Retail Industry Overview

Monthly FIN and PPM Team Meeting

María Ramírez
25/02/2020
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reserved.
Smart Retail
Richard Hammond

Friction – Reward = FRindex

“Create a store or shopping experience where reward overcomes friction, and
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beats competing alternatives, and customers will go for it”
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New business dynamics

Consumer-
centric growth
Reinventing Digital
of traditional relevancy
retail models Meet consumers Value chain
where they are collaboration Innovation
Demand-driven,
at speed
digital value
Adaptive cultures,
chain
processes and
technologies

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reserved.
Is your back office
holding you back?

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reserved.
 RETAIL VALUE CHAIN

Inventory
Sourcing & Management Store Customer Fulfilment &
Marketing
Procurement & Operations Experience Delivery
Distribution

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Oracle Cloud for Total Retail
Transform by connecting, enriching and extending these apps

Marketing CPQ
Automation Deduplication
Social (data
OMS
Listening & cleansing)
Customer Monitoring
Service

Integration Cloud Customer

Engagement Commerce SIM
Layer

Testing &
AI APPS Optimisation
Loyalty
POS

DMP CMS

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 Oracle RGBU
https://www.oracle.com/uk/industries/retail/

Single View of Customer

Single View of Order

Single View of Inventory

Single View of Price and Promotions

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reserved.
RETAIL CFO
Tricky to Measure Return on Capital

 Sales: Intertwined Omnichannels make attribution

difficult.
 Cost of goods sold: Costs may differ by channel.
 Operating cost: Costs spill over to multiple channels
due to fulfillment complexities
 Depreciation: Rapid innovation makes it hard to
determine how long technology will remain relevant,
and it is often unclear whether new digital innovations
will have the impact projected in the business case

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12
reserved.
Enabling better business outcomes

Increase shareholder Digitize backend Exceed customer

confidence processes expectations

Accurate, highly 23 year old backend Improved sustainability

formatted financial systems replaced by and trust with 50% less
statements within Oracle ERP Cloud waste and 0 recalls
10 days faster than
before
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reserved.
Retail KPIs

1.Gross Margin Indicator

2.Retail Sell-Through Rate
3.Year-Over-Year Sales
4.Sales Per Square Foot
5.Average Spend
6.Customer Conversion Rates
7.Inventory Turnover Rate
8.Product Return Rates
9.Shoppers to Retail Staff Ratio
10.Gross Margin Return on Investment
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 How Retailers work
What does your prospect need to do to achieve their business requirements?

GOAL 

KBR 

BR 

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What keeps the prospect from achieving their
KBRs? KBRs

KB The business
R

KB
requirements of
KB
R
KB
the top decision
Strategies R R Strategies makers

Business impact of
CP
CP CP not relieving the
CP CP CP CP
tactical pain
Tactics Tactics Tactics Tactics

TP
Tasks, situations
TP TP TP TP
or processes that
TP TP TP TP TP TP TP TP prevent prospects
from achieving
their KBRs