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The Eye on Retail Information Systems
June 30, 2009
Volume 18 Issue 14


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RetailROI (the Retail Orphan Initiative), established to raise awareness regarding the global orphan crisis and provide lasting solutions for vulnerable children worldwide, today announced the launch of the RetailROI corporate logo program. By becoming a RetailROI sponsor, retailers and technology vendors can utilize the RetailROI logo and sponsorship as part of their marketing and networking strategies. The objective of the new program is to help spread the word about the retail industrys support for orphans.



North American consumers continue to embrace self-service technology, as transactions at self-service kiosks will surpass $775 billion in 2009. This will grow to over $1.6 trillion by 2013, according to a new research study conducted by the IHL Group.



"It's the wave of the future, and I'm very upbeat on the system." These were the words almost 35 years ago of Virginia Knauer, special assistant for consumer affairs to the President of the United States, when asked about the Universal Product Code (UPC) and the growing interest in retail bar code scanning.



Sheetz Inc. recently completed the rollout of Sheetz Bros. Kitchen, with all 353 of the chain's convenience stores now being serviced with daily delivery of products made at the 140,000-square-foot central commissary in Claysburg, Pa.



After being tested at Randalls and Tom Thumb, AOL's Shortcuts' digital coupons are slated to roll out chainwide at Safeway beginning today.



Best Buy announced 13 new store openings for its second fiscal quarter, the first of which opens in Alaska this Saturday. According to the news release, the new stores will feature "updated layouts, highly trained employees, and interactive displays create a unique and engaging experience for customers. Featuring the latest products and services, the new Best Buy stores provide customers with the solutions to meet all of their technology needs."



DigitalPersona, Inc. today announced that the largest Wendy's restaurant franchisee, Tar Heel Capital, has chosen DigitalPersona U.are.U Fingerprint Readers to combat theft. Tar Heel Capital, which owns 76 Wendy's franchise locations and employs 2800 people throughout North Carolina and South Carolina, is using DigitalPersona fingerprint readers with WAND Point-of-Sale software on their POS terminals. Tar Heel Capital saw a rapid return on investment in each restaurant from using the fingerprint readers. The DigitalPersona fingerprint readers also provided a stronger level of security and accountability for employee POS transactions as well as time and attendance tracking. This gave Tar Heel Capital greater control over costs associated with cash register theft and time clock fraud.



Netkey' today announced that its customer Cabela's Inc. has won the 2009 Self-Service Excellence Award for "Best Overall Software Solution" for its in-store interactive kiosk program, powered by Netkey software. The award was presented at the KioskCom Self Service Expo and The Digital Signage Show.



Supermarket retailer Winn-Dixie is successfully addressing the pervasive industry problem of front-end shrink with IT systems. According to Supermarket News, Winn-Dixie has added $7 million to its bottom line in the last six months by using anti-theft technology.



Home furnishings retailer IKEA has deployed 18 Xen X5 customer loyalty-registration kiosks in six of its Belgian stores. The kiosks offer customers the convenience of signing up for the IKEA FAMILY program in-store, and loyalty customers benefit further by being the first to know of upcoming promotions, sales and events via on-screen information targeted solely at them.



Shoppers at Dominick's grocery stores can now access digital coupons on their mobile phones or computers through a deal announced Monday between retail chain Safeway and Cellfire Inc.



A lucrative LP program - one that reduces shrink and protects profits - can be expensive to maintain. Indeed, maintaining an operationally sound LP program demands consistent, accurate, and thorough review of policies and procedures. Yet, policies and procedures are difficult to uphold when your sparsely staffed internal LP team is tasked with overseeing several locations throughout the United States. John Trott, VP North American consumer direct and global e-commerce at Timberland, dealt with this very situation. He needed to provide better and more consistent LP support for countrywide store locations without losing revenue.



Carl's Jr. has signed an agreement with Indoor Direct Inc. that will deliver the indoorDIRECT digital television network to 133 of the burger chain's locations. IndoorDIRECT produces and distributes theBITE Network, a combination of entertainment and advertising that is divided into brief 3-5 minute segments.



MPS is introducing a mobile phone skinning technology that makes contactless mobile payments less about itself and more about the card holder.



On a skyscraper in the middle of New York City's Times Square flashes a digital ad, screaming for attention in a sea of other digital ads. But what if consumers could interact with that ad, literally taking it over to show thousands of ad gawkers-even if only for a few seconds-exactly what they want to show?



ShopSavvy, an app that launched on Google's Android mobile platform in October, has unveiled its 3.5 release. The app enables users to scan barcodes with the Android-powered phone cameras to get pricing information. Users can also comparison shop over the 'net from their handhelds.



MaryLou's, a specialty coffee shop chain based in Massachusetts, needed a POS solution that allowed it to transition from electronic cash registers (ECRs) to a modern POS and business management system. After an extensive search, MaryLou's turned to StationSmart for help. StationSmart is a solutions provider that specializes in custom retail technology, and it has found particular success by establishing strong relationships with several vendors in order to provide the best service for the unique needs of its diverse client base. What swayed MaryLou's decision to go with StationSmart was its ability to provide and manage all aspects of the project, including POS operations, PC hardware and software, accounting integration, and PC networking.



IBM here announced yesterday that it is releasing a new version of its POS software for supermarkets, the SurePOS ACE application for 4690, that will support scanning and processing of the GS1 DataBar bar code on coupons as well as produce.



Despite efforts by supermarkets to regulate the sale of alcohol to minors, self-checkouts allowed such purchases among nearly 20% of consumers in a study conducted by graduate law students at the University of California here and presented in partnership with a local group has been critical of Tesco's Fresh & Easy chain.



Next week marks the 35th anniversary of bar code scanning. On June 26, 1974, a 10-pack of Wrigley's chewing gum became the first product ever scanned in a retail store setting - with an NCR scanner in a checkout lane at a Marsh Supermarket here.



UTC RETAIL announces the successful completion of a Payment Application Data Security Standards review of their POS-J 3.1 Java-based store automation POS software solution. UTC RETAIL POS-J, a browser-based store automation solution delivers an easy-to-use and intuitive register platform backed by valuable administrative applications and an in-depth reporting system.



First Data has introduced their new FD-30 PIN pad, providing the ability to accept contactless payments. Supporting cardholder-initiated, contactless, PIN-based debit and traditional magnetic strip transactions, the First Data FD-30 allows merchants to offer their customers the ability to initiate and complete their transaction while maintaining control of their card during the entire process.



Pan-Oston has introduced a kit that enables retailers, healthcare providers, airlines, hotels, libraries, businesses, government agencies and private service organizations to unobtrusively and directly assist hearing-aid wearers.



Netkey today announced that Wireless Zone, Verizon Wireless dealer in the U.S., has selected Netkey SaaS to operate digital signs in the company's stores.



Specialty youth apparel retailer Abercrombie & Fitch will open a new store format called EPIC Hollister in New York, NY on July 16. Abercrombie describes the 40,000-square-foot, four-story store as "pure California fantasy."



Industry experts call it a deli blowby -- it's what happens when customers see long lines around a grocery store's deli counter. Rather than wait, shoppers ignore the deli section -- a profitable outlet for grocers -- and buy prepackaged meats or cheeses. That costs grocery stores money and customers.



Smart cards could make paper money redundant, writes Brendan Peacock.





I've just received congratulations on my successful high school graduation and been asked to share my memories of the senior prom. It's a bit hard to think myself back to those days-to give a hint, the song for the graduating class of Manhasset High was that new hit "Bridge over Troubled Water"-but for the folks at David's Bridal, I'll try.



Foxwoods Resort Casino has hired a Bedford, Mass., data-link vendor to help the casino mine its databases for more valuable information about gamblers' leisure pursuits to improve its marketing, special events and promotions.



Prior to the formation of Eastman's IT customer-project office, executives found it extremely difficult to make decisions about projects based on timely and accurate data. Company knowledge was fragmented in different types of databases, with different data collected on different types of projects. Getting any semblance of a high-level view required a substantial effort and even then was based on questionable information. When the IT department made the decision to form a project office, part of its mandate was to acquire a data-consolidation capability along with the resources and processes to support it. Their first effort produced a very large Excel spreadsheet with information aggregated around projects. Although an improvement, it still took many hours to produce and a lot more effort to keep updated - plus executives still had to accept the accuracy of the underlying data on faith. This was clearly not sufficient.



IBM has today announced an agreement with GS1 UK to provide analytical services and technology services for the UK Grocery Industry Data Crunch Project which aims to assess the business impact of supply chain data inaccuracies.



A red 2009 Mercedes S600 pulls into the overflow parking lot of Mall of America, zooming by without notice some light poles with mounted video cameras and some wireless readers. After parking, the driver and two passengers get out and walk into a mall entrance.



Marketers have a love/hate relationship with ROI. It's absolutely necessary, but annoyingly elusive. A brand's return on investment can be quantified with impressions, engagement or time spent, but rarely direct sales. It's not often that a campaign can be linked causally to a sale, especially purchases at bricks-and-mortar stores. Mobile can change that. What online advertising did for e-commerce, mobile marketing can do for traditional commerce: make it measurable.



Consumer products and packaged goods manufacturers have been using trade funds for decades now in order to influence retailers and to collaborate on marketing programs that ultimately shape consumer behavior. While the average shopper may not be aware of it, every product placement, special pricing, bundling, or in-store promotion likely has been funded by the manufacturer.



Opterus Inc., the leading provider of cost-effective, web-based store communications and task management solutions, today announced the release of Store Ops-Center Version 2.2. Opterus Store Ops-Center is an on-demand retail portal designed specifically to create content, ensure message delivery to stores, monitor task execution, and enforce operational compliance.





Just a month after launching a website about all things franchising, 7-Eleven, Inc. has added a second website - http://bcp.7-Eleven.com - for people looking to convert their existing retail outlets to the 7-Elevenﾮ brand and system through its Business Conversion Program.



Walgreens has reached an agreement with Microsoft to provide pharmacy patients access to their personal prescription history through Microsoft HealthVault", a Web-based platform that helps people gather, store and share health information.



Giant Food Stores is offering online manufacturer coupons supplied by Grocery Shopping Network partner Coupons, Inc. Giant uses GSN's personalization engine to build weekly ads for each customer who has a Giant Bonus Card. Based on member information, the Web site will display shopper favorites that are on sale and will align coupon offers with sale items. Manufacturer coupons will automatically print out when the shopping list is printed.



Whole Foods Market has introduced an iPhone app for customers looking to prep healthy meals on the go. The free application, for iPhone and iPod touch, features more than 2,000 recipes using the grocer's natural and organic products.



Cvent has established a strategic partnership with Nashville-based Gaylord Hotels to promote a new program Gaylord is offering meeting planners. Total Meeting Pricing offers an exclusive meeting package that covers most ancillary costs, offers planners the best available room rate and flexible food & beverage options. Gaylord Hotels is promoting Total Meeting Pricing and looking to increase additional group business through the Cvent Supplier Network. Gaylord Hotels has secured prominent placement on the Cvent Supplier Network for several of its properties. Thousands of qualified meeting and event planners visit the Cvent Supplier Network and use Cvent's electronic RFP management toolset for free to source their meetings and events.



Cvent, an emerging leader in group business lead channels for hotels and the premier provider of event management, site selection and sourcing solutions for meeting and event planners has announced a strategic partnership with Hilton Hotels Corporation.



Tired of scooting around the office, writing down everyone's order in a piece of scrap paper before making that run to Dunkin' Donuts?



Hallmark Cards Inc. said Tuesday that it is offering its first electronic-card subscription plan, which lets customers send unlimited e-cards for $9.99 a year



Hy-Vee Supermarkets has joined the Grocery Shopping Network, which has launched Hy-Vee's new online service capabilities through its industry supermarket platform.



Escalate Retail today announced a new partnership with MyBuys, a leading provider of personalized product recommendations for online retailers.



Thanks to new iPhone applications, shoppers can conveniently access Meijer MealBox and WineList planning tools on their iPhone or iTouch device.



Nearly half the people who begin buying products at Target.com in May abandoned the process before sealing the deal, according to a new study that also found Wal-Mart's E-Commerce site drew more visitors than Target's but had difficulty culminating sales.



Jack and Wendy may want to do more interviews. As fellow quick-service mascot Juan Maker, spokesman for The Taco Maker, has shown, new-media marketing can benefit from a complementary push in traditional advertising methods.



A new start-up wants you to never run out of household items like toothpaste, detergent and, yes, toilet paper. Alice.com looks like your average online retailer and, for the consumer, functions just like one too. But things are a lot more interesting than you would normally expect, behind the scene.



Twitter shopping search engine CheapTweet.com has introduced a program that enables e-retailers with Twitter accounts to set up a social presence that focuses on special offers and prices. The search engine's new functionality, called CheapTweet Stores, aggregates tweets from an e-retailer's Twitter account or accounts into one location on CheapTweet.com as a social shopping resource for shoppers on the web. Twitter messages are called tweets.



Online shoppers cite high shipping costs, a desire to comparison shop and a lack of funds as the top reasons they abandon shopping carts, according to a survey released today by web payment service PayPal. But the survey shows many eventually return to the web site to buy, or make a purchase in a bricks-and-mortar store.





Gulf Oil LP has hired a Plymouth energy services firm to help reduce natural gas and electricity costs for Gulf retailers. Power Management Co. of Plymouth was named Gulf's preferred vendor for natural gas and electricity procurement for more than 1,400 Gulf-branded gasoline retail centers. Gulf said its retailers not only need to increase revenue, but must also find ways to cut expenses.



Golub Corp. yesterday completed the deployment of a real-time company-wide labor-modeling solution to all 119 of its Price Chopper supermarkets.



Save Mart Supermarkets here has selected Ingres Database to manage the time-and-attendance application for its more than 20,000 employees.



Dinerware, Inc. today announced its certification of dinePoint, a web-based enterprise reporting service.



Telogis today announced the launch of GeoZone, a free resource for GeoBase developers. GeoBase is the company's market leading geospatial engine - enabling mapping, routing and navigation on platforms ranging from mobile to server. Registered members of GeoZone gain access to the latest releases of the GeoBase SDK, sample map data, sample code, tutorials and whitepapers. Additionally, Telogis has assembled a premier list of partners from the Location Based Services ecosystem to provide additional technical resources and samples of their products.



Jesta I.S. announced recently that Taryn Rose International, has selected the Vision Suite of solutions as its new enterprise platform. The suite of Vision products provides Taryn Rose International with an end-to-end enterprise solution which includes; Vision Sourcing and Demand Management, Vision Financials, Vision Merchandising, Vision Planning and Vision Store.





Coca-Cola has introduced a new fountain dispenser, called Freestyle, which allows significantly more consumer choice at self-service stations, with 100 drink combinations versus between 6-12 choices with existing equipment. Freestyle will primarily serve fast food restaurants (consider McDonald's and Burger King, which use Coke products), movie theatres and convenience stores. Combinations could include caffeine-free diet-coke with lime, or PowerAde with Vitamin C (yes, Coke plans to provide options for the health-conscious).



International apparel retailer Charles Vogele has implemented a Merchandise Visibility system in a move to RFID-enable its whole supply chain.





I teach the supply chain management course at Northeastern University's Executive MBA program, and this year I included a relatively new case study in the syllabus: "Crocs: Revolutionizing an Industry's Supply Chain Model for Competitive Advantage by Michael Marks, et al. The case was published in June 2007, and it highlights how Crocs developed an "extremely flexible supply chain" that allows it to "adjust to changes in the marketplace" thus enabling its rapid and highly-profitable growth. In the first quarter of 2007, near the time the case was written, Crocs reported revenues of $142 million (more than 3X its sales in Q106) and net income of $0.61 per share (almost 4X greater than the previous year).



Kimberly-Clark is serious about sustainability and its responsibility towards the environment. As the manufacturer of famous household brands like Andrex, Kleenex and Huggies, the company is committed to sustainability in its truest sense and is now starting to reap the benefits both in terms of reducing its impacts and also by running a lean and efficient supply chain which in turn brings real benefit to its biggest customers, the high street grocery retailers, and ultimately to consumers. Working with i2 Transportation Management solutions, is one of the ways in which Kimberly-Clark has been able to reduce its CO2 output, while also reducing costs.



Checkpoint Systems, Inc. today announced here at the NRF Loss Prevention Conference & Expo the successful implementation of its Merchandise Visibility solution for the $1.3-billion, 851-store Swiss-based international apparel retailer Charles Vogele. This implementation provides a comprehensive, source-to-store solution across the retailer's entire supply chain - from point of manufacture to point of sale -- using standard EPC Gen 2 labels. It is the first standards-based solution to RFID-enable a retailer's entire supply chain.



Gist has implemented voice-directed picking technology from VoiteQ within its food logistics business, which will benefit client Marks & Spencer's 600 plus stores.



Sara Lee Corporation and logistics company OHL recently signed a contract making OHL the end-to-end supply chain solution provider for all of Sara Lee's international household and beverage business, including items such as Endust dusting polish and KIWI shoe polish.



Fashion Retailer Using Oracle Retail Release 13 and Oracle Fusion Middleware to Support Business Strategy With a New, Best-in-Class Technology Infrastructure



Galleria Retail Technology Solutions, today announced that Wal-Mart Stores, Inc. has successfully completed user acceptance and extensive scalability testing of Galleria's configured store and merchandise planning software system. "We are thrilled that Wal-Mart has chosen to enhance their customer centric merchandising capabilities with Galleria's solution," said Jef Richards, chief research and strategy officer, Galleria.



Winn-Dixie sells a range of groceries and produce at its 500-plus stores across the South eastern states of America. The company operates six distribution centers and three manufacturing plants, and is investing in hundreds of new own-label products as well as a store-remodeling program. Winn-Dixie gets groceries to customers faster by enhancing Workload Automation and systems monitoring.



Virgin Megastore has awarded Kuehne + Nagel a five-year contract to support the optimisation of its inventory management in France.



JDA Software Group, Inc. today announced that two JDA customers were recognized by the Voluntary Interindustry Commerce Solutions Association for supply chain excellence and innovation during the 12th annual Collaborative Commerce Achievement Awards. Lowe's Companies, Inc. and Rite Aid in collaboration with Kimberly Clark received 2009 awards for the Retail Excellence and VICS CPFR Implementation Excellence categories, respectively.



WE Fashion has selected Oracle Retail Release 13 applications to support its growing business as it seeks to expand from its existing presence in six European countries and into new territories.



Salomon USA has announced an agreement with Colorado-based technology provider, Brandwise, Inc. Well known in many industries for its sales-related software solutions, Brandwise will implement its Visual Merchandiser application, part of a suite of integrated technology aimed at speeding up the sales process and improving the buying experience for their dealer customers through better merchandising. The application also brings green efficiencies to the sales process by allowing Salomon to rely less on printed catalogs, and by delivering orders and proposals electronically.



Making good on its 2008 promise to continue developing the functionality of the ILOG technology it acquired in a $340 million deal, IBM today announced a slate of updated products that includes supply chain optimization and plant scheduling software.



RLM Apparel Software Systems Inc. reports that footwear wholesaler Blowfish LLC has implemented its web-based FashionManager software at its Santa Monica, California headquarters. After a short six-month implementation, the three year old company is utilizing the system's online order management and EDI capabilities to gain visibility into its order fulfillment and distribution processes; as well as planning and tracking sales performance across multiple product categories.



French children's fashion retailer idgroup has invested four million euros in an automated warehouse solution from Savoye for its 15,000 sq m distribution site in Leers, northern France.



NGC today announced that Supply & Demand Chain Executive has named NGC a winner of the 2009 Supply & Demand Chain Executive 100 award, "Supply Chain Saves the Enterprise."



HighJump Software has announced Umpqua Dairy has reduced its direct labor expense, increased efficiency and improved customer service since implementing solutions from HighJump Software.



KSS Retail announced today that dunnhumby has formed a strategic alliance with KSS Retail to use the KSS PriceStrat solution for price modeling and optimization. The alliance will enable dunnhumby to provide price modeling and optimization focused on the behavior and needs of different customer segments to their existing and future clients in North America and elsewhere. Terms of the agreement were not disclosed.





In the current recessionary environment a range of factors - such as higher utility bills, spells of rising food inflation and declining consumer confidence - have converged to make consumers question the contents of their shopping baskets and try to make savings where possible.



With June upon us, consider this: More than 2.2 million women will get married in the United States this year. About one-third of them will be outfitted by one company: David's Bridal. With more than 300 stores throughout the country and a growing online presence, the retailer offers unbeatable prices on a wide selection of mass-produced gowns. While the average wedding gown costs $1,075, according to Cond￩ Nast Bridal Media, the average David's Bridal dress retails at only $550. Some sell for just $99. It has been called the "Wal-Mart of weddings," and, like the blue big-box giant, David's Bridal may be poised to emerge from the recession as an even more formidable retail force.



For the fifth consecutive year, Publix Super Markets here has been selected as one of IDG's Computerworld's top workplaces for information technology professionals.



Milk and dairy supplier Dean Foods said Monday it has entered into an agreement to purchase the soy beverage company Alpro, a Belgium-based segment of food company Vandemoortele NV.



RetailerDaily has compiled comparable store sale data from the SEC filings of 24 major US retailers spanning several years, up to the most recently released March numbers.



Like many struggling retailers in this severe economic downtown, the online-based retailer Eddie Bauer announced it was forced to file for Chapter 11 Bankruptcy on Wednesday. Known for its rugged outdoor wear, the retailer hopes to avoid a liquidation, as it reorganizes.



Construction services company Building Materials Holding Corp said it filed for Chapter 11 bankruptcy protection and inked an agreement with a secured lender group to restructure its balance sheet.



In what appears to be the final chapter in a long and twisting story, off-price apparel retailer Syms Corp. is the official new owner of bankrupt discount apparel retailer Filene's Basement. Syms has received bankruptcy court approval for its $65 million purchase of Filene's Basement's assets.



Eddie Bauer is the latest to join a growing list of retailers declaring bankruptcy in 2009. The chain declared Chapter 11 bankruptcy protection on June 17, 2009 after citing an inability to pay back debt. The outdoor clothing retailer will sell most of its assets to private-equity firm CCMP Capital Advisors which plans to keep most of the 371 stores and employees.



Dress Barn Inc will buy teen-apparel seller Tween Brands Inc for about $157 million in stock, as the women's clothing retailer looks to capture a larger share of the tween girls apparel market.





Oracle has landed two significant new deals: with HBO to help it shift more IT spending away from internal operations and more toward content creation and customer engagement, and with Abercrombie & Fitch to create a global single instance for store merchandising and operations as the retailer undertakes a global expansion.



Fujitsu America yesterday unveiled its RetailReady program, which provides benefits for independent software vendors that validate their applications with retail hardware from Fujitsu.



SAP AG today announced that research analyst firm IDC has ranked SAP, including the SAP BusinessObjects BI solutions, the number one vendor for business intelligence tools with a 20.4 percent market share. The market analysis, titled "Worldwide Business Intelligence Tools 2008 Vendor Shares" finds that SAP, in combination with the SAP BusinessObjects BI solutions, has demonstrated leading market share and highest share gain of any vendor, and reports that BI remains one of the top investment priorities for companies globally.



Global supply chain optimisation provider Manhattan Associates, Inc. has announced that its Supply Chain Intelligence platform application has received the IBM Cognos OEM Partner Performance Management Solution of the Year award.



Google seems set to launch its Google Voice service, as it has reserved more than one million numbers with the service provider Level 3, according to a report by Gizmodo.



The survey by Security Lifecycle Management company Tufin Technologies, was conducted amongst 151 IT security professionals, many of whom were from multinational organisations and government departments, employing 1000 to 5000+ employees as part of their annual "Reality Bytes" security survey.



Hypercom Corporation announced today that The Phoenix Group, an independent distributor of point-of-sale products and services, plans to purchase up to $6 million of Hypercom's high security Optimum payment products for resale to its bank and ISO customers throughout the United States.



Eurovestech is pleased to report that its wholly-owned portfolio company, KSS Retail Ltd. has formed a long term strategic alliance with dunnhumby to use the KSS PriceStrat solution for price modelling and optimisation. This involves an immediate multi-million dollar licensing order for KSS Retail.



Reflexis Systems, Inc. today announced eight retailers in six countries have selected solutions from the company's Retail Execution Platform, including five who are implementing Workforce Manager. The newest Reflexis customers range in size from large companies with thousands of stores to smaller, high-end specialty chains and include supermarket, discount, general merchandise, and apparel retailers on four continents:



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