Canadian Retailer - Store 2016 - 22

KPMG EXECUTIVE ROUNDTABLE

they're put on pallets without anyone needing to touch
them. We've also spent a lot on technology over the last
three or four years and are becoming more accurate with
respect to inventory. We're also rolling out a new phase of
e-commerce that will include 6,500 items-1,500 of which
you can't find on store shelves. We'll deliver to homes or
provide in-store pick-up. Eventually we'll be able to make
the world our shopping basket: If you tasted a wine in Italy
at a winery and want to get a case of it, we'll get it for you
and deliver it to your home.

the more the customer expects you to action
it. If you can't, it'll be a big disappointment for
the customer. For us, data is a starting point.
It needs to be rounded out with other knowledge. Our associates have such rich knowledge of our customers, about their interests
and lives, and we constantly look for ways to
factor that into the POS and loyalty data. If
you can, you can connect with the costomer
on a much deeper level.

Baldwin: One of the most interesting, beneficial and potentially complicated uses of technology today is the way retailers gather information and data about customers. It can become very complex trying to figure out who your customers
are and what habits and behaviours they exhibit. And with
the inordinate amount of it out there, it can be very much
like trying to take a sip from
a firehouse. How are you
leveraging data today? And
how is it helping you build
your business and connect
with consumers?

Russell: We're starting to work more closely
with some of our vendors. It's going to help us.
Fifteen years ago, we wouldn't have done that.
It's a shift toward collaboration and sharing.
They know what's performing today and we're
able to adjust orders accordingly.

Longo: It's early days for us
with respect to CRM in terms
of using it one-to-one. That's
where the rubber really hits the
road with this technology. It
does currently give us a good
view of our customer, though.
For instance, before we decide
to delist an item from our store
it goes to our insights group
and if any of what we call our
"diamond shoppers" are buying that item, it doesn't get
delisted. It might look like the
end of the tail. But if our mostimportant customer is buying that item, we want to keep it.
Soleas: If you can't make sense of the data, it's useless to you.
But if you can dissect it properly, it can really help you understand how to merchandise. We also work with our suppliers,
who can make more sense out of our data and give it back to us.
It helps us with sales in the store: you can look at trends, what's
selling in other areas. We also use data to develop stores. It's
a science. We do our homework. There's a lot of work that goes
behind opening a store. We look at the people who live in that
area. What do they normally like to buy? Is it going to be a
beer, wine or spirit store?
Simpson: We do get a lot of data. Every time the customer asks
a question, we get more data. But the more data you get today,

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CANADIAN RETAILER | STORE 2016

"The data allows us to target our
communication with customers.
It also allows us to send out our
"Where have you been?" email
twice a year, to customers who
haven't shopped at our store for
six months...The results have
been phenomenal."
- SAJJAD HUDDA
Retail Nygard International

Hudda: We also share with our vendors to find
out what's working. We do a lot of market segmentation with our data, too, benefiting our
e-releases. If you're a pant buyer, then you'll
receive a pant promotion. If you come in to our
store to buy accessories, you'll get a release
promoting a new product. The data allows us
to target our communication with customers. It
also allows us to send out our "Where have you
been?" email twice a year, to customers who
haven't shopped at our store for six months.
We put on a special campaign to get them into
our stores. There'll be a gift waiting for them
and a special discount for that purchase. The
results have been phenomenal.

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