New retail models needed
Netto’s recent return to the UK through a joint-venture with Sainsbury’s was made possible at significantly reduced costs because of a re-platforming the discounter’s owner had made to prepare it for future digital developments. By Glynn Davis in Madrid.
Speaking at The Everywhere Store conference, hosted by Tlantic in Spain, Alan Jensen, CIO of Dansk Supermarked, highlighted how the company’s move to a new SAP platform had already been reaping rewards across the group, as it goes more multi-channel, including the Netto j-v.
The Netto stores it is opening in England operate on this new IT platform and has involved an investment of €1 million whereas if an older style system had been deployed then it could have cost it ten times this amount. Because of this, the decision was made to use Dansk’s technology infrastructure rather than Sainsbury’s.
Jensen regards such major overhauls of IT as necessary because of the radical changes that are taking place in the industry: “The last three to four years have seen faster change in retail and shopping behaviour than in the previous 25. The speed digital is coming is fantastic. We’re in a good position but like other retailers we’re looking at how to make our infrastructure support the digital storm that is coming. There will be huge threats to IT and businesses if they do not agree to change.”
One of the critical parts of the new platform for Dansk Supermarked is that it enables it to capture data from its stores and online and combine it in one place where it can handle it, analyse it and prepare it to be used across the business.This includes visibility of inventory across the company.
Paulo Magalhaes, CEO at Tlantic, says there is a need for all retailers to build new retail models such as this one that involves stock synchronisation because many companies are currently struggling with their stock accuracy levels across channels and knowing what exactly is in their distribution centres, what is in-store on the shelves, and what is in-transit. “And all this information is required in real-time,” he says.
