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2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Retail Stores As An
Extension Of Your
Fulfillment Center
Erik Holm, Director of Product Management, Demandware
Sren Gundtoft Johansen, Head of Omnichannel, Bestseller
Johannes Wikstrm, Operations Manager, Peak Performance

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Introduction of Speakers
Moderator
Erik Holm, Director of Product Management, Demandware
Speakers
Sren Gundtoft Johansen, Head of Omnichannel, Bestseller
Johannes Wikstrm, Operations Manager, Peak Performance

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

This deck contains


confidential content
No media or social
sharing please

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Sren Gundtoft
Johansen
Head of Omnichannel
Bestseller

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Demandware Xchange 2015 - London

RETAIL STORES AS AN EXTENSION OF


YOUR FULFILLMENT CENTER

ABOUT BESTSELLER

AFFORDABLE FAST FASHION


INTRODUCTION TO BESTSELLER

ABOUT
BESTSELLER

Privately held. Owned and managed by Anders Holch Povlsen


In Europe: 3000 branded storefronts and 12000 employees
Brands are sold in apprx. 12000 multi-brand and department stores in 53 markets
Online is the largest flagship store 20+ brands, 1 checkout
- 30.000 products

- 50-100 new products every day


- Today, the digital story is part of the product

Brand-specific organisational design. Wholesale, Retail and online.

OUTLINE

Current Omnichannel initiatives

Challenges where are we struggling?

Next steps in our journey towards Omnichannel

HIGHLIGHTS
OMNICHANNEL INITIATIVES
- Click & Collect
- Pickup across brand portfolio of stores e.g. 30 brand stores vs 400 portfolio stores in
The Netherlands

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HIGHLIGHTS
OMNICHANNEL INITIATIVES
- Click & Collect
- Pickup across brand portfolio of stores e.g. 30 brand stores vs 400 portfolio stores in
The Netherlands

- In-store returns
- Incentivize local store by sharing cost savings from online

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HIGHLIGHTS
OMNICHANNEL INITIATIVES
- Click & Collect
- Pickup across brand portfolio of stores e.g. 30 brand stores vs 400 portfolio stores in
The Netherlands

- In-store returns
- Incentivize local store by sharing cost savings from online
- In-store assisted sales
- Multiple attempts with limited success barriers are zero friction and consumer demand

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HIGHLIGHTS
OMNICHANNEL INITIATIVES
- Click & Collect
- Pickup across brand portfolio of stores e.g. 30 brand stores vs 400 portfolio stores in
The Netherlands

- In-store returns
- Incentivize local store by sharing cost savings from online
- In-store assisted sales
- Multiple attempts with limited success barriers are zero friction and consumer demand
- Mobile

- We invest into native Apps not because of profit today, but as a bet into the future

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WHERE ARE WE STRUGGLING?


OMNICHANNEL
- For us Omnichannel is a difficult challenge
- Our culture is highly entrepreneurial - bottom up mindset driven by decentralised
ownership and incentive models

- Assortment and pricing decisions are driven decentralised nearness to consumer


- Retail is a mix of fully owned and partner owned stores

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WHERE ARE WE STRUGGLING?


OMNICHANNEL
- For us Omnichannel is a difficult challenge
- Our culture is highly entrepreneurial - bottom up mindset driven by decentralised
ownership and incentive models

- Assortment and pricing decisions are driven decentralised nearness to consumer


- Retail is a mix of fully owned and partner owned stores

- Our approach is evolotionary and experimental not revolutionary


- We will sacrifice speed over getting it right

- We try to find our own way with profit at every step

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JOURNEY TOWARDS
OMNICHANNEL

Getting started is key to prove the point.


Automation and integration is key
Roadmap changes by the hour

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Q &A

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Johannes Wikstrm
Operations Manager
Peak Performance

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EST. 1986 RE, SWEDEN

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E-Commerce

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Making the Right Choices

SHIP FROM
STORE

HIGH

BUSINESS IMPACT

Integrating the
loyalty programme
for retail with
online, thereby
enabling getting
loyalty points as
well as re-deeming
loyalty points
online.

Orders placed online


being routed and fulfilled
in retail stores.

LOYALTY
PROGRAMME

Store associates are able


to place orders online for
customers in-store.

ORDER INSTORE
RETURN INSTORE

Enabling customers who


bought online to return instore

CLICK &
COLLECT

LOW

Enabling customers to look


up physical availability instore though the online
store and reserve/collect.

EASE TO IMPLEMENT

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EASY

Ship-From-Store Model
MAKING STORE INVENTORY AVAILABLE ONLINE AND SHIP FROM STORE
CONSUMER

ONLINE STORE

WAREHOUSE +
WAREHOUSE
STORE

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CARRIER

Why Ship-From-Store?
KEY BENEFITS:

INCREASED SALES
Exposes more available products for online consumers

IMPROVED SERVICE

Improves customer loyalty and satisfaction with increased inventory accessibility

IMPROVED SELL-THROUGH AND GM%

Facilitates more profitable and efficient sell down of products in stores

LOWER FULFILMENT COSTS


Orders shipped from closest location

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Inventory planning and order allocation


E-com replenish the retail store weekly
100% sell-through
Limited store inventory shown online
Allocation routing table
Stock taking

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Impacts on store operations and personnel


One size does not fit all
Physical space

Storage rooms

Premium delivery

Training
Process ownership
Daily routine
2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Store Concerns

Dont want to lose inventory


Want sales commission
Want agents to focus on in-store
customers
Not enough room to pack orders

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

E-commerce Concerns

Want full inventory available on the

web
Customer satisfaction
One brand, one message

Successes & Challenges

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Challenges

Store personnel motivation

Sale periods

Out-of-stock situations

Shipping lead times

Choosing right locations

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Successes
Full inventory on the web
Better inventory control and
utilization

E-coms voice heard


Tighten departments
Meaningful results
Engaged store teams

2015 Demandware, Inc. All Rights Reserved by their Respective Owners.

Questions?

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Q&A

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Please complete the


session survey.
Thank you!
Questions? Contact us:
Erik Holm (eholm@demandware.com)
Sren Gundtoft Johansen (soren.johansen@bestseller.com)
Johannes Wikstrm (johannes.wikstrom@peakperformance.se)

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2015 Demandware, Inc. All Rights Reserved by their Respective Owners.