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2004 Global Powers of Retailing

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2004 Global Powers of Retailing STORES January 2004 Section 2 2004 Global Powers of Retailing Audit.Tax .Consulting.Financial Advisory. integration When you assemble a talented and integrated technology solutions crew, you quickly achieve success with your organization as well. Retek® Enterprise Ready Point Solutions™. Talented components as you need them. Maximum implementation flexibility. Integration from front office to back office and every position in between. At Retek, all of our solutions are engineered based on three key principles: value, innovation and simplicity. With the Retek Enterprise Ready Point Solutions, you can implement a single module or point solution, any combination of modules, or the entire Retek Enterprise — in the order that creates the greatest benefit to your business. You save time, money and win the game of retail. What you need, when you need it. It’s your call. Visit our Web site today to learn more about the Retek Enterprise Ready Point Solutions and you could be pulling in more profits than you can handle. www.retek.com/integration Visit www.retek.com/retekworld04 for information on the leading global retail conference of the year. HELPING THE RETAIL INDUSTRY CREATE, MANAGE AND FULFILL CONSUMER DEMAND™ Acknowledgments Deloitte Touche Tohmatsu Retek Inc. Deloitte Touche Tohmatsu is an organization of member Retek Inc. is the leading provider of mission-critical soft- firms devoted to excellence in providing professional services ware and services to the retail industry. Retek solutions inte- and advice. We are focused on client service through a global grate collaborative software with patented predictive tech- strategy executed locally in nearly 150 countries. With access nologies, consulting services and the best practices of to the deep intellectual capital of 120,000 people worldwide, customers and partners to help retailers create, manage and our member firms (including their affiliates) deliver services in fulfill consumer demand. Leading global retailers including four professional areas: audit, tax, consulting and financial Tesco, Best Buy, Gap Inc., Sainsbury’s, Eckerd Corp. and advisory services. Our member firms serve over one-half of the Selfridges use Retek solutions. world’s largest companies, as well as large national enterprises, Contact Retek at 1.888.61.RETEK or at www.retek.com. public institutions, and successful, fast-growing global growth companies. Triversity Deloitte Touche Tohmatsu is a Swiss Verein (association) Triversity – the fastest growing international provider of cus- and, as such, neither Deloitte Touche Tohmatsu nor any of its tomer-centric retail solutions. Triversity’s solutions enable member firms has any liability for each other’s acts or omis- retailers to transform the Customer Experience throughout the sions. Each of the member firms is a separate and independent retail enterprise while dramatically improving operating effi- legal entity operating under the names “Deloitte,” “Deloitte & ciencies. Retailers worldwide have built their businesses Touche,” “Deloitte Touche Tohmatsu,” or other related around Triversity’s market-leading solutions for POS, Loss names. The services described herein are provided by the mem- Prevention, Retail CRM, Returns Management and Sales ber firms and not by the Deloitte Touche Tohmatsu Verein. For Audit. regulatory and other reasons certain member firms do not pro- STORES vide services in all four professional areas listed above. STORES is the magazine of the National Retail Federation, Diners Club the world’s largest retail trade association. It is the best-read Diners Club, established in 1950 as the first multi-purpose and best-rated magazine about retail technology, supply chain charge Card, is the preferred charge card among frequent busi- and logistics, loss prevention, credit and payment systems, and ness and leisure travelers. Issued in more than 200 countries store operations. NRF’s membership includes the leading spe- and 67 local currencies, Diners Club serves 8 million Card- cialty stores, supermarkets, department stores, discount and members worldwide. Club Rewards from Diners Club was mass merchandise stores, drug stores, direct marketers, e-retail- voted the “Best Affinity Charge/Credit Card Program” in the ers, chain restaurants and home centers in the United States Americas for the sixth consecutive year by the readers of and 50 nations around the world. NRF represents more than InsideFlyer magazine in the prestigious 2002 Freddie Awards. 100 state, national and international trade organizations, Diners Club North America is a subsidiary of Citigroup, the which have members in most lines of retailing. NRF also leading global financial services organization. includes in its membership key suppliers of goods and services to the retail industry. JDA Software Group, Inc. JDA Software is the global leader in integrated retail demand chain solutions with more than 4,600 retail, manufacturing and wholesale clients worldwide. Capitalizing on its market position and financial strength, JDA invests significantly in advancing the JDA Portfolio merchandising, POS, analytic, and collaborative solutions that improve revenues, efficiency and customer focus. WWW.STORES.ORG STORES / JANUARY 2004 3 Progresses Toward Corporate Vision with Active IT Investment JDA merchandise management software helps Aeon to reduce inventory by 4.1 bil- lion yen at the end of fiscal year 2003 as compared to the previous period On its 30th anniversary in August 2001, leading ment of accounts reported for its General Merchandise Japanese retailer Aeon Co., Ltd. adopted its new name Store (GMS) operations and compared the end of fiscal and made the declaration, “We will continue to work year 2003 with the previous period. together toward a ‘future of limitless promise.’” As part of this announcement, Aeon also expressed the vision With a focus on developing its GMS operations, Aeon is of becoming one of top ten retail companies in the moving ahead with “Every Day Low Price (EDLP)” poli- world by 2010. cies, which it views as crucial for its long-term strategy. Both reduction of inventory realized by accurate inven- Aeon announced an IT tory management and reduction of receipt cost accom- strategy plan in plished by direct sourcing from vendors and product November 2001 that supply from abroad are essential factors for transform- would be key for ing Aeon into a retail company with a low cost structure. achieving its vision. Aeon’s IT plan called Aeon to Implement Portfolio Merchandising in for transitioning from Supermarket Division its traditional operat- Aeon’s future plans call for allocating more than half of ing model to one that its IT investment to projects within its merchandising adopted the best prac- area and supply chain management. This includes tices of leading retail Aeon implementing ODBMS/Portfolio Merchandising companies in Europe at its supermarket business format and other retail divi- and the Americas by sions by the end of fiscal year 2004. Aeon has already the end of fiscal year 2004. Aeon’s IT initiative was signed a license agreement with JDA for this new designed to accelerate reforms in seven areas: mer- implementation that will expand its relationship with chandising, logistics, CRM, back office, human JDA beyond the GMS division. resources, group company management integration and IT infrastructure. Aeon now represents the best of retail companies in Japan. Aeon leaders devoted thirty years of history Pursuing Best Practices at Each Segment into the principle, “Everything we do, we do for our Playing a key role in Aeon’s new IT infrastructure are customers,” as well as pursuing persistent reform. several JDA Portfolio® solutions, and in particular, Open The retailer views IT as the tool that will lead its DataBase Merchandising System™ (ODBMS™) (now reform and bring further progress to Aeon. This called Portfolio Merchandising™). Aeon started the JDA progress is pilot in 2001, and completed a massive rollout of the what will enterprise merchandise management software to all enable Aeon departments of Apparel in 2002. to achieve its goals of According to Vol.8 2003.JUL of Aeon Magazine, “What becoming are Aeon’s aims and how is it reinventing itself?” Aeon part of the “decreased its product inventory by ¥4.1 “global 10” billion since the previous period through — among merchandise management by the open the top ten database merchandising system (ODBMS).” retailers in This decrease also was noted in the settle- the world. For more information, contact JDA at 800.479.7382, [email protected] or JDA.com. Get ready to enter a whole new playing field. JDA PortfolioEnabled™ will be launched this year. And the world will be divided between those who will flourish and those JDA who will not. Take the lead. Call 800-479-7382 or visit jda.com. ® Be enabled, seize success. Up to The Challenge eloitte personnel located in ates is to encourage fierce competi- countries of strategic interest to Deloitte Touche Tohmatsu, tion, which in turn can make prof- Dretailers made contributions to the knowledge leader in global itability all the more illusive. This this report. Their comments can be remained a key problem for several found in the Retail Industry Profiles retailing, is pleased to present industry players into 2003. section of this report. M+M Planet the seventh annual In a different reaction to the weak- Retail provided able assistance in com- Global Powers of Retailing, in ness in demand, numerous retailers piling the list of the top 200 retailers conjunction with STORES honed their negotiating skills with and their growth rates. Magazine. This report identifies brand producers who were asked to Judging by the results of the top 200 the 200 largest retailers around give even larger discounts and better retailers and the commentary from our credit and delivery terms. Given the Deloitte practitioners around the globe, the world and provides increased oversight from various it would seem that retailers love a good economic, demographic and government agencies, however, retail- challenge. In the midst of a difficult industry insights on the global ers were giving particular considera- economic and operating environment, marketplace.
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