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Retail is tough today...and yet retailers
          that know where to look can significantly
                       change the game!
                                                     Sept 25, 2012




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Introduction




            10 years working with retailers
            Econometrics PhD, MIT
            VP Science



Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
1.Alerts & Workflows                                  1. Product Variety
     2.Crisp Interface                                     2. Self-Learning
     3.Built For Retail                                    3. Seasonality, Lifecycle, DOW,
                                                              Events

                                                           Dynamic
                                             Simplicity
                                                          Forecasting



                                               Profit      Inventory
                                              Focused       Strategy


     1.Making The Most Profit                                 1.Business Driven
     2.Location Margin Awareness                              2.SKU / Store
     3.Total Lifecycle View                                   3.Simulation Optimised



Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Product Strategies
                                                              strongly. We maintained our focus on
                                                          freshness, speciality and
                                                                           Marc Bolland - Chief Executive
                                                                            May 2012 Full Year Results




    PROJECT DRIVERS
         Improve availability and customer service
         Reduce waste, especially in short-life merchandise
         Presentation minimums (ambient)
         Real time decision making
         User efficiency




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Product Strategies
                            Less Waste                    More Availability




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Product Strategies                                 Results:
                                                          Availability + 2%
                                                          Waste - 10%
                                                          UK Food Sales L4L + 2.1%



    WHAT WE DID DIFFERENTLY
         Strategies focus on balancing waste/availability
         Profit maximisation but users can make adjustments
         Business constraint adherence
         Targeted alerts
         Uncovering new opportunities in range & tray-size




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Localisation
                                                            Simon Michell
                                                            Tally Weijl CFO




    PROJECT DRIVERS

         Stock imbalances cause high markdowns
         Missed geographic nuances
         Difficult to manage fast fashion, collections and basics
         Painful & expensive growth




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Localisation

                                                          Regions




                       Countries




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Localisation                                       Pilot Results:
                                                          Fast Fashion Sales + 2%
                                                          Basic Fashion Sales + 5%
                                                          Markdown Reduction 30M



    WHAT WE DID DIFFERENTLY


         Seasonality captures geographic differentiation
         Lifecycle captures short-life trends
         Product strategies
         Profit maximisation (esp. during scarcity)




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Initial Allocation
                                                          Head Of BIOS
                                                             Nordstrom



    PROJECT DRIVERS

         Need to handle large volumes of one-shot allocations
         Location-specific size differentiation
         Inventory recommendations for re-buys
         Automated, efficient, user-friendly




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Initial Allocation
                                                 13%
                                              Inventory
                                              Difference   Store Ratio =
                                                                2.3




                              Store Ratio =
                                   2.6




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Initial Allocation                                 Pilot Results:
                                                          Sales Unit Increase + 4%
                                                          Sales Revenue + 5%
                                                          Availability + 4%



    WHAT WE DID DIFFERENTLY



         Size Optimization service
         Buy Validation Range feature
         Simulation optimised target inventory




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
Changing The Game


                                                          Inventory adjustments can be
                                                          hugely profitable
                                   Dynamic
           Simplicity
                                  Forecasting
                                                          Unlock value in the most relevant
                                                          areas
                                                          Seek to combine as many aspects
             Profit                 Inventory             as possible
            Focused                  Strategy
                                                          Understand your opportunity size
                                                          Simplicity should never be
                                                          underestimated




Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,
THANK YOU

            ziad.nejmeldeen@quantumretail.com



Entire contents © 2011, Quantum Retail Technology, Inc.
                  2012,

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Retail Week Tech Summit 2012 presentation by Ziad Nejmeldeen

  • 1. Retail is tough today...and yet retailers that know where to look can significantly change the game! Sept 25, 2012 Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 2. Introduction 10 years working with retailers Econometrics PhD, MIT VP Science Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 3. 1.Alerts & Workflows 1. Product Variety 2.Crisp Interface 2. Self-Learning 3.Built For Retail 3. Seasonality, Lifecycle, DOW, Events Dynamic Simplicity Forecasting Profit Inventory Focused Strategy 1.Making The Most Profit 1.Business Driven 2.Location Margin Awareness 2.SKU / Store 3.Total Lifecycle View 3.Simulation Optimised Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 4. Product Strategies strongly. We maintained our focus on freshness, speciality and Marc Bolland - Chief Executive May 2012 Full Year Results PROJECT DRIVERS Improve availability and customer service Reduce waste, especially in short-life merchandise Presentation minimums (ambient) Real time decision making User efficiency Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 5. Product Strategies Less Waste More Availability Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 6. Product Strategies Results: Availability + 2% Waste - 10% UK Food Sales L4L + 2.1% WHAT WE DID DIFFERENTLY Strategies focus on balancing waste/availability Profit maximisation but users can make adjustments Business constraint adherence Targeted alerts Uncovering new opportunities in range & tray-size Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 7. Localisation Simon Michell Tally Weijl CFO PROJECT DRIVERS Stock imbalances cause high markdowns Missed geographic nuances Difficult to manage fast fashion, collections and basics Painful & expensive growth Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 8. Localisation Regions Countries Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 9. Localisation Pilot Results: Fast Fashion Sales + 2% Basic Fashion Sales + 5% Markdown Reduction 30M WHAT WE DID DIFFERENTLY Seasonality captures geographic differentiation Lifecycle captures short-life trends Product strategies Profit maximisation (esp. during scarcity) Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 10. Initial Allocation Head Of BIOS Nordstrom PROJECT DRIVERS Need to handle large volumes of one-shot allocations Location-specific size differentiation Inventory recommendations for re-buys Automated, efficient, user-friendly Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 11. Initial Allocation 13% Inventory Difference Store Ratio = 2.3 Store Ratio = 2.6 Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 12. Initial Allocation Pilot Results: Sales Unit Increase + 4% Sales Revenue + 5% Availability + 4% WHAT WE DID DIFFERENTLY Size Optimization service Buy Validation Range feature Simulation optimised target inventory Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 13. Changing The Game Inventory adjustments can be hugely profitable Dynamic Simplicity Forecasting Unlock value in the most relevant areas Seek to combine as many aspects Profit Inventory as possible Focused Strategy Understand your opportunity size Simplicity should never be underestimated Entire contents © 2011, Quantum Retail Technology, Inc. 2012,
  • 14. THANK YOU ziad.nejmeldeen@quantumretail.com Entire contents © 2011, Quantum Retail Technology, Inc. 2012,