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PPCO Twist System SEPTEMBER/OCTOBER 2017 ERIK CALDWELL SVP, Supply Chain & Digital Operations Hudson’s Bay Company The Modern Supply Chain: Extraordinary Is The New Ordinary p. 12 Strategy 18 Tax Code 40 Technology 22 New Security Standards 24 Retail According to Uri The Truth About the Omni-Channel in 2017: 30 Minkoff, CEO & Cofounder Border Adjustment Tax From Measurement to Action Automation of Rebecca Minkoff Audio Media 36 Leadership Lessons 42 Epson just reinvented the POS printer category. Again. The new OmniLink® TM-T88VI allows retail and hospitality merchants to get ahead and stay ahead. To future-proof your POS printing, Epson introduces the TM-T88VI. It simultaneously connects to traditional PC-POS systems and mobile POS systems, and features Epson’s beacon1 support for distributed proximity-based printing and third party loyalty applications. Plus the TM-T88VI offers triple interface support, and has NFC2 support for easy Bluetooth pairing – all with the performance, reliability and effi ciency you’d expect from the industry leader. Create an amazing experience that will keep your customers coming back, again and again. epson.com/reinventpos Another Innovation from Epson Business Solutions EPSON is a registered trademark and EPSON Exceed Your Vision is a registered logomark of Seiko Epson Corporation. OmniLink is a registered trademark of Epson America, Inc. Apple is a trademark of Apple Inc., registered in the U.S. and other countries, and iBeacon is a trademark of Apple, Inc. All other product and brand names are trademarks and/or registered trademarks of their respective companies. Epson disclaims any and all rights in these marks. Copyright 2017 Epson America, Inc. 1. Requires the use of a beacon dongle connected to TM-T88VI printer via the USB-A port. Supports only Apple® iBeacon™ compliant format. The Epson-approved dongle is Laird model BT820. 2. NFC tag requires use of a device that includes NFC reader, and may require additional software. Are You Still Manually Sorting and Packing Orders? Sure Sort is a highly scalable, configurable and cost effective small item sorting system with excellent ROI. Sure Sort can be designed to support up to 670 sort locations in a small footprint, and requires significantly less staffing compared to traditional put walls. Sure Sort installs in a week or less. Sure Sort is ideal for small businesses looking for a cost effective entry into warehouse automation as well as large fulfillment operations looking to streamline their process. Call us today to learn more! The Old Way Up to The New Way 670 sort locations Applications • E-commerce Order Fulfillment • Return Center Processing • Pre-Sorting Inventory • Kit Building • Direct Store Delivery (DSD) • Transshipment/Cross Docking Up to • Last Mile Delivery 2,400 items per hour 305 Commerce Drive, Moorestown, NJ 08057 opex.com | 856.727.1100 Contents Welcome to Retail Executive SEPTEMBER / OCTOBER 2017 VOL. 21 NO. 5 Follow Us: @RetailMag linkedin.com/company/RetailExecutiveMagazine www.RetailExecutive.com 5 Columns: Insights: Contributor Bios TECHNOLOGY 6 24 Taking The Guesswork Out Viewpoint Of Payment Security 8 10 11 Editorial Advisory Board/ By The The List 26 OPERATIONS Ask The Board Numbers The Great Retail Bifurcation OPERATIONS 28 5 Ways To Bolster Your Team’s Professional Cover Story: Development HUDSON’S BAY CO. 12 INNOVATION 30 The Next Wave Erik Caldwell, SVP of supply chain and digital Of Automation operations at Hudson’s Bay Company, talks making omni-channel fulfillment profitable, INNOVATION capacity concerns, and the A-word. 32 Immersive Brands: The Highest Level Of Brand Equity CUSTOMER ENGAGEMENT 36 Pandora Courts Retailers 18 22 With Data Points Retail According To Uri Minkoff Omni-Channel In 2017: In a one-on-one Q&A with Rebecca From Measurement To Action CUSTOMER ENGAGEMENT Minkoff’s CEO and cofounder, Digital influence, store-level insights, Uri Minkoff, it’s clear why he is organization, and scale and automation 38 Chatbots: 7 Ways To a highly sought-after luminary will drive offline/online success this year. Ensure Success on the nexus between fashion, retail, and emerging technologies. DEEP DIVE 40 The Truth About The Border Adjustment Tax LEADERSHIP LESSONS 42 Disrupt Or Be Disrupted: Leadership In The Digital Age RETAIL EXECUTIVE (ISSN: 1553-5894) Vol. 21, No. 5. This magazine is published six times per year (with issues of January/February, March/April, May/June, July/August, September/October, and November/December by Jameson Publishing, Inc. at Knowledge Park, 5340 Fryling Road, Suite 300, Erie, PA 16510-4672. Phone (814) 897-9000, Fax (814) 899-5587. Periodical postage paid at Erie, PA 16510-4672 and additional entry offices. Copyright 2017 by Peterson Partnership. All rights reserved. Printed in the USA. SUBSCRIPTION RATES For qualified readers in the U.S. and Canada: $0. For nonqualified readers in the U.S. and all other countries: $197 for one year. POSTMASTER: Send address corrections (Form 3579) to Retail Executive, Knowledge Park, 5340 Fryling Road, Suite 300, Erie, PA 16510-4672. 4 SEPTEMBER/OCTOBER 2017 RETAILEXECUTIVE.COM Contributors SEPTEMBER / OCTOBER 2017 JACOB BRUUN-JENSEN VOL. 21 NO. 5 PRINCIPAL, MONITOR DELOITTE RETAIL EXECUTIVE 5340 Fryling Rd., Suite 300 The Great Retail Bifurcation ................... p . 26 Erie, PA 16510-4672 Telephone: 814 897 9000 Fax: 814 899 5587 WWW.RETAILEXECUTIVE.COM EDITOR IN CHIEF Erin Harris / Ext. 303 [email protected] JOHN GREGORY CEO Jon Howland / Ext. 203 RETAIL HEAD OF INDUSTRY, PANDORA [email protected] Pandora Courts Retailers With Data Points ....... p . 36 PUBLISHER Tim Ulrich / Ext. 245 [email protected] MANAGING EDITOR Angel Clark / Ext. 285 [email protected] DIGITAL EDITORIAL DIRECTOR MILA D’ANTONIO John Oncea / Ext. 344 [email protected] PRINCIPAL ANALYST, OVUM ART DIRECTOR Chatbots in Retail: 7 Ways to Ensure Success ..... p . 38 Anna Cooney / Ext. 258 [email protected] CIRCULATION DIRECTOR Melinda Reed-Fadden / Ext. 208 [email protected] REPRINTS, ePRINTS, NXTprints The YGS Group 717-730-2268 BRIAN DODGE [email protected] www.theYGSgroup.com SENIOR EXECUTIVE VP, PUBLIC AFFAIRS, RILA MANAGE SUBSCRIPTIONS The Truth About The Border Adjustment Tax...... p . 40 Subscription/Address Correction/Cancel www.RetailExecutive.com 814-897-9000 [email protected] (Reference 16 digit # on mailing label, title of publication, your name and zip code) RETAILEXECUTIVE.COM SEPTEMBER/OCTOBER 2017 5 REX VIEWPOINT @ErinOnRetail linkedin.com/in/ErinHarris Syncing The C-Suite Mindset By E. Harris revenue growth is only about 1 percent. While the “Retail Apocalypse” is absurdly overstated, change is necessary. Retailing today is all about relevance, and the most rele- vant retailers are the ones whose C-suite comprises people who eat, sleep, and breathe the dire need for digital savvy. Take Neiman Marcus, for example. From CEO Karen Katz to CIO Sarah Miller to Head of Innovation Lab Scott Em- mons, the executive team is rich with knowledge of and appreciation for digitalization. The luxury retailer’s Snap, SYNCING THE C-SUITE MINDSET THE C-SUITE SYNCING Find, Shop feature on its mobile app speaks to the retailer’s understanding of a mobile strategy, but more importantly, the executive team’s understanding of a mobile strategy. Let’s continue with the mobile strategy theme. Ask your- ERIN HARRIS Editor in Chief self, “Is your executive team on the same page regarding, for example, a mobile site? Are the stakeholders in agreement on the capital expenditure, development, design, innova- tion, and creativity necessary to build a robust mobile site?” ased on its 2017 “Total Retail Survey,” which If the answers are anything other than yes, consider that surveyed more than 24,000 shoppers, PwC 26 percent of PwC’s respondents state that mobile sites are B developed 10 areas retailers should consider simply not easy to use; ergo, therein lies retail executives’ investing in to stay ahead of the competition: opportunity to empower their mobile team to execute and ▶ Mobile Site deliver a user-friendly mobile site with responsive web de- sign that accounts for screen size (PwC states among daily ▶ Talent and weekly shoppers, a higher percentage of respondents ▶ Big Data Insights say they are shopping more frequently with their smart- ▶ Amazon Strategy phone than with a tablet). As a stakeholder, consider what it takes to effectively execute mobile site implementation— ▶ Telling the Brand Story and what’s at stake if you don’t. Lose the mobile app in favor ▶ Secure Platforms of developing a robust mobile site. According to Forrester, users have 200 mobile moments per day, and retailers take ▶ Loyal Customers up just 5 percent of those moments. Big box brands or large ▶ Showrooms CPG companies may afford the capital expenditure for app ▶ Authenticity development, but if funds are lacking, advise your team to skip the app and invest in improving your own mobile site. ▶ Health & Wellness Optimize for mobile and focus on responsive web design, This list, or portions of it, likely matches your list of or quickly fall behind the retailers that do. short- and long-term strategic objectives. Everything The mobile app versus mobile site discussion is just on this list requires its own thoughtful strategy, but one of the countless examples that require a unified for the sake of this article, let’s focus on the ways the C-suite. The executive teams who succeed with any of C-suite must sync its collective mindset in order to the aforementioned strategies are the ones who stop tackle any one of these strategies. thinking about sales and instead work together to iden- PwC advises retailers to strengthen the digital and op- tify other ways to determine value. That’s a promise. R erations talent within the C-suite to manage shrinking store networks, complicated supply chains, and digital in- novation and launch new services to keep currently loyal customers.
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