Fraud/loss prevention supplement Cloud exposure Feeling the heat Focus on loss prevention, CNP fraud For retailers of all shapes and sizes, IT outsourcing sector has undergone and PCI DSS the cloud is more and more appealing major change in the last 10 years
July 2014
First choice for technology purchasers in multi-channel retail Retail fusion
In-store media in a rapidly changing retail world
Online: www.retail-systems.com Twitter: @RetailSystems LinkedIn: Retail Systems Readers Group
cover.indd 1 17/07/2014 10:30:48 RS [ comment ]
Failure to get a fraud strategy in place will prove a bitter pill to swallow
he numbers speak for themselves, know who is actually logging into your customers’ accounts? says Experian retail client director Often without realising it, consumers can fall prey to phishing Charlie Connor. In all likelihood attacks and unwittingly disclose the virtual keys to their online 2014 will be a tipping point, given the accounts. No one wants to turn away legitimate transactions Texponential explosion in demand for mobile, evidently from loyal customers - but with revenue, reputation hand-held devices and high-end smartphones. and brand at stake, no one can afford to ignore the potential Retailers, ecommerce outlets and online risk. organisations failing to get a viable optimised But knowing and spotting your enemy early offers a huge tablet strategy in place are likely to find it advantage. As attackers grow increasingly sophisticated, it is proves a very bitter pill to swallow when they virtually impossible to identify fraudulent online transactions miss out on opportunities to the competition. without being able to accurately identify the mobile device It’s already a hugely competitive marketplace behind the transaction. Clear visibility into fraudulent attacks amid rising demand for larger-screen is difficult with the anonymity of the web, but transactions smartphone / PCs that bridge the gap between underpinned by reliable device intelligence helps provide smartphones and smaller tablets. At the same greater protection. time, analysts predict tablet prices to steadily Trust your fraud team’s instincts. They’re in the frontline in the decline, further powering mass-market fight against fraudsters and during periods of increased activity adoption. But irrespective of mass-market will have a sound sense of erratic or irregular transactions and demand for faster, easier, ‘friction-free’ online trading patterns. access, behind the scenes we are also fighting a Don’t skimp on investment in your entire online estate. It’s sophisticated, interconnected, resourceful and your shop window and particularly given the exponential rise in growing army of digital fraudsters. demand for mobile commerce, it’s likely to be your most cost- Breaches pose serious dangers to all effective and lucrative income stream for the foreseeable future. consumers, retailers and ecommerce platforms Mobiles and hand-held devices offer enormous opportunities alike. It’s clear ecommerce is often at the thin and a host of innovations are already proving to be a huge end of the global threat. They are the richest benefit, particularly online platforms which allow customers source for payment and identity data and to directly submit proof of identity in an instant, by taking a also offer legitimate-looking opportunities to photo of documents on their smartphone or other device, rather quickly monetise, move and cash-out any ill- than being obliged to rely on lengthy manual and paper-based gotten gains. Sadly, many organisations are still checks. to deploy effective defences against this unseen, Even after a fraud attack has happened, risk can still be unregulated and networked enemy. managed. Arming your ecommerce site with a layered security When a fraud attack is spotted, organisations strategy that includes device intelligence to block compromised need to quickly complete a forensic review, card use, fraudulent enrolments, phishing attacks and attempted identify and clarify the points of vulnerability, account takeovers, will always be worth the investment. analyse precisely what data was stolen and how the fraudsters got away with it. The About the author – Charlie Connor initial scope of investigations quickly expands Charlie is a Director at Experian, where he heads the company’s into something much larger – especially if retail and financial services teams. Based at the company’s regulators and politicians wade in. Complete London offices, he is hugely experienced in overseeing the visibility of all customer data and transactions delivery of fully compliant solutions for customer acquisition, across all channels is critical. Keep drilling- validation, age and ID verification, payment channels, fraud down until the root cause can be identified and prevention, device intelligence and anti-money laundering protected against any repeat attacks. technology. For many retailers this level of deep and vw consolidated insight rarely exists. Do you really
02 July 2014 www.retail-systems.com
experian.indd 2 18/07/2014 09:51:25 Fraud/loss prevention supplement Cloud exposure Feeling the heat Focus on loss prevention, CNP fraud For retailers of all shapes and sizes, IT outsourcing sector has undergone and PCI DSS the cloud is more and more appealing major change in the last 10 years
July 2014
First choice for technology purchasers in multi-channel retail Retail fusion Cover story [contents] In-store media in a rapidly changing retail world
Online: www.retail-systems.com Twitter: @RetailSystems LinkedIn: Retail Systems Readers Group 26
cover.indd 1 17/07/2014 10:30:48 [ ]
Editor Scott Thompson [email protected]
Deputy Editor Michelle Stevens [email protected] retail fusion
Contributing writers The retail landscape is changing David Adams, Glynn Davis, Liz Morrell, rapidly and in-store media has Kate O’Flaherty, Hannah Prevett responded accordingly Design & production Jason Tucker features [email protected] [ ]
Advertising [28] [36] Lisa Gayle fEEling thE hEAt ClouD ExPoSurE [email protected] The IT outsourcing sector has undergone For retailers of all types and sizes, the cloud is Sonia Patel significant change, Hannah Prevett observes becoming more and more appealing [email protected]
Circulation [32] Joel Whitefoot SECurity rEviEwED [email protected] Retailers and FIs sounded off on various issues and Subscriptions challenges during the Keynote Theatre sessions at 01635 588 861 [email protected] Infosecurity Europe 2014 Subscription rates £98 p.a. in the UK £140 p.a. elsewhere Cheques made payable to: Supplement Perspective Publishing Limited and [ ] addressed to the Circulation Dept. [18] [22] Main switchboard: invAluAblE toolS A long roAD 020 7562 2401 David Adams looks at the solutions to an age old Retailers are still struggling with PCI standards 10 Advertising telephone: problem for retailers years after launch. 020 7562 2400 Kate O’Flaherty reports Managing Director John Woods [20] Publishing Director Mark Evans nEw thinking Postal address: The retail sector has, whisper it, emerged victorious Perspective Publishing, in the fight against CNP fraud. Glynn Davis looks Sixth Floor, 3 London Wall Buildings, London, EC2M 5PD at the key factors behind this
Also in this issue 10,000 average net [ ] circulation for the period Jan to Dec 2013 [04] Editor’s letter [12] Roundtable review [40] BRC conference review [06] News at a glance [16] Retail worlds [44] Market guide All rights reserved. The publishers do not necessarily [08] General news [30] Profile [51] Signing off agree with the views expressed in this journal. [10] News and analysis [35] Diary ISSN 1369-5037 Printed by Warners (Midlands) plc All rights reserved July 2014 03
03_contents.indd 1 18/07/2014 09:54:33 RS [comment ] ] [ editor’s letter Sailing towards a new era Our Editor, Scott Thompson, just spent a week experiencing the pros and cons of a cashless society
recently returned from a P&O popular as ever amongst consumers. cruise around the truly beautiful Looking at some other recent research, Norwegian fjords. Never been? You awareness of contactless payments in really should. But I digress...This was the UK is on the up, according to eDigi- my first time on a cruise ship and I talResearch’s latest Contactless Payment wasn’t expecting to get material for my next Index results. After years of hype but little IEditor’s Letter from it, but as I boarded substance, 58 per cent of the consumers the vessel I noticed that a cash free system surveyed report seeing a contactless pay- was in operation. Passengers register a ment point or symbol, an increase from credit or debit card at check in and are just 15 per cent in 2012. Concerns around given a Cruise Card (which also serves as security, fraud and technical issues remain their pass on and off the ship and as their a key barrier to widespread adoption, cabin door key). They then produce the however. Whilst interested parties must card when buying drinks, duty free goods, also challenge people’s perceptions of gifts etc in the ship’s many, many bars and the technology, as well as alter consumer shops. It’s a payments model that worked behaviour. Seventy one per cent of the 43 perfectly well and was in use by a wide age per cent who said that they’re not inter- range (the stereotype of cruises being for ested in using contactless cards felt that the old duffers no longer holds true...yes, there technology is just not necessary. were old people onboard, but also many So, whilst the death of cash might be a young couples and families with children). reality on the high seas, it’s far from the The only downside came when my final case on the High Street. Speaking with statement was delivered to the cabin on the my consumer hat on, cards and notes and last night. There were cries of ‘ouch’ and coins work perfectly well. The brave new ‘how much?’ as I surveyed the damage. I’m world of payments sometimes feels like a not sure if I would have been so care free glut of startups, the banks etc trying to fix in my spending if I’d been carrying cash. something that isn’t broken. Contactless, Another expensive cocktail you say? Nah, for instance, allows me to pay for a sarnie I’ve run out of money. Let’s call it a night. a few seconds quicker than if I were using Back on dry land and new BRC data my debit card. Wow. I recently switched shows that online, contactless cards, ex- banks, moving from NatWest to Nation- press stores and self-service tills have con- wide and in the process losing the contact- tributed to the increased use of debit cards less facility on my debit card. I can’t say I to 50 per cent of retail sales value in 2013, miss it all that much. up by 11 per cent over the last five years. In a recent Vista Retail survey, only 18 Debit cards now account for 32 per cent of per cent of those UK consumers polled the number of transactions compared to 30 thought British retail would be cash-free per cent last year. within the next 10 years. There was also Cash, however, remains the dominant support (27 per cent) for the view that it method of payment, with 53 per cent of would never happen. But all is not lost. It transactions still made in this way. A new will happen at some point. What’s needed Payments Council report, UK Cash & is more encouragement from staff to use Cash Machines 2014, also shows the strong new payment methods and more educa- Scott is Editor of Retail Systems. role coins and notes continue to play in our tion around the benefits. Throw in such He can be contacted at: scott. society. Although usage levels are down mobile initiatives as Zapp and Paym and [[email protected] ] from last year, there has been little change perhaps then the notion of a cashless soci- over the past five years with it remaining as ety will no longer be all at sea.
04 July 2014 www.retail-systems.com
04_letter.indd 2 26/06/2014 11:50:40 [ case study ] RS Eurostop Aquascutum installs new retail management and EPOS solutions from Eurostop
nventor of the timeless classic Trench Coat Th is is a key consideration as Aquascutum have opened a selects systems from Eurostop new store on Great Marlborough Street and are looking for Eurostop, a specialist supplier of retail manage- other store locations to expand their retail presence in the ment solutions for the fashion, footwear and near future.” general merchandise sectors has been chosen by Aquascutum. Famous for inventing the fi rst waterproof fabric and designing the trench coat, luxury clothing brand Aquascutum changed their business systems aft er they were sold by the Jaeger Group. About Eurostop Th e retailer has selected Eurostop for retail management Founded in 1990, with operations in London, Singapore and and EPOS for its standalone stores, its concessions in John Shanghai, Eurostop provides complete solutions for Retail I Management for the Fashion, Footwear and General Merchandise Lewis and House of Fraser, and for managing stock for its sectors encompassing both hardware and soft ware. online store. Bob Gurney, IT Consultant at Aquascutum says; “We Eurostop’s fl agship products consist of: needed an off -the-shelf package that we could implement e-rmis: A suite of head offi ce management applications. e-pos: EPOS system for standalone shops, concessions and franchises quickly and easily and that would integrate with our STYLE- that can be easily integrated with e-rmis for larger users. man product development and wholesale system. Eurostop m-pos: a mobile version of e¬ pos enables sales transactions and stock has a good reputation within the market and were able to enquires from anywhere within the store. provide us with a system that matched our immediate re- e-commerce: Custom e commerce solutions for Independent retailers that provides a hosted and fully integrated service. quirements and had the ability to support future growth.” e-cubes: Data Mining. A bespoke reporting tool which allows the Th e Eurostop retail systems are integrated with both the slicing and dicing of data as well as selective publication of results and STYLEman wholesale management system and the retailer’s graphical representation. e-commerce system. Th is ensures that Aquascutum can e-time: Th e capture of staff working hours which aids in monitoring both stores’ and staff performances and productivity. manage all their business processes for the diff erent chan- e-ful lment: Intelligent optimisation of e-commerce orders for nels within Eurostop. Th e live sales and stocks give accurate multi-channel retailers. visibility of branch performance and Merchandisers can Estate Manager: Middleware layer that enables the fast, reliable quickly react to market trends. exchange of product and pricing data between e-pos and most major Aquascutum will also be using Eurostop eCubes ERP solutions data mining and reporting facility. Th e e-cubes are a All Eurostop’s solutions can be fully integrated with other reporting tool that will allow the Head Offi ce team at management and business systems, and all major ERP systems. Aquascutum to slice and dice the data to compile bespoke As well as advising on and supplying suitable hardware, Eurostop also reports including WSSI. undertakes training, support and custom development. Its systems Phillip Moylan, Sales & Marketing Manager at Eurostop are available in several diff erent languages including Chinese. said; “We are delighted to have such a prestigious and well loved brand as Aquascutum using the Eurostop soft ware. For more information visit: www.eurostop.com or contact: Phillip Moylan, Eurostop Limited, Tel: 020 8991 2700, We strive to ensure that our system is quick to deploy and Email: [email protected] easy to use, enabling new shops to be up and trading fast.
www.retail-systems.com July 2014 05
rs_late-space_advertorial-right.indd 3 17/07/2014 11:55:49 RS [ at a glance ]
at a glance [ Rounding up the major retail technology news from the past two months ]
Sainsbury’s is to trail selling its forecasts, Schwarz Group (famous ASOS stopped taking orders over Tu clothing range online. From for the successful Lidl discount the weekend of 21/22 June after August, it will offer womenswear, concept) will overtake Carrefour its main Barnsley distribution menswear and childrenswear as Western Europe’s largest centre was badly damaged in a clothing on a bespoke website, grocery player – generating sales fire. The DC is home to over 10 with an invited group of customers of more than Euro 80 billion. This million boxes of packaging and is in the Midlands able to choose is an unprecedented power shift more than 60,000 square metres between click & collect and in European retail – fuelled by the in size; it’s believed that 20 per home delivery services. Orders near-unstoppable growth of the cent of the stock was damaged, will be fulfilled from its depot in format across Western European although ASOS said that it Bedford, which serves the 400 markets, bar Germany.” was fully insured. A criminal stores selling Sainsbury’s clothing. He added: “This is being driven investigation has been launched Robbie Feather, online director, by discounters becoming more to establish the cause of the fire, commented: “Our customers want mainstream by (1) targeting with South Yorkshire Police to shop with us through a range High Street locations, (2) listing treating the incident as deliberate. of channels that allow them to more branded products and (3) A statement posted on the online shop whenever and wherever they introducing more fresh food. fashion retailer’s Facebook page want and they’ve been asking us These fundamental changes said: “We experienced a fire in to extend our online service to our mean this readjustment will our warehouse tonight (Friday, clothing. The pilot will allow us to be permanent rather than a 20 June) and fortunately nobody work with a group of customers temporary blip. The figures was hurt. We understand there has to build the right customer speak for themselves. Against been substantial damage but it’s experience.” a backcloth of slowing trading too early to ascertain the extent. across Western Europe we expect We will not be taking any orders Lidl owner Schwarz Group will the discount sector to grow sales in the meantime. Sincere apologies become the number one grocery at a compound annual growth rate for the inconvenience.” retailer in western Europe by of more than four per cent in the South Yorkshire Fire and Rescue 2018, according to a Planet Retail five years to 2018, with Schwarz had put the fire out by Saturday report. David Gray, retail analyst, Group outperforming the sector morning. It said in a statement: commented: “The discounters as a whole with growth of almost “At its height, the fire was tackled are now a growing force in the five per cent. This compares to by 10 fire engines, an aerial ladder Western European grocery the hypermarket and superstore platform and a High Volume landscape, so much so that a channel with growth of less than Pump. The fire involved several change is in store at the very two per cent. Convenience is also floors of the building and fire top. By 2018, according to our a burgeoning phenomenon, now crews worked hard to quickly one of the fastest-growing bricks bring the blaze under control. An and mortar channels. France investigation into the cause of the and the UK will continue to fire will begin later on Saturday drive this growth – with the UK (21 June).” particularly advanced, accounting The e-tailer’s site was up and for more than half the region’s top running again by the morning of 10 convenience players. Expect Monday, 23 June. The fire is the further work on the roll-out of latest setback in what is turning convenience formats across the out to be a challenging year for region over the next 12 months ASOS. A profit warning during – stoked by global powerhouses early June wiped around £1.2 Sainsbury’s is taking Tu online. Carrefour and Tesco.” billion off its market value.
06 July 2014 www.retail-systems.com
06-07_ED-at-a-glance.indd 2 17/07/2014 10:02:40 [ ] at a glance [ RS
This one caught many in the and iOS apps, and mobile site. retail sector by surprise...Dansk Apps deliver smooth experiences Supermarked has formed a joint that reflect the main site and John venture with Sainsbury’s which Lewis branding with great user will see its Netto brand return to experience features, for example these shores. The pair are teaming ‘double tap to zoom’ on product up for a trial consisting of 15 Netto images, an in-store crossover stores to be opened by the end of feature in the form of a barcode 2015, with the first opening their scanner and a location-enabled doors in the North of England store finder. Challenging year for ASOS. later this year. If this proves Other retailers that performed successful, the next stage will see well include Tesco (67 per cent), Ocado is trialling click & collect a roll-out across the country. Each Your M&S (65 per cent) and formats, including lockers, at partner’s initial investment in the Next (60 per cent). David Bowen, its head office. Rivals Tesco, joint venture will be £12.5 million, commerce product manager at Sainsbury’s and Asda have already and given start-up costs, they both EPiServer, commented: “In mobile rolled out lockers to locations expect to incur a post-tax loss in commerce it is the innovative including London Underground the region of £5-10 million up to little touches that make the stations. In terms of following 31 March 2015. Morten Möberg biggest difference, for example the suit, a spokesperson for the Nielsen, previously managing John Lewis ‘double tap to zoom’ online grocer told Retail Systems: director of Netto International message, Asda using location- “There’s nothing imminent. We’re in Germany, will head up the based services to provide petrol still testing formats to ensure any venture. prices at the nearest store on its service would be as customer Netto’s previous attempt to crack app home screen and ASOS using friendly and efficient as the rest of the UK ended in 2010 when it editorial content to highlight our business.” sold its stores to Asda. Dansk celebrity looks. In order to Supermarked and Sainsbury’s say differentiate themselves and gain Smartphone wielding shoppers that the new incarnation will be a competitive advantage in what at Westfield London, Shepherds departure from the format that left is now a mobile first industry, Bush, can now pay for car the UK market, focusing on great retailers must connect content parking via PayPal’s app. To value for money but also featuring with commerce and personalise mark the announcement, PayPal a fresh food offer as well as an the experience for a diverse, and and Westfield are offering free in-house bakery offering Danish growing, group of consumers.” parking on weekdays and all day breads and pastries. at weekends for £3 (a £6 discount) eBay and Argos revealed plans for visitors using the iPhone John Lewis offers the best to extend their offering of click and Android app. When they consumer mobile shopping & collect services from an initial download it they can sign up for a experience in the UK. And trial of 50 eBay sellers and 150 free account and select Westfield it’s closely followed by Argos Argos stores to 80,000 and around London Parking from the ‘Local’ and Amazon UK, according to 650 respectively. The partnership section. On the £6 voucher, they EPiServer’s Mobile Commerce commenced in September last click on ‘Save this offer’. The 2014 report. However, the study year. Buyers choose ‘Click and voucher will turn green, which of the UK’s top 20 retailers, now Collect at Argos’ as the delivery indicates the offer has been applied in its third year, also reveals option in their eBay checkout and to their account; they can then many are struggling to deliver the select their most convenient store. scan their code at the Westfield sophisticated and friction free They receive a message when their London machines. Payment is mobile commerce experience that item is ready for collection in their facilitated through APT Skidata consumers now expect, reflected selected store and pick it up at a hardware and software. GBK, by an average score of 47 per cent, dedicated collection point. Eligible wagamama, Prezzo, Carluccio’s, compared to 55 per cent in 2013. sellers will be enrolled in the Oasis, Coast, Karen Millen, John Lewis scored 75 per cent, service and they prepare orders Warehouse, Thomas Pink and Sole demonstrating a consistently good for despatch as normal with eBay’s also accept PayPal m-payments at mobile strategy across its Android technology taking care of the rest. the shopping centre.
www.retail-systems.com July 2014 07
06-07_ED-at-a-glance.indd 3 17/07/2014 10:02:42 RS [ news ]
IN BRIEF
TfL and Amazon have announced a partnership to install the e-tailer’s lockers at London Ripe for innovation Underground station car parks. Retail Systems chats to Frank Tinschert of Quintiq about These will be located at Finchley Central and Newbury Park. how real-time logistics needn’t be the impossible dream Customers select a location when they get to the checkout and are RS: Is real-time logistics in the retail FT: Supermarkets and retailers have then given a unique pick-up code sector just a pipedream? It sounds great, more information than ever about their in order to retrieve their items. but a major complaint by online shoppers customers, however the data on its own The announcement follows similar continues to be around the delivery side is meaningless. Companies need to put TfL tie ups with the likes of Tesco, of things (delivery slots that don’t suit technology in place to analyse and under- Waitrose and Asda. them, items delivered while they’re out). stand that data in the context of each in- FT: First let me give you my definition of dividual. Quintiq’s software creates what Bleep UK supplied over 500 EPoS ‘real-time’. If you’re a retailer, the easi- we call ‘intelligent addresses’ which tie terminals for retail stores at the est way to approach logistics is to wait relevant, useful data to a customer’s post- World Cup in Brazil. Its TS-910 until the end of the day, see which orders al address. For example, historical data all in one EPoS terminal was you have, and then plan for fulfilment. on their preferred delivery times. When installed in official merchandise However, customers are increasingly it comes to guaranteed one hour deliv- stores at all 12 venues across the demanding something more. They want ery slots, there are a myriad of factors to country, in and around the new their purchases faster, which requires a account for, such as how many different or redeveloped stadia which were different approach to the whole logisti- available routes are there? What’s the split across two time zones. cal process. To me, ‘real-time logistics’ most efficient route for getting grocer- occurs when a retailer has a threshold ies from your depot to your customers? Thomas Pink has teamed with Red for a specific number of orders to come What happens when the environment Ant to bring interactive in-store through. On any given day, as soon as changes – a customer alters their order at technology to its new Terminal 2 that quota is reached, a logistical process the last minute, or there’s a snow storm store in Heathrow Airport. The is triggered to get those orders to custom- preventing delivery? The sheer number of tech vendor has built a multi- ers as soon as possible. This certainly options available is overwhelming; even platform software solution based isn’t an easy process, but it is achievable. for a small company with just six vans, on HTML5 to run on a Microsoft We’re already seeing some operators offer the number of possible permutations is Surface table. Store visitors using consumers guaranteed one hour delivery equivalent to the number of atoms on the table will have access to slots, and in the future we’ll see 30 minute planet earth. such features as Personally Pink, delivery slots on offer – and beyond that The way we can help retailers lies in allowing customers to design consumers’ expectations may rise even our ability to analyse historical data and their own shirt and the retailer’s further. Consumers are increasingly use that to predict the types of deliver- Facebook and Twitter feeds, as expecting this level of convenience when ies we expect, before overlaying actual well as QR code integration and it comes to getting their hands on their order data to continually optimise the promotion of the latest campaigns. goods, particularly food and perish- process. The end result is that the retailer able items like flowers. Retailers that are becomes much more efficient. Its vehicles Boots has launched an iPhone in a position to offer excellent delivery can deliver more goods to more people in and Android app linked to its services have a huge advantage over their less mileage, while matching the expected Advantage card loyalty scheme. competitors, given that this is such a ma- delivery time window. The key is to be Members log in to the My Offers jor pain point for today’s online shoppers. able to analyse data in an intelligent, section to get personalised offers; automatic way, and combine this with they select the ones they want and RS: Many supermarkets are now offer- an understanding of what is happening these are loaded onto their card, ing specific delivery timeslots in a bid to at any given time within a business – for ready to redeem in-store, thus steal a march in the hugely competitive example, anticipating that there may be a doing away with paper vouchers. online sector. Could you give us some peak in orders when a specific promotion Boots piloted a Christmas app in insight into the chains of events taking is running on the retailer’s website. In ad- 2012, but this is its first shot at a place at the back end to ensure brands dition, while data is processed automati- full mobile retail offering. can pull off these real-time logistics? cally, the business also needs to build in
08 July 2014 www.retail-systems.com
08-09_ED-Gen-news.indd 2 17/07/2014 14:21:43 [ ] news [ RS
QUOTE/UNQUOTE the opportunity to interact with people. information on what they buy in-store, A delivery route could be optimised but you could find opportunities to suggest Choice quotes from this issue of RS if an unforeseen incident takes place different delivery slots or locations to which means the driver can no longer your customers which may in fact be deliver a customer’s shopping in the more convenient for them, at the same “The brave new world of pay- guaranteed time slot, they should have time reducing costs by streamlining ments sometimes feels like a glut the option to contact the customer and your logistical processes. of startups, the banks etc trying advise them of the delay. That said, small to fix something that isn’t broken. disruptions can actually be accounted RS: Sainsbury’s recently announced its Contactless allows me to pay for for in the optimisation process. new click & collect service which will a sarnie a few seconds quicker allow shoppers to buy groceries online than if I were using my debit card. RS: What are the benefits on offer to and pick them up at tube stations. Is Wow. I recently switched banks, in those retailers who succeed in pulling this where you see the market going the process losing the contactless this off? and what other retailer innovations and facility on my debit card. I can’t FT: Retailers are constantly looking for developments can we expect to see in say I miss it all that much.” p. 4 ways to foster customer loyalty and pro- terms of real-time logistics over the vide services which will improve their next year or so? ‘stickiness’. Particularly in the supermar- FT: I certainly believe that we’ll start to ket sector, where price wars continue to see retailers viewing the logistics depart- “It’s not unusual to outsource to a squeeze already tight margins, grocery ment as an area ripe for innovation, re- big organisation, let them do what emporiums that can offer customers the sulting in more opportunities to delight they do, fix it, change it, and then services they want, such as guaranteed consumers – and increase profits. Once leave before the end of the five or 30 minute delivery slots, can seriously you’ve streamlined your delivery process seven year contract. That was un- increase their competitive advantage. and built up a wealth of connected heard of ten years ago.” pp. 28 - 29 For years retailers have been working to intelligence on your customers, new capture data on their customers in a bid opportunities present themselves. In the to better understand, target and sell to future, the point of delivery could even them. It’s an industry already rich with trigger additional sales opportunities. “The payment industry’s vice like data. Once you analyse that information For example, if a customer orders all the grip on the past frustrates me. you have an opportunity to optimise makings of a delicious dinner for two, Whilst online and mobile pay- the service you’re providing people. For they may also want to order a bottle of ment innovation continues to example, with historical data on what wine to enjoy with that meal, that even- surge forward, traditional ‘cus- groceries a customer has ordered to be ing. If you’re able to identify that the tomer present’ payment journeys delivered to their home or office, plus customer is willing to pay a premium to have changed very little. Finally, get that bottle of wine, chilled, within omnichannel retailing is proving the next three hours, in a guaranteed the catalyst to bring online/mobile timeslot, you know that they could be payment innovation to the bricks open to promotion. If that person is a and mortar channel.” p. 16 regular customer, with a loyalty card and your shop’s app on their smartphone, you may also know what type of wine is their favourite tipple and where they “When people bang on about Big live. You could make them aware of a Data, it’s understanding promotion through an app, or direct the traces that customers leave communication, offering them a rel- that grabs my attention. In the evant, personalised offer at the point of connected world, everything delivery, turning that logistical process leaves a trace. If you give cus- into another sales opportunity. Right tomers relevancy that enhances now, the delivery process isn’t one that the experience, then they’ll trust customers relish. But supply chain plan- you to sift through the traces ning and optimisation has the power to they leave.” pp. 40 - 43 Tinschert: Number of options overwhelming. revolutionise that part of the sales cycle.
www.retail-systems.com July 2014 09
08-09_ED-Gen-news.indd 3 17/07/2014 14:21:46 RS [news & analysis ] ] [ global news Going mobile in Turkey he UK retail market may be one of the most for security reasons, and customers who prefer to use mature in terms of e-commerce, but many their mobile phone for convenience,” she explained. e territories in Eastern Europe and Africa have Turkcell Wallet also launched in 2012 on Android, iOS been making greater strides than the UK in and SIM-only, reaching more than one million custom- contactless and mobile payments. Mobile in ers – 70 per cent of whom were unbanked, and o en in particular has become an important payment stream in remote locations or with irregular incomes. e wallet Tcountries where signi cant portions of the population do could be loaded with cash or card details, said Koyun- not have a bank account. pinar, with merchants able to accept payments through June’s PayExpo conference at London ExCel saw the existing Turkcell-enabled terminals. spotlight shone on Turkey and its adoption of mobile Another company making a foray into this space was payments and digital wallets. In a population of 75 mil- Turkey’s Interbank Card Center (BKM), which also lion, 20 million people are unbanked, yet there are 64 rolled out a national digital wallet service at the end of million mobile subscriptions – o ering an opportunity 2012. Called BKM Express, customers could log in either for retailers, telecoms operators and banks to reach online or via a mobile app, with the ability to load pay- customers though their handsets. Turkcell, the largest ment cards and transfer money between mobile num- mobile network in the country with 34 million subscrib- bers. So far 15 banks and 450 merchants were onboard, ers, has rolled out mobile payments, pre-paid cards and commented Soner Canko, CEO at BKM. She explained a digital wallet. Its mobile payments facility was already that customers favoured the ability not to share payment used by four million customers and 1,300 merchants, said card details directly, and that security was always at the Duygu Inanç Koyunpinar, senior product manager at forefront of the interbank group’s payment developments. Turkcell. “Who uses it? Customers who don’t have credit “If customers lose trust it’s irreparable for us – so it’s very cards or don’t want to give their card details to websites important to make [digital wallets] secure.”
Website review: Sainsbury’s
ainsbury’s is now live with its new multi-channel grocery platform, www.sainsburys.co.uk, which aims to o er customers a more intuitive shopping experience. Salmon has re-platformed its e-commerce platform from Blue Martini to IBM WebSphere Commerce as well as an additional eight Ssystems to deliver the enhanced and extended customer experience that all self-respecting omnichannel retailers should be striving for. Highlights include: Improved navigation – search by favourites, special o ers, new products, top brands; Im- proved recipes – click and add ingredients to trolley; Fa- vourites – updated quicker as well as o ering inspiration; Data-driven merchandising allowing more personalised o ers based on what a shopper puts in their basket; Call centre capability; Delivery slot booking and van/driver allocation capability; In-store support tools: Integration into 225 stores across the UK; Business data repository supporting +90 reports. e site includes support for thousands of simultane- ous promotions (calculated real-time in the basket) and a single customer view for grocery and general merchan-
10 July 2014 www.retail-systems.com
10-11_news-analysis.indd 2 26/06/2014 11:56:30 news] & analysis [ RS site review
dise. New optimised sites for mobile and tablet are also neither did I exist solely on a diet of sickly sweet hoops in available. Pages are now rendered in HTML, using User tomato sauce). Anyhoo, I eventually recovered from such Interface Design best practices with CSS as standard to traumatic incidents and decided to give them another go mirror the same customer experience across browsers. last year as I felt that Tesco were letting things slip and Click & collect functionality is currently being trialled to I’ve always preferred the Sainsbury’s in-store experi- a sub-set of customers who can collect their goods from ence and their own-label brands. So I’ve witnessed the more than 1,000 stores. In addition, Salmon developed a aforementioned changes come into e ect and can report number of bespoke applications and developed 80 plus that overall I’m a happy shopper. e site looks and integration points to back end systems and the supply works better and I like a lot of the new features. Naviga- chain to support reporting and Sainsbury’s entire multi- tion is de nitely easier than before and the Favourites channel proposition. section does indeed update more quickly (it tended to be All of which sounds great, but how does it play out sluggish and hit and miss in the past). And, I’m pleased from a customer POV? I’ve been shopping online with to report, they’re even getting it right in the delivery Sainsbury’s for several years, o and on. I say o and department. As I write this, the last three deliveries have on because I jumped ship to Tesco a few years back, arrived early with the driver giving me a call and asking due to Sainsbury’s being a bit rubbish when it came to if it was OK to drop by ahead of the allotted time slot. By the delivery side of things (one of the low points being all means, my good man...Now, having been the victim of a driver dropping o several bags of dog buscuits and various late and even worse no shows, that is something I Spaghetti Hoops and looking put out when I informed thought I would never write! him that wasn’t what I ordered. I didn’t have a dog and Review by Retail Systems’ resident online shopaholic
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10-11_news-analysis.indd 3 01/07/2014 11:56:02 Sponsor RS [ roundtable ] Planning ahead e latest Retail Systems roundtable, held in association with JustEnough, discussed the art of coordinated retail planning, how merchandisers are currently allocating stock across stores, and what the planning process might look like in the future for multi-channel retailers
Jeremy Wilson: I’ll begin by asking what your processes are for allocating stock across each outlet. Are stores graded?
Joanna Cook: At Debenhams, most of the grading is done within the merchandising function. We tend to look at how much space the stores have and grade them into high and low density based upon their sales – so fairly traditional. Something we would probably like to do more of is look at clustering the stores, and being able to send stock out a bit more dynamically to the stores that do things particularly well.
Adam Rose: We want to understand this will start to in uence exactly what is ranged in stores, and customers on a much more local level and we are only just on the cusp of taking all that in. then layer into that what is happening from a multi-channel perspective. In addition Camilla Cunnington: As the content of our museums is so to bricks and mortar, we are selling from di erent, we have very few SKUs that cover all of our sites – the kiosks and have click & collect, which are Science Museum in London, the National Railway Museum in growing very quickly. In the near future York, the National Media Museum in Bradford and the Museum of Science and Industry in Manchester. But we also have pop-up stores opening within the Science Museum, and at the moment Attendees planning for these is a very manual, spreadsheet-based process.
Chair JW: e results of the recent Retail Systems and JustEnough Jeremy Wilson, COO, Practicology survey show that an ad-hoc assortment planning process is the most common one for retailers, and that appears to be irrelevant Panellists to the size of the organisation. It’s quite fascinating that we’ve Joanna Cook, head of supply chain, Debenhams had ERP and planning systems for years, yet 63 per cent of Camilla Cunnington, merchandiser, Science Museum assortment planning is being done using spreadsheets by each Iain Nicol, regional director, Europe, JustEnough buyer and planner. Is that what you nd in your organisations? Adam Rose, trading director, Debenhams Charlotte Tandy, assistant merchandiser, Science JC: Spreadsheets have served us ne up until now as Museum traditionally we are a bricks and mortar retailer; spreadsheets
12 July 2014 www.retail-systems.com
roundtable.indd 2 17/07/2014 10:17:10 Sponsor [ ] [ RS
are actually incredibly exible and the merchandisers are very knowledgeable about their product areas. But we’re at the point where we’re starting to grow the international franchise business, we’re growing online, and we have started to do things like ship product directly from our manufacturers to our franchise partners in the Middle East. And if we want to manage a complex business that is evolving, the spreadsheets are going to struggle to keep up. But there is a bit of fear for some merchandisers who are worried they might lose control over where to send things under a new system, or lose the ability to put their own stamp on it.
JW: at’s interesting – people are o en wedded to their own spreadsheet, because they can do what they want with it, how they want it and when they want it. ere is some fear of being straightjacketed into a ‘big brother’ system.
Iain Nicol: I think each retailer and each buyer knows their area very well – and spreadsheets can work well for an ad-hoc process. What’s di cult is managing the end-to-end planning think the US is also more process a level up from the ad-hoc processes. For example, managing reconciling the plans to ensure they support the Isophisticated, but one overall nancial goals of the organisation. of the reasons for that JW: Who feeds back to the buyers about what’s on trend and where the gaps lie? is clustering – it is much
CC: We work in the same o ce as the buying team, so we do the more prevalent in the US” sales analysis and then we go through the range of results with the buying team and discuss which lines are and aren’t working. moment is that if we want to understand, Charlotte Tandy: We also look at how many lines have been for example, how much women’s outerwear discontinued, what product groups buyers need to re-source we are buying in totality, we have to and if there is a certain product group trending down that we roll it up across all of those individual wouldn’t want to re-source. e buyers also work on a ‘hot now’ spreadsheets. e process is there, but it basis, so if they hear that something is going to be the next big is a lot of e ort, so there is an element of item we get it in. As a museum and a gi shop we also have a standardisation we try to encourage. certain base of branded products that we have to support, as well as trying to be forward thinking in what we stock, so it’s AR: If we were to look back at those about getting the balance right. classi cations in the retailer survey, a lot of what we do I would put into the category JW: Who validates and checks the ad-hoc process to make sure of ‘mature spreadsheet-based process’. If it works? the world was just about UK store retailing, we would be in a good state of health to JC: We have varying levels of controls and quite a rigorous sign- take on the future, but because our online o process in place. Each division has a head of buying and head business is growing so radically, and we of merchandising, then a nance team sitting on top of that, have got very big international ambitions, which all feeds through as well. But as our buying teams are bolting those two on to that core is when structured by brand, one of the things that is hard for us at the“ the tipping point comes. ” www.retail-systems.com July 2014 13 roundtable.indd 3 “ 17/07/2014 10:17:18” Sponsor RS [ roundtable ]
JW: Is it e-commerce or international that is causing that complexity?
AR: Probably a combination, but I’m leaning more towards the international complexity. We have 70-odd stores in about 30 di erent markets to date. e more we get into di erent markets and take on di erent climates and di erent demographics, the more the range complexity starts to build.
IN: You mentioned that the Science Museum’s stores have a high level of product churn that changes throughout the year – what is driving that?
CC: So there are about 1,800 SKUs across all four stores at any one time, but we have 3,000 new SKUs coming in each year, which is quite a big churn. e main driver is around keeping up-to-date with JW: And what nancial metrics play into your planning? new products on the market, as we are trying to be more innovative with new CC: Margin and gross pro t are our two key performance technology and new products. But there is indicators at a category level, and then we look at spend per also UK supplier availability and storage to head in-store. But we also look at overall store performance and consider. at SKU level.
JW: At Debenhams, how do you draw concession planning together to give the company a view of what should be allocated and merchandised within stores?
JC: at is done at a fairly high, central level, so the concessions t’s quite fascinating are managed by teams but pulled together at a top level. that we’ve had ERP and I AR: We have probably drawn on the balance of our range o er from a space perspective – so pro t density at brand and planning systems for department, and concession versus own-buy level. It’s a selection process to a degree for us, but then the concession decides what years, yet a recent Retail the ranging should be given an agreed amount of space driven by their performance. Within own-buy, we have good quality Systems and JustEnough information to make a balanced decision from a pro t point of view within UK stores. Again, it is a bit more challenging when survey shows that 63 you are trying to look from a pro t perspective internationally, per cent of assortment as the data needs to be at a higher level of granularity for that. planning is being done JW: How reactive can you be in terms of space and stock allocation? using spreadsheets by AR: In terms of moving stock and reacting we can do that each buyer and planner” instantaneously, but I think there is more that could be in place to make the right decisions in the rst instance or to make those
14 July 2014 www.retail-systems.com “roundtable.indd 4 ” 17/07/2014 10:17:25 “ ” Sponsor [ ] roundtable [ RS
reactions quicker. Demand forecasting is something we could be end up wanting a system that can be fairly doing to a higher degree. sophisticated to quite a good level of granularity and clustering, but when we Leading the way rst introduce it we may start fairly simply, just to understand it and get it bedded in. JW: Iain, who do you think is doing space allocation and inter- It’s a balance we have got to get right, to season exibility particularly well? make merchandisers realise that the system is not going to disempower them, but IN: e grocers are doing it as well as anyone. I think in general, empower them in terms of making better in the merchandising apparel space nobody in the UK is doing decisions. it that well. But space allocation and shelf merchandising is a lot easier to do when you have shelves as opposed to hanging or JW: We have dealt with a number of display facilities. Just from a pure planogramming point of view, retailers with sophisticated on-site being able to manage space in that way, being able to visualise merchandising tools and collaborative it and being able to allocate space by block performance is a lot tools who have not exploited them at easier to do and is far more mature in the grocery sector. I think all; where people have just gone to one the US is also more sophisticated, but one of the reasons for that training session then not touched it. is clustering – it is much more prevalent in the US. e US is ose organisations have never reaped the more accepting of pricing by cluster, but you can’t do that here, bene ts from these tools, because they are because customers are not happy if they see a di erent price either too scared of them or don’t trust in the same store down the road. e only area that clustering themselves enough to use them and to put is really appropriate for the UK is in assortment and range in the investment to deliver. planning. Assortment and range planning capabilities and IT solutions have not been that sophisticated until the last couple IN: Getting the balance right and of years. You need the data capabilities to be able to cluster encouraging that level of adoption is properly and at the right levels – by demographics, store size important. Even if it’s just explaining to or weather, etc – but you’ve also got to have the transactional people that the system can plough through processing sophistication to be able to apply that. a lot of things that you don’t necessarily want to, so you can focus on the things that JW: How big is the end of season post-mortem for retailers? need your expert attention.
JC: For us it’s massive. But it’s not just about waiting for the end of the season – you monitor the performance of your product on a week-by-week basis. en you know your product inside out, so by the end of the season while you’ve obviously got a more complete picture, nothing is a big surprise.
CC: It’s more speci c to e-commerce for us – certainly a er the Christmas campaign we do quite a detailed post-mortem. But for the retail stores it’s not a single event, I would say each month we look at a review of how each category is doing.
CT: And a er exhibitions, if we’ve had a pop-up shop. We also look at performance a er half term or a speci c event.
IN: How important is clustering to you?
JC: Not just across clustering, but across everything, it’s about understanding what we call ‘the art of the possible’. A lot of systems can do some very sophisticated things, but how quickly can we and should we introduce those into the business? Plus over time we can see needs evolving, so potentially we might
www.retail-systems.com July 2014 15
roundtable.indd 5 17/07/2014 10:17:32 RS [ q&a ] retail worlds
Steve Thomas, CTO, Omnico
RS: How did you get into the technology sector? Steve Thomas: The ZX81 ‘Bedroom programmer’ gave me a love of all things technical leading to a Computer Science degree and a first job battling DOS, the C programming language and value retailers – a baptism of fire! Technology has moved on enormously since and the retailer/IT supplier relationship has mellowed as both sides understand the benefits of working in harmony as strategic partners.
RS: Who has been the biggest influence on your career? ST: A CEO in a previous role, who taught me the fine art of balancing innovation, anchoring customers and delivering stable, scalable and supportable solutions. Burberry revitalised.
RS: Who in the sector inspires you and why? ST: Angela Ahrendts for embracing cool mobile payment innovation to the bricks technology to change retail customer and mortar channel. journeys. A single minded determination to focus on the brand putting digital RS: What technology can’t you live without? and mobile first and coining the phrase ST: Definitely my iPad and toaster – not ‘The CTO is at the front of the bus” all sure where I’d be without them! contributed to a revitalisation of the Burberry brand with a platform fit for RS: How do you relax? 21st century shopping. ST: GTAV, MasterChef and walking – although not all at the same time. RS: Which IT professional do you most admire? RS: What was your last retail experience both ST: Werner Vogels (Amazon CTO) for online and on the High Street and were they changing the face of both shopping and positive experiences? cloud computing. Personalised shopping ST: Online – Bank Fashion – PUMA on steroids and a realisation that their Suede’s for my daughter – very positive. private platform to deliver could be Informative throughout, highly opened up to the world. competitive on price and the fulfilment experience was transparent and efficient. RS: Is there anything that you dislike or that High Street – Halfords on a Sunday – frustrates you about the sector? Queues galore but ultimately served by ST: The payment industry’s vice like grip an informed and friendly store colleague. on the past. Whilst online and mobile In a nutshell customer service was great payment innovation continues to surge but it took a long time to get it, more forward, traditional ‘customer present’ staff please! A definite candidate for payment journeys have changed very mobile PoS enablement, take the basket little. Finally, omnichannel retailing is to the shopper as opposed to the shopper proving the catalyst to bring online/ queuing for the basket.
16 July 2014 www.retail-systems.com
48_retail worlds.indd 2 01/07/2014 12:13:02 fraud and loss prevention [supplement]
the eternal fight When it comes to fraud and loss prevention, the retail sector is winning battles but losing the war
[ Contents ] [22 ] [18 ]
[20 ]
invaluable tools David Adams looks at the solutions to an age old problem for retailers
new thinking The retail sector has, whisper it, emerged victorious in the fight against a long road CNP fraud. Glynn Davis looks at the Retailers are still struggling with PCI standards 10 years key factors behind this after launch. Kate O’Flaherty reports
www.retail-systems.com July 2014 17
supp-cover.indd 1 17/07/2014 14:31:57 RS [ loss prevention ] Invaluable tools
omnichannel infrastructures. The insider threat also remains David Adams looks at significant. But statistics from the Centre for Retail Research suggest retailers may slowly be winning the battle: shrinkage solutions to an age old declined to 1.32 per cent of retail sales in 2012/13, down from 1.37 per cent in 2011. Although the figure was surprisingly low problem for retailers in 2010 (1.29 per cent), the long-term trend is positive: ten years ago the figure was 1.77 per cent.
Different takes The cost of crime for retailers has fallen too, but only in two hrinkage is an eternal curse; the areas: card fraud, £85 million in 2012/13, down 29.2 per thieves will always be with us and cent; and employee theft/fraud, down 4.8 per cent to £1,681 it is impossible to guarantee they will be million. Costs of customer theft (£2,206 million), burglary and Scaught, except in unusual circumstances. cyber fraud all rose, as did supplier/warehouse fraud. Crime For example, Stephen Pile’s brilliant Book cost retailers £4,699 million; and they spent £995 million on of Heroic Failures describes the occasion measures to combat it, meaning overall crime-related costs in 1979 when David Goodall’s attempt to were £5,694 million. Some in the sector feel pessimistic. “The shoplift at BHS in Barnsley was foiled: “... problem that we’ve got is that the criminals are advancing and simultaneously seized by eight pairs of loss prevention technologies aren’t,” says Mark Stevenson, loss hands. The store was holding a convention manager at AF Blakemore, which runs the largest division of of store detectives”. Some retailers may SPAR UK. wish they hosted similar events on a Others insist that the technologies retailers can use to combat regular basis. Nor is shrinkage always so shrinkage, from in-store security hardware and CCTV to data visible: it also covers losses caused by waste analysis technologies, have all improved. The long-term trend and errors. Fraud remains a major issue, for CCTV systems to move away from analogue to digital and with criminals always on the look-out IP-enabled video networks continues. HD pictures have made for new opportunities, using gift cards, the systems more effective. They can also be controlled and for example; or exploiting operational monitored remotely. One Axis end user is clothing retailer blindspots in partially constructed SuperGroup, which uses a network video surveillance system
18 July 2014 www.retail-systems.com
18-19_loss prevention.indd 2 26/06/2014 11:58:38 [ ] loss prevention [ RS
supplied by the company in six UK stores. Using dome cameras can be even more costly.” For example, means Supergroup now needs only six to 12 cameras per store, promotions that have not been managed compared to around 30 when using its previous analogue effectively through EPoS software can system. SuperGroup is considering further enhancements, such increase wastage, when a promotional item as a feature that would notify staff when a customer entered the in a BOGOF deal is not properly recorded fitting room area. It plans to install the system in another 30 at the PoS. stores this year. Argos is using SysRepublic’s SECURE CCTV is an invaluable tool in the battle against crime and solution, which monitors transactions violence against staff at SPAR. “All our stores have state of at the PoS looking for possible fraud, or the art CCTV and we use remote monitoring in some,” says business processes that are inadvertently Stevenson. The company also uses remotely monitored audio increasing wastage. “We’re hearing that systems, which can allow the central monitoring team not just they’ve virtually doubled their success to communicate with staff but to pass information to police very rate for finding fraud and broken quickly in the event of a criminal incident. It can even enable processes,” says Biggs’s colleague Ken interaction with criminals while a robbery is in progress, which George, business development manager, tends to shift the criminals’ focus away from staff and onto the EMEA, at SysRepublic. A growing audio equipment. The overall aim is to ensure the safety of staff, number of retailers are using these says Stevenson. The company is also now using the online crime technologies within broader initiatives reporting tool Facewatch in conjunction with several police designed to improve their visibility of forces. The solution uses CCTV images to give police instant the movement of goods throughout the information about individuals committing crime in the store supply chain. Wilkinson Hardware is and allows retailers to report incidents to police online. “It’s working with Lodge Service to create really helping improve our relationship with police, because a remote monitoring and intelligence we’re not ringing them every five minutes,” says Stevenson. “I network, covering security, fire and access think it’s the best thing to happen for loss prevention since the controls for lone workers delivering goods launch of digital CCTV.” overnight. “It’s about looking at areas of In 2013 Co-operative Food began an anti-shrinkage pilot in risk and loss,” says Mick Phipps, head of 20 stores using technology supplied by Axis and installed by loss prevention at Wilkinson Hardware. Kings Security. Live surveillance footage from each of the stores “You can start to target the areas of highest in the pilot is streamed via broadband to a central control room loss, moving your resources to where they monitored by dedicated operators at Kings Security. Staff in the will give you the most benefit.” stores are able to communicate directly with the control room One technology that seems to have and operators in the control room can broadcast messages in been waiting to be the next big thing in individual stores. “So they can be listening and watching what’s loss prevention forever is RFID tagging. happening in stores and can make a proactive announcement Watt says Co-operative Food is planning to pre-empt shoplifters,” says Graham Watt, a member of to trial it in the near future, but that from the business loss team at Co-operative Food. “Or if there’s a a pure loss prevention angle it is difficult more violent incident underway they can say that they have for food retailers to make the business case contacted the police.” Results so far are encouraging: a 50 per to use it across all stores. “But as the price cent reduction in reported crime in the stores and a significant of the technology used with RFID comes reduction in unrecorded theft of goods usually particularly down in the future maybe it becomes attractive to thieves. The data the system records also informs a tactical solution you can use in some risk decisions and loss prevention strategy. In future the IP environments,” he says. system can be linked into exception based data analysis systems The eternal curse remains, as does and fraud detection systems at the PoS. the gap between the aspirations that More retailers are using data analysis to tackle shrinkage. technology vendors have for their systems SysRepublic supplies such solutions to retailers including Tesco, and the practical reality for hard-pressed Sainsbury’s, M&S, Ikea and Asda. “Fraud is an ongoing problem retailers. But, slowly, technology is helping for all retailers, but more retailers are looking at total losses,” them to fight back more effectively, to says Philip Biggs, CEO, EMEA at SysRepublic. “It’s not just reduce opportunities for shoplifting, fraud about a customer working in collusion with one of your staff to or waste. defraud you, or to clone credit cards. Non-malicious processes vw
www.retail-systems.com July 2014 19
18-19_loss prevention.indd 3 26/06/2014 11:58:38 RS [ CNP fraud ] New thinking
There has also been a focus on international sales as a serious The retail sector has, driver of growth so accepting overseas transactions is a major part of doing business today for many merchants whereas whisper it, emerged previously they would have simply rejected all such purchases.
victorious in the fight The root cause against CNP fraud. So what exactly has happened to change the scenario of CNP fraud, which has made retailers sufficiently confident to shift Glynn Davis looks their thinking? The answer is a greater level of investment in fraud tools by both retailers and PSPs (Payment Service at the key factors Providers). The latter has recognised the need to offer more sophisticated risk management tools to sort and filter behind this transactions. PSPs such as SagePay, VeriFone and TNS have chosen to tie-up with risk providers whereby retailers can take all-in-one solutions. Other solutions from the likes of Cybersource, Retail Decisions, and Datacash combine payments processing n 2003 when e-commerce sales were with fraud prevention. What makes all these solutions more still pretty much in their infancy advanced is their ability to take a lot more inputs than were the levels of fraud from card not present previously possible. “There are a lot more data sources today I(CNP) transactions were forecast to hit and techniques that can be applied,” says McMurtrie, who adds stratospheric heights as fraudsters shifted that geo-location data, IP addresses, country codes, and a rich their attention away from in-store crime historical mass of data can all now be fed into the engines of the and instead focused their efforts online. risk prevention tools. While there has been a near three-fold Don Bush, vice president of marketing at Kount, agrees that increase between 2003 and 2013 in there is a lot more data that can be utilised: “We’ve geo-location, CNP fraud – from £122 million to £300 device finger printing and links to any previous bad behaviour million – the level of online commerce that might have been committed. There is a lot more data we has grown much more markedly, which can tap into. If you go online then I know a lot more about you to Mark McMurtrie, director at Payments than if you were in-store. I can tell with very good certainty if a Consultancy, is further proof that the transaction is valid.” “battle has been won” by retailers against The latest generation of Kount solutions consist of a platform the fraudsters. with a layered approach that incorporates lots of techniques “It is under control and attacks are going and features whereby Bush says fraudsters have to go through a to different places. Attention has shifted lot of hoops before a transaction can be successfully accepted. to internet banking and although it is But such is the nature of the solution that he says it can make still a priority for fraudsters to steal card an accept/decline decision – based on a retailer’s assigned risk numbers they are now doing it through tolerances – in a mere 300 milliseconds. [major] data breaches rather than from Although Kount has many clients Bush says there is still a individuals and retailers,” he says. level of denial from many other retailers who regard having a This trend comes against a backdrop of a low level of charge-backs as a proxy for a low level of fraud. But change in thinking by retailers. McMurtrie he suggests over 50 per cent of these will be fraudulent and there says they have sought ways to accept is also the fraud associated with returned goods. Also, low fraud transactions (rather than automatically could be simply a result of a retailer being overly risk averse decline them) as they had done previously whereby many valid transactions are being declined. He cites a when they judged them to be of high risk. US-based jewellery chain that regularly cancelled 50 per cent of
20 July 2014 www.retail-systems.com
20-21_cnp fraud.indd 2 26/06/2014 12:00:29 [ ] CNP fraud [ RS
of Verified by Visa including the likes of Tesco, Next, John Lewis and Ocado. Whatever their thoughts he highlights its effectiveness. “We must achieve a balance between ease of implementation for banks and retailers; simplicity for consumers and, of course, the need to deter fraudsters. Verified by Visa is proving successful because it supports all three. Fraud rates on [CNP] payments authenticated by the system are around three times lower than on unauthenticated transactions,” he says. With effective and varied solutions on the market Paul Rodgers, chairman of Vendorcom, says the all transactions ahead of deploying the Kount when it accepted wider conversation has shifted to mobile 2,400 more orders than the previous year – worth $500,000. payments and what exactly constitutes Automated fraud engines can be combined with other CNP. With greater numbers of transactions activities to create a more effective overall prevention strategy. performed by consumers’ in-store on Chris Davies, managing director Global Payments, suggests their mobile devices he says the card retailers undertake some simple manual checks. “Looking at all might not be present but the cardholder of a customer’s orders can be telling, because if multiple cards certainly is. He questions whether these have been declined, they may have been stolen. Sending a letter should therefore not be classified as CNP or phoning the cardholder’s billing address to confirm an order transactions. As a result they would where the delivery address is different is another option. Asking not require retailers to pay the higher for landline telephone numbers may seem old fashioned in an merchant services fees on these supposedly online environment, but these will allow you to check Directory riskier transactions, which might be 0.5 Enquiries to see whether that individual is resident at the per cent to 1 per cent more expensive for address.” the retailer than card present payments. And most effective of all, if a retailer controls their own Also under discussion is the utilisation distribution chain, is to take payment on delivery via a mobile of more advanced forms of computing chip and PIN device. “This minimises the risk of fraud and, that can now be adopted to keep the even if you are caught out, the charge-back rests with the issuing industry one step ahead of the fraudsters. bank rather than with the retailer,” he says. Loc D. Nguyen, CMO of marketing and Retailers also have the option of considering accepting partnerships at SAP partner company payment from non-card solutions, such as the cash alternative Feedzai, says: “We see decreasing interest Ukash. David Hunter, CEO at Ukash, says: “Retailers should in static rules-based fraud engines in consider transaction options that provide greater certainty of favour of machine-learning systems that payment. Giving customers the choice to pay in cash using a can self-adapt. Deploying fraud engines payment method such as Ukash not only reduces the risk of with machine learning capabilities using basket abandonment but it also gives the e-tailer more certainty. Big Data, is the only way to stay ahead.” Just like cash it removes the risk of repudiation and charge- Although there is talk of the battle backs.” being won there are enough grey hairs in But care has to be taken when deploying fraud prevention the industry to recognise that the most solutions because McMurtrie warns that it can prove to be attractive state of mind for fraudsters is an obstacle to retailers’ ongoing desire for frictionless online complacency, so it is undoubtedly up to checkouts. This is why he says the likes of 3D Secure and retailers to continue to adopt such best Verified by Visa are “not loved by retailers”. practice and progressive solutions. However, Paul Eagles, head of risk policy & strategy at Visa Europe, notes that retailers have been very supportive vw
www.retail-systems.com July 2014 21
20-21_cnp fraud.indd 3 26/06/2014 12:00:37 RS [ PCI DSS ]
forced to terminate relationships, preventing retailers from accepting payments by card. As increasingly high-profi le security breaches A long road hit all industries, retailers are becoming increasingly PCI- aware. But it remains diffi cult Retailers are still struggling with territory to navigate: standards can be hard to keep up with. Plus, PCI standards 10 years aft er launch. retailers are struggling to make sense of networks comprised of Kate O’Flaherty reports a complicated mess of disparate systems that hold cardholder data. To make matters worse, Europe is lagging behind its peers: according to the Verizon 2014 PCI Compliance Report, only 31 per cent of businesses were found to be meeting 80 per cent or more of PCI requirements, compared with 75 per cent in APAC and 56 per cent in the US. Th is is partly because retailers are approaching PCI compliance as a once-a-year assessment, rather than a day-to- day operation, the Verizon report says. Instead, they must recognise security as part of business-as- usual practices, Bob Russo, general manager, PCI Security Standards Council advises. Even so, many have a t’s been 10 years in the making, misunderstanding of what PCI compliance means. According to but retailers are still fi nding it a Kevin Burns, head of solution architecture at communications challenge to understand and implement and unifi ed payment service provider Vodat International: “As a IPCI standards. Th is is despite risks of vehicle for change and enforcement of a standard, it doesn’t have non-compliance including fi nes of up all its wheels on. Th e acquirers are asking retailers to become to hundreds of thousands of pounds. compliant but the message was not delivered consistently.” Th e standards, which implement tight However, he adds: “What the Security Standards Council has controls around the storage, transmission done with version 3.0 is tell us less about how, and more about and processing of cardholder data, were what, you are doing. Standards will become evidence-based tests updated last year. Th is saw the PCI rather than questionnaires to scare the pants off people.” Security Standards Council make changes PCI DSS can be onerous to implement and complex to deploy to the PCI Data Security Standard (PCI so it is not always appropriately used, Fergus Kennedy, head DSS) and Payment Application Data of compliance and information systems at Pulsant says. It is Security Standard (PA-DSS) as part of its therefore important to understand the scope of standards, says three-yearly cycle. Kennedy. “Like any of these standards, they can become tick- Active until the end of 2016, version box exercises.” 3.0 addresses areas such as third party remote access, PoS terminal tampering, Challenges and vendor accountability. Among the One of the biggest struggles occurs when retailers work out risks of non-compliance, acquirers can be the costs of new security measures: there is no obvious return
22 July 2014 www.retail-systems.com
22-23_PCI DSS.indd 2 01/07/2014 11:45:43 [ ] PCI DSS [ RS
on the investment. This adds to complexity; firms are being fully monitor devices. Despite successes asked to spend money on something that doesn’t add to the such as these, awareness is still low among bottomline of the business. And in order to increase data the smaller retailers, Russo admits. “This is security and maintain compliance, technology usually needs an area we’re trying to increase education replacing: older hardware is often incompatible with more arou n d .” recent software. Burns says: “You have legacy apps and aging As part of this, the Council this hardware that’s not compatible with the latest software to enable month (June) launched its ‘Passwords encryption. Retailers tend to replace it every seven to 10 years. If for Payments’ initiative to educate small they spent money only three years ago it must be signed off.” businesses on how to use strong passwords Ciske van Oosten, global business development director on point-of-sale devices and computers to at Verizon PCI Security Services agrees. “Some countries in reduce their chances of being breached. Western Europe have very old systems and it’s more difficult The Council is also continuing to to get these compliant.” Additionally, he says: “The lack of develop standards and guidance on other standardisation between policies (and the inability to locate technologies that can increase data security data both electronically and on paper) is a problem in retail and at vulnerable points along the payment other industries.” transaction chain, Russo says. For example, But new technology is increasing systems’ efficiency, moving he adds, tokens and point-to-point towards unified compliance, van Oosten says. However, firms encryption remove or render payment card must be clear it will not happen overnight: “People want to information useless to cyber criminals. jump in and think it will be a year or two, when compliance can According to van Oosten, point-to-point take five years. This means they run out of support within a few encryption can “make a big difference”. years; it’s important to understand the effort.” He adds that by using multi-factor And this effort should not be under-estimated: PCI authentication, “80 per cent of all attacks compliance entails retailers taking on the subject of data could have been prevented..It’s the ability security, something far from their area of expertise. Adding to to understand the dynamics between the complexity, they are responsible for third party providers, so threat and attack landscape and how must maintain control of their data, observes Stuart Facey, VP attacks actually happen. It is critical failure of EMEA for Bomgar, which counts Greggs as one of its PCI- that’s the weakest link in the chain.” compliant retail customers. Vodat’s solution, which uses Transport He comments: “Retailers are becoming aware that as they Layer Security (TLS) and firewalls, outsource part of their IT infrastructure, they have to consider it encrypts information without point-to- is done in a secure way. It’s getting more complicated, not easier: point encryption. It is currently being used the number of transactions we do is increasing. The risk of data by clothing retailer East in pilot. Motorway loss, breaches and bottle necks is so big that we need to think service station Welcome Break is also using carefully and have the right systems in place.” a version, without a firewall, on a local As part of this, Burns advises firms to get rid of the data server that it keeps secure. they’re not holding for tracking or loss prevention as the logical The number of PCI-compliant first step. “I said six years ago, understand where you have organisations is increasing, but it could cardholder data and work out why you’ve got it there and get rid be a long and expensive journey for many of it if you don’t need it.” retailers. Things are not straightforward Currently, adoption and awareness of PCI standards is for new entrants either: regulation that stronger among larger retailers, Russo says, although he adds continues to add complexity and expense that proper implementation and maintenance is still a growing could put competition at risk. Burns challenge. One brand that has had some success with adjusting says: “Because an increasing number of its systems for PCI compliance is fashion outfit Jack Wills. It compliance requirements are regulation, was processing over one million MasterCard and Visa card we risk stifling innovation. The payments payment transactions annually, making it a Level 2 merchant market is becoming quite consolidated and and therefore subject to strict PCI DSS validation requirements, new entrants will be kept out of the market including an annual report on compliance. as it becomes more difficult to prove their But Jack Wills has now implemented real-time security solution is capable.” validation using New Net Technologies (NNT) change and log vw tracker solutions, which make it PCI DSS compliant and able to
www.retail-systems.com July 2014 23
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RS_Awards.indd 3 01/07/2014 16:47:04 RS [ in-store media ] Retail fusion e retail landscape is changing rapidly and in-store media has responded accordingly. Liz Morrell reports
s we all now know the than 1,500 employees across around 300 stores with iPads to internet hasn’t killed the improve customer convenience, service and choice. High Street but it has forced retailers to e end of last year, meanwhile, saw Argos open the doors on Areinvent how they do business. One of the the rst of its new digital concept stores – designed to deliver biggest changes has been the blurring of the digital retail experience in a physical outlet, largely through the lines between the two mediums, taking the use of technology-backed in-store media. e rst of these the best that the digital and online world opened in November in London’s Old Street with the traditional o ers in terms of personalisation and laminated catalogues, pencils and stock checker machines in-depth knowledge to combine with the replaced with iPads or customers’ own mobile devices through best that bricks and mortar stores bring to the provision of free Wi-Fi. Four initial stores opened in London the table, in terms of their immediacy and and three more have since followed in Dunfermline, Colchester convenience, to create a top-notch in-store and Manchester Fort. e company not only aims to cut down retail experience. is has allowed for a on the costs of paper through getting rid of catalogues but will, revolution in how retailers communicate like M&S, also be using the tablets to o er expanding shopping with customers and has seen in-store applications such as product videos and customer reviews to the media play an even more crucial role since customer to improve experience and spend. it can now be more personalised than ever to the individual customer experience. Where once it was about shelf edge labelling and paper-based promotions and perhaps a digital screen if you were lucky, it has become more individualised and a channel for sharing more retailer content than was previously possible. Marks and Spencer is increasingly bringing digital into its stores with kiosks and tablet use by its sta , allowing it not only to provide a better experience for shoppers but also help to promote what else the retailer and its suppliers have to o er. “Over the last two years particularly M&S has worked hard to combine the best of the web and in-store to create a more inspirational and more convenient shopping experience for customers. We’ve used technology to make our stores work harder – and make more of the product range accessible to smaller stores,” says a spokesperson for the retailer. is has seen the introduction of browse and order points as well as equipping more
26 July 2014 www.retail-systems.com
40-41_in-store media.indd 2 17/07/2014 10:21:57 [ ] in-store media [ RS
However, the use of digital screens, which have long been is helping them to build applications and part of the in-store media environment but which perhaps use cases that can engage consumers in failed to maximise on the expected potential previously, are and around their stores. ese might send also getting more sophisticated. At M&S, the company is using personalised greeting messages, o ers or digital screens in its stores to reuse web content such as catwalk reminders that a particular saved product style images and buying advice that is already available on its is in stock to shoppers’ smartphones own site. In the new Argos digital stores standard static sales when they approach or enter the store, or literature and paper posters have been replaced with dynamic perhaps, print personalised promotions on digital display screens, particularly in the window displays, customers’ receipts at the checkout.” to better combine both worlds. e screens are managed Larsson believes that technology is and changed centrally to showcase seasonal and category vital here. “Online o ers up an incredible promotions as well as latest brand messages and customer hoard of insight and if you can nd ways information. Similarly Tesco introduced digital screens to its to bring this knowledge into the store it UK petrol station network in October in conjunction with will be as though almost every customer Amscreen and dunnhumby that would provide customer is a well-known regular,” he says. “By messaging and digital advertising across the company’s 450 combining the power of this online data petrol station network in real-time. Like the Argos network the with store availability and sizing, even less point of such screens allows for dynamic control that means experienced sales associate can provide messaging can be changed at a moment’s notice. e network the level of customer experience usually reaches more than ve million adults a week. delivered by its longest standing sta But perhaps the most exciting part of the Tesco network is members. Embracing online insights helps that it was the rst national roll-out of a new technology from transform in-store sales associates from Amscreen that allows for even more personalised messaging; novices into experts.” the network includes Amscreen’s audience measurement By bridging e-commerce and in-store technology OptimEyes which scans the customer to determine commerce retailers can get the best of both basic customer demographics such as gender, age, date, time and use media opportunities to upsell and volume of costumers. is means they can not only be used across both channels. “ is approach to deliver more relevant content for the customer watching at helps them to build a well-rounded and the time, but the new screens also provide more integrated strategy for improving customer measurable results for advertisers themselves, experience while delivering high sales helping to further boost the opportunity for across the board,” he says. Technologies retailers into something that is truly compelling. such as NFC and QR codes are also playing a big role in in-store media. In Personal touch June, Proxama and video game developer Personalisation is becoming even more key to Ubiso launched a NFC and QR code delivering the best in-store experience and is promotion to incentivise customers of its o ering big opportunities for advertisers too. new game Watch Dogs in Game stores. In May, RichRelevance launched a new service Meanwhile, newer technology options branded Relevance in Store which aims to are also introducing further exciting provide the same adaptive and personalised opportunities with Beacons likely to be key. experience on o er online in-store by harnessing “ is approach presents an unprecedented the power of customer data to combine what’s opportunity to fuse the online, physical known about the customer online and o ine and mobile shopper experience, based on through things such as purchase history and shopper preference. iBeacons in particular location and demographic data to direct represent a highly cost-e ective strategy to customers to the products, messages and market and advertise to nearby consumers, promotions that best suit them. “In the age of perhaps even allowing smaller retailers to Big Data, retailers have unprecedented access to grab a share of the market from their larger a huge wealth of online and o ine data sources,” competitors,” says Larsson. says Nicklas Larsson, EMEA managing director Ultimately, technology’s increasingly at RichRelevance. “ e knowledge gained from important role means the customer is now combining these sources and identifying patterns more informed than ever.
www.retail-systems.com July 2014 27
40-41_in-store media.indd 3 17/07/2014 10:22:07 RS [ outsourcing IT ] Feeling the heat e IT outsourcing sector has undergone signi cant change in the last 10 years, Hannah Prevett observes
yebrows were sent skywards in February this year when the BBC announced it was searching for Esuppliers to replace its £2 billion Atos outsourcing deal. e ten-year contract signed with Siemens in 2004, which was acquired by Atos in 2011, will come to an end in March 2015. But the Beeb won’t be looking for another outsourcing giant to ll the shoes of Atos: it’s planning to move away from its single-supplier outsourcing deal to introduce a new multi-sourced approach to its technology service. At the time of the announcement, the broadcaster said that multiple contracts with specialist companies would allow it to get “better value, greater exibility and access to new technology as it emerges.” e BBC isn’t alone in its decision to ask more of its outsourcing partners, says Huw omas, managing director worth between $10 million and $50 million. For the second at PMC. “In the last ve to ten years, consecutive quarter, just 10 per cent of the deals tracked by outsourcing has become considerably Ovum were worth $100 million and no mega-deals (contracts more professional than it’s ever been. e valued at $1 billion or more) were announced in the three service providers have grown up a bit and months to the end of March 2014. have demonstrated a better understanding “For a few years in the IT services industry, there’s been talk that quality is important and taken about the shrinking of deals and a move away from the big bang responsibility for showing value down contracts where companies handed over all their IT services the supply chain,” he comments. “It’s not to one vendor for a ve or seven year deal worth hundreds of unusual to outsource to a big organisation, millions of dollars,” says Ed omas, a senior analyst on the IT let them do what they do, x it, change it, services team at Ovum. and then leave before the end of the ve or It follows that vendors in the IT services sector are feeling seven year contract. at was unheard of the heat. “ is is going to involve a big change from a vendor ten years ago.” perspective because they’re going to have to compete for these e news of the BBC’s new best-of-breed smaller deals. If you think about the large, established providers, approach also tallies with research which the likes of IBM, HP, CSC, they’re reliant on the big contracts shows a trend toward smaller outsourcing coming in, the $100 million-plus deals, that’s their sweet spot. deals. According to data from Ovum, But now they’re having to recon gure their sales operation to 45 per cent of the IT services contracts cope with the fact that there’s a lot of these smaller deals around announced in the rst quarter of 2014 were and that’s what they’re competing to win.”
28 July 2014 www.retail-systems.com
42-43_outsourcing.indd 2 17/07/2014 10:24:22 ] outsourcing IT [ RS
At least the incumbents still have their trump card: access to a growing number of vendors are moving the brightest and best talent. For one of the o -cited bene ts of towards a multi-shore strategy, so they’re outsourcing is access to assets that may otherwise be o -limits, able to o er their client services from a as Helen Merriott, managing director of retail at Accenture, range of locations,” says omas. explains. “ ere is disruption going on in retail and therefore Accenture is one such supplier. It the kind of IT talent that is needed is increasingly specialist,” she o ers clients round-the-clock support by says. “In order to move quickly with leading-edge development, taking advantage of its virtual delivery some retailers are partnering with third parties in order to get network. “If you’re looking for help-desk access to talent more quickly or to be able to turn the talent up and it needs to be 24 hours we quite o en and down.” provide a ‘follow the sun’ capability so we At a time when exibility is a must-have for retailers, being might use one or two di erent centres able to tap into a readily available pool of talent at their around the world to provide a help-desk discretion, is a big box-ticker, Merriott adds. But it’s not always for a client,” says Merriott. just a case of cutting costs, she says. “It’s also about exibility While locations such as Manilla, Poland and skills to be able to do whatever it is they’re trying to do. and the Czech Republic are gaining Inevitably with retailers that’s to drive down costs or to drive attention as increasingly popular o shore top-line growth, whether that be through increasing online sales locations, it may not even be necessary to or growing internationally.” leave Blighty, says Ovum’s omas. “We’re seeing companies take advantage of lower Sold on outsourcing cost onshore labour: rather than hiring Indeed, there are examples of UK retailers turning to IT sta in London they may look in places service providers to help them with ambitious growth plans. like Manchester, Newcastle, Glasgow or Cath Kidston, the rapidly growing manufacturer and retailer, Belfast where the wages are a little bit lower outsourced its entire logistics operation a couple of years ago. but the quality of the sta you can nd is of And fashion retailer Jacques Vert is a further case in point: in the same standard.” 2010 it announced plans to implement Retail Assist’s Merret merchandising and warehousing solution as well as store Opting out of outsourcing package, which is now rolled out across its 1,000 store portfolio. Ocado, now the world’s largest online only e partnership allowed Jacques Vert to tap into Retail Assist’s grocery retailer, has a chunky technology pool of talent to help streamline its processes. division: by the end of this year, it will be Once a retailer is onboard, two key considerations include comprised of 650 so ware engineers, analysts, ‘what’ and ‘where’. “A retailer should think about which data scientists, infrastructure engineers and other capabilities and roles they want to keep inside their organisation specialists. Paul Clarke, director of technology and which are better placed outside the organisation,” says at Ocado, says the retailer decided to steer away Merriott. “Some clients set out to have a third party implement, from outsourcing as it had some exceptional transform and run a change while the third party owns a certain requirements. “We are a technology business that part of so ware or functionality and then the retailer will own is also a retailer and our use of technology is very it maybe three or ve years later, once the change has happened. di erent from what most organisations do in is can be quite interesting to retailers who want to get over terms of IT.” a hump of implementation activity but actually would like that “We were faced with building from the capability back inside their own IT team in terms of developing ground up a solution to power a new and highly and running it long-term.” disruptive business model. e level of invention, As for where a retailer might consider as an o shore location, innovation, uncertainty and agility this has the answer isn’t quite as clear cut as it may have been a decade involved does not lend itself to outsourcing.” ago. Krishnan Chatterjee, an exec at IT services giant HCL But, as the company grows, Clarke is happy Technologies, said back in 2011 that the Indian outsourcing to outsource a small amount of development model “is over”. But Ovum’s omas disagrees. “India is still capability. “We are now using a limited amount the number one o shore location and it still o ers a skilled of outsourcing to ex our development capacity. workforce and a large labour pool.” is is because as we grow, we are coming ough he does admit the cost bene ts aren’t as attractive as across more examples of developments that lend they once were. “ e cost are rising. ere is wage in ation in themselves to outsourcing but these will remain India as it’s become extremely popular destination. As a result the exceptions not the rule,” he adds.
www.retail-systems.com July 2014 29
42-43_outsourcing.indd 3 17/07/2014 10:24:26 RS [ profile ] Digital loyalty Michelle Stevens recently ventured to Harris+Hoole’s London Cannon Street store to get the lowdown on its latest mobile move
offee shops have long been at the vanguard of customer loyalty with their hot drink freebies for Cregular visitors. But in reality, how many dog-eared, part-stamped coffee vouchers are loitering in your wallet, purse or office drawer? One company which has set out to tackle such paper-based issues is artisan coffee chain Harris+Hoole. In fact, the company’s recently revamped mobile app means customers do not need to reach for their wallet or purse at all when buying their daily beverage. By checking in as they enter a branch, shoppers are now able to pay for their food and drink purchases via pre-paid credit on their iOS or Android app – without having to touch, tap or scan at the counter. This new payments proposition is in addition
to the original H+H app features launched last August – a store finder, digital loyalty card and ‘My Usual’ function, where customers register their favourite drink order. The result of the rebooted app is a seamless customer journey – and that design did not come about by accident, explains Danielle Anderson, Harris+Hoole’s director of digital here are a lot experience. “The first thing we did was sit in a coffee shop for of experienced about three months and chat to customers, because we wanted T to make sure anything we did in the app would enhance their experience, remove a pain point, or surprise and delight them.” experts at Tesco and we “The first of the initial three things that we focused on was reach out to them as a having a way to locate shops and see a shop profile, so you know “ things” like the name of the manager and the opening hours,” she continues. “The second piece was digital loyalty. We found sounding board, asking that was a very big pain point where somebody would walk in either having left their loyalty card at home, or with a plethora them about ideas” of cards in their wallet trying to piece them together to figure out if they had a free coffee. We wanted to remove that friction
30 July 2014 www.retail-systems.com “30-31_profile.indd 2 ” 26/06/2014 12:12:54 [ ] profi le [ RS
and put it on a mobile device, but we didn’t want to take away a clever innovation that they’ve seen but the feeling of achievement customers have when they get that they might not have the fl exibility or the loyalty stamp, so we designed a digitised version of our loyalty speed to implement, so they’ll pass it along card where the stamp still fl ies in.” to us. So it’s much more of a discussion Anderson says that the third element, ‘My Usual’ is where the group and an ideas exchange versus company truly diff erentiated the app, responding to the fact that anything else; we pick and choose what’s regular customers oft en have a routine and buy the same drink best for our customer experience and take every day. it forward from there.” “ Th e same repetition when ordering can be frustrating, so we And what does Anderson think about wanted to create a way for every H+H shop to be a customer’s the future of retail innovation in-store? local. ‘My Usual’ allows you to go through our hot drinks, Off ering customers videos or information customise them with an extra about the products they are browsing on shot or soy milk for example, display by using “beacons and the idea of then save it to your profi le, so proximity to show engagement” could be when you check in we know a trend for the future, she says. But adding your name, and we know how value to the customer experience also to make your drink exactly how means merchants have to look at gathering you like it.” insight and relevant customer data from Customers pre-load money across all channels to establish a “single onto the app via a credit card, customer view”, without being overly and Harris+Hoole chose intrusive, Anderson highlights. Judo Payments to power the “From a retailer’s perspective, I think it’s app’s back end, favouring the all about creating a single customer view – provider’s security features having a database with relevant real-time and white-label off ering. information fi red into the right places. “Customers have to trust us But the one thing we have always been that their credit card data is sensitive about is that as a coff ee shop, we secure and being processed, do not need to know absolutely everything stored and transmitted securely. about customers. So it’s being thoughtful Judo specialise in this for about what data you capture, where you mobile, and allowed us to capture it and who you share it with.” fully brand the process so it is consistent with our physical experience,” Anderson notes. Since last August there have been 100,000 customer check-ins at H+H stores, and feedback so far has included ratings out of a possible fi ve stars of 4.5 on the iTunes App Store and 4.7 on Google Play.
Reaching out to Tesco Anderson herself hails from a digital background and joined Harris+Hoole from Burberry in 2012. Th e coff ee chain now comprises 36 shops in London and the south east since its beginnings in 2006 as the brainchild of the Tolley family. Tesco has since bought a non-controlling stake in the company, but the digital innovations are still very much driven by the H+H team, says Anderson. “It’s actually a fantastic relationship in that H+H owns all of the decision making – what we do, how we do it and how we deliver,” she explains. “But obviously there are a lot of experienced experts at Tesco and we reach out to them as a sounding board, asking them about ideas. Sometimes they have
www.retail-systems.com July 2014 31
30-31_profile.indd 3 26/06/2014 12:13:05 RS [ infosec europe review ] Security reviewed Retailers and FIs sounded off on various issues and challenges during the Keynote Theatre sessions at Infosecurity Europe 2014. David Adams and Michelle Stevens were there to hear what they had to say
strong security function can offer companies much more than just protection against cyber Aattack, Michael Colao, head of information security at AXA UK, told delegates on day one of Infosecurity Europe 2014, which took place during April at London’s Earls Court. “In banking and in insurance you can have conversations with large corporate clients and say ‘We’ve invested more in security than our competitors have’,” he explained. “Once your sales reps understand that, they love it, because it’s a differentiator that’s very difficult for competitors to respond to quickly.” Colao was taking part in a panel discussion that asked how The first day at Infosecurity Europe organisations could ensure information security functions are 2014 included some revealing sessions, enablers, supporting enterprise innovation and transformation, as security experts and practitioners in rather than blocks to progress. “One advantage we have in various industry sectors shed some light financial services is that senior (executives) understand risk,” he on their company’s security operations. said. “That is a core element of their business. If you can tell a risk story they understand that. The flipside is that they are often willing to take a different risk decision than the one you would recommend.” In dealings with the board, Colao noted, “you’re selling yourself...Your message is ‘I got your back’. If you can make that No matter what you do, sale you’ll get the resources you need. If they don’t believe it you’re going to fail.” The important question, according to Lee one day an incident is Barney, head of information security at the Home Retail Group, “ was, “With all these controls we’ve developed, are they adding going to happen and it’s value or slowing the business down? Is customer interaction with the business slowed down if you have onerous security very important how you requirements before you can use a website? We should be saying ‘We have an alternative that will help you make money’.” manage that” The panel was asked to consider questions relating to how companies should raise awareness of security issues. “I know
32 July 2014 www.retail-systems.com “32-34_infosec.indd 2 ” 26/06/2014 12:15:31 “ ” [ ] infosec europe review [ RS
that if you repeat the same messages again and again, within Matt Denny, head of information three to five years you’ll get a noticeable change in user security and compliance at Marks and behaviour,” said Colao, tongue slightly in cheek. He revealed Spencer, explained the slightly different that one way AXA cultivates good security habits among staff is approach taken there. “The teams have got to offer lunchtime drop-in sessions advising staff about securing the systems you would expect, but we’ve their own computer equipment at home – tips it is hoped they also got an Information Security Authority, will also put into practice in the workplace. who is one of the most senior members But much still depended on the culture of the organisation in of the team, whose job is to find problems question, he admitted: “In a very hierarchical organisation...if and fix them,” he noted. “Part of his job is you make a declaration about what you should or shouldn’t do, to prove that the company gets value for (people) may actually...do what you say. In my organisation, I money from that task. So far, touch wood, can get the CEO, the CTO and a burning bush on stage to make he’s done that job very effectively.” that declaration and there are some of my staff who will say The panel also offered advice on how ‘That’s very interesting, but it doesn’t apply to me’.” best to create and maintain trust between their organisations and those organisations Balancing acts with which they share intelligence. “Trust In another of the day’s panel discussions, panellists considered is always based on personal relationships,” in more detail the challenge of balancing strong security responded Marco Thorbruegge, head of against a straightforward user experience. Ben de la Salle, unit for operational security at the EU head of IT security and risk at Skandia, outlined the state of Agency for Network and Information play within his company when it comes to capturing end user Security (ENISA). “There are some feedback. “Most of our users are not backward in coming unwritten rules for information sharing forward with complaints,” he said. “I get a lot of feedback from and they are important for day to day senior members of staff around barriers put in place by IT and business. For example, one of those rules information security.” would be, if you share information you will But, he added, one factor changing the way the company get something back.” wrestles with this problem is the fact that end users are better Weber expressed scepticism about the informed about security issues today. “They understand value of information sharing platforms run why they need (security), but ask ‘why does it need to be so for profit. “(You may not) have the right difficult?’” he said. Skandia is making changes to the way it community to share information with,” collects and incorporates end user feedback, creating internal he commented. “Having someone who is user groups, rather than being driven primarily by complaints. building that knowledge and reputation on However, when the session moderator, Adrian Davis, a personal level – that’s what works. On an managing director at security certification organisation (ISC)2, official level people are a lot more reticent.” asked the audience if they thought staff in their organisations The panellists expressed optimism about were better informed about such matters today, it became clear future engagement with government to that although many of the audience did think end users were share information and intelligence, despite more “technically aware”, far fewer thought they were more revelations made by Edward Snowden “security aware”. over the past year. The financial sector Another discussion panel considered the best way for was in particular need of government organisations to gather and use “actionable intelligence” to build support from cyber attack because of the “a holistic security threat intelligence capability”. The focus scale of the threats it faces, said Michael was on making practical use of intelligence coming into the Paisley, head of the operational risk unit, organisation. “Intelligence gives you a strategic advantage against technology and operations, at Santander: your threats,” said Barry Coatesworth, CISO at New Look. “It’s “We need to be able to work with about reducing fear, uncertainty and doubt; and reducing costs.” government – there will be engagement The panel was asked what percentage of its time was spent with government more and more, not less seeking out actionable intelligence. Joerg Weber, director and and less.” global head of attack monitoring at Barclays, said a dedicated In response to a question about threat intelligence team at the bank spends all of its time on that developments the panel would like task. “We find that’s a more cost-effective approach, because it to see in this space over the next five means other people in the team don’t have to do it.” years, Weber expressed his wish for the
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32-34_infosec.indd 3 26/06/2014 12:15:37 RS [ infosec europe review ]
development of common standards for Offboarding third parties properly was a particularly crucial information sharing and for a common and sometimes overlooked area of supply chain information naming convention. security, argued Phil Genge, head of group security at Moderator Brian Honan, founder and Nationwide, which has about 270 third parties managing, CEO at BH Consulting, summed up: “So, processing and storing customer and organisational data. we need good tools, standards we can all “Before a contract with a third party ends, make sure that you adhere to and a good understanding of the have got the processes in place to understand what data they businesses that we’re trying to protect,” he have and ensure that data is securely deleted or brought safely said. “It’s about hiring the right people – back into your infrastructure,” he advised. people who know about technology, law and But organisations should always be prepared for a data business...and will work 24 hours a day for compromise at some point, highlighted Jitender Arora, an £20,000 per year.” information security and risk consultant for the financial “A nd if anyone here wants to put services sector. “No matter what you do, one day an incident themselves forward for that job they can is going to happen and it’s very important how you manage have a word with me afterwards!” added that,” he said. “Have a robust and thorough response in place Paisley. – conduct exercises where you understand how you are going Meanwhile, the perennial topic of data to handle it, especially if you have an obligation to report to security in supply chains was the focus of customers and regulators.” one of the first keynote sessions on day two Having contingency plans in place was also a theme picked of the show. “In a large scale business with out in another of the day’s conference sessions, which looked a large number of suppliers the challenge at future-proofing information security and protecting is where to put your focus, because it’s very legacy systems. Mark Jones, CISO and director of IT security, difficult to cover all bases, all of the time, compliance and governance, Heathrow Airport Holdings, in terms of governance,” noted Geordie told delegates: “Looking to the future in terms of your threat Stewart, principal consultant at Risk horizon is really important. But this isn’t just a technology fix, Intelligence, who was representing the John for me this is about an operating model and the way your whole Lewis Partnership on the panel. “So there organisation works – you obviously have to have a combination need to be filters built up all through your of good governance and transparency, and an appropriate focus processes, which your organisation can on people’s awareness. Your employees can help a lot in terms of use to make sure you’re spending the most maintaining controls as you move forward.” amount of time on those things that really Jones added that it was vital to get the technology mix right. m att e r.” “In my consulting days I saw a lot of disparate point solutions But smaller organisations faced their and not enough leverage of risk management technologies in an own specific issues with third party integrated way,” he continued. suppliers, said Vlatka Toukalek, head of Fellow panellist Paul Swarbrick, global CISO at law firm IT infrastructure and support services at Norton Rose Fulbright, said that many large organisations also the World Meteorological Organisation. had the challenge of dealing with numerous legacy systems and “Not everyone is a big institution who can equipment. “It’s impossible to make sure everything is secure, put in big teams to deal with suppliers. For so you need to be able to prioritise,” he explained. “Identify the majority of us it’s a struggle between where the important things in your organisations are in terms operations and security, and the money that of the continuity of service that you need to provide, and we are competing to get to put into security whether or not you have information that has such value to your measures.” organisation sitting on those legacy systems that it could do Dealing with third party providers in irreparable damage to the reputation or operating model of the the cloud was particularly challenging, she organisation if for whatever reason it was stolen or damaged.” added. “Can you really identify suppliers in He concluded: “If you are dealing with this legacy kit I the cloud? If you are a big institution maybe think it’s important to do a risk assessment around the value you can negotiate with cloud providers, but of the equipment and the information that is sitting on it to if you are a small entity you are not in the really determine whether it is still going to be a business position to make high demands, so what you critical environment that you need to maintain, or whether have to do is take a calculated risk and to put there are opportunities to be had to migrate away from that trust in your first tier supplier.” technology.”
34 July 2014 www.retail-systems.com
32-34_infosec.indd 4 26/06/2014 12:15:40 [ ] diary [ RS
FOCUS coming up [Retail Systems rounds up the must-attend retail 2014 Retail Systems Multi-Chan- technology-related shows taking place in the next 12 months nel Retail Conference ] London Stock Exchange 26 September 2014 01 - 02 October 25 - 26 March 2015 www.retail-systems.com/multi- eCommerce Expo 2014 Internet Retailing Expo channel/ London Birmingham www.ecommerceexpo.co.uk www.internetretailingexpo.com Paul Coby, IT director, John Lewis, Leon Shepherd, CIO, Jack 08 - 09 October 30 April 2015 Wills, Edward David, CEO, IP Expo 2014 Engagement & Loyalty Awards 2015 Atterley Road and Derek Risk, IT London London director, Tragus Group, will head W: www.ipexpo.co.uk http://engagementandloyalty.com up the 2014 Retail Systems Multi-Channel Retail Conference. 30 October 2014 Retail Systems Awards Across the retail sector, companies London are moving away from the model www.retail-systems.com/awards that has steered them through the last few decades towards one 06 November with a focus on speaking to the 2014 Retail Systems/FStech Payments customer in the way they want to Conference be spoken to. But how successful London have they been? Customer-centric, www.fstech.co.uk/payments seamless, multi-channel retailing, fuelled by mobile and online; it 12 - 13 November sounds good on paper, but we’ve
Apps World Europe 2014 P all had bad and inconsistent London Retail Systems roundtables customer service both on the High www.apps-world.net Street and online and wondered what happened to the multi-chan- 20 November Retail Systems will be holding a series nel bibles we hear so much about. 2014 Retail Systems/FStech Payments of multi sponsored and sole sponsored This conference will see senior Awards roundtables during 2014. These are free figures from across the retail world London to attend for retailers and upcoming come together to debate the key www.payments-awards.com/awards events include: issues, innovations and challenges confronting multi-channel 11 - 14 January 2015 EPoS roundtable - May 2014 retailers in 2014 and beyond. NRF Annual Convention & Expo E-commerce roundtable - June 2014 Ne w York For sponsorship opportunities: http:/bigshow14.nrf.com/ To register, contact Hayley.Kempen@ Lisa Gayle, Advertising Manager retail-systems.com or telephone: 0207 020 7562 2428 11 - 12 March 2015 562 2414. [email protected] Retail Business Technology Expo 2015 London Please contact Lisa Gayle on 0207 562 For speaker opportunities: www.retailbusinesstechnologyexpo.com 2428 or [email protected] Scott Thompson, Editor in regards to sponsored opportunities. 020 7562 2413 26 March 2015 scott.thompson@retail-systems. 2015 FStech Awards com London Got an event to publicise? Send the details to: www.fstech.co.uk/awards [email protected] multi-channel conference 2014
www.retail-systems.com July 2014 35
Diary.indd 3 17/07/2014 14:34:53 RS [ cloud computing ] Cloud exposure
For retailers of all types and sizes, the cloud is becoming more and more appealing, Glynn Davis finds
gility, flexibility, experimentation, and innovation are all desirable attributes that Aretailers are seeking to assimilate as they compete ferociously in a multi-channel environment against established players and young fleet-of-foot start-ups. One way to achieve this is through the adoption of cloud computing, which is why the retail cloud is predicted to grow from $4.2 billion in 2011 to $15.1 billion in 2015, according to Accenture.
Not all companies will “be there [adopting] at the same time but they all recognise that it is impossible to hold back the cloud. It’s better to use it than be left behind”
36 July 2014 www.retail-systems.com “36-38_cloud-computing.indd 2 ” 26/06/2014 12:20:11 “ ” [ ] cloud computing [ RS
Ian Massingham, head of technology evangelism for Amazon Although he acknowledges that the in the UK, says: “Our customers tell us they want improved early adopters of Amazon Web Services’ agility, to be able to move more quickly, and to not have to (AWS) cloud solution were small players, deploy physical IT for this. They want to be able to experiment Massingham notes there are now “pockets without the use of capital, and to do more experiments because of innovation in large businesses”, which of the ease of access to resources.” is leading to increased use of the cloud They are being pushed down this route partly because they among big retailers. He cites AWS clients face small disruptive businesses that are much more agile as they Shop Direct, The Co-operative Group take advantage of the cloud. “For a start-up it would be crazy and Nisa Retail as large players who are to buy your own IT infrastructure. They need a viable business using the cloud to differing extents: “Some model before they buy IT! The de-facto model therefore is for people are experimenting with AWS for start-ups to use the cloud,” suggests Massingham. testing and development and in low-risk, non-production areas. And although some people think it is just a place to host websites and mobile, it is now being used to supplement or replace internal IT systems.” For Nisa Retail, a mobile stock management solution was deployed in the cloud allowing employees on the shopfloor to scan and order goods from their digital devices. The AWS route enabled the retailer to save three to four months development time and roll-out the mobile application much more quickly. John Lewis has also been experimenting with cloud solutions initially in a non-customer facing area. It has implemented Google apps to enable its employees at Waitrose and the John Lewis department stores to communicate via a cloud-based email alternative and to use the tool’s collaborative functionality. For online-only businesses the appeal of the cloud is much more obviously apparent than for stores-based and multi-channel operators, which is why Shop Direct uses AWS for all its e-commerce platforms. It is a move that is expected to enable it to achieve cost savings of up to 40 per cent over the coming years as it allows the business to match capacity to demand and so smooth out the peaks and troughs of trading. David Hogg, retail & CPG solutions marketing and business development executive at IBM, says it is not uncommon for such players to outsource everything bar the physical management of inventory – and the likes of AWS and eBay-owned GSI Commerce will also even handle this aspect of their businesses. “When retailers start in e-commerce it is clear-cut that they
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should use a Software-as-a-Service (SaaS) companies will be there [adopting] at the same time but they service provider. And even if a retailer has all recognise that it is impossible to hold back the cloud. It’s a good in-house solution then the odds are better to use it than be left behind,” he says, adding that even for that they’ll need a refresh of their platform unconvinced senior IT personnel there might be more cloud every three years so the cloud is an obvious usage in their organisation than they realise as a result of the option,” he says. ‘shadow IT’ phenomenon. Such is the dynamism of the market Frustrated by a lack of data resources and tardy responses that these big changes to platforms are from IT department some non-technical divisions such as a necessity. For instance, mobile came marketing have been procuring IT via cloud providers – often along only six years ago and now already without the knowledge of their IT teams. “They are no longer represents 50 per cent of sales, which has waiting for IT, they are just going out and getting IT services prompted radical shifts. In such instances from cloud providers,” to the extent that Kwiatkowski says the retailers are increasingly weighing up the IT department might think it has 5 per cent cloud exposure but adoption of cloud-based solutions. in reality it could be as high as 15 per cent because of shadow IT. But Hogg warns that while it is sensible There has been no need for such a phenomenon to take for mid-tier retailers – with less that £100 hold at Hallmark Cards as Sarah Kellett, associate director of million in annual sales – to adopt the consumer-facing industries at Fujitsu, flags the company up as cloud he argues that they must carefully a great example of an established retailer fully embracing the calculate the total cost of ownership (TCO) benefits of the cloud. She says the CIO recognised that there over a three-to-five year time-frame versus was a lack of skills and knowledge inside the company and he owning the IT infrastructure. “What wanted to get out of running retail systems – to instead focus people brush under the carpet is that on the core objective of selling cards. “He also wanted flexibility cloud providers all want to make money. and scaleabilty – especially as he could not be sure whether the Amazon, eBay and local cloud providers business would get bigger or smaller. He wanted the ease of all have margins that will be substantial. adding new capabilities,” explains Kellett. When retailers’ sales hit a certain point The important point he recognised was that retailers typically (£450 million say), then there is an think they are very different to other operators but at heart argument to bring it in-house. M&S has they have the same set of generic functionality as each other. recently moved off the Amazon platform – As a result he turned to Fujitsu to run its stores software and maybe leaving it too late!” explains Hogg. processing in the cloud (out of its datacentre in the US) and to also run its hardware and handle maintenance contracts Other areas for a fixed fee each month per store. “For things like payments Aside from e-commerce platforms, he systems (with PCI compliance) why not transfer all the card observes that logistics and elements of verification and processing to somebody else,” says Kellett, who ERP systems – such as financials, CRM adds that Hallmark is also paying on a consumption basis for a and social media – are areas that retailers growing number of central elements – including the testing and will be looking to outsource to cloud development of new functionality and initiatives – to be hosted providers. Helping drive such changes in the cloud rather than running on its own IT infrastructure. is the retirement of some long standing For such global retailers the cloud also allows international CIOs in the sector that have kept many expansion to be undertaken more efficiently as they do not antiquated IT solutions on track, but now need to rely on local IT services providers in each market they with new management teams in place the enter. This all equates to a very convincing argument for the opportunity to adopt the cloud has arisen. adoption of cloud computing by retailers of all persuasions and Alex Kwiatkowski, head of financial suggests that, as long as the commercials stack-up, then the insights Europe at IDC, says despite the grand forecasts for increased cloud consumption look grounded odd quibble by CIOs about the failure of in reality. the cloud to deliver the financial benefits vw they were promised he believes “most people are satisfied with it”. He suggests that such is the potential that “anybody who believes it will not be a feature of their business” is making a mistake. “Not all
38 July 2014 www.retail-systems.com
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payments.indd 3 01/07/2014 16:52:21 RS [ conference review ] A digital world Scott ompson reviews the British Retail Consortium’s Retail Symposium 2014, held in London at the tail end of June
Oxford. “A er ve years of brutal austerity we are starting to see an improving trajectory,” he said. “We are, however, in a period of radical change, with erosion of revenues; there are pureplays on the one hand and discount retailers on the other. With low growth on the store side of things, we are seeing new formats, internalisation and massive investment in improving the fundamentals of customer experience and the in-store o ering. But none of that is easy.” at was a sentiment which reared its head on numerous occasions throughout the day. If anyone knows what it’s like to be under pressure it’s Dalton Philips, chief executive, WM Morrison Argos is looking to become a digital leader. Supermarkets. As he took to the stage he joked that the last time raditional retailers are under he addressed a sizeable audience he was the target of some pressure like never before as colourful language and that he hoped there wouldn’t be a they deal with increasingly repeat. It was a reference to the company’s annual shareholders’ aggressive pureplays and meeting, which took place in early June and in which Philips discounters and ever was told by ex-chairman Sir Ken Morrison that his plan for the demanding and impatient connected struggling grocery giant was akin to the bullshit produced by his Tcustomers. But there is hope. ey can herd of cattle. ght back and prosper by standing “We’re competing in a world of extremes and the extremes for something, taking advantage of can become the norm. Take EasyJet; they were poo-pooed by data, globalisation and personalisation the legacy airlines and look where they are today,” he observed, opportunities and transforming while also agging up the likes of Zappos (“extreme customer themselves into digital players. at service, they will go that extra mile”), Amazon and Poundland was the overriding message from Retail (“extreme price”) and Instacart (“personalised shopping”). Symposium 2014. Morrisons lost £176 million last year as customers moved to e conference kicked o with a discount chains and it missed the online groceries boat. It is welcome address by chairman, Alan Giles, hitting back by cutting prices, nally getting on the e-commerce former chairman, Fat Face and associate bandwagon and following Tesco and Sainsbury’s down the fellow, Said Business School University of convenience store route. “ e discounters are experiencing big
40 July 2014 www.retail-systems.com
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growth, but I am here to argue that it’s not the end of the big a focus on creating more agile and exible four supermarkets. ere is growth in the middle as it is so big. ways of working and attracting new talent. O en the extremes can’t move into the middle and we have two It will also be used as a satellite for teams key advantages that they don’t: scale and experience.” involved in the rm’s major infrastructure “You have to confront the brutal reality. Nokia didn’t; they projects. Argos is also trialling concept focused on the smartphone and forgot their core business,” stores where tablets replace the retailer’s he added. e likes of Sir Ken Morrison might argue that the trademark laminated catalogues and pens grocery chain’s current management team are failing to confront that never work. Customers will be able to a particularly unpleasant reality of a resurgent Sainsbury’s and browse products, check reviews and order rampant discounters eating into the chain’s market share, but via Pads at shops in Old Street, Marble Philips is banking on a mix of competing on price, having Arch, Old Kent Road, Chancery Lane a strong identity and moving online to turn things around. and Colchester and Dunfermline. e “We are guring out how to do online, for instance, there is a retailer currently makes more than 40 per virtual butcher and we send out bananas and other such fruit in cent of sales online, while revenues from bubblewrap as damaged fruit is a real issue for customers.” smartphone and tablet orders are also on Ultimately, he observed, you have to stand for something. the increase and now account for 16 per HMV didn’t. John Lewis did. Whether Morrisons can convince cent of total sales. the increasingly impatient, demanding and price conscious Shoppers are also now able to order grocery shopper that it is still relevant, remains to be seen. selected goods from eBay and pick them up from an Argos store, whilst click & Staying relevant collect is proving to be a success but not e conference also featured speakers from two retail the whole story as home delivery still plays organisations that many tipped to struggle in the face of the rise a major role. e company faces a number and rise of online and mobile shopping, but who are instead of challenges, for instance, grappling repositioning themselves as digital out ts. with the advantage that technology start Argos, for instance, was written o as an out-of-date box ups have over legacy out ts (“building shi er with nowhere to go as discounters marched into its and maintaining multi-platform apps is territory from one side and pureplays the other. John Walden, expensive”) and the fact that the role and chief executive, Home Retail Group, noted that, a few years con guration of physical space and the back, the retailer was having a challenging time of it, partly part played by store colleagues is changing due to the economic downturn, partly by not responding to fast, from eroding space productivity and market changes, but, a er rebooting the organisation to become expanding online usage. “Stores are still a digital leader, it is now seeing positive results, although he important. ey will take on a di erent stressed it was early days. role but arguably a more strategically e overhaul includes opening a digital hub in London with important one,” Walden said. He also
John Browett discusses challenging times.
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argued that the digitalisation of the High Street doesn’t necessarily lead to job losses but in fact empowers shop oor assistants Another business busy reinventing itself is Shop Direct. Alex Baldock, group chief executive, threw the spotlight on the connected customer and the speed of adoption of smartphone and tablets. eMarketer estimates that UK retail e-commerce sales will rise 16 per cent this year, helped by an improving economy, shoppers’ increasing use of mobile devices for making purchases, and expanded options for purchase delivery. Total retail sales in the UK, by contrast, will grow by just 3.6 per cent in 2014, and movement will slow a er that. Meanwhile, the growth trajectory for m-commerce sales is even steeper, with a predicted 64.8 per cent rise this year. “Stores aren’t dead. ere will always be the joy of shopping.” Baldock argued that retailers need to move quickly in response to the connected personalisation. “Selfridges can’t lay out its Oxford Street store customer’s fast changing life. “ e to suit every customer; we can do that.” connected customer is harder to satisfy but “ e old school model of the middle aged man sat in his we think we have the means to satisfy her o ce, pulling every lever under his control, is obsolete. We more than ever,” he said. are trying to build an organisation that can cope with all this Data is key here. “When people bang change, putting in place the right people and processes,” he on about Big Data, it’s understanding the concluded. traces that customers leave that grabs my attention,” Baldock commented, adding Also at the conference that, “In the connected world, everything “When it comes to retail payments, it’s as exciting a time as we leaves a trace (transactional, behavioural, will ever be in. But we are in a bubble; there will be lots of y by attitudinal etc). If you give customers nights and failures and three or four transformative winners.” relevancy that enhances the experience, So said Philip McHugh, CEO, Barclaycard Business Solutions, then they’ll trust you to si through the who also bemoaned the fact that in the crazy world of mobile traces they leave.” payments, “companies are all called things like Zapp and Like Argos, Shop Direct has history and Wowser; no one has a normal name anymore.” distinct brands to fall back on. Its digital e market is inundated with mobile wallets etc but in the end department store o erings, including Very. no innovation can succeed without a win-win-win for retailers, co.uk, Littlewoods.com and isme.com, shoppers and payment providers. As for Barclaycard, it’s a bank receive an average of 880,000 website visits thinking like a tech company. “We go from concept to release every day. Also like Argos, it is in the midst very quickly in some areas.” of a transformation project and is investing John Browett, chief executive, Monsoon Accessorize, in digital initiatives such as an in-house discussed his time at an under siege Dixons. “I think it helps user experience lab. It has put £100,000 people to have a near death experience,” he said. “Dixons’ TV into developing the facility, situated in its business was under threat from Amazon undercutting us by 15 head o ce in Speke, Liverpool, claiming it per cent. We were hamaeroging market share, so we cut prices, will pay for itself within 12 months. “We’re wiped out pro ts, to make the point about how bad it was. at very much a work in process but we have actually kickstarted the recovery.” returned the company to pro tability,” said Browett said that he thrives when the chips are down. “I really Baldock. like it when it’s tough. Terry Leahy gave me Tesco.com to run; As an etailer, one of its key advantages is no one thought it was possible, but out of the re comes major
42 July 2014 www.retail-systems.com
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change. ere is nothing like working with a great team to crack world of extreme change’ and the image of a problem.” a retail sector undergoing transformational As for his current employer, Monsoon Accessorize is looking change loomed large over the conference. to move its store space into di erent con gurations in line with In addition to tackling this with innovative the way people shop online. is includes the UK’s rst live initiatives, it’s essential to get the basics pilot of an in-store sales application connecting web with PoS. right. An obvious statement, I know, e solution, known as Monsoon Accessorize Extended (or but it’s amazing how many retailers with MAX), allows store sta to present the retailer’s product range omnichannel aspirations continue to fall to a customer and locate stock, whether on the shop oor, in the down here. As Nick Wheeler, founder, store room, in another store, or in the e-commerce distribution Charles Tyrwhitt, put it: “Good service is centre. e application, based on MICROS Retail Assistant, is an attribute that should be expected every fully integrated with the store PoS, allowing the transaction to time and not just by exception.” be completed on the iPad through the PoS using a wireless chip Crabtree & Evelyn CEO Jacquie Gale and PIN device. urged companies to protect their brands Monsoon Accessorize has already launched this in its by entering di cult markets with caution. Cardinal Place,Victoria Street store in London and plans to Whilst Sir Martin Sorrell, chief executive, introduce the service in nine more sites this year and pending WPP, said that it was a mistake to look at successful trials, roll-out across the UK estate. e Stock the digital world as either an opportunity Checker functionality allows sta to quickly identify whether or a threat. “If you don’t take advantage of an item is in-stock and available to buy in the relevant store. If the opportunity, it becomes a threat.” necessary it can leverage Monsoon Accessorize’s multi-channel In tune with other speakers, he gave his capability and send an order to a convenient store for collection, backing to the High Street store. “Everyone or alternatively an order can be placed for the items to be is a journalist or blogger now. But are shipped directly from the warehouse to the customer’s home. newspapers dead? No. Neither are stores, e order can be combined with additional in-store purchases, there will always be the joy of shopping,” with the customer paying for all items at once. iPads will also be he said, adding that data is the critical used by sta in the changing room for on the spot stock checks, thing. “dunnhumby is the world’s leading without having to leave the customer and risk losing a sale. source of data. It’s remarkable to me that a “We think it is going to give us a real bump in sales if trials retailer owns that position.” are anything to go by. e customers love it. It hasn’t been done Traditional retailers can’t a ord to be before as integration with the till system is not straightforward,” complacent though, a fact highlighted by said Browett. the news that la Senza and Jane Norman Dalton Philips’ keynote address was entitled ‘Competing in a have entered into administration. ere is also going to be a shi in the balance of power. e digital world may still be dependent on old world models like the Royal Mail and the likes of Ocado may wow investors whilst not actually making any money, but the revolution will happen. “Retailers are not going to be able to sit in their big stores anymore; the likes of proximity marketing will be key.” A thought provoking conference, then, although there was one glaring ommission. While all the speakers on the day focused on digitalising the High Street, none explored how you could utilise social media in-store. Hopefully one for next year’s conference, scheduled to take place at the Lancaster London Hotel on Tuesday, 30 June. Shop Direct: in the midst of a transformation project.
www.retail-systems.com July 2014 43
48_51_BRC conf review.indd 5 18/07/2014 10:43:13 RS [ directory ] Marketplace directory listing To Advertise in the Classifi ed Section contact Lisa Gayle Telephone: 0207 562 2428 Email: [email protected] [ The leading IT source guide for retailers ] CONTENTS address management soft ware international payment services business soft ware payment security solutions delivery solutions payment solutions e-commerce and head-offi ce (multi-channel) solutions rfi d and barcode readers epos, head offi ce (multi-channel) and warehouse solutions supply chain solutions epos, store, mail order, head offi ce and distribution solutions store, head offi ce and distribution solutions epos hardware supply chain solutions epos, store, head offi ce, warehouse and web solutions
To make the directory section as easy as possible to use, we have added an index of headings above. These are listed alphabetically in order for you to fi nd the products and services you are looking to source.
To list your company within the section, please contact Lisa on 020 7562 2428 or email [email protected] for a quote.
address management software
Postcode Anywhere (Europe) Limited, Postcode Anywhere is an award winning Soft ware as a Service Company who look aft er Waterside, over 8000 happy customers worldwide. We start by asking, how much does incorrect Basin Road, addressing cost your business? Lost customers? Returned mail? Lost revenue? Brand Worcester, WR5 3DA. reputation? Missed deliveries? Operational ineffi ciencies? As a leader in address United Kingdom management and location services, all delivered online, we can help your customers Tel: +44 (0)1905 888 550 experience the best check out process online and improve customer data in your Web: www.postcodeanywhere.co.uk internal CRM systems. Quality data fi rst time, every time, that doesn’t cost the earth.
delivery solutions
MetaPack Ltd MetaPack is the leading provider of delivery management solutions 12-16 Laystall Street • Best practise delivery solution – improve customer retention London, EC1R 4PF • Single point of integration for all carriers • Easily add new carriers and switch between them allowing for contingencies Tel: 020 7843 6720 • Complete tracking and extensive performance reporting Fax: 020 7843 6721 • Proactive customer care through email & sms messaging for shipments Email: [email protected] • Reduce logistics costs through eff ective allocation Web: www.metapack.com Customers range from large and multichannel retailers such as John Lewis, ASOS, B&Q, Marks & Spenser and DGSi Group to smaller pure play companies.
delivery solutions
Automated Packaging Systems Automated Packaging Systems manufacture a full range of plastic packaging for the mail order Enigma Business Park fulfi lment industry including Autobag bagging machines, which pack at speeds of 360packs/hour Sandy’s Road Malvern with one operator, increasing output 10-fold without substantial capital investment, and AirPouch Worcestershire protective packaging, which produces ultra-light weight cushions, reducing shipping costs while WR14 1JJ protecting goods in transit.
Tel: 01684 891 400 Email: [email protected] Th ey provide the highest quality plastic bags with the shortest lead times in the industry, off ering www.autobag.co.uk custom designed bags and protective packaging in various sizes and types.
directory - June-July_2014.indd 2 18/07/2014 10:27:20 [ ] directory [ RS
DIRECTORY OF KEY PLAYERS call 020 7562 2428 [email protected] fax 020 7374 2701
e-commerce and head-offi ce (multi-channel) solutions
hybris UK Ltd. hybris is a leading vendor of multichannel commerce & communication soft ware. Its clear vision Holborn Tower about the need for consistency, co-ordination and personalization of information across all 137 High Holborn channels and throughout all phases of the customer lifecycle has resulted in the development of an London integrated solution which supports the industrialization and automation of communication, sales WC1V 6PW and support processes both online and offl ine. It is spearheading innovation in this fi eld, enabling companies to master the complexities of implementing and managing single site, T +44 (0)207 429 4175 multi-site and multichannel communication and commerce processes step-by-step without F +44 (0)207 329 8291 any compromises [email protected]
Kudos Software Ltd Kudos Soft ware are specialists in retail and operational stock management soft ware solutions Cliff House, Cliff Road with 20 years experience in the retail industry and 300+ installed sites. Supporting single or Salcombe multi-branch operations our feature rich EPOS tilling solutions increase effi ciency, reduce admin Devon and improve profi tability. Kudos’ integrated systems are designed for retail shops, workshops, mail TQ8 8JQ order operations, large unit sales (such as caravans and boats) and e-commerce. We Tel: 01548 843586 off er a complete solution from initial consultancy through to installation, hardware, training Fax: 01548 843503 and support. E: [email protected] W: www.kudos-software.co.uk
Nisyst Nisyst has over 20 years experience of developing and implementing EPoS systems for a range of Nirvana House retail users from multi-site, multi-channel operations through to small, single-site businesses. 89 - 99 High Street Nisyst delivers complete solutions from point of sale to back offi ce, reporting and stock control Little Lever systems, giving a real commercial advantage to your organisation. Its market leading solutions, Bolton NPoS Enterprise and NPoS Lite, can be fully customised to meet customer requirements, improve BL3 1NA business effi ciency and save costs. Key NPoS modules include full sales and marketing control featuring email and SMS integration, Tel: 01204 706 000 stock control, purchase ordering, instant reporting and analysis, and pre-built e-commerce E: [email protected] integration for ordering and distribution. Nisyst systems operate on a comprehensive range W: www.nisyst.co.uk of electronic point of sale systems, including the latest generation of contactless and mobile applications.
e-commerce and multi-channel specialists
Vortex Commerce Ltd Vortex Commerce is an independent agency solely devoted to Ecommerce development. We have a First Floor Offi ce focused off ering and our mission statement is simple. “Build aesthetic and functional websites that 1 Prospect Crescent Harrogate, HG1 1RH create a positive return on investment for our clients”. We take immense pride in the work we do for United Kingdom our clients and enjoy seeing the results we’ve helped deliver.
T: 01423 226 555 E: [email protected] We can integrate the websites we build with virtually any 3rd party soft ware. Your website shouldn’t W: http://www.vortexcommerce.com be a headache it should be an invaluable revenue stream, if it isn’t the latter we can help.
e-commerce and head-offi ce (multi-channel) solutions
Retail Assist Ltd Retail Assist is a leading retail-only solutions and services company, providing UK and The Hub international retailers with end-to-end business applications plus a comprehensive range of 40 Friar Lane services that reduce costs, optimise retail operations and support higher revenues. Nottingham Our managed services off er 24/365 Help Desk, Technical Services, Operations, Data Centre NG1 6DQ Hosting, Hardware Maintenance and Disaster Recovery. Managed solutions off er hardware, soft ware and services, based on a fully-managed and hosted "soft ware as a service" model. T: 0115 853 3910 Merret, our award-winning integrated supply chain solution covers all areas of stock control and E: [email protected] retail supply for real-time multi-outlet, multi-channel merchandising and warehousing, plus W: www.retail-assist.com business intelligence. www.merret.com Clients include La Senza, Aurora, Paperchase, World Duty Free, First Quench and Harvey Nichols.
directory - June-July_2014.indd 3 17/07/2014 14:07:59 RS [ directory ]
DIRECTORY OF KEY PLAYERS call 020 7562 2428 [email protected] fax 020 7374 2701
e-commerce, head-office (multi-channel) and warehouse solutions
MNP MNP helps retailers deliver their brand experience in store, online and mobile. 91 Crane Street Salisbury Retail platforms that: Wiltshire • deliver top line growth through integration of store, web, international and online market places. SP1 2PU • ensure the bottom line margin is maximized with real time data and reduction of overhead.
Tel: 01722 341342 Our PLM, PIM and purchasing, order management, warehousing and in-store platforms align your Fax: 01722 341888 processes and each of which are modular. Leveraging an integrated set of operations & processes that deliver a truly collaborative approach to E-mail: [email protected] the business and brand experience. Web: www.mnp-media.com Featured users include Lakeland, Isabella Oliver, LK Bennett, Kurt Geiger, Crew Clothing, Liberty and Pure Collection. ecommerce, store, mail order, head office and distribution solutions
Sanderson Multi-Channel Solutions Elucid is our complete software solution for Multi-Channel Retailers that integrates store, web and Sanderson House mail order sales and back office fulfilment operations. Manor Road Whether you’re looking for a consolidated view of customers or striving to fulfil orders from Coventry multiple stock locations and reduce delivery timescales, Elucid helps you to deliver a seamless CV1 2GF customer experience. T: 0333 123 1400 E: [email protected] “Elucid has brought together our multiple sales channels and collective systems, providing us with a central hub that allows us to operate a true multi-channel sales organisation.” W: www.sanderson.com/elucid Patrick Walker, Beaverbrooks The Jewellers Contact: Lee Ashworth
Ecommerce, Store, Mail Order, Head Office (Multi-Channel) and Warehouse Solutions
Keystone Software Development Ltd We develop two core business systems for the Multi-Channel retailer. The first is a 1-3 Priest Court rock-solid back office ERP business management system that integrates on-line with Springfield Business Park all your sales channels including telephone, multiple, eCommerce-enabled web sites, Springfield Road Grantham, NG31 7BG in-store EPOS, ebay, Amazon, etc. Your stock is controlled and shared seamlessly across the entire estate, with a single point of maintenance for all business data. Contact: Paul Broderick T: 0845 25 75 111 Our second platform is Complete Commerce, a highly-featured, Responsive E: [email protected] eCommerce-enabled web environment developed from scratch to meet your precise W: www.keystonesoftware.co.uk marketing message including features you most admire in other web sites, or perhaps those of your competitors. We also offer Magento template-based solutions. epos hardware
World Headquarters CUSTOM : DESIGN AND INNOVATION FOR YOUR POINT OF SALE Via Berettine 2 43010 Fontevivo Custom’s main activity is to design, produce and supply solutions for the point of sale automation, Parma ITALY the printing process automation for the industry, issuing solutions for tickets and travel documents, Tel. +39 0521 680111 the point of sale automation for lotteries and betting. Fax +39 0521 610701 Custom stands out in the market for design, technology, innovation and range of products offered, [email protected] especially in the Retail sector: receipt printers, portable printers, fiscal printers, www.custom.biz touch-screen cash registers, POS terminals, customer displays, retail keyboards, digital signage. The mission is to provide innovative services and solutions able to satisfy all the needs of our Customers.
DED Limited DED Limited distribute a wide range of EPOS hardware for a variety of applications. Products Harden Road include: Lydd - Dot Matrix & Thermal Receipt Printers Kent - Label, Ticket & Kiosk Printers TN29 9LX - CCD & Laser Barcode Scanners T: 01797 320636 - Magnetic/Smart Card Readers & Writers F: 01797 320273 E: [email protected] - Cash Drawers W: www.ded.co.uk - Customer Displays
directory - June-July_2014.indd 4 17/07/2014 14:08:04 [ ] directory [ RS
DIRECTORY OF KEY PLAYERS call 020 7562 2428 [email protected] fax 020 7374 2701
epos hardware
Star Micronics Europe Limited Star Micronics provides an extensive range of thermal and matrix POS printers designed for a Star House variety of applications. Key products include: Peregrine Business Park Gomm Road - The revolutionary TSP100 futurePRNTTM series offers a range of models, including the world’s High Wycombe first ECO POS printer, with a variety of unique software tools. This printer has been successfully HP13 7DL installed by a number of major retailers worldwide including Harrods and Selfridges. UK - Award-winning TSP800II A4 replacement printer Tel: +44 (0) 1494 471111 - High speed TSP700II combined receipt, ticket, label and barcode printer Fax: +44 (0) 1494 473333 - Versatile FVP10 front operating, vocal direct thermal printer Email: [email protected] - Wide range of OEM kiosk printers Web: www.Star-EMEA.com - Card reader/writer systems designed to instantly erase, re-write or print up-to-date information.
epos, store, head office, warehouse and web solutions
The BlueBox The BlueBox has been providing bespoke ePOS, warehouse/logistics and procurement software 85 High Street solutions since 1996 for small businesses as well as large brands like KFC. We are a small, Tunbridge Wells customer-focused company who do not believe in the one-size-fits-all approach to system Kent implementation. Our systems are 100% web/cloud based, requiring no software installation and TN1 1XP ensuring all data is live and central at all times. However, our ePOS module works online as well United Kingdom as offline and is based on the best-of-both approach at the leading edge of current technology. Tel: 077 437 035 74 Email: [email protected] Web: www.blueboxonline.com
Celtech Group Limited Celtech Group is the market leader for mission-critical, true real-time retail management East Point, Fairview, Dublin 3, information systems & solutions for retail and wholesale chains in the food, entertainment, Ireland pharmacy and general merchandise sectors.
Tel: +353 1 855 8200 Celtech has over 20 years of proven reliability, built on its innovative and robust ab-initio software Email: [email protected] platform. Celtech provides a full end-to-end solution, covering all aspects of retail management Wesbite: www.celtechgroup.com system requirements, with a focus on your Return-on-Investment. To achieve this Celtech offers retail focused Consultancy Services to deliver projects and also offers a full range of accredited Hardware & Infrastructure Solutions, SaaS and Hosting Services.
Eurostop Founded in 1990, with operations in London, Singapore, Shanghai and Xiamen, Eurostop West Africa House, Ashbourne provides complete solutions for Retail Management for the Fashion, Footwear and General Road, Ealing, London. W5 3QP Merchandise sectors encompassing both hardware and software. Eurostop’s products include Head Office based software, EPOS, e-commerce, customer loyalty, fulfilment/picking/warehouse T: 020 8991 2700 management, mobile solutions, and comprehensive reporting facilities, all fully integrated. F: 020 8991 9561 Eurostop EPOS software is installed on over 20,000 tills worldwide. E: [email protected] W: www.eurostop.co.uk Eurostop Limited, Contact: Phillip Moylan, Tel: 020 8991 2700, Contact: Mr Phillip Moylan. email: [email protected], www.eurostop.co.uk Sales and Marketing Manager
FUTURA RETAIL FUTURA RETAIL SOLUTIONS - DEDICATED RETAIL SPECIALISTS SOLUTIONS - DEDICATED RETAIL Futura specialises in making a difference to profitability - through rapid response to customers' SPECIALISTS needs, greater efficiency throughout leading to reduced stockholding to free up working capital. Based on an unrivalled understanding of retailer's needs, Futura offers the most robust, Contact: Paul Court sophisticated integrated solution available, suiting lifestyle retailers, fashion houses and Tel: 01189 841925 department stores. Email: [email protected] Futura is proven, reliable and affordable and gives management greater vision and control, Website: www.futurauk.com helping to optimise target levels, minimise losses and achieve a rapid return on investment. To grow your business, expand on the web or streamline your Head Office to increase profitability, call 01189 841925 today.
directory - June-July_2014.indd 5 17/07/2014 14:08:08 RS [ directory ]
DIRECTORY OF KEY PLAYERS call 020 7562 2428 [email protected] fax 020 7374 2701
epos, store, head office, warehouse and web solutions
Prima Solutions Ltd Prima Solutions is widely regarded as one of the UK’s leading providers of complete multi-channel Loughborough Technology Park business solutions for the clothing, footwear, bags and accessories marketplace. The Prima ethos Ashby Road is simple - by really understanding the business requirements and issues faced by each customer, Loughborough we can work together to design practical, low risk solutions that add real value. LEICS LE11 3NG Our aim is to work in continuous partnership with our clothing, footwear and accessory industry T: +44(0)1509 232200 clients to deliver outstanding apparel solutions covering every aspect of the business from product F: +44(0)1509 262323 development through to order management, stock control and planning, manufacturing and http://www.primasolutions.co.uk sourcing, wardrobe management, customer and supplier management, financial controls and business reporting. Customers include: Mulberry, Joules, Nigel Hall, Curvy Kate, Blue Max Banner, Dubarry of Ireland, Church’s Shoes, Wolsey and John Smedley. payment security solutions
Us Us (formerly known as pinsecure) is the market leader in innovative physical security solutions for Unit 59, Surrey Technology Centre PIN pads across various verticals. Our solutions are designed with form and function in mind - delivering discrete, yet highly effective protection against physical PIN pad attacks. 40 Occam Road TM Guildford Founded over 10 years ago, we are a UK company, with deployments in various countries. Our Surrey focus is to deliver best in class solutions and exceed customer expectations. We were first to GU2 7YG market with a tethered anti-tamper harnesses and our pole mount with integrated anchor point. Us Customer requirements differ and so do our solutions - we offer a range of bespoke services from t: 01483 688320 unique key systems through to fully customised hardware solutions. e: [email protected] w: unique-secure.com PCI DSS and PA DSS v3 are coming and with that the requirement to physically secure the payment terminal. Get ahead of the rest and contact us now to discuss how we can help you achieve your goals. payment services
PacNet Services Ltd. PacNet offers a global range of inbound and outbound payment processing services for electronic Payment Processing retailers. Enjoy easy access to credit card merchant accounts, electronic debits and credits, Contact: Brian Weekes international payment types and the cutting edge RAVEN payment gateway. Lift sales by offering Tel: +353 61 714360, your customers relevant payment options in up to 130 currencies. There is no need to set up E: [email protected] foreign bank accounts or contract with multiple providers – no matter what W: www.pacnetservices.com currency your customers use to pay, you will enjoy fast access to funds in the very same bank account that you use today.
payment solutions
Chase Paymentech Chase Paymentech is a global leader in payment processing and merchant acquiring and is a Europe Limited specialist in customer-not-present (CNP) transactions, capable of authorising transactions in Block K more than 130 currencies. The company's proprietary platforms provide access to a wide variety of payment methods including credit and debit cards. In 2009, Chase Paymentech processed more East Point Business Park than 18.0 billion transactions with a value exceeding $409.7 billion, including an estimated half Dublin 3 of all global e-commerce Visa and MasterCard transactions. The company also provides a full set Ireland of solutions aimed at accelerating cash flow and managing transaction data. Chase Paymentech's T: + 353.1.726.2900 unique combination of outstanding service, innovative solutions and financial strength offers solid w: www.chasepaymentech.co.uk benefits to companies both large and small. Chase Paymentech Europe Limited, trading as Chase Paymentech, is a subsidiary of JPMorgan Chase, N.A. (JPMC) and is regulated by the Central Bank of Ireland. More information can be found at www.chasepaymentech.co.uk.
FIS Merchant Payments FIS Merchant Payments make it easier to accept a wide range of payment types more securely. Tricorn House, Card payments can be processed from multiple store locations or ecommerce sites for 51/53 Hagley Road, Birmingham. B16 8TU authorisation, fraud detection and data storage. Our ClearCommerce solution is the world's United Kingdom. leading ecommerce payment processing solution that detects and reduces payment fraud before T: 0121 410 4357 you process the order. TRANSAXion is ideal if you operate many branch locations, offering one F: 0121 410 4200 point of contact for all your payment processing. We are PCI:DSS accredited. E: [email protected] W: www.fismerchantpayments.com The net results are proven to reduce your costs and protect your profits. Call us. Contact: [email protected]
directory - June-July_2014.indd 6 17/07/2014 14:08:15 [ ] directory [ RS
DIRECTORY OF KEY PLAYERS call 020 7562 2428 [email protected] fax 020 7374 2701
payment solutions
Symphony House VeriFone Holdings, Inc. ("VeriFone") (NYSE:PAY), a global leader in secure electronic payment 7 Cowley Business Park technologies, provides expertise, solutions and services for today with a migration strategy for High Street, Cowley Uxbridge tomorrow. VeriFone delivers solutions that add value to the point of sale, resulting in improved UB8 2AD, UK merchant retention and the generation of new sources of revenue for its partners and customers. T: +44 1895 275275 VeriFone solutions are specifically designed to meet the needs of vertical markets including E: [email protected] financial, retail, petroleum, government and healthcare. W: www.verifone.com rfid and barcode readers
Nordic ID Nordic ID provides apparel and specialty retailers efficient store operations management with Myllyojankatu 2 A RFID. FI-24100 Salo Finland The Nordic ID concept “House of RFID” consists of a wide network of RFID providers – Tel: +358 2 727 7700 specialists in fast, affordable and smooth RFID project, pilot and rollout implementations. E-mail: [email protected] Company website: www.nordicid.com Nordic ID offers data capture tools for professional use. We are a respected and well known RFID articles and expert views: supplier of barcode and RFID mobile computers and fixed RFID readers. Our success is based on www.rfidarena.com our excellent service and our products’ usability.
store, head office and distribution solutions
BCP - Business Computer Projects Ltd BCP is a leading supplier of Supply Chain software solutions to the Retail and Wholesale BCP House, 151 Charles Street Distribution industry. Stockport, Cheshire Our Accord® supply chain solution is a powerful, fully integrated system offering store SK1 3JY automation, web, cash control, central store management, voice-directed warehousing, logistics, United Kingdom finance and business analytics. Based upon a modern, cost-effective, real-time technology and T: +44 (0) 161 355 3000 single architecture, Accord® is an ideal solution for today's progressive retailer, empowering F: +44 (0) 161 355 3001 companies to improve business across all channels, facilitating overall growth in revenue and E: [email protected] profitability. W: www.bcpsoftware.com Over 8000 users across the UK and Ireland depend on BCP solutions to control their Contact: Richard Marshall day-to-day business. supply chain solutions
ByBox ByBox, the locker solutions specialist offers a complete end-to-end supply chain solution – from Unit 1-2 Central City Industrial Estate sourcing parts, warehousing, distribution, simple swap outs and non-intensive installations Red Lane through to a bespoke high-end engineering solution for more complex tasks. Coventry West Midlands, CV6 5RY Operating 7 days a week, 365 days a year, ByBox delivers 20 million items a year into its network Tel: 0844 800 5219 of lockers which are situated at convenient locations such as petrol stations, supermarkets, Fax: 024 7658 4278 train stations, sports grounds and shopping centres. Working with hundreds of companies in a E: [email protected] variety of sectors, ByBox also manages the repair and return of any faulty items and operates an Website: www.bybox.com in house repair centre, where a fully trained workforce of repair technicians provides full repair, refurbishment and screening services.
RedPrairie Ltd RedPrairie delivers productivity solutions to retailers to help manage workforce, inventory and EMEA Headquarters: transportation both in the supply chain and in-store. RedPrairie provides these solutions to Beacon House enable retailers to support business strategies that increase revenue, reduce costs and create Ibstone Road competitive advantage. Stokenchurch With over 20 global offices and solutions that are installed at more than 34,000 customer sites in Bucks. HP14 3AQ over 40 countries, companies trust RedPrairie workforce, inventory and transportation solutions www.redprairie.co.uk/retail to deliver an increase in productivity - with the flexibility to adapt, as business needs change. Tel: 01494 486500 At RedPrairie, we understand today’s operational demands and we’re committed to [email protected] delivering solutions that work. We’re committed to delivering solutions for the real world. Contact: Natalie Green
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payments_awards_2014.indd 2 18/07/2014 11:05:37 [ ] signing off [ RS book review TOP OF THE TWEETS Title: The Rise of the incredibly liberating; all that’s required Humans, How to outsmart is a change in mindsets. “The exciting Most tweeted the digital deluge. Author: news is that there are solutions out there,” stories at Retail Dave Coplin. Publisher: he writes. “There is some remarkable Systems Online Harriman House. RRP: progress being made, and signs already (www.retail- £9.99. Reviewed by Scott of what a more balanced and productive systems.com) Thompson data-filled future holds, both for during June/July ver feel like we’re missing the individuals and firms. There’s work to be point of technology? That’s done and pitfalls to avoid, and time may SuperGroup overhauls the question Dave Coplin, feel like it’s up against us, but the future surveillance systems chief envisioning officer at does not need to be feared or forsaken.” SuperGroup has teamed with Axis Microsoft UK, poses as he This is not a new problem, when you Communications to replace its kicks off The Rise of the Humans, How to think about it. Coplin blames Alexander legacy surveillance systems and Eoutsmart the digital deluge. “Given we are Graham Bell. “After all, he started it. improve safety and security across now supplied with more technology and It was his work back in the late 19th its European store network. The data than ever before (a veritable digital century that enabled the connection of project also incorporated analytics deluge) our future lies in our ability to two geographically separated individuals features, extending systems use harness not hate it,” he observes. by transforming their interactions into beyond security and into more of As someone who often feels bewildered electronic signals and stuffing them down a marketing sphere. by the volume of information coming at a length of metal wire.” It’s just that in them (sometimes a productive morning 2014 the rise and rise of smartphones, Powa Technologies snaps up for me is clearing all my email), I sat social media etc could potentially take ZNAP down to read this book with great us off a cliff. Coplin debates the key Powa Technologies Group has ac- interest. I devoured it in one sitting issues and puts forward solutions in what quired mobile outfit MPayM, the and a few days later was still thinking is a quick thinking, fast moving book company behind ZNAP, in an all about the issues and challenges raised. which should be essential reading for share deal valued at $75 million. Hey, technology is amazing. You don’t anyone working in or managing a retail need me to tell you that, you’re reading organisation. We need to stop worrying Pureplays falling behind in this technology title, for heaven’s sake. and love the algorithms. As he puts it: mobile race The rapid growth of our digital world “If we get this right, we humans won’t Multi-channel retailers are quicker has brought huge advantages, but it has be in awe of the machines; nor will we to adapt for mobile than their also disconnected us. Our smartphones be drowning beneath a digital deluge. pureplay counterparts, according connect us like never before, but they Instead, we will stand high and proud on to a new report released by IMRG. can also take us away from the real the shoulders of these mechanical giants world. You probably know someone, for and accomplish truly amazing things.” Maginus acquires IDS instance, who has thousands of Facebook Maginus, a supplier of multi- friends but no actual real buddies. I Also new, also good... channel solutions, has bought recently went on holiday; I was on a BI specialist InfoData Solutions cruise and, for much of the time, couldn’t Title: Re-thinking Retail in the Digital (IDS) for an undisclosed sum. get a phone signal or WiFi. I confess I Age. Author: Elix-IRR. Publisher: LID was a bit antsy about it at first but after a Publishing. RRP: £16.99. Reviewed by UK e-retailers don’t fear Amazon day or so, it was fine, more than fine in Scott Thompson While two thirds of US e-retailers fact; it was actually nice to be free of the This book comprises a collection of see the need to re-think their infogestion outlined in Coplin’s book and articles written by Elix-IRR’s senior online business to compete with to be in a place where people didn’t have experts and aims to provide insightful, Amazon, their UK counterparts a rectangular device glued to their hand, practical and pragmatic advice into have a different approach. A new weren’t on Facebook 24/7 and instead the evolving retail landscape. Subjects report from eCommera reveals actually talked to eachother. covered include digital money, Big Data that British businesses think Back on dry land, however, technology and the rise of nearshoring. As well as omnichannel enterprises will is a vital part of my working week, so less fashionable issues such as the drive outstrip pureplays, and looks at what to do? Well, help is at hand. Coplin for supply chain efficiency. Asking price how retailers are trying to connect argues that, whilst the digital deluge a bit steep, but lots of good stuff to be operational data to optimise profit can sound like a scary thing, it’s actually found within its pages. potential in this area.
www.retail-systems.com July 2014 51
signing-off.indd 3 17/07/2014 10:26:59 7th Annual
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26 September 2014 REGISTER London Stock Exchange NOW!
Speakers Panellists
• Phil Streatfi eld, Partner, LCP Consulting - CHAIRMAN • Jess Jeetly, Founder and Managing Director, • Paul Coby, IT Director, John Lewis - KEYNOTE Jeetly • Edward David, CEO, Atterley Road • Nupur Manchanda, Director of Consulting, • Derek Risk, IT Director, Tragus Group (Café Rouge, Practicology Strada and Bella Italia) • Sarah McVittie, Co-Founder, Dressipi • Leon Shepherd, CIO, Jack Wills • Glen Richardson, CMO, Fruugo • Dr Arne K. Strauss, Associate Professor of Operational • Glenn Shoosmith, Founder and CEO, Research, Warwick Business School BookingBug
This key industry event is FREE for retailers and consultants FIND OUT MORE AND REGISTER NOW AT www.retail-systems.com/conference
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multi-channel.indd 1 18/07/2014 10:40:31