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RS 34 RS February - March 2013 review NRF Browse online while outside the store This thinking has led to the showcasing of its clothing ranges on kiosks and digital signage in 25 stores and locating such technologies around its stores to act as tools to ‘inspire’ the purchase of home products by enabling customers to ‘envisage what their room will look like’. “This would have been done with a swatch book previously but if you bring it to life on screen then it adds value. The challenge for retailers is to go through a re-invention,” she said, adding that some uses of technology are much more ‘mundane’ such as Click & Collect. “It’s about the imaginative and also the sheer practical. The key is execution. If you’ve got your in-store Wi-Fi dropping then this is not a way to re-invent your business,” added Wade-Gery. At the Big Show, Intel Corporation announced that multiple new retail solutions designed to help leading retailers improve consumer engagement and inventory management were being deployed worldwide with Costa Coffee, McCormick & Company and METRO GROUP. These solutions were showcased in Intel’s booth at NRF over three days. “Retailers are facing increasing pressure to explore new ways to engage consumers across online and mobile platforms as well as in traditional storefronts while reducing inventory costs,” said Michelle Tinsley, director of Intel’s Retail Solutions Division. “Intel is working with industry leaders to provide technology solutions that enable retailers to deliver fun and memorable brand experiences as well as new ways to ensure the goods customers want are immediately available.” Their partnership with McCormick & Company, a herb and spice manufacturer which now has a retail store in the US, was implemented in conjunction with HP (Hewlett Packard). Together HP and Intel help McCormick create a memorable in-store experience for shoppers using digital signage that would help Increase brand awareness while also boosting sales and customer loyalty. McCormick & Company, a global leader in flavor, developed an engaging intelligent in-store experience designed to educate customers on the brand and its range of flavors. The experience features five destinations including: ‘FlavorPrint’ to explore personal flavor profiles; ‘Guess That Spice’ a sensory experience and ‘Flavor Explorer’ to learn about the company and history of flavors, and videos and a chef demo area. Powered by Intel Core processors, the digital experience is deployed at the McCormick World of Flavors Store in Baltimore where it consistently achieves 70-75 per cent guest usage. Online, in-store Kathleen Haley, director, corporate branding and communications, explained: “Bringing the online experience in-store is one way that retailers can avoid show-rooming. McCormick is a flavour company and has a lot of brands, but we’ve opened a retail store in Baltimore. The videos allow customers to experience the histories of our various brands, they can play games, collect money off coupons and find new herbs and spices that they would enjoy. “Seventy-five per cent of the people who come in our store use at least one of these digital experiences. Fifty per cent of shoppers use a coupon from the ‘Guess That Spice’ game at checkout. We’ve only been open six months so we’re still testing and planning, but so far the feedback has been extremely positive.” Ray Carlin, general manager and VP for HP retail solutions, added: “Social media has empowered today’s consumer with the ability to share opinions and experiences instantly. In fact, research shows that 61 per cent of US consumers rely on product reviews before making a purchase decision. As a result, Intel and HP worked with McCormick & Company to develop fun and interactive experiences for consumers, in hopes of leaving a positive, lasting brand perception.” Additionally, the world’s second-largest coffee chain, Costa Coffee, worked with Intel to develop an intelligent self-serve espresso bar that provides customers with quality espresso drinks in areas not feasible for a storefront. The Costa Express features touchscreens and near field communication (NFC) technology for cashless payments. Using Intel Audience Impression Metric Suite (Intel AIM Suite), Costa Coffee is able to better understand consumer preferences anonymously and can offer the right product mix in each location. The Intel-based machines are currently deployed in 2,500 locations in the UK, with plans to expand into new markets throughout 2013. Although the atmosphere at the expo was upbeat in terms future multi-channel investment by retailers, some vendors expressed surprise that the pace of adoption had not been quicker last year. HP’s Carlin commented: “The industry moved a little slower than expected around omni-channel. However I think that is business process related, rather than technology related. “There can sometimes be a challenge around embracing change, retailers tend to be a bit more conservative. They’re very keen on implementation but are trying to figure out which piece to bite off. The reality of omni-channel implementation is very daunting.
“Another problem is that early adopters are unwilling to share their experience. They’re looking for an edge, so there’s a natural tendency to keep things secret. “However the adoption of digital signage has been strong in Europe, especially in high fashion. Just look at the likes of Digital signage proved popular Burberry. Some retailers have started testing proximity marketing via digital signage. It’s not just about promoting your product, it’s about capturing the lifestyle that your product represents. Retailers need to be willing to invest in the hardware, however. They want to have the best high definition, quality video to show off their product range. “HP have actually begun a cloud and more subscription based approach. Digital signage as a service. This means retailers don’t have to make the big investments in hardware up front.” SAP showcased new solutions from their retail portfolio at NRF’s Big Show that the company believes will help transform business operations through unified and simplified processes. Customer sessions in the ‘SAP retail theater’ on-site at the event in New York included demos from the likes of Crocs and Société de transport de Montréal (STM). Real-time These featured customers demonstrated how they used SAP solutions to improve business efficiencies, merchandising and marketing, engage with consumers and drive sales. For example, STM announced a unique consumer mobile solution for transit riders that will provide relevant information and offers from more than 240 retailers and business partners within the Montreal area. Crocs showed how it is transforming its brand and driving aggressive business growth through the use of integrated industry-specific SAP software for apparel and footwear companies, including analytics, supply chain and database software. Andy Jones, industry principal for EMEA, SAP, noted: “We want to enable our customers to operate in real-time. Precision Retailing from SAP is all about understanding who your customers are, in terms of the journey they make with you, the products they are interested in. That way retailers can personalise the shopping experience for their customers via every channel. “STM send offers to travellers using geo location. What makes it work is the ability to respond in real-time.” NRF review NRF is known for its Store Tours around Manhattan, an intregal part of the Big Show experience where visitors can take part in self guided tours around some of the city’s top retailers. This year there were 12 unique and innovative retail environmentsto explore: Duane Reade in the Financial District; Piperlime and C. Wonder, both in SoHo; the Apple Store in the Meatpacking District; Comme des Garcon in West Chelsea; the Nike Running store, Eataly (Italian food emporium) and Ace Hotel, all in the Flatiron district; Whole Foods in Columbus Circle; Hollister in Midtown and Ralph Lauren and Barneys on the Upper East Side. Each tour comes with an MP3 Player loaded with content that dives deep into the design, concept, new technologies integrated (including how mobile is being used), and customer experience enhancements for each store on the tour. Unfortunately there wasn’t time to visit all 12 stores, but I did have the chance to explore Eataly, the Ace Hotel and the Nike Running store in the Flatiron district. A store just for runners might not be everyone’s cup of tea, including your’s truly, but the technology on display was impressive. The Nike Running store was well equipped with plenty of digital signage, huge interactive screens show running maps around New York City’s roads and parks. Nike customers can tweet their running times and comments and compete against their friends. Store associates armed with iPads will help you find out exactly what kind of shoe you need as they determine your gait, running speed and balance as you jog on one of the stores tredmills. Italian food emporium, Eataly, was also very impressive. As yet the retailer has no UK locations but there are 11 locations in Italy, four in Japan and one in New York, with another state side store on the way in Chicago. The store is set up like a marketplace for food and drink but with restaurants and bars dotted around. Inside you will also find a Uni Credit bank with ATMs and travel information at your fingertips, thanks to strategically placed tablets. Eataly also offers courses in mozzerella making and bread making on the premises and everything is socially linked, you can tweet about your experiences or leave feedback on their YouTube channel. RFID During the NRF exposition Avery Dennison brought the store of the future to life in a retail simulation featuring new technology for the sales floor and back room operations to demonstrate how inventory/price marketing solutions paired with smart devices improve the consumer experience and optimise profitability. Mobile is a top priority RS February - March 2013 RS 35
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