• Store-specific buying habits

38. Next Steps
Review digital content strategy
Determine inventory and merchandising strategy
Rethink the role of associates
Enable omnichannel with a platform approach
Evaluate and refine shopper data
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39. The rapid and far-reaching industry changes have given retailers the
motivation — and in some cases the permission — to radically
rethink the purposes of their brick-and-mortar stores.
Eric Stachowski President, iQmetrix USA
EricS@iQmetrix.com
iQmetrix.com | 1.866.iQmetrix
Rapidly Changing Retail

40. #CCS15
Q
&A
//
Panelists
Debbie Hauss
Editor-In-Chief
Retail TouchPoints
Jerry Sheldon
Leading Analyst
IHL Consulting
@jerrysheldon
Eric Stachowski
President
iQmetrix

41. #CCS15
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