Retail Team

1
Retail Team

• ACE Ashridge Foundation Course
• Retail Presentation
• Tue 10th Nov 2009

2
Agenda

• Introduction
• Aim Objectives
• End to End Review
• Key Focus Areas
• Research
• Recommendations
• Summary Conclusion
• Questions

3
The Retail Team

• Philip Butler
• Andy Morris
• David Searle
• Jessica Vaughan
• Newspaper, Magazine, Wholesale, Retail

4
The Future

• At the current rate of closures, within 70 years
  there will be no Independent Newsagents trading
  in the U.K.
• The last US Newspaper is predicted to publish
  and cease by 2044

5
Threats to our Industry

• Global recession
• Declining sales Newspapers Magazines
• Reduced space at Retail
• Reduced number of Retail outlets
• Alternative media platforms
• BBC Website Fri 30th Oct 09 A 13 year old
  paperboy in Bedfordshire offered 6.93 in
  redundancy

6
The Denial Phase
2 Billion turnover

• Newspaper and Magazine Sales Trends

55k Retail outlets
7
Aim

• The aim of the project is to understand the
  effectiveness of the current Supply Chain and
  identify areas for greater collaboration to
  maximise sales for the Retailer to the benefit of
  all in the Supply Chain

8
Objectives

• To identify the current perception of the Supply
  Chain and the relationships therein. Examine how
  these can be improved or developed to the benefit
  of all in driving an increase in sales of
  Newspapers and Magazines
• To fully understand the current in store
  processes and identify improvements for the
  benefit of Retailers and the rest of the Supply
  Chain
• This includes both Multiples and Independents

9
End to End Review
Environment
Innovation
Independents
Phasing Onsale Dates
EPOS
Reducing Waste
Upstream
Hard Ranging
Re-engage the Customer
Range Management
Pay on Scan
In Store Process
Display Solutions
SBR
Retail Multiples
Retail Standards
10
Key Focus Areas

• Retail Multiple Independents
• Independents
• In store process
• Electronic hand held solution
• Sales Based Replenishment (Upstream)
• EPOS data

11
Research
Questionnaire
Interviews
Cross Industry approach
12
Questionnaire Results
13
Gap Analysis - Relationships
14
Gap Analysis In Store
15
Independent Retailers
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Independent Retailers

• Large sector higher potential for sales
• Move from CTNs to Convenience
• Margin erosion
• Category defection
• Elements very proactive
• Limited support for development

17
Range Display Management

• The good, the bad and the ugly

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Independent Retailer Recommendations

• Full support and development of
• Better engagement at national, regional and local
  level
• Greater education of opportunities
• Increased use of existing technology
• Self financing development fund
• Range
• Display
• Epos

19
In Store Process
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Consumer Opinion
91 of customers would still buy the magazine
43 of shoppers will still by the same magazine
elsewhere
Over 50 of shoppers said they would probably ask
a store colleague to help
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Store Process

• Current process time consuming and complex
• Processes are not aligned with other categories
  in stores
• Disproportionate amount of time spent on goods
  in and out
• compared to customer facing activity
• One size will not fit all
• New technology is key
• Need to invest more time in the category, to
  increase sales

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Store Process Recommendations
Time Saved
104 hours per annum

• Hand held solution
• Industry standard to have off sale date printed
  on the barcode
• Epos data in Independents to be linked to
  Wholesaler to enable
• forecast recall notes and automated top ups

23
Sales Based Replenishment(SBR)
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Sales Based Replenishment
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Where Stock Could be Held?
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SBR Recommendations

• Upstream Stockholding
• Expansion of monthly Magazines trialled with
  Publishers Carrier inventory stock - cut
• Establish trial EPOS feed on Weeklies Carrier
  Wholesale
• Increased storage/picking/transportation costs vs
  the benefit of additional retail sales value or
  reduction in print run
• Independents what can we do differently?
• Mobile phone technology flexible and easy to
  use!
• Automated requests to Wholesale
• Mobile internet site for additional supply
  requests

27
Logistics Carrier/Haulier
A Common Logistics Infrastructure?
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Summary

• Research completed
• Identified areas of most influence
• Added knowledge of key players
• Focused on a range of Retail outlets
• Background outlined on
• Independents, process in store,
• technology, SBR, Carrier

29
Magazine Covers of the Year

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Newspaper Front Pages
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Conclusion

• Act Now!
• The Last 10 Yards of the Supply Chain
• Industry Collaboration
• Protect your Industry Now!

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Our Industry the Future?
Collaborate, right product, right place, right
time
Drive our own agendas and sink without a trace!
33
Questions?