Retail technology talk presented by Marco Ventura, T1Visions' VP Business Development at Retail RAMP conference in Chicago on April 30, 2013.

1. The Digital Store
of the Future
Marco Ventura

2. Agenda
‣
Convergence of bricks & mortar and digital
‣
Retailers that are doing in-store digital right
‣
Four technologies that are augmenting the
in-store experience

3. Is Bricks & Mortar Dead?
“
Retail guys are going to go out of business and
e-commerce will become the place everyone
buys. It just doesn’t make any sense for all this
stuff to sit on shelves. There is fundamentally a
better model.
”
Marc Andreessen
Tech Entrepreneur / VC / Billionaire
January 2013

4. What does the
data say?

5. Online Retail
U.S. Online Retail Sales
Online retail
sales will be
$370 Billion
by 2017
$400
($US Billions)
$300
$200
$100
$0
SOURCE: Forrester Research Online Retail Forecast, 2012 to 2017 (US)
2012
2013
2014
2015
2016
2017

6. Retail Comparison
U.S. Online Retail Sales vs. Bricks & Mortar Retail Sales
$4,000
($US Billions)
$3,000
$2,000
$1,000
8%
$0
SOURCE: Forrester Research Online Retail Forecast, 2012 to 2017 (US)
2012
8%
2013
9%
2014
10%
2015
10%
2016
10%
2017
Online retail sales
will make up 10%
of total retail sales
by 2017

7. Although online
sales continue to
grow, people still
prefer to shop in
bricks & mortar
stores.
For now.

8. Who’s doing
in-store digital
right?

9. “
Walking
through our
doors is just
like walking
into our
website.
”
Angela Ahrendts
CEO

13. Physical vs. Digital
Advantages of
Physical Retail
Shopping as an event
and an experience
Instant access
to products
Personal help from
caring associate
Help with initial setup
or ongoing repairs
Convenient returns
Ability to test, try on, or
experience products
Instant gratification
of all senses
SOURCE: Harvard Business Review, The Future of Shopping, December 2011
Advantages of
Digital Retail
Rich product information
Broadest selection
Convenient and
fast checkout
Customer reviews
and tips
Convenience of anything,
anytime, anywhere access
Editorial content
and advice
Social engagement
and two-way dialogue
Price comparison
and special deals

14. What if you could have both?
Rich product information
Shopping as an event
and an experience
Personal help from
caring associate
Help with initial setup
or ongoing repairs
Instant access
to products
Broadest selection
Convenient and
fast checkout
Convenient returns
Ability to test, try on, or
experience products
Instant gratification
of all senses
Editorial content
and advice
Customer reviews
and tips
Convenience of anything,
anytime, anywhere access
Social engagement
and two-way dialogue
Price comparison
and special deals

15. Successful in-store digital
initiatives...
are frictionless
are part of an
integrated omnichannel strategy
leverage
as many
“digital
advantages”
as possible
solve actual
problems for
the customer

16. Four technologies augmenting
the in-store experience
‣ ONE:
Digital
signage
‣ TWO:
Large format
interactive surfaces
‣ THREE: Clienteling mobile
solutions
‣ FOUR:
Contextually aware
apps & devices

17. TECHNOLOGY
ONE:
Digital Signage

18. Digital Signage

19. Digital
Signage

20. Digital Signage
‣
Visually engaging
‣
Flexible content updates
‣
Powerful CMS tools
‣
Employ “smart” technologies

21. Next Gen Smart Signage
‣
Interactive (touch & gestures)
‣
Facial recognition sensors
capture number of views,
duration, gender, age, and
interest level of shoppers
‣
Content adjusts in real time
based upon viewing audience
‣
Rich in-store analytics

22. TECHNOLOGY
TWO:
Interactive Surfaces

23. Interactive Tables

24. Interactive Tables

25. Interactive Walls

26. Interactive Surfaces
‣
‣
‣
‣
‣
‣
Rich product information: content comes to life
Access to all products, in and out of the store
In-store product purchasing: Endless Aisle
Highly effective sales driver
Product & accessory recommendations
Comprehensive shopper analytics

27. Endless Aisle
Typical number of SKUs in U.S. retail stores
Specialty Retailer: 30,000
Big Box: 140,000
Digital Platform:
∞

28. In a recent study of 2,000
shoppers, Out-Of-Stock
(OOS) merchandise was the
number one in-store
dislike.
SOURCE: 2013 Shopper Experience Study, Cognizant

29. A third of shoppers leave stores
without buying all or part of what
they came in for, resulting in an
average loss of $125
customer.
SOURCE: Motorola 2011 Holiday Shopping Survey
per
33%
abandon
store

30. Almost
3/4 of lost
in-store sales can be
recaptured if a retail
associate orders an item
and has it delivered to a
shopper’s home.
SOURCE: Motorola 2011 Holiday Shopping Survey
68%
of sales
can be
recaptured!

31. OOS problems & solutions
‣
Problems
‣
‣
‣
item out of stock
not exactly what
customer wants
‣
‣
Better
show product
images on a tablet
order through POS
system
Good
show product
images in catalog
call another store

32. Best
‣ Show OOS product
options on a large,
multitouch screen
‣ Order items
immediately and
effortlessly
‣ Have everything
delivered to the
customer’s home
Facts

33. Analytics. Lots of them.
‣
Gain accurate
insights into
what shoppers
are doing in
your store
Use data to
make informed
business
decisions
Transac'ons)
YTD)
Current)
Product Views
(week)
0"
10"
20"
30"
40" 50" 60" 70" 80" 90" 100" 110" 120" 130" 140" 150"
#"customer"logins"
#"completed"transac<ons"
inTouch Table Activity
New Arrivals
Denim
Jackets
Collections
Tops
Dresses & Skirts
Swim & Sport (Active)
12.0
10.0
hours
‣
8.0
6.0
4.0
2.0
0.0
Monday'
Tuesday'
Wednesday'
table'usage'
Thursday'
Friday'
hours'of'opera8on'
Saturday'
Sunday'
Pants & Shorts
Shoes & Accessories
Trends

34. TECHNOLOGY
THREE:
Clienteling Mobile Solutions

35. Clienteling
Mobile
Solutions

36. 1909
2013
Clienteling brings us back to a time when
retailers knew our name, our purchase history...

37. Clienteling Mobile Solutions
‣
Provide a 360° view of the customer across
all selling channels
‣
Empowers sales associates with better
information about their products and
customers
‣
Allows sales associates to develop and foster
one-to-one relationships with customer

38. TECHNOLOGY
FOUR:
Contextually Aware
Apps & Devices

39. Contextually Aware
Apps & Devices

40. Geo-Fences
‣
Qview: branded, contextually aware
restaurant app
‣
When within 1/2 mile proximity of
restaurant, guests can get on waitlist
‣
Guests are assigned “characters” that
appear and disappear on mobile app
and on 80” HD display
‣
Integrated into table management
system

41. Micro-Location: Beacons
‣
‣
‣
‣
‣
Low power consumption— based upon
Bluetooth Low Energy (BLE) open standard
Can be placed anywhere
Detect proximity from 2 inches to 50
feet
Very inexpensive
BLE already compatible with a
massive installed base of mobile
devices

42. Beacon Use Cases
indoor
microlocation
contactless
payment
check-in
coupons
proximity
marketing

43. Combined with
smart digital
signage,
Beacons can
open up
another
dimension for
shoppers
Hi Mia, want to
complete your look?
Hammered
oblong hoop
in store
Perfectly pastel
bangles
order now
Cross band
cork wedge
in store

44. One more thing...
‣
Remember Angela Ahrendts?
(the CEO of Burberry)
‣
Apple recently announced
that she will soon join their
executive team and have
worldwide responsibility for
Retail AND Online Stores
‣
Retailers: take notice!

45. Conclusion
Andreessen is wrong. Kinda.
Retail is changing radically.
The lines between physical &
digital are blurring.

46. Retailers that make the
convergence of digital &
physical frictionless for
their customers will win.

47. 10430-F Harris Oaks Boulevard
Charlotte, NC 28269
t. 704.594.1610
f. 888.569.6660
www.t1visions.com