Succeeding in Seamless Transforming to increase profits, engage customers and enhance operations in today’s digital world. You and Accenture. Defining the Future of Retail.

Succeeding in today’s fast-paced retail industry requires a blend of marketplace differentiation, digital savvy and strategic operations. Accenture helps you achieve all of that—and more.

Retailers are at different places along the journey • Improving process and labor effectiveness to seamless success. Some just need transformation to free up 20 percent of labor for clients. in one area, such as strengthening online and • Optimizing assortment and space for more offlineSucceeding customer experiences in today’s to differentiate their than 7,000 stores. brand. Others need a large-scale transformation to • Segmenting more than 200 million customers improvefast-paced operations, retail whether renovating technology in North America across five global retailers. systemsindustry or reimagining requires the supplya chain. Noblend matter of where marketplace you are on the journey, we want Delivering results worldwide todifferentiation, help you increase revenue digital and market share If your business is ready to improve results in bysavvy taking andout costs, strategic exploring innovative business today’s digital world, we can help by mobilizing modelsoperations. and developing Accenture new capabilities that boost our resources in more than 150 countries. The your top-line growth. We can do so by sharing the Accenture Global Delivery Network of 50+ centers insightshelps andyou experiences achieve of our all 9,000 professionals around the world is our means to deliver fast, workingof that—and with retail clients more. around the globe to efficient services along with the knowledge and achieve results, including: experience of more than 218,000 people. • Producing more than 50,000 planograms with As your global teammate, we are eager to help you 99 percent accuracy and on-time delivery rate. shape the future of retail—and your business.

2 Accenture—Part of the Fabric of the Retail Industry Accenture is dedicated to the • British Retail Consortium advancement of the retail industry • China Chainstore and Franchise Association through our participation and • Consumer Goods Forum leadership across industry-relevant • Food Marketing Institute associations and events, including: • Mobile World Congress • Retail Week • Retail Industry Leaders Association • World Retail Congress • National Retail Federation

This past year, Accenture has helped hundreds of retailers worldwide.

9 of the Top 10 9 of the Top 10 7 of the Top 8 9 of the Top 10 Global Global Global Global Retailers Apparel Stores Consumer Electronics Department Stores Stores

All of the Top 10 3 of the Top 4 9 of the Top 10 5 of the Top 6 Global Global Global Global Discount Stores Drug Stores Grocery Stores Home Improvement Mass Merchants Stores Hypermarkets Warehouse Clubs

3 The Pillars of a Seamless Enterprise

Retailers must be agile in this volatile digital world—quickly adapting to customer preferences, emerging technologies or global trends. Through our strategy, operations, digital and technology services, we help you stay ahead of the rising demands placed on your business. We deliver end-to-end or point solutions that address a specific business challenge, and we can scale our services up or down as your needs change. Strategy Providing direction at the crossroads of business and technology

In 2014, Accenture elevated the role channel and retail competition becomes more of strategy to be a major pillar of our intense, retailers’ capabilities and functions must business. We made this move because be seamlessly integrated. We help retailers make we know that in today’s high-speed sound investments that integrate operations and marketplace, businesses need to be technology in order to reach and serve customers in ready for anything. Having a solid new ways. strategy is what retailers need to Bringing global experiences and insights compete, get the bottom line in Accenture has 7,000 employees with retail industry shape and improve top-line revenue. knowledge who can develop and deliver on a strategy for your business. Whether you are in Optimizing for the digital world Australia, Brazil, Russia or South Africa, we share We examine each business challenge to understand with you a world of insight that extends far beyond it, and then look at how we can help to solve it. the person sitting in front of you. For example, as customers become more omni-

British Retailer: Argos

Accenture is providing a range of IT services mobility services will enable Argos to be a digital across Argos’ operations to reposition the retail leader with a cost-efficient supply chain company in the digital space and enable it to and a commercial operating model that has a offer a seamless customer experience across all lean and flexible cost base. 4 channels. Our technology, digital, analytics and Accenture Customer Innovation Network

The Accenture Customer Innovation Network North America, Europe, Latin America and Asia- team brings the industry’s cutting edge Pacific, we provide interactive experiences and technologies and ideas to life for our clients access to research, global industry expertise and through thought leadership, workshop innovative demonstrations. We like to think of experiences and collaboration with internal ourselves as innovation catalysts that work with and external innovators. Through a network clients to exchange information, ideas and skills. of physical, virtual and onsite locations across

Strategy services include:

• IT strategy • Finance and enterprise performance strategy • Operating model strategy • Risk management strategy • Manufacturing strategy • Seamless experience strategy • Digital business strategy • Supply chain strategy • Sales and customer service strategy • Talent strategy

Specialty Apparel Retailer

Through a seamless retail transformation capabilities that improve performance in areas program across stores and digital channels, such as customer capture rates, inventory levels Accenture is helping this retailer build new and pricing processes.

5 Operations Helping businesses work smarter, faster and cheaper Winning market share in a saturated industry is not only a cost play, but also a business improvement play— and Accenture can help with both. We made a bold decision to combine our infrastructure and cloud services with our business process outsourcing capabilities under one operations umbrella. Doing more, better Accenture brings resources to support your business Reducing costs across a variety of areas. For example, retailers Accenture brings help where help is needed, and struggling to find data analysts turn to Accenture we bring it at a lower cost, whether it’s to support for our team of data scientists who know retail indirect procurement, clerical work, data cleansing, and also know how to use statistics, quantitative error handling or other functions. And we do it all analysis and information-modeling techniques to with staff attrition rates less than 15 percent. inform business decisions. In addition, retailers that We can help you reduce inventory through better are trying to reduce the amount of money they tie planning and forecasting, reduce holding costs up in inventory look to Accenture to negotiate with and lower the cost of capital because when you vendors to get the right products at the best prices. don’t have to buy as much, there’s less you need to Accenture can perform these services faster than borrow from the bank. Having the right inventory most retailers can themselves. We are accountable, at the right time will also satisfy your customers’ we are willing to put our fees at risk and we are desires for having products accessible when and committed to delivering outcomes. Our people how they want them—online or in store. speak multiple languages and our global team is Increasing capacity working when you are sleeping. It’s important for retailers to reduce costs, but it’s We are also acquiring companies so we can rapidly critical to free up time. This is why many retailers expand the capabilities we offer to clients. For do what they do best, and leave the rest for example, Accenture acquired Procurian, a leading Accenture. For instance, you can spend time on provider of procurement business process solutions, buying, merchandising, customer segmentation, to improve our outsourcing services, strategic assortment planning and pricing while we keep the sourcing category expertise, advanced analytics retail operations engine running behind the scenes. capabilities and global delivery resources.

Canadian Food Retailer: Loblaw Loblaw worked with Accenture to successfully Loblaw has not only improved their supply chain transform its core supply chain capabilities. With performance, but also implemented a robust and a focus on improving transportation, warehouse end-to-end set of skills that effectively enable 6 management, and forecasting and replenishment, the flow of products to the marketplace. Accenture is a Leader in Operations

InformationWeek ranks Accenture as the 21 years experience #1 Outsourcer 400+ clients Ranked No. 1 in the International Association of Outsourcing Professionals’ (IAOP) Global Outsourcing 100 50+ delivery locations –for the sixth year in a row IDC MarketScape 2014 Vendor Assessment 39 languages supported Named Leader • Worldwide Business Analytics Consulting and Systems Integration Services 49,000 BPO professionals • Worldwide Business Analytics BPO Services

Operations services include: • Business process outsourcing • Shared services across functions • Cloud platforms • Application outsourcing • Cloud services • Infrastructure transformation • Cloud security • Infrastructure origination and enablement

US Grocer A US-based grocery store is working with able to earn points that can be redeemed for Accenture to develop a loyalty program. Through discounts and interactive store experiences, such a rewards card or mobile app, customers will be as cooking classes. 7 Digital Powering the customer experience

Making money in the digital world isn’t Improving the digital front end is so critical to just about having a website with all our clients’ business that we made acquisitions to the bells and whistles. It’s about using quickly build out our capabilities. For instance, we digital to improve multiple areas of acquired Fjord, a global design consultancy that your business, including technology, specializes in creating digital experiences that the physical store, the supply chain and engage consumers across platforms. To further enhance our eCommerce and digital marketing employee enablement tools. That’s why capabilities, we acquired Acquity, the second- our seamless team supports clients from largest independent digital marketing company in digital design to delivery. the . And, through our acquisition of avVenta Worldwide, we are extending our digital Providing a consistent experience for customers production services. Digital affects 100 percent of the customer experience. Retailers must provide a consistent Digitally enabling the enterprise experience in store, on a mobile device and across We understand the need for operational speed and social media. Accenture has the expertise and agility—especially when innovations, such as 3-D know-how to help with the customer-facing printing, are changing the way we work. Accenture details, such as developing an intuitive user helps retailers improve their digital dexterity, from interface or using analytics to personalize and defining the right digital platform to implementing customize the shopping experience. the right technologies.

US Department Store: Belk Accenture is helping Belk deliver new and customer experience on Belk.com, improved enhanced multichannel digital capabilities across customer analytics and integrated operations that its 300+ stores. New capabilities will include a will help Belk operate seamlessly across multiple ship-from-store delivery service, an enhanced shopping channels.

8 And we also recognize the continued importance physical boundaries of the store—must be a core of the physical retail store. Customer-facing competency of store associates. store associates are the front line of the Recognizing a growing demand for agile, low-cost, customer experience, so they need to be more onshore services, we have consolidated our global sophisticated in how they interact with customers. digital skills by way of the Accenture Retail Connecting technology, mobility, customer and Digital Factory. product knowledge—within and outside the

We are Digital Collaborators Even within our own business, we believe in using Yammer—an enterprise social networking the value of sharing experiences and expertise tool. In fact, Accenture represents the largest using digital tools. Our employees collaborate implementation of this tool. and share leading practices around the globe

A Digital Powerhouse We have built strong digital capabilities through recent acquisitions. Through our acquisition of Fjord, a global service design consultancy, we are helping chief marketing officers and digital leaders to create distinctive customer experiences and bring them to market at speed across platforms including smart devices, tablets and PCs. Accenture also acquired Acquity Group, a digital marketing company that helps companies enhance their brand experiences and eCommerce performance. With this stronger-than-ever digital backbone, we can help retailers solve their toughest digital challenges.

Swedish Discount Food Retailer: Willys Accenture and Willys designed “Willys+”, a mobile app and push emails to communicate with digital loyalty program that strengthens the customers and share information on how much brand’s mission to help families buy groceries at they’ve saved through the program. Also, based a lower cost. Willys+ offers loyal customers steep on their behavior and preferences, Willys+ sends discounts on items that can be used together to customers tailored offers. create family meals. Willys is using a website, 9 Technology Creating a strong foundation for retailers

Every company wants to see results Delivering business results faster faster. And having the right technology The cloud offers convenient, on-demand access to in place is critical. Accenture has the a shared pool of configurable computing resources. knowledge and industry experience to However, the variety of cloud choices can be help clients integrate technology to daunting, so we can help navigate the options. enable their digital transformation. Accenture knows how to integrate and manage new IT landscapes so that you can spend more Becoming more agile time focusing on using the cloud to grow your Accenture offers a wide range of enterprise resource business faster. planning (ERP) services. We recognize that retailers Getting more from digital technology are all at different places on their ERP journey. Some We focus on integrating data, interfaces and need to sustain or enhance, and others need to platforms together to create a successful digital fundamentally transform their ERP landscape. enterprise for our clients. Accenture helps retailers Breakthrough technologies, such as digital and in- reimagine ways to serve their customers and memory computing, enable a “high-velocity” ERP. seamlessly operate their “always on” enterprises. We have the capabilities to speed the deployments, Our services include digital marketing, mobility reduce ERP costs, and facilitate richer interactions and analytics—helping retailers achieve tangible with customers, partners and machines. results in a digital world. Accenture has a proven

US Off-price Department Store:

Accenture is working with Ross Stores to stabilize visibility into how merchandise is selling on an and strengthen its core merchandising systems individual store and market basis. to offer the company’s buyers better insight and 10 track record of helping clients increase profitable Cutting through complexity growth and customer satisfaction by improving Managing large-scale change can be cumbersome. user experiences, sales and marketing campaigns, The combination of our strategies, processes, tools content management, customer service and and skilled people enables retailers to manage loyalty. Through our technology capabilities, we service environments and adapt to change quickly, help retailers implement the technology needed to reliably and cost-effectively. Accenture can enable and grow their digital business. either help you build services in-house, or we can deploy a small, experienced team to alleviate Maximizing IT value your IT burden. Retailers can get more from their IT investments by removing duplication, simplifying systems Making applications more reliable and cost-effective and reusing assets. From defining the IT strategy We help you reduce your application environment and creating a roadmap to implementation and costs, while continuously optimizing and innovating. governance, we help retailers equip their IT We can develop and manage your applications organizations with capabilities that are flexible and at any level, be it low-cost support, ongoing can meet future business needs. maintenance, enhancements and upgrades, or more comprehensive projects to extend your business applications into the digital future.

US Supercenter Chain: Meijer

Meijer worked with Accenture on a forecasting allowing Meijer to meet its in-stock and and replenishment initiative that enabled customer service levels. Accenture is also providing significant inventory reductions while still the retailer with forecast analytics services. 11 We are the No. 1 Systems Integration Partner for Both Oracle and SAP

20+ 30+ years of collaboration years working with SAP

Largest practice of all Oracle Largest practice of all SAP systems service providers integrators, with more than 36,000 SAP practitioners who 800 have delivered 1,700+ projects Oracle Retail skilled Partnering with SAP on the largest practitioners globally SAP Retail implementation in the world 250+ Oracle Retail projects 600+ specialized SAP Retail resources Participated in the majority at the Global SAP Retail Delivery of all Oracle Retail Centers implementations globally Accenture is a Leader in the Gartner Magic Quadrant for SAP Application 30+ Management Service Providers, clients live on Oracle Retail v13 Worldwide Won 22 SAP Pinnacle awards Won 46 Oracle awards since 2003, more than any other since 2003 alliance partner

12 Accenture Technology Alliances Among the more than 150 alliances we have with companies around the globe, our retail organization has long-standing relationships with industry giants, and also emerging companies relevant to retail.

This is a representative sample of alliance relationships Accenture has relevant to retail.

The Power of Three Avanade was created by Accenture and in 2000 to help customers realize the best results from their Microsoft technology. Avanade provides the deep technical expertise in Microsoft technologies, as well as proven architectures, frameworks, methodologies and a worldwide network of Microsoft-certified consultants to help clients define a roadmap for seamless deployment.

French Clothing Company: Lacoste Together, Accenture and Lacoste China designed, will also maintain the platform, upgrade required built and operated a platform that included the functionalities and manage content to support official Lacoste website and e-Shop, as well as Lacoste in driving rapid online growth in China. 13 Lacoste brand sites on digital malls. Accenture Accenture Advanced Enterprise Solution (AAES) AAES for Retail links industry-leading processes have chosen. Process models, such as order-to- to a preconfigured ERP solution built on the cash, finance and controlling, CRM and supply latest SAP and Oracle technology to help chain management, help clients achieve greater clients realize value more quickly. Our solution visibility, efficiency and consistency and get more offers the flexibility that fits clients’ individual value from their ERP systems. needs, no matter which operating model they

Accenture Retail Center of Excellence

The Accenture Retail Center of Excellence in India combines people, processes, tools and assets to create industry-specific solutions and services for our clients, regardless of location and time zone. Our more than 2,100 professionals in Bangalore, Delhi and Mumbai foster industry and functional innovations for information technology and business process outsourcing services.

Technology capabilities include: • Business insight • Host-centric technologies • Enterprise integration • Database systems • Enterprise solutions • Operating systems • Content management • Software lifecycle tools • Web-centric technologies • Technology certifications • Client/Server

1414 Helping Retailers Around the World Execute with Innovation and Differentiation

Accenture Seamless Retail Accenture Retail Industry Process Model Solution Factory Developed by retail practitioners and thought The Accenture Retail Industry Solution Factory leaders from around the world, the Accenture combines people, processes, tools and assets to Seamless Retail Process Model draws on our create industry-specific solutions and services for experience from thousands of projects across our clients, regardless of location and time zone. formats, categories and markets. The latest model Our more than 4,700 professionals in India, the sets the capability framework for a seamless Philippines and China offer systems integration, retailer, connecting the physical and digital technology consulting and outsourcing solutions in: channels to optimize customer experiences. • SAP enterprise solutions The model can be used in many ways including • Oracle enterprise solutions setting the strategy for seamless transformations, • Business insight and analytics assessing capability and maturity levels of the • eCommerce and mobile commerce different retail functions, accelerating process • Testing and quality assurance redesign, designing an optimal organizational structure and communication support for • Custom applications and enterprise integration change management. The model is available • Multichannel opportunities with any Accenture project and can be licensed independently.

Retailers who know and anticipate what their customers want can maximize profits, outperform their competitors and ultimately achieve high performance. With Accenture, you are steps closer to providing a seamless retail experience.

15 For more information on About Accenture succeeding in today’s digital Accenture is a global management consulting, world, please contact: technology services and outsourcing company, with more than 319,000 people serving clients in David Richards more than 120 countries. Combining unparalleled Global Retail Managing Director experience, comprehensive capabilities across all [email protected] industries and business functions, and extensive research on the world’s most successful companies, Takaaki Haraguchi Accenture collaborates with clients to help Asia Pacific Retail Managing Director them become high-performance businesses and [email protected] governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, Alexis Lecanuet 2014. Its home page is www.accenture.com. Europe/Latin America Retail Managing Director [email protected] Follow us on Twitter @AccentureRetail Patricia Walker Learn more at www.accenture.com/retail North America Retail Managing Director [email protected]

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