EPOS, DIGITAL SIGNAGE AND INSTORE TECHNOLOGY 27


ANALYSING RETAIL HOLIDAY OUTLOOK


etailers of any kind and size have been busy during the past six months identifying and driving key strategic initiatives for their businesses, according to Ivano Ortis, head of IDC Retail Insights International. “From better supply chain


R


performance to group-wide consolidation projects, to next-generation merchandise management and customer engagement programmes, retailers demonstrate a relentless drive to innovate,” he said. But with the 2011 holiday season rapidly approaching, Ortis said retail IT organisations are


now preparing to fulfi l availability and scalability requirements, as well as completing to plan ongoing roll outs so as not to cause any disruption to business operations and retail sales. “No doubt, retailers can expect consumers to be very conscious in their holiday shopping


this year,” he told Retail Technology. “Continued profi t pressure from excessive or sub- optimal discounting strategies will then result. But regardless of these risks, which should be anyway factored into retailers’ business plans, the competitive landscape in particular is what completely differs from ‘business as usual’. “Competition today is coming from very different angles: blurring segments, direct sales


from manufacturers (like alice.com, for example), growing e-commerce sales and new entrants, such as Chinese e-commerce marketplaces like alibaba.com that are now available in other regions, local niche merchants and social commerce websites.” Ortis said such profound transformational changes in retail are now driving four mega trends: cloud, mobile, ‘omni-channel’ and retail intelligence.


With this ‘high complexity’ context in mind, IDC Retail insights is advising store-based and multichannel retailers to consider the following tactics to better prepare for the upcoming holiday season:


1.


Perform a landed cost audit of key product lines and understand how commodity prices (oil, cotton, metals, food) might impact the season;


2. Run your inventory placement models with the latest assumptions; 3. Make sure your digital asset delivery systems are working; 4. Make sure your price and promotion engines can handle the activity you have planned;


5.


Shore up your demand intelligence capabilities with cloud-based analytical services;


6. Have a collective intelligence platform in place; 7. Improve the online customer experience to reduce basket abandonment; 8. Ensure your internet architecture can scale for peak online shopping periods; 9. Boost customer acquisition, retention and conversion using social media tools; 10. Mobile retailing is now: be ready or be doomed.


“Depending on your current status and priorities, you may want to focus on selected


areas fi rst,” he concluded. “Nevertheless, we recommend that your organisation defi nes a roadmap in the other areas too.”


Questions or comments can be directed to Ivano Ortis, head of IDC Retail Insights International, at iortis@idc.com.


US BURGER CHAIN TAKES ON UK BI


MOOYAH, a new chain of US fast casual restaurants, is enjoying the benefi ts of using the latest cloud- based technology. With franchises quickly spreading,


MOOYAH’s use of business intelligence (BI) tool PXportal from UK-based solutions developer PXtech, is giving the company real- time visibility over critical data from multiple sites, supporting greater effi ciency and growth. The PXportal system relays


information from store electronic point-of-sale (EPoS) and closed circuit television (CCTV) systems across multiple sites in real time, enabling franchisees to proactively manage their businesses on a minute-to- minute basis, regulating stock levels, detecting fraud, driving sales and ensuring an optimum customer experience through staff management. The MOOYAH project, which included several signifi cant bespoke elements added to the outline PXportal offering, saw its complete implementation process delivered over the internet, without the need for PXtech personnel to set foot in stores.


Alan Hixon, MOOYAH president, commented: “The PXportal will enable MOOYAH and its franchisees to monitor and instantly react to real-time sales and operational information. As well as allowing us to identify and maximise effi ciencies, it will also mean we can benchmark outlets, see what’s really working, and share best practices across our franchisees. “There’s an aggressive growth plan underway, a key component of which will be close control of the brand’s focus on quality and customer service. PXportal will help give us that control.”


The deal will see PXtech’s solutions implemented in MOOYAH stores across the US.


MAY/JUNE 2010 RETAIL TECHNOLOGY


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