1INTERNAL USE ONLYINTERNAL USE ONLY Copyright 2013 FUJITSUFujitsu Pan-European Survey 2013The store in a Multi-Channel Environment - Store efficiency or customer experience ?Nicolas SAUTIERHead of Marketing Business & Applications ServicesFujitsu CEMEA&I
2INTERNAL USE ONLYINTERNAL USE ONLYContext “…we stabilized our business, reconnected with our customers and created a platform for futuregrowth” Cathy Cheely, Director Strategy and Innovation for Food Lion, Delhaize Group Annual Report Mars 2013 Previous to the repositioning work, Food We would love to open Amazon retail stores Jeff Bezos, CEO Amazon, CNET Nov. 2012 « Lidl will stop "hard discount" in France » Friedrich Fuchs, Lidl France General Manager, Le Monde AFP Oct. 2012 «the future of Tesco in the UK was being a leading multi-channel retailer.. » Philip Clarke, CEO Tesco, les Echos Avril 2013Copyright 2013 FUJITSU
3INTERNAL USE ONLYINTERNAL USE ONLYContent1. About the Survey2. The 5 main themes3. Fujitsu Point of View4. Q&A’sCopyright 2013 FUJITSU
4INTERNAL USE ONLYINTERNAL USE ONLYSurvey Perimeter Main TopicFuture of the Store in a multi-channelEnvironment :How to turn today‟s challenges intotomorrow‟s successes through improvementof Store efficiency and customer experience? Method and timeline Retail Survey Phase1: Qualitative - 20 interviewees inface to face and over the phone September/November 2012 Retail Survey Phase1: Quantitative - 161 intervieweefrom January /February 2013What is your vision about thefuture of the stores in yourcompany ?What are challenges of the stores? Store efficiency or customerexperience ?How do you value technologies tosupport Store Efficiency orCustomer Experience ?What about your customer datasacross systems and organisation ?Which technologies do you want touse in the future ?Copyright 2013 FUJITSU
5INTERNAL USE ONLYINTERNAL USE ONLYSample : Type of Store and Countries10%10%10%18%52%OtherFood - More than 1000 m²Food - From 0 to 1000 m²Non food - More than 1000 m²Non food - Between 0 to 1000 m²Fujitsu International Retail Survey 2013 – N=1610%10%20%30%40%50%60%70%80%90%100%Face to Face (N=20)** Questionnaire (N=161)**Others*ItalyGermany*Others : Portugal, Belgium, Netherlands, UAE** : Multiple countries covered by HQ representativesType of Store Nationality of RespondentOthers*ItalyGermanyUKFranceCopyright 2013 FUJITSU
6INTERNAL USE ONLYINTERNAL USE ONLYSample : category of intervieweesFujitsu International Retail Survey 2013 – N=16119%29%52%OtherChairman of the Board / VicePresident / Managing Director/…Head of Division / Head ofDepartment / Area Manager /…Position48%58%Mainly IT decisionsMainly financialdecisionsAuthority and commercialdecision13%9%13%27%35%OtherFinance & PurchaseITSales & MktGeneral managementFunctionCopyright 2013 FUJITSU
7INTERNAL USE ONLYINTERNAL USE ONLYMain InsightsStore priorities – driving sales and managing peopleStore ChallengesStore customer knowledge data needs to be integratedinto a single view of the customerCustomer DatasStore operators are seeking a blend of experience andefficiencyCustomer ExperienceStore EfficiencyStore technology projects are delivering multi-channelsolutions – the store is not alone anymoreStore TechnologiesStores will be the hub for the retailer‟s engagementwith the „connected‟ customerMulti-ChannelFuture of StoresCopyright 2013 FUJITSU
8INTERNAL USE ONLYINTERNAL USE ONLYStores will be the hub for the retailer’sengagement with the ‘connected’ customerCopyright 2013 FUJITSU
9INTERNAL USE ONLYINTERNAL USE ONLYStores will be the hub for the retailer‟sengagement with the „connected‟ customer.Copyright 2013 FUJITSU“Its the central hub of every activity”“Combining proximity and digital”“To make the web work better with thestores and the stores better with theweb”“The store must be a customerexperience, something pleasantwhere the products are highlighted"
10INTERNAL USE ONLYINTERNAL USE ONLYThe importance of stores has been rising10 extremelyImportant1 totally noimportant9% 13% 14% 16% 16% 16% 5%9%0% 20% 40% 60% 80% 100%Europe 6,55,67,46,85,4CountryFood> 1000m²Non food> 1000m²6,37,0Store typeGlobalFujitsu International Retail Survey 2013 – N=161How has the importance of the concept of "store“ changed during the last three years?
11INTERNAL USE ONLYINTERNAL USE ONLY86% of respondents defined stores as a place forservice58%67%76%81%86%A pick-up pointA place ofevents, discovery andexperiencesExposure to thebrandA shopping pointA place for serviceStore typeFood> 1000m²Non food> 1000m²47%75%51%69%Fujitsu International Retail Survey 2013 – N=161Thinking about the role “store”, to what extent do you agree or disagree regarding the following statements? The store is ...
12INTERNAL USE ONLYINTERNAL USE ONLYmean is > 0,3 higher compared to Globalmean is 0,3 lower compared to GlobalGlobalFood> 1000m²Non food> 1000m²d supermarket 6,8 6,7 6,5 7,8 5,8 7,9 6,5ban model 6,9 6,9 7,2 7,1 6 7,0 7,1collect 6,1 5,5 6,8 5,5 6,3 6,9 5,6e 5,6 5 6,2 5,8 5,4 6,3 4,9opping 7,2 8,1 7,3 6,8 6,5 7,6 7,2The attractiveness of the online shopping today …Fujitsu International Retail Survey 2013 – N=161How do you rate the attractiveness of the following distribution model?Hypermarket and supermarket 6,8 6,7 6,5 7,8 5,8 7,9City-centre urban model 6,9 6,9 7,2 7,1 6 7,0Click and collect 6,1 5,5 6,8 5,5 6,3 6,9Drive 5,6 5 6,2 5,8 5,4 6,3Online shopping 7,2 8,1 7,3 6,8 6,5 7,6
13INTERNAL USE ONLYINTERNAL USE ONLY… and in the futuremean is > 0,3 higher compared to Globalmean is 0,3 lower compared to Globald supermarket 5,8 5,6 5,8 6,9 4,4 7,3 4,8rban model 6,5 6,4 6,8 6,7 5,6 6,9 6,1collect 6,3 5,8 7,2 5,9 5,9 6,0 5,3ve 5,6 4,9 6,3 5,5 5,5 6,9 4,5hopping 7,8 8,5 8,2 7,3 7,3 6,9 7,4Global Food> 1000m²Non food> 1000m²Fujitsu International Retail Survey 2013 – N=161How do you rate the importance of the following distribution models for the future of your business?Hypermarket and supermarket 5,8 5,6 5,8 6,9 4,4 7,3 4,8City-centre urban model 6,5 6,4 6,8 6,7 5,6 6,9 6,1Click and collect 6,3 5,8 7,2 5,9 5,9 6,0 5,3Drive 5,6 4,9 6,3 5,5 5,5 6,9 4,5Online shopping 7,8 8,5 8,2 7,3 7,3 6,9 7,4
14INTERNAL USE ONLYINTERNAL USE ONLYStores will be the hub for the retailer’sengagement with the ‘connected’ customerCopyright 2013 FUJITSUThe store is still the fundamental shopping channel for retailers and their customers acrossEurope; however its role and operating model are changing rapidly to the meet the needs of themulti-channel shopperService is becoming a key value add for the store –this includes both service efficiencies (like Click‘n’ Collect) but also service experience (like product discovery and sales associate interaction);product is key but the store needs to provide a differentiating ‘wrapper’ to convert customers to buy(or price comparison will always win!)Stores are where the retailer can realise the ‘physical’ brand experience for the shopper tocomplement and be consistent with the ‘on line’ and ‘mobile’ brand experience – this is what multi-channel really means
15INTERNAL USE ONLYINTERNAL USE ONLYStore priorities – driving sales and managingpeopleCopyright 2013 FUJITSU
16INTERNAL USE ONLYINTERNAL USE ONLYStore priorities – driving sales andmanaging peopleCopyright 2013 FUJITSU“The biggest challenge is improvingsales while reducing costs”“Large volumes, lots of customers““The challenge is to optimise staffingwhile keeping a significant level ofproximity to the customer"
17INTERNAL USE ONLYINTERNAL USE ONLYThe challenge for retailers: to sell more and to sellbettermean is > 10% higher compared to Globalmean is 10% lower compared to GlobalSales 63% 42% 76% 64% 72%Human resources 43% 47% 57% 44% 19%Marketing 37% 47% 35% 44% 19%Supply Chain 28% 28% 33% 13% 31%IT 20% 14% 27% 23% 6%GlobalFujitsu International Retail Survey 2013 – N=161What are your main challenges in store?
18INTERNAL USE ONLYINTERNAL USE ONLYSalesIncrease theaverage sale percustomer (62%)Selling new productand services (52%)Extend productavailability &assortment beyondstore inventory(44%)HumanresourcesKeep significantlevel of proximity tothe customer (52%)Employeemotivation andcreating brandambassadors (49%)Training ofemployees ontechnologies andproducts (39%)MarketingAttracting andretaining newcustomers (73%)Develop customerprofiles andincrease customerloyalty (47%)Support consistentbrand experienceacross multiplechannels (39%)Supply ChainReduce coststhrough optimizationof stockmanagement (69%)Ensure frequent /more accurateupdates to stock(44%)Optimize transportcosts (42%)ITManage a customerover severalchannels (41%)Create a consistentIT infrastructure(41%)Develop aninformation systemthat issimple, responsiveand efficient in linewith SLA (38%)The challenge for retailers: to sell more and to sellbetter. Detailed analysisFujitsu International Retail Survey 2013 – N=161In your opinion what are the 3 key challenges?
19INTERNAL USE ONLYINTERNAL USE ONLYStore priorities – driving sales and managingpeopleCopyright 2013 FUJITSUStores are under economic pressure – cost of space, people and inventory;Increasing sales per customer and increasing sales of new products and servicesremain core KPIs for the store and store operatorStore associates are becoming more and not less important in delivering customersatisfaction, increased sales and operating profit for the retailerStore associates need to become ‘ambassadors for the brand’ in everything they doStore managers need to understand their customers inside and outside the store –access to multi-channel customer data is key so that stores and associates canbuild a closer relationship and drive more repeat visits and purchasing
20INTERNAL USE ONLYINTERNAL USE ONLYStore operators are seeking a blend ofexperience and efficiencyCopyright 2013 FUJITSU
21INTERNAL USE ONLYINTERNAL USE ONLYStore operators are seeking a blend ofexperience and efficiencyCopyright 2013 FUJITSU“The real challenge is to work onproductivity without harming thecustomer experience”“We must find a balance betweencustomer service and the costof this service”“The real priority is to reintroduceproximity to the customers”
22INTERNAL USE ONLYINTERNAL USE ONLY15 store technologies around 4 main streamsOnline based servicesHybrid shopping (Click and collect)Hybrid shopping (Drive)Back office integrationESLRFIDBiometricsPersonal Self ScanningSelf check outScan tunnelKiosksSocial clientelingLoss prevention toolsBig dataMobile phoneCopyright 2013 FUJITSU
23INTERNAL USE ONLYINTERNAL USE ONLYA dynamic perspective of the market : some highlycontrasted situations per country100% CUSTOMERS EXPERIENCE100% STORE EFFICIENCYLOWERVALUEFORBUSINESSA : Back office integration B : Big dataC : Biometrics D : ESLE : Hybrid shopping (Click and collect)F : Hybrid shopping (Drive)G : Kiosks H : Loss prevention toolsI : Mobile Phones J : Online based servicesK : Personal Self ScanningL : RFID M : Scan TunnelN : Self check out O : Social ClientelingCMLKNFDBEGValue is average orlow and focused oncustomer experienceValue is low andrelating toefficiencyAOHIJValue is genuine andfocused on efficiencyFujitsu International Retail Survey 2013 – N=161HIGHERVALUEFORBUSINESSCopyright 2013 FUJITSU
24INTERNAL USE ONLYINTERNAL USE ONLY100% CUSTOMERS EXPERIENCE100% STORE EFFICIENCYLOWERVALUEFORBUSINESSHIGHERVALUEFORBUSINESSA : Back office integration B : Big data C : BiometricsD : ESL E : Hybrid shopping (Click and collect) F : Hybrid shopping (Drive)G : Kiosks H : Loss prevention tools I : Mobile PhonesJ : Online based services K : Personal Self Scanning L : RFIDM : Scan Tunnel N : Self check out O : Social ClientelingMLKNFDBEGThe food sector > 1000 m2 : a driver for thedevelopment of technology solutionsJHAOICFujitsu International Retail Survey 2013 – N=161Copyright 2013 FUJITSU
25INTERNAL USE ONLYINTERNAL USE ONLYThe food sector > 1000 m2 : a driver for thedevelopment of technology solutionsFujitsu International Retail Survey 2013 – N=161In your opinion, which of the following store technology solutions will deliver most value to yourbusiness?Copyright 2013 FUJITSU
26INTERNAL USE ONLYINTERNAL USE ONLYThe main hurdles in implementing new storetechnologiesFujitsu International Retail Survey 2013 – N=161What is the main hurdle you face when implementing new store technologies?29%26%19%12%9%Financial /ROI / TCOStaff / skillchangemanagementCustomersacceptanceManagement/ marketing /strategyTechnology/projectsEurope29%31%18%38%22%13%20%13%8%6%Non food< 300 m²Food >1000 m²Copyright 2013 FUJITSU
27INTERNAL USE ONLYINTERNAL USE ONLYStore operators are seeking a blend ofexperience and efficiencyCopyright 2013 FUJITSUStore operators, in their deployment of merchandise, process, people andtechnology, want a blend of experience and efficiency outcomes –this may differ bysector, format and trading patternOne size does not fit all – technology service providers for example will need totailor solutions according the specific needs of the retailer, their market andcustomer preferencesRetailers across Europe generally perceive ‘experience’ solutions as lower valuethan ‘efficiency’ solutions
28INTERNAL USE ONLYINTERNAL USE ONLYStore customer knowledge data needs to beintegrated into a single view of the customerCopyright 2013 FUJITSU
29INTERNAL USE ONLYINTERNAL USE ONLYStore customer knowledge data needs to beintegrated into a single view of the customerCopyright 2013 FUJITSU“You need more information and thatswhere the digital battle is being fought:information and comparing information.”
30INTERNAL USE ONLYINTERNAL USE ONLYConsiderable potential in the project for customerinformation1 Very low4% 19% 31% 18% 14% 7% 3% 4%0% 20% 40% 60% 80% 100%Europe7,37,77,87,06,8CountryGlobal10 Very goodFujitsu International Retail Survey 2013 – N=161How do you rate your customer knowledge?
31INTERNAL USE ONLYINTERNAL USE ONLYCall centre 38% 19%Profile registration 20% 27%Loyalty card enrolments 30% 13%Online activities 19% 21%In-store information feedback 13% 20%Satisfaction survey 18% 14%Complaints 11% 20%Customer service 9% 17%Purchase 7% 21%About 20% of respondents capture information withoutusing itNot capturedNot usedCaptured butnot usedNon-food <300m² : 29%56Fujitsu International Retail Survey 2013 – N=161For which of the following activities do you capture and use customer specific buying information?36
32INTERNAL USE ONLYINTERNAL USE ONLYThe data types integrated into the customer relationmanagement system come from multiple sourcesFujitsu International Retail Survey 2013 – N=161Which of the following data types do you integrate in your CRM system as part of your business?21%17%27%14% 15%Store dataMulti stores datasStore and online channel dataStore, online channel and social network dataNone of aboveEuropeCopyright 2013 FUJITSU
33INTERNAL USE ONLYINTERNAL USE ONLYStore customer knowledge data needs to beintegrated into a single view of the customerCopyright 2013 FUJITSURetailers are reporting an increase in customer knowledge, reflecting the increasein on line, mobile and store ID interactionsThe need to integrate and derive actionable intelligence on customers across theirshopping journey remains a key priority; however…20% retailers are still capturing customer information without using itOnly 14% retailers are integrating store, mobile and on line customer data
34INTERNAL USE ONLYINTERNAL USE ONLYStore technology projects are delivering multi-channelsolutions – the store is not alone anymoreCopyright 2013 FUJITSU
35INTERNAL USE ONLYINTERNAL USE ONLYStore technology projects are delivering multi-channel solutions – the store is not alone anymoreCopyright 2013 FUJITSU“Manage the increasing complexityof the customer relationship includingwith the increase of the social networks”“More and more integrationbetween physical networksand the Internet"
36INTERNAL USE ONLYINTERNAL USE ONLYTechnologies to revolutionize in-store purchasing83% 75% 92% 79% 78%75% 67% 90% 64% 69%71% 53% 90% 67% 63%71% 50% 80% 77% 72%70% 69% 65% 72% 75%65% 67% 71% 59% 56%61% 42% 71% 69% 53%58% 53% 59% 51% 69%GlobalRetailers will transform into service providers,moving beyond just selling merchandiseMultichannel interaction will be the normIn-store shopping will become a moreenjoyable experienceTechnology will be the key to allow the in-storepurchase to be revolutionisedIncrease of in-store productivity will be a keydriver for growthM-retailing will emerge to complement e-commerceThe store will remain a majority source ofrevenueStore revenue as a percentage of retailerrevenue will continue to declineFujitsu International Retail Survey 2013 – N=161Thinking ahead the next five years, do you agree/disagree with the following statements. How is your storeconcept developing ...Copyright 2013 FUJITSU
37INTERNAL USE ONLYINTERNAL USE ONLYPriority versus value for business (Food > 1000m²)LowerpriorityHigherpriorityLower pecieved value for businessHigher perceived value for businessCopyright 2013 FUJITSU
38INTERNAL USE ONLYINTERNAL USE ONLYFuture mobile phone usagemean is > 0,3 higher compared to Globalmean is 0,3 lower compared to GlobalPayment 6,4 7,0 6,7 6,8 4,7 6,4 6,4Location based information 6,6 6,1 6,6 7,3 6,2 7,7 6,8Customer localization 6,3 5,5 5,9 6,9 6,7 6,6 6,36,9 6,4 6,8 7,6 6,5 6,9 7,3Scanning the items during/through personal self-scanning 5,7 5,8 5,8 6,8 3,6 7,5 5,8Social network integration with topics like Promo,product information and shopping listGlobalFood> 1000m²Non food> 1000m²Fujitsu International Retail Survey 2013 – N=161How is mobile phone use most likely to impact your store environment?Copyright 2013 FUJITSU
39INTERNAL USE ONLYINTERNAL USE ONLYStore technology projects are delivering multi-channelsolutions – the store is not alone anymoreCopyright 2013 FUJITSU75% of retailer respondents believe multi-channel is becoming the norm and notthe exception – the store therefore needs to integrate into this shopper journeyRetailers still separate technology solutions into enterprise and consumer (orBYOD); however retailers expect both to blend into one integrated set of solutionsto support the customer or as Fujitsu call it ‘retailing without walls.’Retailers are investing in the following technology solutions in order of priority:online and mobile-based service, click ‘n’ collect, social clienteling, selfservice, cross-channel integration and loss prevention tools
40INTERNAL USE ONLYINTERNAL USE ONLYRoad to transformationCopyright 2013 FUJITSU
41INTERNAL USE ONLYINTERNAL USE ONLYTechnos by Net Scorevalue Podium/Main hurdlesUp to 300m² More than 1000m²1st 2nd 3rd 1st 2nd 3rdFoodFinancial/ROI/TCO –Customers acceptanceStaff / skill change management –Financial/ROI/TCONon foodFinancial/ROI/TCO –Customers acceptanceStaff / skill change management –Financial/ROI/TCORoad to transformationOnline based servicesHybrid shopping (Click and collect)Hybrid shopping (Drive)Back office integrationESLRFIDBiometricsPersonal Self ScanningSelf check outScan tunnelKiosksSocial clientelingLoss prevention toolsBig dataMobile phoneCopyright 2013 FUJITSU
42INTERNAL USE ONLYINTERNAL USE ONLYFujitsu Point of ViewCopyright 2013 FUJITSU
43INTERNAL USE ONLYINTERNAL USE ONLYFujitsu in Retail - Our answers Lean and continuous improvement approach Smart Sourcing and Retail as a Service to reduce OPEX RBA : Sales & Mktg and Supply Chain modulesStore Challenges Retail Business Analytics / SAP Hana / CRM Cloud Applications Multi Channel POS application to reduce datas silos Data Center efficiencyCustomer Datas Store efficiency and Customer experience Consulting End to End portfolio ROI approach for both IT Infrastructure and Business projectsCustomer ExperienceStore Efficiency Multi Channel Approach with COMO Self Serve Solutions (including Mobile phone components) Innovation with 1,5 B$ in R&D every yearsStore Technologies Shaping tomorrow with you Expert of the Store since 30 yearsMulti-ChannelFuture of Stores
44INTERNAL USE ONLYINTERNAL USE ONLYDelivering adifferentiatedcustomerexperienceDriving downcosts,improvingefficienciesFujitsu in Retail – our point of viewCopyright 2013 FUJITSU
45INTERNAL USE ONLYINTERNAL USE ONLYRetailFujitsu in Retail – what we offerRetailSolutionsSelf ServicePoS Mobile Scan & PayRetailServicesDigital Media(network distribution)Retail as a Service IT ApplicationServicesEnterprise ITincluding networksRetailApplicationsPoS Social/CRM Business Analytics(including Big Data)Cloud SolutionsStore & MobileManaged ServicesCopyright 2013 FUJITSU
46INTERNAL USE ONLYINTERNAL USE ONLYCustomers – who we work withCopyright 2013 FUJITSU
47INTERNAL USE ONLYINTERNAL USE ONLYWhat makes us different…Copyright 2013 FUJITSURetailFujitsus IP investedin retail products,software and servicesEnterprise IT Global ReachIT integration – frontand backoffice, retailing in thecloud, third partypartnersGo with the customer–scale, service, delivery centers and partnersImproved Store Efficiency and Differentiated Customer ExperienceThe Retailers IT Company
48INTERNAL USE ONLYINTERNAL USE ONLYThank you for listening!Copyright 2013 FUJITSU