Top Retailers ’ View on Emerging Customer Technology Trends

Boston Retail Partners 14

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Annual POS Benchmarking Survey

Ken Morris Principal Boston Retail Partners

Mr. Morris has worked in retail for 40 years and most recently was CEO & President of LakeWest Group. He is the former founder and owner of KMG Solutions, a software company that developed and marketed business process management solutions to the retail industry. Prior to founding KMG solutions, Mr. Morris was the founder and CEO of CFT Consulting, which was dedicated to serving retailers and their supply-chain partners for their technology needs.

Mr. Morris also founded, nurtured and sold a software development firm that markets enterprise software to the retail community. The software, called XBR, is deployed in over 250 retailers worldwide. His experience includes strategy, selection, development and deployment of e-commerce, catalog, and traditional retail solutions for merchandising, in-store, finance, distribution, and logistics functions. He was IS Vice President at Lord and Taylor (a Division of the May Company) in New York and Filene's (a Division of Federated Department Stores) in Boston. He has also held various positions at Talbot’s, Stop & Shop Supermarkets, Grossman's (Home Improvement), Sears, and was Director of the New England Retail Technology Practice for Deloitte & Touche.

Josh Jewett CIO Family Dollar

Mr. Jewett has strategic and operational responsibility for all aspects of Information Technology for this $9.6 Billion national discount retailer. He leads a team that designs, develops, deploys, and supports all hardware, software, networking, and telecommunications for all of Family Dollar’s stores, regional offices, distribution centers, corporate campus, several hundred mobile employees, and internet presence. Mr. Jewett is also responsible for assuring the Information Technology department and its investments in technology align with, support, and deliver the company’s vision to be the best small-format convenience and value retailer serving the needs of families in our neighborhoods.

While in this capacity, Mr. Jewett has expanded the capacity of the IT function through multinational, strategic partnerships designed to augment both resources and skills, provide cost and process efficiencies through a global delivery model, and deliver several significant technological achievements for the company. He and his team have overseen the design, development, and implementation of a new store systems architecture for all 7,600 plus retail locations in 45 states, several new financial and global supply chain management components, an enterprise data warehouse, and the variety of other solutions required to enable the chain to augment its store count and revenue considerably.

Prior to his employment by Family Dollar Stores, Inc., Mr. Jewett served as Senior Director for Answerthink, Inc., an international management consulting firm. Mr. Jewett earned a Bachelor of Arts from Dartmouth College.

Ed Clary CIO Haverty Furniture

Ed heads up both the Technical and Distribution operations and strategy for Havertys, a 127 year old home furnishing retailer. Ed is responsible for Information Technology, Distribution, Home Delivery and Customer Service and is a member of Havertys Management Committee. Havertys operates 122 stores in 22 primarily southeastern states. Havertys IT provides applications that span POS, warehousing, distribution, logistics, supply chain, eCommerce and customer service. Havertys is traded on the NYSE under the symbol HVT.

Most recently, Havertys has installed new point of purchase solutions that is browser based and is complimented with a salesperson iPad application. Ed is a member of the IBM Power Systems Board of Advisors, ATT Global Retail Advisory Council and a member of the Cisco Global Retail Advisory Board. He was a finalist for the 2011 Georgia CIO of the year award. Previously, Ed served an eight-year tenure with the Macy’s South division of R.H. Macy and Company in positions in finance and information technology. Ed received a Bachelor of Science in business administration with a dual concentration in finance and information systems from Appalachian State University. He received a Master of Business Information Systems from Georgia State University.

Steve Smith CIO TBC Corporation

Steve Smith is Senior Vice President and CIO for TBC Corporation. Steve oversees all aspects of technology for TBC Corporation to include Application Development, Infrastructure Services, Information Security, eCommerce and Business Intelligence. TBC is a $3.4 B retailer of tires and automotive services under the Midas, NTB, and Big O brands as well as a wholesaler of tires under the Treadways, Carroll and TBC brands.

Prior to joining TBC Corporation, Steve served in numerous leadership roles at EDS, Sabre and Travelport. Steve’s most recent roles were CIO at AutoTrader.com, Idearc Media and Travelport. In these roles Steve collaborated and led the technology efforts around some of the web’s most known brands to include AutoTrader.com, Orbitz.com, and many others.

Steve has worked across the globe, living and working in Germany, the United Kingdom, and Switzerland with assignments that have taken him to over 36 countries. Steve started his career with the US Army rising to the rank of Captain. Steve served in various capacities eventually closing his active duty career as a paratrooper with the 18th Airborne Corps. Steve is a graduate of Syracuse University and conducted work on a Master’s in Public Administration from the State University of NY at Binghamton and a Masters in International Business Management from Georgetown University.

14

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Annual POS Benchmarking Survey

• • Surveyed more than 500 North American retailers in October – December 2012 Specialty retailers account for more than half of respondents

Before 1980s

Distributed POS model • Basic cash register and cash drawer

The Evolution of Retail

The Future

Omni channel retail puts it in the customer’s hands

The Customer is the Center of the Universe

Social Media

Customers now have the freedom to achieve their goals throughout the shopping process…

Signage Adver sing Website Email Apps Kiosk Checkout Employees Catalog Direct Mail SMS Mobile Website

…using whichever channels and touch points they prefer.

Overall POS Plans

Customer-Facing Mobile Services

Mobile Strategy Drivers

Overall POS Plans

Current POS Hardware

2014 POS Hardware

POS Platform Expansion

Overall POS Plans

1 st Wave

Retail Market Dynamics

2nd Wave Result

POS Software Implementations

10. What vendor so ware does your company currently use for tradi onal point-of-sale?

Epicor (CRS, NSB) SAP (Triversity) MICROS Retail (Datavantage, Torex) Toshiba (IBM) Retalix (Cornell-Mayo) Fujitsu Other Jesta I.S.

Proprietary/Homegrown JDA (Red Prairie) PCMS Microso 3.3% 2.8% 2.4% 2.0% 5.3% 4.5% 7.5% 10.0% 12.5% 15.0% 18.0% 18.0%

Overall POS Plans

Store Network Services

19. Please indicate what services your company currently uses your store network for:

VoIP POTS Wireless back-up Call center Fax machine Wi-Fi customer use PBX in the cloud Traffic heatmaps 3.7% 7.4% 19.0% 37.0% 33.3% 48.1% 48.1% 44.4%

POS Centralization

Overall POS Plans

Operating Systems

16. What opera ng system does your organiza on currently use on your POS hardware?

Windows Embedded POSReady 7 13% 19% POSReady 2009 8% IBM 4690 9% Windows XP 33% Other 6% Android 2% Linux 4% MS-DOS 2% Apple iOS 4%

Hardware Vendors

11. What vendor hardware does your company currently use for its tradi onal point-of-sale?

Toshiba/IBM Dell Other HP 14% 14% 17% NCR Fujitsu Wincor Nixdorf Epson DigiPOS 3% 3% 6% 11% 11% 39%

For more information: Ken Morris’ email address: [email protected]

Boston Retail Partners’ 14 th Annual POS Benchmarking Survey is now available at www.bostonretailpartners.com

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