NRF Report: Major investments in technology at Tesco as it recognises omni-channel impact
Technology is driving great structural change within the retail sector and is determining the strategic imperatives for Tesco, which is investing significant amounts in creating the relevant infrastructure.By Glynn Davis in New York
Speaking at the Wincor Nixdorf breakfast briefing that coincides with the National Retail Federation (NRF) Retail’s Big Show Rob Hattrell, IT director at Tesco, says: “We fundamentally believe we are at an important juncture that will see the structure of retail change and this will be driven by technology.”
He supports the argument that omni-channel is the future and highlights the continued essential role of the store albeit in the context of customers being more connected online, having an infinite level of information, and the traditional shopping trip being truly disrupted.
He suggests major investments will be made in omni-channel and cites mobile as “absolutely essential, a game-changer, which makes customers behave differently. “As part of this, customers expect we’ll talk one-to-one with them. Trials in the UK have shown that targeted campaigns have worked well,” Hattrell adds.
Tesco is also having to contend with general merchandise sales shifting online faster than food, which he says will potentially free up staff to deal with customers in-store. Another trend is the standardisation of operations, which has led the company to work with Wincor Nixdorf to handle its store estate in seven European countries.
“We effectively wanted them to look after our stores where we’re putting in more technology. They are delivering constant improvement, with total transparency and we’ll take the model to Asia and drive all the Wincor efficiencies that we’ve gained [so far] into Asia,” explains Hattrell.
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