role of the store - summary charts - may 2013

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TM Role of the Store Study: Summary Charts May 2013

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At one time, the physical store defined the retailer. It was the brand. Today, this has changed. Now the store is a part of a cross-channel experience. It is a combination of goods and services. The impact of the change is different by retail sector, but it is pervasive. While changes in other industries have happened incrementally through continuous improvement and process innovation, retail has been transformed by new business models. The pace is faster and the customer demands higher. Redefining the role of the store is critical. It requires partnerships of both retailers and manufacturers. It is for this reason that we wrote this report.

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Page 1: Role of the Store - Summary Charts - May 2013

TM

Role of the Store Study:

Summary ChartsMay 2013

Page 2: Role of the Store - Summary Charts - May 2013

Supply Chain Insights LLC Copyright © 2013, p. 2

Agenda

Study Overview

Operating Channels

Physical Stores

Supply Chain Organization

Page 3: Role of the Store - Summary Charts - May 2013

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Study Overview

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Respondents Are Primarily in the Specialty, Grocery and Mass Merchant Retail Industries

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Most Respondents Work in Retail Management or Store Operations;

Two-Thirds Are Managers

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Agenda

Study Overview

Operating Channels

Physical Stores

Supply Chain Organization

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Most Have Physical Stores; Mass Merchants Are More Likely to Have

e-Commerce and Social Commerce

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Physical Stores Account for Largest Share of Revenue Across Industries,

Especially for Grocery & Mass Merchants

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Specialty and Mass Merchant Retailers Are Somewhat More Likely to Allow Local Stores

to Have Their Own Sites

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One-Fifth of Specialty, Mass Merchant and Grocery Retailers Use Twitter for

Customer Service

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Agenda

Study Overview

Operating Channels

Physical Stores

Supply Chain Organization

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Physical Store Performance is Equally Below Importance for Core Three Industries

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Grocery and Mass Merchant Retailers Have More Physical Stores Than Specialty Retailers

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Grocery and Mass Merchant Retailers Have More Physical Stores Than Specialty Retailers

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By the End of 2013, the Same Patterns Are Expected

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Those in Specialty Retail Are More Likely to Expect the Number of Physical Stores

to Stay the Same in 2013

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Those in Grocery Retail Are More Likely to Report an Increase in Sales Revenue

from Physical Stores vs. 2012

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Those in Grocery Retail Are More Likely to Report an Increase in Physical Store

Importance in Past Five Years

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For Grocery’s Physical Stores, the Greatest Opportunity Lies in Part in Demand Insights

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For Mass Merchant’s Physical Stores, the Greatest Opportunity Lies in Local Assortment

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For Specialty’s Physical Stores, the Greatest Opportunity Lies in Demand Insights

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Volunteered Brand Differentiating Services (Open-Ended)

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Operations, Labor and Prices Are theTop Physical Store Challenges

for All Three Industries

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Most Are Working on Strategies to Improve Physical Store Operations,

Especially Mass Merchants

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Volunteered Strategies for Improving Physical Store Operations (Open-Ended)

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Volunteered Strategies for Improving Physical Store Operations (Open-Ended), Continued

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Employee Turn-Over at Physical Stores is Reportedly Higher for Grocery and Mass Merchant Retailers

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Training is Most Common Effort to Combat Employee Turn-Over at Physical Stores

for All Three Industries

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Walmart Tops Volunteered List of Retailers Who Do Store Management Well (Open-Ended)

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Challenges or Goals for Store Management(Open-Ended)

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Challenges or Goals for Store Management(Open-Ended), Continued

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Agenda

Study Overview

Operating Channels

Physical Stores

Supply Chain Organization

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Talent Issues Are Among Most CommonSupply Chain Pain for All Groups