Stores of the Year Winners

1
Stores of the Year Winners

• 7-Eleven
• Harmons Supermarkets
• Best Buy
• U.S. Marine Corps
• Bath Body Works

2
7-Eleven

• Accounting component
• Cost savings due to less paper and courier
  services
• POS phase item level info
• Centralized price file/suggested retail
• Deviations analyzed

3
7-Eleven

• Handheld computers
• Scan items
• View past history
• Place orders orders consolidated for efficient
  distribution
• Better decision making

4
Harmons Supermarkets

• Thin-client technology
• PC with no hard drive depends on another
  machine for operation
• Adds security
• Works like a mainframe
• Access to software/files is secured by host

5
Harmons Supermarkets

• Intranet
• Training
• Communication
• Time and attendance
• Pricing and merchandising processes, soon

6
Best Buy

• JDAs Arthur Planning
• Helps reduce inventory levels
• Maintains SKU-level data
• Analyze category level data
• Inventory turn increased 2 ½ times
• Removed 30 days of inventory from supply chain

7
U.S. Marines

• New POS units
• New financial system
• Data base system
• Eliminates inaccuracies
• Eliminates time of 2 people per location for
  inputting

8
Bath Body Works

• Videotape to determine if new POS system or
  legacy is better
• New was 50 faster
• Old system could not support multiple promotions
• Sort products by promotion time consuming

9
Bath Body Works

• Price codes are input so scanning is correct
• Speeds transactions
• Training time ½ hour vs. 2-3 hours
• Transaction speed 25-50

10
Internet Retailing

• Stock prices down
• Overcapacity is a problem
• Demands for government regulation/taxation
  growing
• Margins are thin
• Supplier relationships testier

11
Internet Retailing

• Internet makes everyone a retailer
• Internet service providers (ISPs)
• Suppliers as retailers
• Channel conflict
• Walmart and Home Depot
• More competition but core retail skills give
  retailers an edge

12
Internet Retailing

• Market discipline is king
• Etailers must be customer-centric
• Business to consumer market models
• Individual product auctions (ebay.com)
• name your price offers (priceline)
• Buyer aggregation (mercata.com)

13
Internet Retailing

• New technology influences
• Wireless
• Creates new channels of Internet access
• New applications in the home and on the road (GPS
  systems)
• Networked home
• TV, refrigerator as control centers

14
Internet Retailing

• The fall out has started
• Etailers have closed virtual doors
• Boo.com, toysmart, RedRocket
• Some have trimmed portfolio
• Amazon, Kbkids, living
• Some have restructured
• ValueAmerica
• Some were close to going out of business
• Cdnow, Peapod, BeautyScene

15
Internet Retailing

• Some categories are saturated
• Pets
• Petopia.com, Pets.com, Petstore,com,
  Petwarehouse.com, PETsMART.com
• Sporting goods

16
Internet Retailing Strategies

• Destination site
• Category focus to focus on all things related to
  the category
• Relevant content
• Product reviews
• Advice columns
• Celebrity interviews
• News

17
Internet Retailing Strategies

• Destination site, cont.
• Building community on-line interaction
• Message boards
• Chat rooms
• Cdnow, Reel.com, PlanetRX, BestBuy

18
Internet Retailing Strategies

• Multi-channel retailers
• Experience is paying off
• Three of top 10 etailing sites Q4 1999 are
  traditional bricks and mortar
• The Gap, Sears, Walmart are gaining
• Some pure-play e-tailers want to form alliances
  with store-based

19
Top 10 E-tailers Q4 1999

• Amazon.com
• eToys
• BN.com
• Cdnow
• Toysrus.com

• Buy.com
• KBkids.com
• JCPenney.com
• Qvc.com
• Egghead.com