Mobile technology serves a dual purpose for retailers, aiding

both associates and customers who consider a mobile device

part of their daily lives. Careful planning, execution and device
management solutions are the cornerstones of a successful mo-
bile strategy for any retailer. Those who take advantage of the
benets of integrating mobile capabilities into their brand experi-
ence will see increased sales and productivity of associates. With
mobile, retailers can send customers coupons and loyalty points,
access quicker checkout and redeem rewards automatically.
While 2013 was the year of the mobile pilots, 2014 will be
the year that mobile will start to become truly integrated into
the store experience and deliver on the vision of becoming
closer to the customer. Over the last year, retailers including
Perry Ellis, Luxottica and Home Depot have begun to equip
both store associates and customers with mobile devices to
improve the in-store experience, becoming more efcient and
convenient. These devices not only improve the customer ex-
perience, but also create an endless aisle, track associate pro-
ductivity, allow for checkout anywhere in the store and create
an overall customer-centric brand experience.
Made famous by the Apple experience, mobile checkouts
are one of the easiest ways to combat shopping cart aban-
donment. If customers can checkout on the oor from a tablet
rather than waiting in line, sales will increase. For example,
after implementing mobile POS capabilities last year, Nord-
strom experienced a 15% increase in sales. When the POS is
linked to the inventory and the website, retailers can use pur-
chase history data to further personalize the shopping experi-
ence the next time the shopper enters the store.
Mobile POS and mobile selling solutions help Perry Ellis to
increase customer engagement throughout its stores, provide
access to customer loyalty information, and enable associates
to use mobile devices for product and price lookup, product
recommendations and clienteling. The solution also allows
sales associates to check the inventory of out-of-stock items in
other store locations and channels, fullling the order without
leaving the customer.
Transforming the
In-Store Experience
I N - S T O R E M O B I L I T Y
Transforming the
In-Store Experience
The use of in-store mobile devices helps retailers create
an endless aisle, increase productivity and extend the
brand experience
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 6
CRITICAL
I N- S T OR E MOB I L I T Y
FEBRUARY 2014
FI VE TECHNOLOGI ES REVOLUTI ONI ZI NG RETAI L
SPONSORED BY
IN-STORE MOBILITY // PAGE 3
BUSINESS INTELLIGENCE & ANALYTICS // PAGE 6
UNIFIED OMNICHANNEL PLATFORMS // PAGE 10
FLEXIBLE FULFILLMENT // PAGE 14
LOCATION AWARENESS MARKETING // PAGE 17
Critical_v4.indd 1 2/14/14 1:35 PM
The shoppers embrace of personal technology has forced deep changes in the retail landscape, especially
in the realm of enterprise-level IT strategy and execution. Todays new reality demands a new approach to
retail technology.
RIS News has delved into the ve technologies we believe will have the biggest impact on retail in 2014
and beyond. The technologies are explored in depth in the following pages and include:
1. In-Store Mobility. Integrating mobility into the store experience will be a top priority in 2014.
Retailers are using mobile devices to create an endless aisle, track associates, enable checkout any-
where, and create a customer-centric store experience.
2. BI/Analytics. A host of new technologies offer new data-gathering and analytic opportunities.
Retailers are exploring how to turn this new data into useful insights and high-performance outcomes.
3. Unied Omnichannel Platforms. With the number of shopping channels likely to rise, it is
increasingly vital for retailers to abandon the siloed approach in favor of tightly coupled platforms. A
unied approach to inventory, for example, ensures customers get what they want, when they want
it, in the channel they prefer.
4. Flexible Fulllment. Customers want to take delivery of their purchases as quickly, easily and
affordably as possible. Technology is being introduced throughout retail making ship-to-store, ship-
from-store, store-to-store transfer and a host of fulllment options a seamless reality.
5. Location Awareness Marketing. Retailers need to personalize the shopping experience
and engage customers at every turn. Smart retailers are marketing to shoppers through mobile net-
works, WiFi and Bluetooth technology in-store via a customers own mobile device.
I N T R O
TI MOTHY DENMAN
When setting priorities for IT investments in 2014 and beyond,
these ve technologies deserve to be at the top of every retailers list
TECHNOLOGY GROUP
www.edgellcommunications.com
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EDITORIAL
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1951-1998
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 2
5 Must-Have Technologies 5 Must-Have Technologies
Critical_v4.indd 2 2/14/14 1:35 PM
Mobile technology serves a dual purpose for retailers, aiding both
associates and customers who consider a mobile device part of
their daily lives. Careful planning, execution and device manage-
ment solutions are the cornerstones of a successful mobile strategy
for any retailer. Those who take advantage
of the benets of integrating mobile capa-
bilities into their store experience will see an
increase in sales and productivity of associ-
ates. With mobile loyalty programs for ex-
ample, retailers can send offers to targeted
customers to redeem coupons or earn loy-
alty points. This is just one of many options
available through in-store mobility.
While 2013 was the year of mobile pilots,
2014 will be the year that mobile will spread
throughout retailing and support a strategy
of becoming more closely engaged with con-
sumers. Over the last year, retailers includ-
ing Perry Ellis, Luxottica and Home Depot have begun to
equip both store associates and customers with mobile
devices that make the in-store experience more efcient
and convenient. While these devices not only improve the
customer experience, these also create an endless aisle
that supports selling products that are out-of-stock in the
store. Other important mobile functions include enabling
for checkout anywhere in the store and creating an overall custom-
er-centric experience.
Mobile checkout and line-busting are
effective ways to combat in-store shop-
ping cart abandonment. If customers can
checkout on the oor from a tablet rather
than waiting in line at a cash wrap, satisfac-
tion will increase and loyalty will improve.
For example, after implementing mobile
POS capabilities, Nordstrom experienced a
15% increase in store sales. When the POS
is linked to the inventory and the website,
retailers can leverage purchase history data
to personalize the shopping experience ev-
ery time the shopper enters the store.
Mobile POS and mobile selling solu-
tions help Perry Ellis increase customer engagement by providing
access to customer loyalty information and enabling associates to
tap into product and price information, recommendations and clien-
Transforming the
In-Store Experience
I N - S T O R E M O B I L I T Y
Transforming the
In-Store Experience
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 3
84%
of smartphone
shoppers use
their devices to
help shop
while in-store.
Google Shopper Marketing
Council, Mobile In-Store
Research
Mobility enters a new phase of mainstream adoption
and next generation capabilities
NI COL E GI ANNOPOUL OS
CRITICAL 5
of retailers say store
associates use
mobile devices to
perform store functions.
EKN, State of the Industry
Research Series: The Future
of the Store
64%
Critical_v4.indd 3 2/14/14 1:35 PM
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 4
The Home Depot also rolled out mobile solutions
focused specically on integrating the omnichanel
experience in stores, knowing that customers ex-
pect a simple and easy way to shop across channels.
Along with new technology capabilities, new training
was necessary for associates. New functions enable
Home Depots First Phones to be able to manage the
buy online and pick up in-store (BOPUS) and buy on-
line, ship to store (BOSS) processes.
Previously, an associate would have to go to a ter-
minal to complete this activity, which added time and com-
plexity to the action. Now, with the First Phone, associates
can close the transaction immediately from wherever they
are in the store. The training and additional technology have
led to a signicant improvement in integrated customer
service. Separately, the retailer tracks customer satisfac-
tion scores on BOPUS and BOSS orders. Those scores
have shown a marked improvement and the Home De-
pot plans to continue to rene and improve the process.
For retailers developing in-store mobile programs,
success will depend on how well they understand cus-
tomer demands and manage mobile expenses. As re-
tailers continue the broad-based rollout of mobility in
stores, they will encounter pain points along the way, but
also dramatically improve the in-store experience and
customer engagement.
teling capabilities. The solution also allows sales asso-
ciates to check inventory status of out-of-stock items
in other store locations and channels and ultimately
complete the order without leaving the customer.
Innovation is something Perry Ellis has always
been known for, so the adoption of mobile selling
in our stores is a natural evolution for our brand,
says Luis Paez, CIO of Perry Ellis. Our clients expect
something different when they walk in and our goal
is to use mobile to deliver an exceptional, unique
customer experience that will keep them coming back.
Similarly, Luxottica set out to transform the shopping ex-
perience and bring new capabilities to traditional systems. To
do this, the eyewear retailer deployed in-store iPads across
its 2,000 Sunglass Hut locations, creating an endless
aisle strategy that makes it easier for customers to nd
what they want where they want it, with past purchase
history and other information available through the e-
commerce site.
The tablets enable associates to browse and com-
pare products, check inventory and order out-of-stock
items, providing a more engaging customer experience.
Apps allow the retailer to incorporate associate tracking,
reduce paper messages used in stores, support market-
ing and merchandising initiatives and improve associate
productivity.
1
IN
3
shoppers use their
smartphones to nd
info instead of asking
store employees.
RIS News, Expanding
the Boundaries
of POS
More than 50%
of consumers appreciate
that retailers are using
MPOS to make the in-store
shopping experience
more convenient.
I Love Velvet,
2013 Consumer Mobile
Point-of-Sale
(MPOS) Attitudes Report
I N- S T OR E MOB I L I T Y
CRITICAL 5
Critical_v4.indd 4 2/14/14 1:36 PM
A D V E R T O R I A L CRITICAL 5
Aerohive delivers wired and wireless mobility platforms
with customer analytics.
What steps must a retailer take to enable a strong
in-store mobile network?
First and foremost the retailer, like any enterprise requiring
mission-critical wireless, must understand their RF envi-
ronment. Thorough site surveys are required. Many retail
chains have standardized wireless congurations that are
nearly cookie-cutter, but theres always a benet to having
the RF environment veried.
Secondly a system that doesnt require complicated
equipment at the local store allows for a simple, hands-off deployment;
ideal for resource strapped IT departments. Access points (APs) that can
not only handle the full trafc load but also perform higher-level security
and privacy functions are key. If the system requires additional equipment
to comply with security regulations outside of the APs, then you will run
into higher per-store costs, which add up quickly.
How can an in-store mobile network be utilized for location analytics?
The Wi-Fi being used by mobile devices as well as the infrastructure ac-
tually carries a tremendous amount of data with it. The key is to anony-
mize the data in accordance with your companys privacy policy for its
customers, but also to use a system capable of processing large amounts
of data. In addition to serving data to customers, APs are effectively collec-
tors that gather huge amounts of data in order to make decisions on how
Secure In-Store
Mobile Networks
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 5
Aerohive Networks reduces the cost and complexity of todays networks for retailers with cloud-enabled Wi-Fi and routing
solutions for in-store mobility, warehouse operations, analytics, and guest Wi-Fi. Aerohives cooperative control Wi-Fi architec-
ture, public or private cloud-enabled network management, routing and VPN solutions eliminate costly controllers and single
points of failure.
Joel Vincent
Director,
Product Marketing
Aerohive Networks
to optimize trafc on the network. That data collected can be analyzed to
make better business decisions based on customer analytics, but it needs
a backend system that is usually cloud based that can do data mining in
real-time.
Do you believe enabling shoppers access to the wireless network
or restricting the network to associates is a better strategy?
The right infrastructure can do both safely and securely. In fact, the system
should be smart enough to understand the users identity and apply the
right security policy in real-time without even creating multiple networks
i.e. all on the same infrastructure. Thats what modern mobile-centric
systems do.
That being said, if I was forced to choose, the answer would be it de-
pends on your business model and what your customers want. If youre
a quick-serve restaurant you may want to create queue busting strategies
because customers desire to get in and out with little delay. If youre a
retailer driven by average ticket amount and understand that is tied to the
amount of time the customer is in the store browsing, then you may want
to prioritize a secure guest network that can help you analyze custom-
ers and provide them the ability to research and comparison shop while
theyre in the store.
Security is again a big issue in wireless. Should retailers be
concerned?
No. Wireless networks 10-12 years ago were less secure so many stan-
dards organizations like IEEE and IETF, as well as government agencies,
put tremendous amounts of research into xing security holes in wireless.
The reality is that because of the history of wireless security, the standards
today around WLANs make them MORE secure than wired networks. But
security is a process, not a feature, and to truly prevent breaches like the
ones in the news today requires active security practice. WLANs have not
been the weak link in the process in a very long time.
Secure In-Store
Mobile Networks
Critical5_Feb Issue_Aerohive_v2.indd 1 2/20/14 11:32 AM
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 6
Smarter Decisions,
Better Outcomes
BUSI NESS I NTELLI GENCE & ANALYTI CS
NI COL E GI ANNOPOUL OS
Good things happen when analytic tools are designed to deliver re-
ports in near-real time, incorporate omnichannel data and extend
the ow of data to key line-of-business departments. Many retail
experts say that analytic solutions are the most important technolo-
gy today for optimizing performance throughout the enterprise and
achieving measurable, hard dollar gains.
The boom in mobile technology in retail has opened up a new de-
livery system for business intelligence and created new data-gath-
ering possibilities for retailers. In addition to mobile data a number
of other new sources of data, such as social networks and online,
are creating a complex web of data sources that retailers must nd
a way to consume. To cope with this complexity,
58% of retailers want to move to a shared services
structure for analytics teams, according to EKNs
Industry Point of View: Customer Analytics: The
Bedrock of the Retail Singularity. For example,
analytics can be
used to gain a greater understand-
ing of store trafc patterns and cus-
tomer behavior, as well as predict-
ing future shopper activity.
What retailers really want from
analytics is not to gather more data
as much as they want to discove
insight and recommendations. The
ability to make smarter decisions
by leveraging data across multiple
sources, including customer proles, sales, merchandising, social/
mobile and nance, differentiates retail leaders from the laggards.
Walmart, for one, is using an analytics-based solution that analyz-
es customer shopping habits to create suggested shopping lists. Re-
sults show that customers using this Walmart app make more trips
to the store and spend as much as 40% more than other shoppers.
Walgreens is another leader using analytic tools. It is piloting a
program that launches, delivers and tracks marketing campaigns
Business intelligence and analytics help retailers uncover
insights needed to deliver informed decisions
Smarter Decisions,
Better Outcomes
CRITICAL 5
58% of retailers want
to move to a shared services
structure for analytics teams.
EKN, Industry Point of View: Customer Analytics:
The Bedrock of the Retail Singularity
The amount of customers who use
Walmarts analytics-driven shopping
list app spend more than
other shoppers.
40%
Critical_v4.indd 6 2/14/14 1:36 PM
Untitled-1 1 2/7/14 3:34 PM
CRITICAL 5
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 8
line and mobile. Enabled by timely
data, analytic insights are used to re-
vamp traditional approaches to mar-
keting, pricing, promotion, assortment
and fulllment. By combining retail
databases, analytic tools and a spe-
cialized data-driven team, Belk is able
to achieve a seamless and successful
shopping experience across multiple
channels.
The same customer metrics that are
used online are increasingly being uti-
lized in-store. Data that tracks shopper
movements, dwell times and conver-
sions is being used to maximize store
layout, product placement and promo-
tional displays. Other areas that will
play an increasingly-important role in
the coming years are big data, predictive analytics, use of third
party and external data sources and unstructured data. The pursuit
of analytic insight is not new in retail and yet retailers still have a
long way to go to get up-to-date with current capabilities. The ma-
jority (62%) say they have only a basic level of analytics maturity
today, according to EKNs 2013 Big Data in Retail report, which
means there is a lot of work that needs to be done to leverage this
critical technology.
through redemption of coupons for specic LOreal Paris products
from LOreal Paris all the way through brick-an mortar POS sales.
Product coupons are pushed through a mobile POS beauty app,
Pretty In My Pocket (PRIMP), and have individualized barcodes that
connect itemized purchases to the consumers PRIMP prole.
Supermarket chain Publix has expanded its enterprise data ware-
house functionality beyond traditional strategic analysis and into
tactical operational intelligence for smarter, faster merchandising,
marketing decisions and insight.
This upgrade of our environment will allow us to expand our
enterprise data warehouse solution, which provides valuable data
analytics, said Laurie Douglas, Publix CIO. This enhancement
enables Publix to leverage data regardless of its type allowing
the retailer to know more and do more
for business performance, as well as
facilitates quicker responses to chang-
ing business conditions and consumer
behavior.
Belk has rolled out an omnichannel
transformation initiative that is fueled
by customer analytics
insight that helps the
retailer integrate op-
erations consistently
across channels, in-
cluding in-store, on-
62%
of retailers are only
capable of basic analytics
or basic reporting, forgoing
the opportunity of more
advanced analysis leading
to deeper insight.
EKN, Industry Point of View:
Customer Analytics:
The Bedrock of the
Retail Singularity
27.3%
of retailers currently have
Analytics/BI shared
seamlessly in their
IT ecosystems.
RIS News, Omnichannel Readiness
B U S I N E S S I N T E L L I G E N C E & A N A L Y T I C S
Critical_v4.indd 8 2/14/14 1:36 PM
A D V E R T O R I A L CRITICAL 5
Building a new customer-centric operating model for retail
Here it is 2014. Does a true unied omni-channel
platform really exist?
Almost, but not quite. True omni-channel - according to Fu-
jitsus customers denition still remains an ambition in our
view rather than a reality at this time. If omni-channel means
a two-way 360 degree view of the customer and the retailer
then no end to end ,out of the box platform currently exists in
our view to deliver thus. To deliver a joined up platform across
touch points (cash register, mobile), data source (ERP, CRM)
and business process (order management) we nd retailers
are re-engineering their enterprise IT from a transaction to a customer-centric
model. This is what we call Retailing without Walls it means thinking less
about transactions on registers and more about navigating customers across
touch points. That is why we have launched Fujitsu Market Place, the key PoS
application component in building this unied platform.
What do you consider to be the key elements of an omni-channel
platform?
We believe there are three key elements in delivering an omni-channel
platform, each of which have in-built into Fujitsu Market Place:
1. Service-oriented application architecture: adopting what is called a
modular or componentised PoS architecture means retailers can plug
and play new channels or payment devices or data sources as technology
trends change and shopping processes blend across channels. This deliv-
Retailing
without Walls
Fujitsu America, Inc., is a leading solutions provider for retailers. Delivering integrated technology and service
offerings ranging from managed services and systems integration to enterprise applications and data center
technologies, Fujitsu helps retailers improve sales with POS solutions including hardware, software, and self-
checkout systems.
Richard Clarke
VP, Global Retail,
Fujitsu
ers a true future proof retail IT model.
2. Enterprise integration: this means the joining of the customer touch
points to the key data sources and business processes to deliver the omni-
channel services like order on line, pick up in store which customers
are expecting. This is pooled into a central transaction repository which
gives customer and store associate visibility of wish lists, transactions and
orders at any time from whatever touch point.
3. Flexible deployment: providing alternative deployment options for
application components like the back ofce PoS server - means retailers
can choose where they want to keep data, incur cost but de-risk network
connectivity.
Any time the word platform is in mix, big and expensive come
to mind. In looking at building out the omni-channel platform, is
a rip and replace strategy required?
We dont think so. Fujitsu thinks that retailers can and will want to mi-
grate from their current platforms to a new omni-channel model over a
period of time rather than in a big bang fashion. This means any platform
components from the pos to the SOA-based architecture to transaction
repository need to be deployable in stages to reduce cost, de-risk busi-
ness change and speed overall implementation. Fujitsu would recommend
starting with the enterprise data management layer from Fujitsu Market
Place the push n pull component of any omni-channel platform on
which the pos, device management and data sources can build.
How can a retailer actually save money by utilizing a unied platform?
Fujitsu believes retailers can reduce cost or at least improve operational ef-
ciency by leveraging the new solution architecture and deployment model.
Cost savings can come from reduced development costs (avoiding recoding
the business logic each time you want to add a new device like mobile or a
new data source) and reduced technology costs (deploying the back ofce
PoS server in the enterprise with reduced number of servers and associated
support costs). Thats the smart thing about Retailing without Walls.
Retailing
without Walls
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 9
Critical5_Feb Issue_Fijitsu_v3.indd 1 2/20/14 11:36 AM
Death of the
Siloed Approach
Death of the
Siloed Approach
Thanks to a host of new technologies customers are engaging
with retailers across a spectrum of channels. Retailers are juggling
a magnitude of technology systems to ensure that customers get
the products they want, when they want them and in
the channel they prefer. To alleviate the complexity
and expense of operating and maintaining dozens of
systems, smart retailers are streamlining their tech
stack and moving toward a unied
omnichannel platform to ensure
customer needs are met regardless
of the channel they choose to shop.
One example of a unied om-
nichannel platform is a tightly inte-
grated system that pulls together
all the solutions that manage inven-
tory. Dicks Sporting Goods expects
e-commerce to be a $1 billion busi-
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 10
ness for the brand in the next three years, and
has invested in technology and processes that
tie together supply chain, inventory and loyalty
to unify its web platforms around an overall om-
nichannel strategy.
Our goal is to solve the ultimate retail chal-
lenge, Dicks Sporting Goods CIO and SVP Matthew Lynch said.
The right product in the right size and color at the lowest cost
priced by channel and region available at exactly the right time
in exactly the right quantity. And, of
course, located right where the cus-
tomer wants it.
Managing inventory using a uni-
ed platform approach helps retail-
ers satisfy the needs of their most
lucrative customer segment. A cus-
tomer that engages with a retailer
across multiple channels is 21%
more protable according to the
RIS News/EKN Cross-Channel Tech
Trends Study. With that much ad-
ditional revenue on the line retailers
have signicant motivation to up-
grade their systems to a unied plat-
Retailers must remove complexity to ensure
a seamless experience
U N I F I E D O M N I C H A N N E L P L AT F O R MS
6.5%
of potential
revenue is lost
today because
processes,
technologies
and corporate
structures are
not fully
synchronized.
RIS News,
Omnichannel
Readiness
Shoppers are 21%
more protable
when engaged
across multiple
channels.
RIS News/EKN, 2013
Cross-Channel Tech Trends Study
CRITICAL 5
TI MOTHY DENMAN
Critical_v4.indd 10 2/14/14 1:37 PM
Untitled-1 1 2/7/14 3:31 PM
CRITICAL 5
they choose to shop. Back-end applications need to be fully inte-
grated in a platform approach to effectively monitor inventory and
provide real-time reports.
We market to our customers through a variety of means, Ca-
belas EVP and CFO Ralph Castner said. We put the customer in
the center of the decision and let them
choose how they want to deal with us.
Its interesting, Ive heard Macys talk
about what theyre doing about lling
direct orders from the stores. They think
about it as a way to save freight costs.
We see it a little different from that. We
see it as a way to enhance the value to
our customer and increase sales.
A seamless shopping experience
keeps shoppers engaged and coming
back, while siloed back-end systems
create disappointing customer en-
gagement. According to the RIS News
Omnichannel Readiness report re-
tailers are losing 6.5% of potential rev-
enue because their processes are not
correctly synchronized. By adopting a
unied platform approach retailers can
increase customer satisfaction while
adding to the bottom line.
form approach.
For example, if a product
is selling in-store but lagging
online, retailers need central-
ized reporting to ensure that
overstock and understock
conditions are quickly dealt
with, a difcult undertaking
when inventory is trapped in
silos. Currently, 18% of retail-
ers have inventory locked into
individual channels, an antiquated approach that they plan to elimi-
nate by 2016 according to the Tech Trends Study.
Breaking down organizational silos is a top priority for good rea-
son customers dont care about a retailers internal workings, they
simply demand seamless experiences and are making shopping de-
cisions based on those requirements. For instance, 62% of shoppers
cite the ability to buy online and then make returns in-store as a key
purchasing decision according to RIS News/Cognizants The Om-
nichannel Value Proposition.
Cabelas has a thriving catalog business as well as an e-com-
merce site and over 50 brick-and-mortar locations. Up until recently
these channels were treated as separate businesses to create a
seamless experience across all channels, the retailer rolled out tech-
nology that supports in-store pickup and ship-from-store to ensure
that customers have access to its entire inventory regardless of how
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 12
UNI F I E D OMNI CHANNE L P L AT F OR MS
18%
of retailers still have
inventory locked into
individual channels.
RIS News/EKN, 2013 Cross-Channel
Tech Trends Study
62
%
62
%

of customers site the
ability to buy online
and then return
in-store as a key
factor when picking
a retailer to shop.
RIS News/Cognizant,
The Omnichannel Value
Proposition
Critical_v4.indd 12 2/14/14 1:37 PM
A D V E R T O R I A L CRITICAL 5
Understanding the Next Steps for Retailers and Technology
What is motivating retailers to look for new
solutions that interoperate seamlessly across
channels and core applications?
It all goes back to the changing shopping patterns of con-
sumers. Many retailers have created great online shopping
experiences for their customers and those experiences
have led to higher expectations for the shopping experi-
ence across all channels. Customers dont recognize arti-
cial boundaries between channels. They may interact with
a brand in the store, online, on their phone, or via a self-
service kiosk and they expect brand consistency with each interaction.
Retailers need to equalize the experience across all channels to meet the
new omnichannel expectations of shoppers.
What is the next step for retailers to consider who have already
begun their in-store mobility journey?
Many retailers initial mobility rollout was anchored to a single system
usually an extension of a POS system or an ecommerce site. Neither of
those is sufcient by itself to create a differentiated shopping experience.
Retailers want to leverage mobile technology to sell their entire assort-
ment everywhere, transact anywhere, access all product information on
demand, know their customers history and preferences across all chan-
nels, and fulll in any way the customer wants to receive merchandise
regardless of channel. To do this, retailers cant be constrained by the
inherent limitations of a POS or ecommerce system. Mobility should be
Omnichannel
Considerations
Starmount software solutions bring the richness of the web and the power of mobile into the store. From mobile selling to
omnichannel engagement platforms, our solutions help retailers deliver a more personalized, efcient interaction from point-
of-interest to point-of-sale. Please visit www.starmount.com or read our blog at www.starmountshare.com.
Jerry Rightmer,
Executive Vice
President and
Chief Product and
Strategy Ofcer,
Starmount
the vehicle for delivering an omnichannel experience. So rather than ex-
tending an existing platform, a retailers next step should be to deploy a
true omnichannel model built on a platform that bridges the chasm be-
tween channels.
If you were to isolate the key building blocks, the essential
elements, of omnichannel retailing what would they be?
Starmount has identied four key building blocks retailers need to create
an omnichannel experience for their customers:
1. Accurate, real-time, enterprise-wide inventory visibility
2. Deep, rich product content for a retailers full assortment
(not just online)
3. The ability to fulll regardless of product source, destination,
or shopping channel
4. A single view of customer across all shopping channels
Why have exible fulllment capabilities become so important
to success in retailing today?
Flexible fulllment capabilities tip the competitive scale in favor of multi-
channel retailers with a strong brick-and-mortar presence. There is limited
space in each store for merchandise. As retailers expand product assort-
ment, its a challenge to carry enough inventory at each location, especially
in apparel where color, size, and style complicate inventory allocation. A
networked inventory model enables retailers to use their stores as distri-
bution centers, allowing them to leverage all their inventory to satisfy cus-
tomers at any location. This helps avoid lost sales and minimizes unneces-
sary markdowns on overstocks. More importantly, it makes the customer
happy. With all that retailers invest in driving trafc to their stores, the
last thing they want to do is tell a customer thats ready to buy that they
dont have what the customer wants. The other important issue is the trend
toward same day/next day delivery. If stores can function as distribution
centers and fulll orders locally, omnichannel retailers can compete more
effectively with online-only retailers. In fact, the store network becomes a
competitive advantage.
Omnichannel
Considerations
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 13
Critical5_Feb Issue_Starmount_v2indd 1 2/20/14 11:35 AM
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 14
F L E X I B L E F U L F I L L ME N T
and today it is helping Macys in a major
way. From impacting the way customers
shop, to extending inventory the Macys
strategy is all about the customer.
What is online? If the customer buys
the product online
and either picks up or returns it to our store,
is that online or is that in-store? And if she
buys something else in our store, where
does it stop and start? said Terry Lundgren,
Macys CEO.
The ability of technology to relieve some
of the retailers risk is an advantage that is
being used with buy online, pick up in-store
capabilities. In the past, Macys hasnt been
able to get several brands out to all of its
stores due to space limitations in its small-
est locations, but now the retailer can sell
the products in these stores by placing them
for sale online and then allowing them to be
shipped to that store for the customer who wants it.
Walmart recently doubled the number of stores it uses for fulll-
ing orders and announced plans to test the use of lockers to hold
online orders for customer pick-up. The retailer is also executing a
strategy to combine stores, distribution centers and new facilities
Many retailers would argue that they already have exible fulll-
ment. But todays supply chains and inventory management capa-
bilities were created in a pre-omnichannel era. A new breed of capa-
bilities is being established by fast moving retailers such as Macys,
Walmart, DSW and Williams-Sonoma that have begun rolling out
ship-from-store capabilities to fulll online orders. Meanwhile, eBay,
Google and Amazon have launched same
day delivery of select purchases in select
markets. For cutting-edge retailers fulll-
ment has become a competitive differen-
tiator that adds convenience and speedy
delivery for shoppers.
Ship-from-store capabilities have clear
benets for both retailers and shoppers.
Retailers can optimize costs with shorter
delivery from centralized warehouses.
They can also reduce markdowns by
helping retailers move out overstocked
merchandise at under-performing stores.
Technology is continuously evolving,
Flexible fulllment has become a competitive differentiator
adding convenience and delivery options for shoppers
From Store to Door From Store to Door
CRITICAL 5
NI COL E GI ANNOPOUL OS
44%
of retailers list
inventory visibility as
a top store systems
priority for 2014.
RIS News, 11th Annual
Store System Study 2014
#1
63%
of retailers say
fulllment/pricing
is an application
shared across store
and online channels.
RIS News, 2013
Cross-Channel Tech
Trends Study:
Understanding the
Retail Singularity
Critical_v4.indd 13 2/14/14 1:38 PM
IS YOUR SUPPLY CHAIN COMMERCE-READY?
What role should my
stores play?
Your store network is an asset to your supply
chain in three ways: proximity to customers,
available inventory, and latent fulfillment
capacity. At different times of the year,
demand can materialize to varying degrees
across selling channels. Your stores can
provide a ready backstop if your DC network
is maxed outor can form fulfillments
frontline if weather causes in-store traffic to
fall off. The challenge lies in how you balance
satisfying online and in-store customers from
your brick-and-mortar locations. For that, you
need the right tools.
How do I know if Im
flexible enough?
Flexibility involves knowing when and why to
ship from your stores, whether or not its
manual, and if its only when youre out of
inventory. Achieving flexibility involves
leveraging partners across your
networksuppliers, hubs, 3PLs, etc. You
know youre flexible enough if you can not
only meet peak season demand but can also
support omni-channel strategies and
customer-friendly initiativeswithout
breaking the bank. Implementing Flexible
Fulfillment means your supply chain is able
to dynamically grow and not turn away or
disappoint customers, while still being able to
shrink back down when demand subsides.
Which technologies do I
take seriously?
There are any number of technologies in
play in todays retail environmentRFID,
iBeacon, NFC, BLE and Wearables, to name
a few. And whats all the rage today may be
old news tomorrow. At the end of the day,
its not just about the technologies. Its about
focusing on the business goals and the
processes to get thereto bring contextual
awareness to whats happening in your
stores. Technology is a means to the end,
not the end unto itself. By avoiding shiny
object syndrome and focusing on the end
result, you can make technology decisions
that work for your business and get control
of inventory across your network.
3 Flexible Fulllment Questions
You Should Ask
Your retail supply chain is under greater pressure than ever to deliver on shopper
timelines and satisfaction. Your ability to anticipate and respond to variations in
demand across channels is essential for creating return customers and future
success. How do you know if youre ready?
Here are three of the most common questions todays retailers are asking:
Manhattan Associates Flexible Fulfillment approach gives you the
agility to anticipate and respond. Learn more at manh.com/flex
Demand
Fulllment
Choice
Channel
]
Source
Supply
]
Untitled-1 1 2/7/14 3:34 PM
CRITICAL 5
to increase control over and improve the customer experience of
furniture home delivery.
In an industry where exible and reliable fulllment is paramount,
Davids Bridal has a bigger vision. The retailer is determined to move
beyond visibility and instead use inventory availability information
across all of its channels, creating a single
view of the network across e-commerce, store
and call center operations. In turn, the retailer
will be able to match available inventory across
the network to an individual customers need.
Our business is founded on offering brides
the widest variety of products always delivered
on time no matter how she chooses to shop
with us: online, in stores or by phone. Its criti-
cal that we have one system we can rely on to
provide inventory and manage orders across
our network, said Caryn Furtaw, CIO for
Davids Bridal.
Now is the time for retailers to plan invest-
ments to build a foundation that will support
exible fulllment capabilities. The stakes are
high and continue to rise. By 2016, 69% of re-
tailers that will have shared inventory across
all selling channels compared to 20% today. This will have a disrup-
tive effect in the marketplace and retailers caught behind the com-
petition will be at a serious disadvantage.
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 16
into what it calls a next generation fulll-
ment network, according to Joel Anderson,
president and CEO of Walmart.com U.S.
Amazon has consistently been a leader
in nding inventive ways to add conve-
nience and speed to its fulllment sys-
tems. Like Walmart, it is adding lockers
at 7-Eleven, Rite-Aid and other retail loca-
tions where online shoppers can pick up
or return items. It also partnered with the
U.S. Postal Service during the 2013 holi-
day season to support Sunday deliveries.
The most important step in DSWs omnichannel journey has
already been taken place with the launch of charge-send capabil-
ity. This system allows the retailer to fulll dotcom orders out of
stores and to satisfy unmet store demand from stock held in other
stores. The new capability was piloted in Q3 2013 and rolled out to
all stores at the start of Q4. Were excited about how the customer
is embracing charge-send, and were proud of its fairly seamless
implementation, noted DSW CEO Michael MacDonald.
To better serve its customers, Willliams-Sonoma has made up-
grades to its supply chain, opening a new distribution center in New
Jersey that is dedicated to retail store fulllment in the Northeast.
This facility has increased exibility in how stores are serviced while
reducing the inventory replenishment cycle time. The retailer has
also completed the in-sourcing of two furniture hubs as it continues
45.5%
of retailers name
fulllment as a top
omnichannel building
block shared seamlessly
in an IT ecosystem.
RIS News,
Omnichannel Readiness
F L E XI B L E F UL F I L L ME NT
69%
of retailers
will have shared
inventory across all
selling channels by
2016 compared to
20% today.
RIS/EKN, Cross-Channel
Trends Study
2016
69%
TODAY
20%
Critical_v4.indd 16 2/14/14 1:38 PM
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 17
L O C AT I O N A WA R E N E S S MA R K E T I N G
Retailers are currently capitalizing on cus-
tomers smart devices utilizing three distinct
technologies: cellular networks, WiFi and Blue-
tooth. The simplest form of
monitoring is through a mobile
phones mobile network. Cell
phones are in constant contact with their service pro-
viders via ultra-high radio frequency. Everyone with
a cell phone travels with a perpetual radio transmis-
sion a transmission that can be passively moni-
tored by retailers looking to analyze shopper habits.
One of the most common areas sensors are de-
ployed in the brick-and-mortar environment is at a
stores entrance. The total number of cell-phone
wielding potential shoppers that pass by the entrance
can be compared to those that enter the store to yield
the foot-trafc conversion rate. Sensors can be po-
sitioned in specic departments to study customers
as well, such as in the cash wrap to monitor the average wait time
and in tting rooms to determine the percentage of customers that
utilize the space. Shoppers that take the time to try on garments are
signicantly more likely to make a purchase; the tting room expe-
rience needs to be constantly monitored to ensure ease of use for
this highly-protable customer segment. By analyzing sensor data,
retailers can adjust store layout, stafng and send marketing mate-
In order to stay competitive in todays market retailers need to per-
sonalize the shopping experience and engage customers at every
opportunity. It is difcult for sales associates to personally and effec-
tively engage every customer in-store. Smart retailers are turning to
technology to personalize the in-store shopping experience and stay
connected to customers and drive sales.
Location-awareness technology allows retailers to communicate
with and track shoppers in-store providing a host of data collection
and marketing opportunities never before available. Fifty-six percent
of American adults are now smartphone owners, Pew Internet reports.
With so many people walking around with mini computers in their
pockets savvy retailers are seizing the opportunity and marketing to
customers via their personal devices.
Savvy retailers are adjusting their in-store promotional
efforts and marketing to customers on their own devices
Micro-Location
Promotions
60
%

of retailers plan to implement
free customer WiFi by 2015
EKN, Industry Point of View: The Rising Importance of Customer Data
Privacy in a SoLoMo Retailing Environment
TI MOTHY DENMAN
CRITICAL 5
Micro-Location
Promotions
56%
of American
adults
are now
smartphone
owners.
Pew Internet
Critical_v4.indd 17 2/14/14 1:39 PM
CRITICAL 5
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 18
L O C AT I O N A WA R E N E S S MA R K E T I N G
Shopping Behavior in an Internet of Everything World. In addition to
the economic incentive, shoppers need to be assured that their personal
data is safe and is not being collected. Target, for instance, offers cus-
tomers free WiFi access and uses the channel to send promotional of-
fers. It informs users that their unique device ID is being captured but
their personal data will remain anonymous.
The use of Bluetooth as a location-awareness technology in retail is
a relatively recent phenomenon, but one that is gaining popularity with
the release of Apples iBeacon technology. In 2011, none of the senior-
level retail executives RIS News surveyed reported utilizing customer
location tracking technology. This increased to 7% in 2013. Through
the use of iBeacon, retailers can push relevant information and promo-
tions via Bluetooth to a customers cell phone as they shop in-store.
Like in-store WiFi, customers must be incentivized to opt-in to
iBeacon services. Macys recently deployed the technology at six of
its stores and is rolling it out throughout the chain. The technology
allows the retailer to monitor how long a customer is
standing in a particular department, and if he has made
a purchase. If he hasnt Macys can send a note and a
nancial incentive directly to the customers phone to
help induce a sale.
The number of smart devices present in the in-
store environment is growing, offering a big oppor-
tunity for smart retailers to market directly to custom-
ers on their own devices through location awareness
technology.
rials to improve customer engagement and ow.
While cellphone monitoring can yield information on customers
specic location in-store, offering free WiFi enables the collection of
rich data and increased marketing potential. By offering free WiFi to
customers (EKN reports that 22% of retailers currently offer it and
60% plan to implement by 2015) retailers can gain insight into a host
of shopping behaviors beyond physical location.
Information on web activity and purchases can be monitored
and promotions tailored to match a shoppers specic interests and
needs. Each customer engagement be it in the store,
on social media, via smartphones or through customer
service channels leaves behind a valuable informa-
tion trail, Gaurav Pant, SVP research and principal ana-
lyst at EKN says.
The trick is to get the customer to opt-in to the service.
The key factor that inuences customers release of their
personal data including cell phone information is nancial.
Over 50% of digital mass shoppers (those that routinely
shop in the digital realm) are willing to share personal info
in exchange for discounts, according to Ciscos Digital
Just 7% of retailers are currently
utilizing customer location
tracking technology.
RIS News, 7th Annual Cross-Channel Tech Trends Study
Over 50%
of digital mass
shoppers are willing
to share personal
info in exchange
for discounts.
Cisco Digital Shopping
Behavior in an Internet
of Everything World
Critical_v4.indd 18 2/14/14 1:39 PM
A D V E R T O R I A L CRITICAL 5
2014 is All About the Power Retail Trafc Analytics
What can location awareness technology tell retail-
ers that they dont already know?
A wide range of important insights. Retailers are acutely
aware of what happens at the register, but the true and pre-
cise path to purchase INSIDE the store is critical data that is
only available with this new technology. Aggregated trafc
behavior is a measurement that empowers every category
of retail optimization. This Includes merchandising, store
operations and marketing.
What are important steps to take to maximize the full benets of
location awareness capabilities?
First, not all location technologies do the same thing. There are many types
of applications; some look at the store as a single zone, and others can iden-
tify every individual aisle, department even end-caps. Second, get past the
hardware. Your decision should include features, cost, ease of operation,
exibility of reporting, even what it costs to maintain and operate over time.
Third, get your team together. This is an infrastructure decision, so make
sure merchandising, store operations, marketing and IT are all on the team.
While that sounds like a handful, thats what it takes to get a decision made.
Lastly is the need to treat vendors like consultants. Strive to determine the
highest value applications with location technology. Do this, and the tech-
nology will make scal sense and proceed through the budget process.
Putting Traffc
Analytics into Action
With 30 global patents and 15+ years of unrivaled technology expertise, iInside delivers Retails most precise, actionable indoor
location solutions. From trafc analytics to departmental performance metrics, iInside advanced shopper behavioral data adds
a powerful dimension of insights that both empower decision makers and improve the customer shopping experience.
Jim Riesenbach
CEO, iInside
Which departments in the retail organization will be able to make
the best use of location awareness data?
For store operations, one key measurement that requires indoor shop-
per data is Conversion. Departmental performance can now be used as a
means to optimize every part of the store or a single department across the
entire organization. For merchandisers, trafc data provides a detailed un-
derstanding of the effect of practically every major merchandising adjust-
ment. Marketing is provided with shopper behavioral feedback to quickly
and accurately determine campaign impact. This is data unavailable at the
register and is highly actionable by retail professionals.
Where can retailers look to achieve ROI on their location aware-
ness investment?
There are at least two key categories of opportunity: benchmarking and
performance. Under benchmarking, trafc becomes a means to mea-
sure each key action taken by marketing and merchandising. For exam-
ple, First Visit Location is a trafc indicator of shopper intent. Using this
metric, Marketing is provided with feedback to determine campaign im-
pact and success. Since not every shopper makes a purchase, the effect
of marketing is reected in trafc, which is a far more detailed feedback
mechanism than what lies merely at the register. The same effect mea-
surement also applies to each signicant merchandising action. Under the
performance category, conversion is a great example of the ability to
see departmental-level performance across the chain, both in number of
shoppers and dwell time in specic departments or areas. To store man-
agers, that means each of their departments can be measured against the
average and trended over time. To Category Leads, that means measuring
their category/department across each store in the entire chain. Either way,
trafc delivers actionable, new metrics that will soon become a ubiquitous
standard.
RI S NEWS CRI TI CAL 5 F EBRUARY 2014 19
Critical5_Feb Issue_iinside_v2.indd 1 2/20/14 11:36 AM
Thank you to our sponsors
Aerohive
Aerohive Networks reduces the cost and complexity of todays networks for retailers with cloud-enabled Wi-Fi and routing solu-
tions for in-store mobility, warehouse operations, analytics, and guest Wi-Fi. Aerohives cooperative control Wi-Fi architecture,
public or private cloud-enabled network management, routing and VPN solutions eliminate costly controllers and single points of
failure. Learn more at www.aerohive.com
Epson
Epson continues to change the game in retail POS. Its innovative OmniLink smart solutions are powerful enough to replace an
entire POS system, yet small enough to t almost anywhere. From the worlds best-selling TM-T88-series to a growing lineup of
mobile printers, Epson is taking retail POS to new heights.
Learn more at pos.epson.com
iInside
With 30 global patents and 15+ years of unrivaled technology expertise, iInside delivers Retails most precise, actionable indoor loca-
tion solutions. From trafc analytics to departmental performance metrics, iInside advanced shopper behavioral data adds a powerful
dimension of insights that empower both decision makers and improve the customer shopping experience.
Learn more at www.iinside.com
Manhattan
Manhattan Associates, with over 20 years experience in developing best-in-class supply chain software, provides omni-chan-
nel solutions to leading retailers around the world. Our Flexible Fulllment approach helps you respond to variable demand
across channels and provides supply chain executives control to shape the way fulllment accommodates strategic objectives.
Learn more at www.manh.com/ex
Fujitsu
Fujitsu America, Inc., is a leading solutions provider for retailers. Delivering integrated technology and service offerings ranging
from managed services and systems integration to enterprise applications and data center technologies, Fujitsu helps retailers
improve sales with POS solutions including hardware, software, and self-checkout systems.
Learn more at www.fujitsu.com/us
Starmount
Starmount software solutions bring the richness of the Web and the power of mobile into the store. From mobile selling and
cross-channel engagement platforms to digital signage, our solutions help retailers deliver a more personalized, efcient interac-
tion from point-of-interest to point-of-sale. Visit www.starmount.com or read our blog at www.starmountshare.com.
TIBCO
TIBCO Software Inc. (NASDAQ: TIBX) is a global leader in infrastructure and business intelligence software. Whether its optimiz-
ing inventory, cross-selling products, or averting crisis before it happens, TIBCO uniquely delivers the Two-Second Advantage


the ability to capture the right information at the right time and act on it preemptively for a competitive advantage. With a broad
mix of innovative products and services, TIBCO is the strategic technology partner trusted by businesses around the world. Learn
more about TIBCO at www.tibco.com.
Critical_v4.indd 20 2/20/14 12:32 PM