2008 |
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| M-commerce: capabilities yet to be recognised |
| A fifth of online retailers have used mobile microsites to push specific promotions, according to research by Sponge |
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The mobile marketing agency’s survey showed that retailers considered mobile to be a useful customer communication channel - half said they had used mobile as a direct response channel in television or press advertising campaigns. Sixty per cent of these had done so by featuring an SMS code in TV ads, while 20 per cent did so in print magazines and newspapers. The remaining 20 per cent said they were unsure which ad medium they had used mobile as a response mechanism for. Focusing on ten prominent online retailers across sectors including travel, fashion, leisure, catalogues, communications and publishing, the study demonstrated that overall 70 per cent use mobile to communicate with their customers. When asked what the main purpose of contacting customers via SMS was, Sponge found that 40 per cent of these use messages to send product information while a further 40 per cent use SMS to send stock alerts and delivery time confirmation. Twenty per cent said they inform their customers of special offers. Of those who don’t currently use mobile to communicate with customers (30 per cent), two thirds intend to start within the next 12 months. The rest said they are not considering using mobile in the future, citing that they had tried it in the past and not seen any benefits.
“Our survey shows that the use of mobile among retailers is high but the benefits of having m-commerce capabilities are yet to be recognised,” says Jon Beverley, commercial director at Sponge. “Recent research by analyst firm Juniper predicts that more than two billion mobile users globally will have made a purchase via their handsets by 2013. A fifth of retailers that took part in our survey already offer customers this capability – the option to make purchases via mobile phones is keeping them ahead of their competitors.”
“Something else the research showed was a common misconception that you have to have e-commerce to use mobile successfully – you only have to look at multi-channel retailers who have store footfall to realise this isn’t the case. Retail is a service industry and whether purely online or multi-channel, mobile can help inform, manage expectations and reduce the pressure on customer service departments,” he adds. |
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| £13.16 billion to be spent online in Q4 2008 |
| IMRG and Capgemini have announced their predictions for UK online sales for Christmas and the final quarter of 2008 |
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The IMRG Capgemini e-Retail Sales Index, which has tracked online spending for the past seven years, predicts that a total of £13.16 billion will be spent by British shoppers in the run up to Christmas. This represents a 15 per cent increase in year on year sales but also shows a slowdown in growth when compared to the 54 per cent year on year increase seen in 2007. Online sales of clothing, footwear and accessories will be worth £1,260 million during Q4 2008, with sales bucking general economic trends and rising more than 25 per cent year on year. Sales of beer, wine and spirits will be worth £233 million. Typically, online sales rise steadily from the first week of November and peak during the first week of December, when £24 million worth of alcohol will be bought via the internet.
Monday, 8 December will be the biggest UK online shopping day of 2008, with sales worth £320 million. Forty two per cent of those sales will take place outside of traditional shopping hours, either before 9am or after 6pm. “British shoppers will beat the crunch with internet prices this Christmas, spending more than a billion pounds each week in the run-up,” says IMRG's CEO, James Roper. “The internet is well established as one of consumers’ most powerful economic weapons against tough times. Retailers and suppliers will be under extreme pressure to price competitively this year, so there will be a lot of volatility out there – and fantastic bargains – that the internet uniquely enables canny shoppers to find and grab before anyone else gets the chance. Our top tip, as ever, is to look out for the ISIS and IDIS online shopping trust marks on e-retailers' sites to make sure you get great service as well as great prices.” |
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| UK retail theft soars to £4 billion |
| The UK is the retail crime capital of Europe and number three in the world behind the US and Japan, according to a report published by Checkpoint Systems |
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The Global Retail Theft Barometer shows £4 billion worth of stock going missing during the last 12 months. Despite this declining slightly in the last year to represent 1.3 per cent of sales turnover, the UK still boasts higher than European-average shrinkage levels (1.27 per cent). Whilst external theft accounted for 42.6 per cent of total shrinkage, most worrying was the amount lost through employee theft. After Ireland, the UK ranks as the worst in Western Europe for theft by dishonest members of staff, with 34 per cent of all shrinkage originating from within.
Across Europe, retailers have reduced spend on security and loss prevention this year by 4.9 per cent compared to 2007. Nevertheless, £5.5 billion was invested in security and loss prevention by European retailers, equivalent to 0.34 per cent of total retail sales in the year to June 2008. Of this, the amount spent by UK retailers on security measures came to £838 million, third only behind France and Germany. “In the current economic climate, retailers can’t afford to be blasé about security,” comments Neil Matthews, vice president at Checkpoint Systems NCE. “Inevitably, the worse off people are, the more likely they are to turn to crime. It’s not rocket science, but it is essential that retailers have the right controls in place to ease a pressure that is only likely to get worse as we go into 2009. We’re already witnessing the effects of budget reductions and the social and business implications are huge.”
“Before the credit crunch hit, we were definitely identifying an overall shift in attitude towards product protection,” he adds. “The issue was gradually moving up the boardroom agenda and gaining the recognition it deserved, and I hope that this doesn’t stagnate now when attention is needed the most. Retailers should be looking at ways to increase sales in theses tough times, not how to make up the deficit. A high level of shelf availability and open merchandising certainly helps, but with an increased temptation to steal in this climate, greater product protection is certainly required. There is great work being done to increase the effectiveness of security solutions and we need to keep momentum up now and for the future.” |
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| Retail Solutions is changing...again |
| After a high profile move from Birmingham NEC to London ExCel failed to spark a significant increase in footfall, EMAP has called time on the Retail Solutions exhibition and awards cermony |
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| The three-day retail technology event had been scheduled to return to ExCel in June 2009. But in early November the organisers announced that it will now be incorporated into the World Retail Congress, due to take place in Barcelona during May 2009. According to a statement issued by EMAP: "Retail Solutions is changing: broadening its scope to include retail innovation; increasing its audience purchasing power by focusing on the world’s retail leaders and going international. We have created a new Innovation Showcase & Networking Forum at the World Retail Congress, which is the meeting place for industry leaders. This showcase will give you exclusive access to an international audience of high-level decision makers." |
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| Comet selects speech self-service |
| Comet is utilising SpeechStorm’s speech solutions to offer a more efficient and personalised customer service experience to its customers |
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Simon Parkinson, general manager, customer information centre at Comet, comments: “We are continually searching for new ways to provide better customer service by enabling our customers to self-serve where appropriate and putting further investment into areas where our customers need more time and care. Speech self-service is a powerful technology that will help us to realise that vision and SpeechStorm is at the forefront of the market in its experience and expertise in developing and delivering speech self-service solutions.”
The retailer has selected two initial applications from SpeechStorm’s speech self-service technology suite, namely Store Locator and Delivery Enquiry. Customers trying to locate their nearest store will now quickly be given the information by the new service and offered a text message confirmation. Customers calling to check on deliveries will have their details dynamically checked with Comet’s internal order system - their order details confirmed - and receive a verbal confirmation as to when the order will be delivered. |
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| VeriFone unleashes contactless |
| VeriFone has introduced a contactless version of its PINpad 1000SE |
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The company has also unveiled SingleCI (Single Contactless Interface), a unifying programming interface with development tools that allows acquirers and developers to leverage existing contactless investments, adapt to future needs, and take advantage of its entire contactless portfolio.
“We are unleashing contactless by making it effortlessly available in the best-selling PIN entry device on the market today,” says Paul Rasori, VeriFone senior vice president, marketing. “Acquirers can literally swap out an older PINpad 1000SE for this new solution. That makes it easy for them to deploy contactless applications to merchants for acceptance of contactless payments from the widest range of card brands, including Visa, MasterCard, Discover and American Express.” |
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| Retail-Hosting unveiled |
| Maginus has launched Retail-Hosting, a managed hosting service designed specifically for retailers |
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This helps retailers to manage irregular sales patterns more efficiently and cost-effectively, rather than using their own systems in-house. The technology allows retailers to configure a hosting service for a typical workload, such as an average number of e-commerce transactions through their website. However, if business suddenly increases, over Christmas, Easter or special occasions, the service will flex automatically to cope, which means clients only pay for the resources they actually use.
“Slow server response or downtime on an e-commerce website can result in a lost sale. Failure in a back office system that’s being used to fulfil a customer order, can result in a customer being lost for good,” says Simon Dunleavy, director of managed services at Retail-Hosting. “We’ve designed Retail-Hosting to give retailers an affordable, reliable and flexible way to have this key part of their business taken care of.” |
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| UK retail theft soars to £4 billion |
| The UK is the retail crime capital of Europe and number three in the world behind the US and Japan, according to a report published by Checkpoint Systems |
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The Global Retail Theft Barometer shows £4 billion worth of stock going missing during the last 12 months. Despite this declining slightly in the last year to represent 1.3 per cent of sales turnover, the UK still boasts higher than European-average shrinkage levels (1.27 per cent). Whilst external theft accounted for 42.6 per cent of total shrinkage, most worrying was the amount lost through employee theft. After Ireland, the UK ranks as the worst in Western Europe for theft by dishonest members of staff, with 34 per cent of all shrinkage originating from within.
Across Europe, retailers have reduced spend on security and loss prevention this year by 4.9 per cent compared to 2007. Nevertheless, £5.5 billion was invested in security and loss prevention by European retailers, equivalent to 0.34 per cent of total retail sales in the year to June 2008. Of this, the amount spent by UK retailers on security measures came to £838 million, third only behind France and Germany. “In the current economic climate, retailers can’t afford to be blasé about security,” comments Neil Matthews, vice president at Checkpoint Systems NCE. “Inevitably, the worse off people are, the more likely they are to turn to crime. It’s not rocket science, but it is essential that retailers have the right controls in place to ease a pressure that is only likely to get worse as we go into 2009. We’re already witnessing the effects of budget reductions and the social and business implications are huge.”
“Before the credit crunch hit, we were definitely identifying an overall shift in attitude towards product protection,” he adds. “The issue was gradually moving up the boardroom agenda and gaining the recognition it deserved, and I hope that this doesn’t stagnate now when attention is needed the most. Retailers should be looking at ways to increase sales in theses tough times, not how to make up the deficit. A high level of shelf availability and open merchandising certainly helps, but with an increased temptation to steal in this climate, greater product protection is certainly required. There is great work being done to increase the effectiveness of security solutions and we need to keep momentum up now and for the future.” |
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| Empire Cinemas launches prepaid card |
| Empire Cinemas has launched a prepaid card in partnership with G-T-P Group |
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| Film fans can purchase the cards online and at the till point across all 17 of the company’s cinemas, with both standard and Christmas-themed carriers available. Jon Nutton, marketing manager at Empire Cinemas, comments: “Our new Film Card helps us to continue to build a unique customer experience. It will be much more than just a ‘gift’, with an innovative loyalty element coming soon to reward regular cinema goers.” |
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| Poundland extends investment in technology |
| Poundland has awarded a contract for consulting and services in order to maximise returns on its existing JDA merchandising and replenishment software |
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“The software gives us a powerful management tool and allows our stores to have instant access to better information at the touch of a button,” says George Oldridge, IT director at Poundland. “We can accurately measure what’s being sold, what’s left on the shelves, and what’s left in stock.”
After rolling out PoS technology in all its stores, Poundland wanted to extend its investment in technology. The retailer turned to JDA to help overcome the complicated process of keeping shelves fully stocked with the right product in the right place at the right time. “Our buyers have a great instinct for product selection and source great products,” says Oldridge. “But as we grow larger, the need to plan purchasing to ensure that demands are properly met and sales opportunities optimised, are becoming increasingly important. We obviously want to be stocking what the consumer wants, as well as preventing all of our store managers from having to spend a few hours every day ordering products. Now we have an automated system in place that proposes the most appropriate products to order to satisfy sales requirements, allowing them to focus on serving customers.” |
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| Loyalty pays off for Pompey fans |
| Portsmouth FC has launched a new fan loyalty programme, developed by Reward |
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The programme, named Pompey Rewards, gives fans the opportunity to earn ClubCash vouchers whenever they shop at participating High Street and online retailers including Superdrug, Amazon.co.uk, Cineworld and Halfords. Paul Bell, commercial director at the club, comments: “We’re delighted to be able to offer the Pompey Rewards programme to our loyal fans. Everyone is feeling the effects of the credit crunch and we want to help fans wherever we can. The scheme is simple to join, does not require any additional card or keyring fob, and a programme where fans will earn points easily through their everyday shopping routines on the High Street.”
Season ticket holders and members of the club will be automatically registered to the programme while other interested fans simply need to visit the Pompey Rewards website to register their payment cards. Fans will then receive vouchers automatically whenever they’ve built up enough ClubCash from buying with participating retailers. |
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| Cegid acquires VCSTIMELESS |
| Software solutions provider, VCSTIMELESS, has been acquired by the Cegid Group |
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| Founded in 1983, Cegid is a provider of enterprise management solutions. As a result of the acquisition, VCSTIMELESS can offer its customers stronger international support and assistance as it is now directly present in ten countries via subsidiaries. “We are now better equipped to increase the value and efficiency of our customers’ local and international retail business, today and in the future,” says Tania Oakey, marketing director at VCSTIMELESS. |
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| Kiddicare boosts home delivery rates |
| Kiddicare has reduced its missed home delivery rate by 30 per cent after teaming up with text messaging service provider, Esendex |
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Scott Weavers-Wright, partner at Kiddicare, comments: “Returned or failed deliveries cause delays and problems for our customers, our staff and our third party delivery company. The best way around this is prevention rather than cure.”
The retailer now utilises Esendex’s standard API (Application Programming Interface) to integrate with its existing systems and automate the sending of customer dispatch text messages. “At the point of order, the customer inputs their mobile number in the Kiddicare checkout system. As soon as the goods are dispatched from the warehouse, the customer receives an SMS to say their order is on its way. If we only have their landline number, this is not a problem as the system sends the message to this number where it is converted to a voice message for the customer to retrieve,” says Weavers-Wright, adding that, “We have noticed a significant improvement in our delivery rates, which is excellent news for our customers, our staff and our suppliers. Customer feedback has been overwhelmingly positive about the text messaging system and we continue to look at ways to improve this further still.” |
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| 2008 Retail Systems Awards: winners |
| Specsavers and New Look were amongst the winners at the 2008 Retail Systems Awards, which took place on Wednesday, 29 October at the Grosvenor House Hotel in London |
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The awards are now into their third year and continue to go from strength to strength. Retail Systems received a record number of submissions this year and the quality of shortlisted entries was extremely high. Categories as follows (with winners in bold):
EPoS innovation of the year
Dunelm & Vista Retail Support
Kiddicare/Protouch & K3
O2 & Torex
Tesco & Wincor Nixdorf
The Co-operative Group
The Pier & Argility
Wasabi & Commidea
Supply chain solution of the year
Carpetright
JD Williams & TradeStone Software
New Look
Best use of in-store marketing technology in retail
Marks & Spencer & Fizzback
Showcase Cinema & Beaver Group
Somerfield & Pierhouse
Thomson Holidays
Thorntons & PEL Music & Media
Best use of technology in the hospitality & leisure sector
Butlins
InterContinental Hotels Group & enyanga (part of the bezier group)
Manchester City & MBNA Bank of America
McDonald's
The Langham & IDeaS
Tortilla & DigiPos
Tottenham Hotspur & Reward
Whitbread & Smart Technology Solutions
Card programme of the year
Blockbuster UK & Payzone UK
JJB Sports & Reward
Marks & Spencer & Postilion
Thomas Cook Group & Barclaycard
Retail website of the year
Halfords & Salmon
Jali
Plain Lazy & Green Jersey Web Design
Prezzybox.com
Specsavers
Virgin Wines
Retail security initiative of the year
ASDA - Honourable mention
John Lewis & IndigoVision
Sainsbury’s & Checkpoint Systems (UK)
The Entertainer & Vialtus Solutions
IT project of the year
Carpetright
Fortnum & Mason & Carillion IT Services
House of Fraser & Tec7/Retail Assist
Iceland
GO Outdoors & Famatech
Shop Direct Group
The Co-operative Group & United Co-operatives
Waitrose & SAS
IT team of the year
Carpetright
Iceland - Honourable mention
Mosaic Fashions
Specsavers
The Co-operative Group
Back office solution of the year
Comet & Triangle
InterContinental Hotels Group & enyanga (part of the bezier group)
New Look
Wilkinson & Casio Electronics
Retailer of the year
John Lewis & IndigoVision
Mothercare and ELC & Triangle
Specsavers
Tesco & Fizzback
Environmental initiative of the year
Arena Flowers
Sainsbury’s & NCR
Tesco.com & Microlise
The Co-operative Group
European solution of the year
Colruyt & Zetes
Goertz & e-Spirit
Leclerc Lecasud & Aldata
Parfumerie Douglas & GK Software
Overall winner
Specsavers |
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| Anglia Co-operative strengthens customer insight |
| Anglia Co-operative has selected Speed-Trap 6.1 to help to launch its new furniture website, which it plans to build into a £4 million business in the first year |
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Anglia Co-operative is aiming to better understand the buying preferences of its online customers and to provide it with the customer insight and knowledge to build the online business into the largest part of the organisation’s diverse portfolio of sales. Speed-Trap’s customer insight software will be integrated into Anglia’s furniture division website – due for launch at the end of October – and will then be built into the other divisional websites over the course of 2009.
Steve Bone, e-commerce operations manager at Anglia, comments: “We anticipate 10,000 daily online visitors and are aiming to complete £4 million worth of transactions in the first year on the furniture site alone, a sum equivalent to the turnover of one of our largest furniture stores. It is imperative that we maximise every opportunity that comes along, principally by ensuring that we do not lose customers through avoidable problems on the site, such as failed page downloads or unreliable payment processes. We’re expecting an average shopping basket value of between £450 and £500 so lost customers could cause major issues in our sales plans.” |
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| House of Fraser launches multi-channel giftcard |
| House of Fraser has announced the launch of its new giftcard, available to purchase in-store and online from November |
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Whether spending a minimum of £5, or a maximum of £1,000, customers will be able to pick up a card, present it at a till point and load it to the required value. They will be able to check their balance in-store, online or by calling the number on the back of their card.
A launch of giftcards for the business-to-business sector is expected later in the year. |
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| Ricardo Eletro chooses Wipro to support growth |
| Ricardo Eletro has turned to Wipro Retail as it looks to improve its IT systems |
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The retailer, which has over 240 stores across Brazil, is also aiming to improve customer service levels and increase profitability. Solutions will be built using Oracle’s Retail Business Suite. Rodrigo Nunes, the co-founder of Ricardo Eletro, says: “The adoption of a world-class solution brings the company to a higher level of maturity and management anchored by best practice in retailing. The company is continuing to grow rapidly, and we’ve recently acquired Lojas Mig, strengthening our position in south-east and north-east regions of Brazil. The introduction of this technology will help support our growth.”
“We must have access to critical business information which will improve our decision making processes across the country. The business needs to realise benefits quickly and the Wipro technology will enable the business to deliver immediate results,” he adds. |
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| Watford FC introduces loyalty cashback programme |
| Watford FC is partnering with Reward and Fortress GB to launch a High Street loyalty cashback programme |
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The ClubCash programme will enable the football club’s supporters to earn/save cash to spend within the stadium, every time they shop at participating retailers including JJB Sports, Halfords, Superdrug and online at HMV, John Lewis and Marks and Spencer.
When Watford season/fan card holders make purchases through the ticket office and retail outlets they will automatically be registered into the programme. They can then register their debit/credit cards online and, whenever they spend at participating retailers, they automatically earn cash to make purchases anywhere in the club’s stadium. To claim their cashback, similar to an oyster card, members scan their season/ fan cards at the PoS and the amount is deducted from their account. Michael Jones of Watford FC comments: “Our aim with introducing ClubCash is to give something back to our fans and hope that their normal lifestyle spend will go some way to contributing towards the cost of supporting their club, be it on season tickets, replica shirts or a hot dog on matchday. It is our hope that this programme not only gives our fan base something for nothing, but the technology also provides them with faster service within the stadium creating a better atmosphere on match day.” |
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PC World partners with Reevoo |
| PC World has introduced a new online service for customers, resulting from a partnership with Reevoo |
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The deal will provide the retailer’s customers with review content to help them make better informed purchasing decisions. Pat Foley, head of e-commerce operations at DSG international (DSGi), the parent company of PC World, says: “We are committed to improving the quality of content published on our website. By making impartial reviews from an independent company available to our customers, we are providing a tool that helps them select the product that’s right for them.”
“Increasing consumer confidence in our reviews has benefited other brands across DSGi, with increased customer engagement and improved conversion. The success that we have seen on Dixons and Currys has led us to extend the relationship across other brands, including PC World. We are continuing to respond to our customers, who tell us they want impartial opinion from an independent source,” he adds. |
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