Italy retail market trends and self service

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  • The wants and needs of consumers continue to change. Many consumers are time starved, or put a high value on their time. As a result, the long queues in many establishments simply are not acceptable. In a 2010 Buzzback Consumer Survey, 28% of global consumers indicated that they need to get in and out of stores faster because they are pressed for time Secondly, many more are becoming digitally enabled and enjoy technology. They are comfortable using new devices and for many, their mobile device is the center of their universe – it’s used for everything. Additionally, today’s consumer are less loyal to retailers than ever before and will shop hop to find the best deals and values. According to the same NCR 2010 Buzzback research, 58% of global consumers said they often switch between retailers to get better prices, deals or more loyalty rewards and 65% US and 68% Canada respondents said that they often switch between retailers to get better prices, deals or more loyalty rewards
  • RSD Pricing 06/18/12 NCR Confidential
  • Italy retail market trends and self service

    1. 1. Alessandro Santalucia New Vision Inco Chairman of board
    2. 2. Agenda1. Retail Market Trends2. Self-Service implementations examples3. Technology evolution
    3. 3. The elusive consumer…A ‘Here And Now’ culture – with unlimited access and choice Consumers want store 70% of consumers associates to be technology- don’t have enough time… enabled and to be as knowledgeable as they are….Time starved Digitally empowered Driven by value Shop-hopping Impact of the economy causing consumers to cut discretionary spending and shop for deals
    4. 4. 76% of retailers say their #1 use of in-store technology is to improve the customer experience Focus on in-storeSmaller store formats experience Growth in mobility and Reduce costs, improve channel convergence service Self-checkout provides: Up to 40% queue reduction 70% of smartphone owners will A 20% throughput increaseuse their phones while shopping Over 400 labor hours reduced/redeployed per week in the store A 7% revenue increase per labor hour due to labor redeployment back into the store
    5. 5. NCR SelfServ Checkout Global Reach • 165 Retailers • 13 segments • 29 countries • >110,000 units NCR Ships 2 out of 3 Self Checkout Units Worldwide
    6. 6. The World of SelfServ Checkout • Over 110,000 NCR SSCO Units Installed Globally • Approximately 140 Million Customers Per Week Are Using NCR SSCO • Serving Over 7 Billion Customers Per Year!
    7. 7. Macro-Trends North Europe Big is bad  Lower impact by economical Small is good crisis Overcoming Common Objections  Focus on customer experience  Store format rethinking  Cashier shortage South Europe  High impact by economical crisis  Focus on labor productivity and operational costs  Store format rethinking
    8. 8. Macro Trends – What ishappening… Lower purchasing power  Only required purchases (strict shopping list)  Purchase postponing  Preference for store with faster check out Basket evolution  Lower average value  Lower number of items Increase on number of transactions  Higher frequency  Promotion driven (Cherry Picker)  Lower store revenue generation
    9. 9. Retailers conventional reaction… w More promotions w Stop in spending w Sales driven actions • Price war Results…? • Lower margin • Lower improvement capability • No improvement on operational costs
    10. 10. A different approach  Attention to consumer needs and demands  More services  Fidelization  Revenue Increase  More references  More services  Operational Cost reduction  More flexibility on store management  Margin improvement
    11. 11. Traditional checkout lane evolution Small Baskets – Express Service (SSC or Assisted) Large Baskets - In-Aisle Shopping Kiosks (e.g. productive tobacco sales) Converged Channel Retailing (collect and pay) Dynamic CheckOut – Convertible Lanes
    12. 12. Implementation Examples
    13. 13. Asda WalthamstowA sda, 19 Selborne Walk Shopping C entre, L ondon, E 17 7L S Walthamstow C entral - C entral Store Format Supermarket No. of SSCO Units 20 SSCO Version V.4 No. of Main Tills 5 Store re-designed to optimise SS potential Offer a blend of self service solutions – permanent availability – attendant zoning Assess the regular lanes usage specialization / free up the shop floor Facilitate the access to the self service area + queuing Optimize the additional merchandising space Benefit from impulse merchandising (low racks) Guide the customers with the proper signage Leverage of self service at “kiosk” area
    14. 14. Boots BishopsgateBoots, 200 Bishopsgate L ondon E C 2M 4NR L iverpool St. – C ircle/C ent./Met./Hamm. Store Format Health & Beauty No. of SSCO Units 9 SSCO Version V.5 Boots Flagship store Format Located nearby Liverpool St Station– huge hub of commuters and tourists 9 Self-service Checkouts Self Service checkout – well located near Operates with minimal but effective use of attendant Operation optimised to maximise SSCO
    15. 15. Tesco Commercial Street ExpressTesco E xpress, 116 C ommercial Street, L ondon, E 1 6NF Shoreditch High St. – C entral Store Format Convenience No. of SSCO Units 3 SSCO Version v.4 No. of Main Tills 4 Tesco Express (Convenience Format) in busy commuter and residential district 7 Total Lanes - 3 SSCO Lanes embedded alongside main till bank Operates with a fractional attendant (multi tasked cashier) Always open tills are self checkout Operation adjusted to fit self checkout
    16. 16. Tesco MetroTesco Metro, 6 E astcheap, L ondon, E C 3M 1A E Monument – C ircle/District Store Format Small Supermkt No. of SSCO Units 12 SSCO Version v.5 No. of Main Tills 5 Located in business district main customers are professionals alongside steady flow of tourist traffic Store has substantial peaks and flows in trade – very busy between 12-2 and 5-7, quiet outside of these times SSCO has precedence over main bank, customers pass through SSCO to reach tills Open SSCO exit causes confusion over queuing entry points
    17. 17. Boots PaddingtonBoots, Station C oncourse, Paddington Station Paddington – C ircle/Met./Hamm./BakerlooL ondon W2 1HB Store Format Health & Beauty No. of SSCO Units 4 SSCO Version V.5 No. of Main Tills 1 NCR’s worlds first smallest footprint SSCO Located in one of the worlds busiest train stations 4 self service checkouts with 1 main till Self Service checkout – well located and strong customer visibility Operates with minimal but effective use of attendant Space utilisation optimised to leverage smaller footprint SSCO offer Store also has 2 tills within dedicated pharmacy area
    18. 18. Decision Impulse point merchandise opportunitiesOff-peak queue Queue entrance entrance
    19. 19. Sacoph Rome Store Format ConvenienceNo. of SSCO Units 2 SSCO Version V.5 No. of Main Tills 4First implementation in Italy for small storesLocated in residential area 2 self service checkouts with 2+2 main till (normally 2 lanesopened) Self Service checkout – well located and strong customervisibility Operates with fractional cashierAttendant used on peak time
    20. 20. Technology Evolution
    21. 21. Express SSCO (Basket Over Bag) - 33cm4 3 2 1 Standard 1-bag UnitRedesigned Bagging Module1. Cabinet 2. Scale Platform 3. Standard Bag Rack 4. Basket Shelf
    22. 22. Retrofit Existing 1 Bag Units… Same Kit for Left and Right Hand Units. On site field retrofit possibleNew BasketOver Bag Kit.Not Connected to Security Scale Standard Bag Rack PID = 7350-K509 Available in WOT Standard 1 Bag Bagging Area
    23. 23. SelfServ Checkout “Flip”Cashier Mode PINpad and 2nd display on swivel mount Folding platform Direction of customer traffic
    24. 24. SelfServ Checkout Convertible Self-Checkout Mode Input PINpad and 2nd display belt or on swivel mount basket shelf Single bag rack 3 bag, bag wellDirection ofcustomer traffic
    25. 25. Raised Platform for Cashier mode Direction of customer trafficDirection ofcustomer traffic Self-Checkout Mode Cashier Mode
    26. 26. How it works
    27. 27. Thank youa.santalucia@nv-inco.com

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