Monday Mar 30, 2015

New Oracle Consumer Research "Retail Without Limits" Challenges Retailers to LEARN...

Last week, we launched our latest consumer research "Retail Without Limits - A Modern Commercial Society", based on a survey of 5,000 consumers in Australia, Brazil, China, France, Germany, India, Japan, Russia, the UK and USA. We asked global shoppers what matters to them when shopping, and are now challenging retailers to Learn about, Adapt to, and Execute in a border- and limitless retail market that is driven by the "invisible hand" of the now: convenience through technology.

Our modern interpretation of Adam Smith's age-old theory that self-interest drives the market states that convenience is now the force that dictates consumer shopping journeys. Consumers want a converged commerce experience, in which retailers combine the best of digital and in-person resources. Advancements in technology are very much influencing the need for convenience, as they facilitate and enhance consumer experiences. With technology, and especially mobile technology, now playing such a large part of everyday life, we are accustomed to getting what we want, when and how we want it. Retailers have no choice but to adapt to the expectations and lifestyle of the modern consumer.

We are hence asking retailers to follow three simple principles: Learn, Adapt and Execute. Let's start with #1...

LEARN

Today’s retailers must listen and learn from their customers in order to gain competitive advantage in a retail markets that is removing borders or limits.

For the full report, or to learn more, please visit: http://bit.ly/1BtBtDL.

Thursday Sep 25, 2014

The New Retail Democracy: What Russian Consumers Want

Last week the Russian results of Oracle’s New Retail Democracy global consumer research were published.

The Oracle research surveyed 500 consumers in nine countries around the world, commissioning leading market research firm RedShift Research to undertake the research. It explored consumers’ views on shopping preferences, retail interactions and define the challenges retailers face in not only understanding consumers, but empowering and representing them across all touch points.

Highlights from the Russian consumer research include:
  • 93% find information important - information about the availability of goods affects loyalty and costs
  • 73% say it is important that any interaction with a retailer is individual to them
  • 60 % do not want to buy a product if they do not see it in the store
  • 58 % believe that availability of goods is a higher priority than price
  • 52% believe that accurate information about availability and location of goods is important for a positive customer experience

To access the specific Russian consumer results and insights, please go to www.oracle.com/newretaildemocracy.

The findings from the global research, as well as from other countries surveyed as part of the New Retail Democracy are also available.


Tuesday Jun 24, 2014

The New Retail Democracy: Results For Germany

Today we release Oracle’s New Retail Democracy global research results for German consumers. Oracle surveyed 500 consumers in nine countries around the world, commissioning leading market research firm RedShift Research to undertake the research.

Highlights from the German consumer research include:

  • 58% of consumers say that availability of product is more important to them than price
  • 73% of consumers what access to origin of product information when food shopping
  • Only 5% of German consumers believe in the value of sharing personal data to receive personalised promotions or information
  • 63% of consumers prefer to purchase in-store
  • 59% of consumers say it is important that retailers adopt new technologies to improve the shopping experience, compared to 82% of consumers globally
  • 25% of consumers wanted click & collect globally, but only 7% of German consumers were interested in the option

Specific German consumer results and insights can now be accessed at www.oracle.com/newretaildemocracy.

Findings from the global research, as well as from other countries surveyed as part of the New Retail Democracy, are also available.

Infographic: Are Retailers Providing The Shopping Experiences German Consumers Want?

Friday Jun 20, 2014

The New Retail Democracy: French Results

Results from French consumers, surveyed as part of Oracle Retail’s latest global research, are available from today through The New Retail Democracy microsite.

The New Retail Democracy research explores the democratic relationship between consumer and retailer, and identifies the challenges for retailers in understanding, empowering and representing the new digital-empowered consumer. The research, carried out by market leading research firm RedShift Research, surveyed 4,500 consumers across Brazil, China, France, Germany, Japan, Russia, South Korea, the UK and the USA.

Highlights of the French findings were:

  • 92% think that understanding product availability is important
  • 50% are willing to shop direct with brands
  • 33% believe that click & collect offers them a better shopping experience
  • 70% believe it is important for retailers to adopt new technologies to improve their shopping experiences

Visit The New Retail Democracy microsite to download research materials, including whitepapers, infographics and fact sheets on the French results, in addition to those on the global research announced in March and those from Japanese consumers released in April. Findings from China, Germany, Russia and the UK will be announced shortly.

Tuesday May 13, 2014

The New Retail Democracy: China Results Revealed

China consumer results from Oracle’s New Retail Democracy research were revealed today by Allen Miao, Country Leader, China, Oracle Retail, during a press event held at the Oracle Beijing office, in which key trends were outlined along with the impact of the research findings for China’s retail businesses.

China is a growth economy in terms of retail, with the National Bureau of Statistics reporting an 11.8% growth in consumer spending last year. The New Retail Democracy found that access to knowledge is becoming increasingly important for Chinese consumers, providing a challenge to retailers in terms of providing product, availability and location information to their customers as they shop across multiple touch points.

Some of the highlights from the China consumer research were:

  • 96% of Chinese consumers think understanding availability of products is important
  • 82% say availability is more of a priority than price
  • 89% feel it is important that any interaction with a retailer is individual to them and their requirements
  • 83% of respondents increase spend when interacting with a retail assistant
  • 97% say it is important that retailers adopt new technologies to improve their shopping experiences

To access the full China research findings, visit The New Retail Democracy microsite and access whitepapers, infographics and fact sheets. Global results are already available, along with Japanese and French findings, with details on Germany, Russia and the UK scheduled for distribution shortly.

The research, carried out by market leading research firm RedShift Research, surveyed 4,500 consumers across Brazil, China, France, Germany, Japan, Russia, South Korea, the UK and the USA.

Thursday Apr 24, 2014

The New Retail Democracy: What Matters in Japan?

Mike Webster, Senior Vice President and General Manager of Oracle Retail, today at Oracle Industry Connect in Tokyo unveiled the results delivered by Japanese respondents in Oracle’s New Retail Democracy global consumer research. The research surveyed over 500 Japanese consumers. Highlights include:

  • 53% of respondents want to access to product information across multiple touch points
  • 86% of respondents want to understand availability and 88% will source items elsewhere if unavailable
  • 88% of respondents say retailers must adopt technologies to improve their shopping experiences
  • 48% of respondents want retailers to individualise their interactions

Visit the New Retail Democracy microsite to see why access anywhere matters to Japanese consumers, how availability always has become crucial in retaining loyalty and find out about the value technology brings to the Japanese consumer's shopping journey.

The research explores the emergence of a more democratic relationship between consumer and retailer, and explores the challenge for retailers to understand, empower and represent this new digitally-empowered consumer. Oracle commissioned leading market research agency Redshift Research in December 2013, interviewing 4,500 adults from Brazil, China, France, Germany, Japan, Russia, South Korea, the UK and the USA.

Access country specific results for Japan at www.oracle.com/newretaildemocracy. Other available resources include global whitepapers, infographics and fact sheets.


Tuesday Feb 12, 2013

The Evolution of Experience Retailing: Russia Results Now Available

Today saw the unveiling of the Russian results from Oracle Retail’s Evolution of Experience Retailing global consumer research. Anton Pershin, Regional Director of Oracle Retail in Russia, announced the results at today’s launch event in Moscow.

Russian findings indicate that consumers in the region value their store experiences highly and place importance in the product showcases delivered through this channel. While store-based retailing continues to dominate, Russian consumers indicated a willingness to shop via mobile or social channels, though were less keen to shop online, contrary to other countries targeted in this research. This research formed part of a global survey undertaken by Oracle Retail to explore the Evolution of Experience Retailing investigating consumer perceptions of retail in Russia, the UK, Germany, USA, China, Japan and Brazil.

Key findings from the Russian research indicated:

  • Russians rate the importance of the shopping experience at 77%, less than Brazil and China but more than the other regions surveyed
  • 87% rate good service as important, equally valuing the availability of products at the point of purchase, alongside a quick and easy payment process
  • Despite the importance of social networks to Russian consumers, they are unwilling to share negative experiences via these channels
  • More than any other region, Russians want retailers to interact with them only at the consumers’ instigation and in relation to products or order updates

With a population of 141.9 million, Russia is expected to become Europe’s largest consumer economy, making it a priority for retailers, who must ensure they can deliver cross-channel integration to enable consumers, who have indicated a willingness to shop via mobile and social channels, in the way they want, that is ‘good for me’. Retailers need to focus on collecting consumer data and utilise it to gain actionable insights into customer behaviour, which can then be applied across all touch points.

Visit the Evolution of Experience Retail research website and download the research whitepaper as well as a range of further resources in Russian including byline articles, a fact sheet and an infographic showcasing the key global results.

Tuesday Feb 05, 2013

UK Results of The Evolution of Experience Retailing Unveiled Today

UK results from The Evolution of Experience Retailing research were unveiled today during a breakfast roundtable event in London. Sarah Taylor, Senior Director EMEA & JAPAC of Oracle Retail, took delegates through UK findings, looking at comparisons with results from other countries and what the findings means for UK retailers in the current global marketplace.

The Evolution of Experience Retailing research asked consumers in the UK, USA, Germany, Russia, Brazil, China and Japan on their views to fundamental retail principles, looking at issues such as customer service, overall experience, preference, shopping trends and attitudes to technology. The global results of this research were recently announced at the Oracle Retail Exchange event held in January in New York.

British consumers have unprecedented options in a highly competitive domestic retail economy, in addition to the global environment. With access to vast amounts of product information from multiple sources, consumers can compare retailers, brands and products in seconds. As such, they expect high value, targeted assortments, competitive offers and uninterrupted availability from a retail brand, whenever and wherever they choose to shop. This was reflected in the aspects of the research that looked at experience, with 66% of British consumers listing ease of use as the best definition of the term “shopping experience”, followed by the ability to shop anytime, anywhere (59%).

In the current economic environment, it was unsurprising that price remains a priority when shopping, however 90% of respondents also stated that good service was important, or very important. Store associates were identified as the primary cause of bad service, followed by poor fulfillment, but British consumers did not react as strongly as other nations to a bad experience, and were less likely to switch to an alternative retailer, or to actively recommend others from using one.

Some of the research findings were:

  • British consumers want what the global marketplace has to offer with 76% stating that the internet offers no barriers to where they can shop
  • 76% list price as the priority when shopping, followed by choice and convenient store locations
  • Although British consumers are relatively open to sharing information with retailers, in comparison to other mature economies, there is an expectation for lower prices and exclusive offers that are 'good for me' in return for engaging in a more collaborative relationship with a retailer
  • While respondents prefer not to shop on their mobile device, interpretations of personalisation relate most strongly to receiving offers and discounts to their mobiles (21%), followed interestingly by a willingness to be identified when shopping online (13%)

To fulfill on British consumer expectations, retailers must optimise their operations to fulfill on the complex supply chain flows to ensure that home delivery and customer pick up is available if the customer requires. The logistics behind the process matter little to the consumer, they just need to be right to support customer priorities.

UK results from The Evolution of Experience Retailing can be downloaded from the research website, where you can also access the global results. Available resources include a whitepaper and byline articles, as well as a research infographic and fact sheets on country and global results.

Wednesday Jan 30, 2013

Record Number of Delegates Participate in the Oracle Retail Exchange

This year’s Oracle Retail Exchange took place in New York from 13-16 January with a record number of delegates attending. 137 senior retail executives, from 66 companies across 25 countries convened at Le Parker Meridien to meet and discuss the issues facing the global retail marketplace, and take in the highlights of the NRF Big Show taking place at the same time.

Oracle runs the Retail Exchange programme each year, facilitating networking between an exclusive group of senior retail business and IT executives. Delegates gain access to high-level business content designed specifically for our audience, including presentations from some of the leading players in the market who share how Oracle is supporting their businesses to succeed.

As part of the programme, delegates also attend a series of exclusive events, dinners and social gatherings, and this year were taken to The American Museum of Natural History for a VIP reception, providing the focal point for the launch of “The Evolution of Experience Retailing” research.

Oracle Retail commissioned this research, interviewing consumers from Brazil, China, Germany, Japan, Russia, the UK and USA, to help retailers identify what consumers really want from their shopping experiences and how they can create strategies and business priorities to meet consumer demand and compete more effectively in the global market. The results of this research are available to download on our Evolution of Experience Retailing microsite, where you can access a range of research resources including a whitepaper and an infographic showcasing the key results.

A further highlight of the Retail Exchange programme are the Store Showcase visits to New York retailers, where delegates are able to see best practice retailing in action. This year, delegates visited Deckers Outdoor’s UGG Australia store on Madison Avenue to hear about the journey Deckers is taking to develop a globally consistent consumer-direct operating model that unifies the customer experience across all touch points, streamlines operations, drives sales and improves profitability. The group learnt how Deckers is using Oracle Retail Point-of-Service, in addition to Oracle Retail Merchandise Operations Management and Oracle Retail Merchandise Planning and Optimization. Take a look at the recent press release detailing this journey.

In addition to events and visits to retailers, the Retail Exchange programme offers a rich and engaging series of presentations from Oracle customers, who share their experiences of how Oracle Retail solutions are supporting their retail businesses. This year, delegates heard from:

  • Simon Russell, Director Retail Operations Development at John Lewis in the UK: Oracle Commerce: Supporting the Omni-Channel Journey at John Lewis
  • Chris Mangham, CIO at M.Video in Russia: Developing a Complete Customer Experience with Oracle Commerce
  • Dimitrios Bairaktaris, General Manager Merchandise and Logistics of IT from Coles in Australia: Optimising Replenishment at Coles to Improve the Customer Experience
  • Jeremy Spencer, Regional Vice President Consultingat Oracle Retail EMEA; Marion Marees, Program Manager Retailbox Core, Senior Business Consultant at Ahold IM Europe; Mario Torres, Head of Delivery at Oracle Retail EMEA Consulting; and Andre Weigandt, CEO and Founder, Weigandt Consulting: The Changing Role of Oracle Retail Consulting in Supporting Customer Deployments in EMEA, with a focus on Ahold
  • Frederieke Ubels, Manager IT Innovation and Feike Groen, Manager IT Architecture at bol.com from the Netherlands: Oracle Commerce – Supporting Growth, Customer Service and Market Share at bol.com

These sessions focused on how each organisation is working with Oracle Retail and Oracle Commerce solutions and the impact that each implementation is having or has had.

If you are interested in attending a future Oracle Retail Exchange event, please join our group on LinkedIn, where you can keep up to date with news and updates from Oracle Retail. This year’s attendees included:

A5, Academy Sports + Outdoors, Åhléns, Ahold, Al Nahdi Medical, AOKI Holdings, Auchan, Azizia Panda, Benetton, bol.com, Boulanger, Breuninger, Carrefour, Celio, Coles, Computer Plaza, Coop Switzerland,  Darty, Dixy, Ecco, Euroset,Farmatodo,  Fashion Continent, Gerry Weber, Gucci, ICA, John Lewis, Konzum, Lego, Leroy Merlin France, Leroy Merlin Vostok, M.Video, Manor AG, Marks & Spencer, Milan Zao (Izhtrading), Myer, NBTY Europe, Nilson Group, Norman Vivat, Pandora Jewellery, Peek & Cloppenburg, Pharmacor, Rewe, Rogers Communications, Scandlines, Siam Makro, SPAR Middle Volga, Sportmaster, Sprint, Teknosa, The Aldo Group, The Body Shop, The TJX Companies Inc., The Warehouse Group, TOP-TOY, Vodafone, Waitrose and WM Morrisons. 

Thursday Jan 24, 2013

The Evolution of Experience Retailing: Japanese Results Unveiled

Japanese findings delivered by The Evolution of Experience Retailing research were unveiled in Japan today by Steve Ouzounian, Group Vice President of Oracle Retail.  Following last week’s announcement of the global research, this regional roll out revealed that consumers in the tough and mature Japanese economy provided some of the most extreme results contrasting significantly with global average responses.

The Oracle Retail research, conducted in August 2012, interviewed men and women between 18 and 60 years in Brazil, China, Germany, Japan, Russia, the UK and USA on their views to fundamental retail principles, including customer service, overall experience, preferences and shopping trends and attitudes to technology in the retail process.

These regional findings emphasise that while the Japanese may not be so keen to interact with the global market place at this stage, there is no doubt that it will infiltrate the local market in the future. Retailers also face challenges in engaging better with this group of consumers and facilitating seamless commerce anywhere fulfilment.

Some of the research findings indicated:

  • 50% of Japanese consumers identify with the concept of there being no barriers to shopping in an online retail world, which was a much lower level than other countries surveyed
  • More Japanese respondents want access to a single shopping basket across channels
  • Japanese consumers are not as unforgiving as other regions, when faced with poor service, and although almost 60% would immediately transfer their custom to another retailer, they were less likely to broadcast a negative experience, particular on social media platforms

These results reveal that price, choice and availability are very important factors in the selection of a retailer, and the consolidation of commerce anywhere merchandising and inventory information combined with the support of efficient transaction systems to move products to fulfil consumer demand, is no longer optional, but rather a necessity.

Download Japan specific results from the research, as well as global results, at The Evolution of Experience Retailing website, where you will find a whitepaper as well as a range of other research resources.

Click here to access a Japanese language infographic, showcasing the results.

Wednesday Jan 16, 2013

Oracle Retail Exchange: Daily Review of Activities on Wednesday 16th January

Today was the final day of Oracle Retail Exchange in New York and ended an event that saw some great discussion and networking between retail executive delegates  from around the world, as well as visits to a number of New York’s finest retailers, and culminated in the launch of Oracle Retail’s The Evolution of Experience Retailing research.

In our last Customer Showcase, attendees heard from Frederieke Ubels, Manager IT Innovation of bol.com, an organisation with over 3.4 million active customers in the Netherlands and Belgium, making bol.com the largest online retailer in the region and a market leader in the field of online sales of books, entertainment, electronic devices and toys. Ubels discussed bol.com’s longstanding use of Oracle Commerce products – Endeca Search and ATG Commerce - and how these have supported bol.com’s growth and strategies to improve customer service and market share.

A digital retailing roundtable concluded activities for the morning, featuring input from Teknosa, bol.com and Computer Plaza, on the challenges and opportunities facing ecommerce and traditional retailers as they seek to gain marketshare in this dynamic and competitive retail sector.

In addition, delegates recounted their perspectives on last nights VIP reception at the American Museum of Natural History, where Mike Webster, Senior Vice President and General Manager of Oracle Retail, launched The Evolution of Experience retailing research, and our guests were enthralled by the exclusive space show at the Hayden Planetarium.

Download the research now and understand how the results will impact your business strategy. A range of research resources are available including a comprehensive whitepaper.

Oracle Retail launches global consumer research: “The Evolution of Experience Retailing”

Oracle has launched its new research entitled “The Evolution of Experience Retailing”, examining the views of consumers on the global marketplace and what this means in terms of meeting their needs, to help retailers to define their strategies and key business imperatives and enable them to compete more effectively.

Oracle recognises that the pace of change in the global marketplace is unprecedented. The view we have is that consumers are now in charge, demanding the provision of commerce anywhere, the benefits of the competitive marketplace and the latest technologies to enhance their shopping experiences. This is the age of the individual that wants every retail interaction to be ‘good for me’, to be defined and dictated by ‘my’ preferences.

Consumers between 18 and 60 years old from Brazil, China, Germany, Japan, Russia, UK and USA were interviewed in August 2012 for the ‘Evolution of Experience Retailing’ survey on their views to fundamental retail principles, including customer service, overall experience, preferences and shopping trends and attitudes to technology in the retail process.

This new piece of research was officially launched last night at a VIP reception at the American Museum of Natural History, by Mike Webster, Senior Vice President and General Manager of Oracle Retail.

Some of the key findings of the research include:

  • Consumers want retailers to co-create interactions that are ‘good for me’ - that meet local and cultural expectations and are appropriate in terms of the level, frequency and intimacy of the interaction between the retailer and the consumer
  • Led by price, product and choice, the Amazon effect is driving growth, acceptance and demand for the global marketplace
  • The importance of service indicates retailers must empower their associates and operations to deliver accurate and connected, information-driven interactions at every touch point
  • There is no ‘one size fits all’ approach to meeting customer expectations of a good experience – these differ culturally, regionally and across touch points
  • Delivering a poor service and experience is damaging to your business – you will lose customers, reputation and diminish your brand value
  • Retailers are missing vital opportunities to personalise communications, as they fail to engage appropriately with customers
  • Retailers should ignore the growing importance of mobile and social at their peril
  • Consumers are demanding that this ‘good for me’ experience be consistent across multiple touch points, driving the need for retailers to deliver commerce anywhere

Download the global results from the “Evolution of Experience Retailing” research now, and access the free whitepaper detailing the insights gained from the research and a range of other resources.

Country specific results will be announced over the following weeks – stay tuned for further updates.

Thursday Jan 10, 2013

“The Evolution of Experience Retailing” set to be launched next week

Next week during our Oracle Retail Exchange event in New York, Mike Webster Senior Vice President and General Manager, will unveil new global research from Oracle Retail, during a VIP reception at the American Museum of Natural History on Tuesday 15th January.

Oracle recognises that the pace of change in the global marketplace is unprecedented. The view we have is that consumers are now in charge, demanding the provision of commerce anywhere, the benefits of the competitive marketplace and the latest technologies to enhance their shopping experiences. This is the age of the individual that wants every retail interaction to be ‘good for me’, to be defined and dictated by ‘my’ preferences.

To substantiate these views, Oracle undertook a global survey in August 2012 looking at the views of consumers in Brazil, China, Germany, Japan, Russia, the UK and USA about the global marketplace and what this means in terms of meeting their needs. The findings of the research entitled ‘The Evolution of Experience Retailing’ will help retailers to define their strategies and key business imperatives and enable them to compete more effectively in an increasingly powerful consumer-led world.

This new research explored the views and expectations of consumers on:

  • Attitudes and preferences around shopping globally and locally
  • Which retail attributes matter to consumers
  • Getting the most from interactions with retailers
  • Understanding what service, experience and personalisation mean to consumers
  • The importance of service, experience and personalisation in the shopping process
  • Consumer reactions to poor retail experiences and service
  • Use of mobile and social media in the shopping process
  • The factors that drive consumers to make decisions around shopping with particular retailers
  • Acceptance and interaction with the global marketplace
  • The imbalance in the retail market and how traditional retailers are competing effectively or otherwise in the global landscape

Further details regarding the Evolution of Experience Retailing research will be announced on this blog over the coming week. Visit again, or subscribe to our blog RSS feed to receive future posts.

You can also join Oracle Retail online communities to hear what your peers have to say about the research and for details of how to download it following the launch.

Tuesday Jan 08, 2013

It’s Oracle Retail Exchange 2013 next week!

Oracle Retail is once again running the Retail Exchange programme next week alongside the NRF Big Show in New York. This invite only event brings together a select group of retailers, providing access to a unique set of events specifically designed for an international audience, ensuring attendees get the very most from the BIG Show programme as well.

Oracle Retail Exchange gives retailers the chance to network, learn and share ideas with an exclusive group of senior business and IT executives, alongside the Oracle Retail executive team. Attendees will hear from leading retailers on how Oracle solutions support their businesses.

This year the following retailers will be presenting:

  • Simon Russell, Director Retail Operations Development, John Lewis: Oracle Commerce: Supporting the Omni-Channel Journey at John Lewis
  • Chris Mangham, CIO, M.Video: Developing a Complete Customer Experience with Oracle Commerce
  • Dimitrios Bairaktaris, General Manager Merchandise and Logistics, Coles IT: Optimising Replenishment at Coles to Improve the Customer Experience
  • Jeremy Spencer, Regional Vice President Consulting, Oracle Retail EMEA; Marion Marees, Program Manager Retailbox Core, Senior Business Consultant, Ahold IM Europe; Mario Torres, Head of Delivery, Oracle Retail EMEA Consulting; Andre Weigandt, CEO and Founder, Weigandt Consulting: The Changing Role of Oracle Retail Consulting in Supporting Customer Deployments in EMEA, with a focus on Ahold
  • Frederieke Ubels, Manager IT Innovation, bol.com: Oracle Commerce – Supporting Growth, Customer Service and Market Share at bol.com

In addition, delegates attend exclusive events, networking dinners and store showcases at some of New York's most celebrated venues.

One of the event highlights is the VIP reception at the American Museum of Natural History, where Mike Webster, Senior Vice President and General Manager of Oracle Retail, will unveil new global research entitled ‘The Evolution of Experience Retailing’  from Oracle Retail. Further details will be announced in due course.

If you are interested in learning more, please join our Retail Exchange LinkedIn Group, where we will post event updates and details of “The Evolution of Experience Retailing” research following its launch on 15 January.

Watch our video “What's in store for Oracle Retail Exchange 2013, New York”.

Tuesday Nov 29, 2011

Is there a low carbon future for the retail industry?

Recently Oracle published a report in conjunction with The Future Laboratory and a global panel of experts to highlight the issue of energy use in modern industry and the serious need to reduce carbon emissions radically by 2050.  Emissions must be cut by 80-95% below the levels in 1990 – but what can the retail industry do to keep up with this?

There are three key aspects to the retail industry where carbon emissions can be cut:  manufacturing, transport and IT. 

Manufacturing

Naturally, manufacturing is going to be a big area where businesses across all industries will be forced to make considerable savings in carbon emissions as well as other forms of pollution.  Many retailers of all sizes will use third party factories and will have little control over specific environmental impacts from the factory, but retailers can reduce environmental impact at the factories by managing orders more efficiently – better planning for stock requirements means economies of scale both in terms of finance and the environment. The John Lewis Partnership has made detailed commitments to reducing manufacturing and packaging waste on both its own-brand products and products it sources from third party suppliers. It aims to divert 95 percent of its operational waste from landfill by 2013, which is a huge logistics challenge.  The John Lewis Partnership’s website provides a large amount of information on its responsibilities towards the environment.

Transport

Similarly to manufacturing, tightening up on logistical planning for stock distribution will make savings on carbon emissions from haulage.  More accurate supply and demand analysis will mean less stock re-allocation after initial distribution, and better warehouse management will mean more efficient stock distribution.  UK grocery retailer Morrisons has introduced double-decked trailers to its haulage fleet and adjusted distribution logistics accordingly to reduce the number of kilometers travelled by the fleet.  Morrisons measures route planning efficiency in terms of cases moved per kilometre and has, over the last two years, increased the number of cases per kilometre by 12.7%.  See Morrisons Corporate Responsibility report for more information.

IT

IT infrastructure is often initially overlooked by businesses when considering environmental efficiency.  Datacentres and web servers often need to run 24/7 to handle both consumer orders and internal logistics, and this both requires a lot of energy and puts out a lot of heat.  Many businesses are lowering environmental impact by reducing IT system fragmentation in their offices, while an increasing number of businesses are outsourcing their datacenters to cloud-based services.  Using centralised datacenters reduces the power usage at smaller offices, while using cloud based services means the datacenters can be based in a more environmentally friendly location.  For example, Facebook is opening a massive datacentre in Sweden – close to the Arctic Circle – to reduce the need for artificial cooling methods.  In addition, moving to a cloud-based solution makes IT services more easily scaleable, reducing redundant IT systems that would still use energy. 

In store, the UK’s Carbon Trust reports that on average, lighting accounts for 25% of a retailer’s electricity costs, and for grocery retailers, up to 50% of their electricity bill comes from refrigeration units. 

On a smaller scale, retailers can invest in greener technologies in store and in their offices.  The report concludes that widely shared objectives of energy security, reduced emissions and continued economic growth are dependent on the development of a smart grid capable of delivering energy efficiency and demand response, as well as integrating renewable and variable sources of energy.

The report is available to download from http://emeapressoffice.oracle.com/imagelibrary/detail.aspx?MediaDetailsID=1766

I’d be interested to hear your thoughts on the report.   

About

Everything Retail.


Principal contributors:

Sarah Taylor, Senior Industry Director, Oracle Retail.


Marie-Christin Hansen, Senior Industry Campaigns Manager, Oracle Retail.


Follow Oracle Retail:

LinkedIn

Twitter

YouTube

Facebook

Xing

Oracle Retail Microsite

Search

Archives
« April 2015
MonTueWedThuFriSatSun
  
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
   
       
Today