STORES Magazine - January 2008 - (Page 2)

RETAIL STRATEGIES FOR A CONVERGING WORLD By Brad Tracy Director, General Merchandise Industry Marketing NCR Corporation In recent years, store formats in the retail industry have become increasingly fluid, and the range of goods offered in any given format has greatly expanded. In the process, distinct lines of retail business activity – such as groceries and cosmetics, or upscale and budget apparel – have blended or converged. The most obvious example of this convergence includes superstores, which essentially became self-contained malls. Today, this trend is readily apparent in department stores and even specialty shops. Convergence has created difficulties for retailers to compete on the basis of product selection and, in many ways, price. To differentiate, retailers have turned to enhancing the customer experience. manage it from transaction to transaction – even with the same retailer. For example, a shopper browsing a hardware store to admire the tool selection will have different needs and expectations than when he’s looking for a specific part to hurry home and finish an important project. These realities combine to form a continuum of service, ranging from high-touch assisted service to a total self-service experience. Therefore, a retailer should implement a service methodology to appropriately address a consumer’s requirements and needs anywhere along the continuum. Consumer/technology convergence Retail business convergence is primarily caused by the economic and competitive environment of the industry. However, technology almost entirely drives the blending in the consumer market specifically through the Internet, mobile and self-service technologies. In many stores, consumers can choose to wait for an attendant or head for the self-checkout. The Internet channel offers multiple opportunities for businesses to capture the consumer. The number of people who browse, comparison shop or buy online makes this a must-have channel for retailers. Furthermore, use of mobile phones, contactless and mobile payments, as well as viral marketing and short message service (SMS) communication, creates anothThe Accelerating er channel to connect to the consumer. Convergence In recent years, the pace of this process has quickened dramatically. While the ATM took 25 years to attain mass-market adoption, it only took about eight years for the Internet and two years for self-service travel kiosks. This accelerated pace has been driven by technology meeting a consumer need – and by consumers’ willingness to quickly adopt it. Because consumer demand and the need for business productivity are mutually reinforcing, this pace of adoption will continue to accelerate. If retailers want consumers to do something in a more cost-effective way, they must make the method more attractive in terms of price and/or convenience. In turn, this stimulates consumer acceptance of media and channels, leading to yet more change in the way businesses function. How NCR can help Technology supports the service methodology at every point on the continuum. NCR offers and continues to develop a broad range of solutions designed to help retailers transact and interact on the consumer’s terms – however, wherever and whenever the consumer desires. An important adjunct to NCR’s well-known self-service and point-of-sale systems is a variety of tools that facilitate convergence. For consumers to encounter a converged experience, retailers must provide consistent consumer messaging, pricing, product information and promotional offers across disparate channels. NCR enterprise solutions like Copient and the Price Determination Engine facilitate this converged experience as consumers smoothly transition between channels. Furthering retail convergence with NCR technologies, store associates embrace mobility by taking applications and data access wherever necessary to serve the customer quickly and efficiently – delivering the best possible consumer experience. NCR is committed to meeting the needs of today’s and tomorrow’s retail industry by providing robust, easily integrated technologies that offer a solid, positive return on investment – and are backed by a stable, reliable partner. As the world continues to change, NCR will be there to help retailers deal with that change. We’re in it for the long haul. For information on specific products, or to discuss how NCR technology can enhance your organization’s operations and performance, please call (866) 431-7879 or visit www.ncr.com. If you’re visiting NRF 2008 – Retail’s BIG Show in New York (January 13-16) – please stop by and see us at Booth 1327. How should retailers respond? In today’s environment, there exists a convergence in retail, a technological convergence in the consumer market and an accelerating rate of change through the evolution of customer interactions. In crafting a strategy to respond to this situation, retailers must take into account a few basic realities. First, retailers must realize that the continued need for differentiation, coupled with the proliferation of touch points, creates a requirement to consistently deliver on their brand promise – whether it’s low prices, superior service, etc. – across all channels. Another important reality involves the diversity of consumer requirements and needs. Not only do consumers differ in how they manage the purchase cycle, individual consumers differ in how they http://www.ncr.com http://www.ncr.com

Table of Contents Feed for the Digital Edition of STORES Magazine - January 2008

STORES Magazine - January 2008 Contents Executive Editor's Page President's Page Build a 'Bot Sneak Peek at Fashion Trends What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Fishing for Talent Retail CEO Compensation Research Concept2Watch E-Commerce Payment Solutions Online Merchandising POS LPInformation LP Vantage Point Newsbeat Industry Watch Cover Story: Making LP PCI-Compliant Mall Security Video Surveillance Industry Perspective Forum RFID Business Intelligence Data Management Logistics Turning Green into Gold Love of – and for – the Outdoors Loeb Retail Letter ARTS Update Point of View NRF News Retail Industry Calendar Last Laugh

STORES Magazine - January 2008

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