The current retail model is being challenged. It is a system based mainly on one dimension: the product.

chazAccording to this model, products are manufactured, distributed and sold to consumers who buy what they find on the shelves at local retail stores, stimulated by traditional promotional activities communicated using mass marketing media. It is a linear, push- based process, centered on the one dimensional (1D) EAN/ UPC bar code. Over the last 40 years, the standard adoptation of the EAN code by the industry has played a key role in the huge improvements achieved by retailers in their supply chain optimization. Still, retailers today lose billions of Euros due to two main issues:

• Excess stock of unsolicited merchandise which leads to increased discounting and lower margins;

• Stock outs on requested merchandise which leads to reduced sales and market basket size;

Over-discounting and empty shelves are the main consequences of a retail model focused on products, where sales forecasts are based on past sales results, rather than on what consumers expect to find in their favorite stores.

The New Connected Shopper

In today’s retail operations, the gap between a product-based model and one based on consumer expectations is even more relevant when we look at the staggering adoption rate of new mobile technologies that make consumers more informed and empowered in the purchasing process.

The Store Is Still The #1 Channel

According to research from the IBM Institute for Business Value, almost nine out of ten retail transactions worldwide still take place in a store, which is also the second source for product awareness and the third source for product research.

Know The Shopper’s Expectations

In order to adapt the customer experience offered in store and meet the expectations of the new technology- empowered customer, retailers need to capture and embed insight on customer behavior in their processes, and dynamically align their offering with what customers value the most.

How Honeywell Can Help

Honeywell Scanning & Mobility offers a comprehensive range of cutting-edge linear, bioptic and area-imaging scanners, as well as mobile computing solutions which help retailers:

• Capture product data and customer behavior to align their offering to meet customer demands

• Empower store associates to engage and interact with shoppers to drive more productive store operations, increased service levels and an enhanced customer experience

Honeywell is setting the standard in Retail 2D, along with an ecosystem of reseller and technology partners that offer integrated and complimentary solutions to help retailers:

Transform the Point-of-Sale into Point-of- Service: Solutions are available that improve customer service by minimizing checkout time and providing different payment options, including mobile POS. Additionally, solutions can be implemented that allow the adoption of 2D bar codes and new mobile marketing applications that provide a more personalized customer offer, such as mobile couponing, e-gift cards, and mobile loyalty cards.

Get real-time, demand-based inventory:Integrated in real time with checkout product and customer data, these solutions allow retailers to improve the efficiency of their supply chain, maximize their customers’ basket sizes, reduce stock-outs and increase their margin, ensuring they have the right products at the right price advertised with the right promotion at the right store.

Empower their store associates: Thanks to the availability of merchandising and inventory applications on mobile terminals, store associates are now equipped with the productivity tools and technologies needed to interact and engage with shoppers and offer a guided selling service, including information such as in-store and multi- channel product availability, pricing, tailored promotions, and the option for mobile payment and mobile marketing applications.

Honeywell

www.honeywellaidc.com

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