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Deadline for entries: 27 July 2012
Now in their seventh year, the awards recognise excellence
and innovation in the fi eld of information technology
within the retail sector. The awards are FREE to enter
and there are twenty categories to choose from.
Don’t miss your chance to prove to customers,
competitors and the whole industry how great
you are – enter the awards today!
The categories:
1. EPoS innovation of the year
2. Supply chain solution of the year
3. Best use of in-store marketing technology
in retail
4. Best use of technology in the hospitality
and leisure sector
5. Retail website of the year
6. IT project of the year
7. IT team of the year
8. Retail security initiative of the year
9. Back offi ce solution of the year
10. Retailer of the year
For judging and entry enquiries:
Karen Moss
+44(0)20 7562 2415
karen.moss@retail-systems.com
awards
11. SME retailer of the year
12. Card and payments solution of the year
13. Multi-channel retailer of the year
14. Technology vendor of the year
15. Online technology vendor of the year
16. Mobile retailer of the year
17. Social networking initiative of the year
18. Outstanding individual achievement
19. International retailer of the year
20. Overall winner
Enter now!
For sponsorship enquiries:
Lisa Gayle
+44 (0)20 7562 2428
lisa.gayle@retail-systems.com
www.retail-systems.com/awards
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Hayley Kempen
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hayley.kempen@retail-systems.com

FIRST CHOICE FOR TECHNOLOGY PURCHASERS IN MULTI-CHANNEL RETAIL
A perfect storm?
We all know its popularity is growing, but what’s pushing retailers
towards cloud technology? Retail Systems investigates
Hot Shops 100 results • Roundtables • IDC E-commerce Conference review
• European news • Appointments
June - July 2012
www.retail-systems.com

Find out more:
www.ingenico.com
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Our full range iWL series gives the flexibility to take payment anywhere in your store or on the
move. The series comes in non-colour, colour, a compact version.
Our new touchscreen series takes retailers well beyond conventional payment scenarios and into
new areas of customer acquisition and loyalty.
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RS
Editor
Karen Moss
karen.moss@retail-systems.com
Contributing writErs
David Adams, Graham Buck, Glynn
Davis, Wayne Tuckfield, Ellie Robinson
and Liz Morrell
dEsign & produCtion
Jason Tucker
AdvErtising
Lisa Gayle
lisa.gayle@retail-systems.com
subsCriptions
Joel Whitefoot
joel.whitefoot@retail-systems.com
General enquiries - 0208 950 9117
perspective@alliance-media.co.uk
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period Jan to Dec 2011
All rights reserved. The publishers do not necessarily
agree with the views expressed in this journal.
ISSN 1369-5037
Printed by Warners (Midlands) plc
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contents
Cover Story
22 A perfect storm?
The huge appeal of cloud computing is undeniable, but what’s drawing retailers towards this kind of technology?
Is it the agility cloud promises or the cost and time savings it delivers? Karen Moss finds out
Features
Supplement
Also in
this issue
40 In-store evolutIon
With the boom in digital signage, kiosks and mobile devices for staff, the way retailers
engage with their customers in-store has changed dramatically. Ellie Robinson writes
42 under threat?
Like it or not, all retailers will be using cloud computing in the future. But will they opt for
the traditional IT outsourcing companies, or the new kids on the block, such as Amazon
and Google? Glynn Davis investigates
44 MIndIng the gap
Sudden spikes in demand for can still catch out even big names. Graham Buck examines
the importance of merchandise planning in preventing empty spaces on shelves
26 reversIng trends
More than half of all fraud cases involve card not present (CNP) transactions, but recent
figures reveal that improvements are reversing an upward trend. Wayne Tuckfield
reports
28 shrInkIng feelIng
With the UK economy looking very much the worse for wear, shrinkage (crime, waste
and error) continues to threaten retailers’ ever tightening margins, says Dave Adams
30 underlyIng rIsk
Many retailers find the requirements for PCI compliance confusing. But even more
worryingly there are some who adopt a ‘tick box’ approach rather than addressing real
security issues, writes Liz Morrell
08 General news
09 Diary
10 IMRG Hot Shops survey
15 EPoS news
16 Contract news
17 European news
21 Thoughts from the frontline
32 PCI DSS roundtable
50 Appointments
59 Retail worlds
June - July 2012 RS 03

RS
04 RS June - July 2012
comment editor’s letter
As discounts deepen
and the quarterly
rent bill looms, can
the upcoming
Olympic Games
provide retailers
with a much needed
sales uplift? Let’s
hope so!
Karen Moss is Editor of Retail Systems. Her
blog on all things retail tech-related can be
found at: www.retail-systems.com/blog.
She can be contacted at: karen.moss@
retail-systems.com
Olympic boost
Will the Olympic Games give the retail industry a much talked
about – and needed – boost this summer?
With the news that retailers are having
to start their summer sales early
to draw in customers, the Olympics
may seem like a much needed opportunity to
make a healthy bit of revenue during this rather
damp summer.
Some 73 per cent of stores advertised
special offers in June, up from 40 per cent
three years ago, while discounts were deeper
than a year ago. And all this while retailers
are awaiting a dreaded quarterly rent bill. The
average price discounts being advertised were
47 per cent, up slightly from 45 per cent in
2011 and 2010, according to the survey of
100 retailers on UK High Streets by PwC.
The sector certainly gained a boost from
the Queen’s Diamond Jubilee and perhaps the
London Games can do the same for retail in
July. However PwC warned that consumers will
continue to be cautious as the eurozone crisis
dents confidence.
Their chief retail adviser, Christine Cross, said:
“UK consumers are good at celebrating jubilees,
football prowess or potential Olympic glory, but
they are proving less willing to part with their
cash except when the sun comes out or goods
go on sale. Clothing purchases are weather-related
and canny consumers also know mid-June
means worried retailers who need to clear stock
to leave room for new lines.”
I think the Olympic Games can only be a good
thing for retail in the UK – with millions of extra
people out and about on the streets of London,
some of that cash is bound to be spent on our
High Streets.
Last week I spoke with Jackie Ballinger,
Griffin’s PR Manager. The world’s leading Apple
accessory maker opened their very first bricks
and mortar retail store on 19 June. And despite
the fact that the company is American and
based in Nashville, Tennessee – where did they
decide to open up shop for the very first time?
At the new Westfield Stratford centre, directly
opposite the Olympic Park.
Jackie told me that the London 2012 Games
played a big part in their decision and she felt
Griffin had picked ‘the perfect place’ for their
first ever store. It just goes to show that there
is a good deal of confidence out there in the
rumoured Olympic boost.
One of the less glamorous impacts that the
Olympic Games may have on the retail sector
is on delivery and stock management. Retail
Systems plans to explore this further in the
August/September issue, which will include a
supply chain supplement.
And it’s not just store deliveries from
distribution centres that will be affected
(many will have to happen at night due to
road closures), it’s also home deliveries to
consumers. Even if you don’t live in London
there’s a strong possibility consumers could
be facing delays on shipments.
Norbert Dentressangle has launched a ‘hot
spot’ planning tool that they believe will helpscustomers
avoid potential issues.
The online tool identifies if a customer’s delivery
location might be affected by an event, if
it is on the Olympic Route Network (ORN), which
comes into force two days before the Games
start, or if any restrictions apply. It then provides
a proposed alternative date that is clear.
Of course we shouldn’t forget that other
parts of the UK will play host to the Games, not
just London. Weymouth in Dorset will host the
sailing events and is expected to attract over
50,000 visitors a day.
As well as the excitement of the Olympic
Games this summer, Retail Systems is hosting an
equally competitive event! Yes, it’s that time of
year again - the Retail Systems Awards are upon
us. Last year we had a record number of entries
and around 500 retailers and technology
vendors turned out for the fabulous gala
dinner at the Lancaster Hotel in London. This
year I hope we can outdo ourselves once again.
The deadline for entries is 27 July.
And, as if that weren’t enough, we also have
the annual Multi-channel Summit coming up
on 20 September. Now in it’s fifth year, the
conference has a host of exciting speakers
from across the retail industry taking part.
Check out www.retail-systems.com for more
information on our events.

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RS
06 RS June - July 2012
comment
Until recently corporate
social responsibility didn’t
really land on my desk
in the IT department.
Pennies, the electronic
charity box, changed all
that, and our vision of
CSR at Domino’s
Paul Francis is head of commercial systems
at Domino’s Pizza. From a software
development background, he has led
teams to overhaul the digital sales channels
of some of the UK’s leading on-line
retailers including easyJet and Figleaves
Look after the pennies...
Paul Francis, head of commercial systems at Domino’s Pizza,
talks corporate and social responsibility
I
am responsible for extending and maintaining
all web and mobile e-commerce channels.
My role is very commercially-focused and I
work closely with the marketing and operations
teams to ensure the business gets what it
needs to be a leading pizza delivery brand.
Sometimes, this remit entails looking beyond
the obvious, towards other areas of our
corporate strategy which I may be able to
help shape and influence. Such is the case with
corporate and social responsibility (CSR).
CSR has always been important at Domino’s
and has, generally speaking, had two key areas
of focus. The first is providing corporate
funding for our chosen charities. The second
area, one that is probably more familiar to the
public, is through franchisee contributions to
the communities that they work in. Therefore,
until recently CSR didn’t really land on my desk
in the IT department, unless it was in the form
of a cupcake I had purchased at a head office
bake sale! Pennies, the electronic charity box
changed that, and our vision of CSR. It is a
micro-donation scheme that was added to the
Domino’s Pizza website in November 2010.
With around 50 per cent of Domino’s
delivered orders now coming via the internet,
it was the perfect place to add Pennies. It was
such a safe way of giving our customers an
option to donate their change to charity if
they wanted to. It’s always only pennies and
customers have time to decide whether or not
they want to give. As with anything new, there
were initial fears that it would be complicated,
though this was to prove unfounded. It was
actually one of the quickest and most straightforward
implementations of 2010. And even
though it does land in IT as a technology based
innovation, once it is up and running, there is
very little work for us to do except watch those
pennies add up. It’s stable, simple to operate
and, given the number of people who choose
to round-up, popular with our customers too.
There have now been well over one million
individual donations, so far raising £250,000.
Domino’s was the first retailer to sign up to
the scheme – always a nerve-wracking
experience – but we are very pleased that
we did. It was a fantastic feeling to be the first
people to enable our customers to utilise this
modern way of donating loose change. Since
then a number of others have followed suit
and the total of retailers using the system
continues to grow. As the first adopter, we
have had time to see those pennies put to
good use in the charities we nominated to
benefit from the majority of funds.
Donations from Domino’s customers benefit
a range of charities including Special Olympics
Great Britain, which receives 75 per cent of the
money raised in Great Britain, and the Northern
Ireland Children’s Hospice, which receives 75 per
cent of the money raised in Northern Ireland.
The remaining 25 per cent is shared amongst
other UK charities, including Shelter, Together
for Short Lives and the NSPCC.
Special Olympics GB is the largest beneficiary
of our customers’ donations through Pennies,
with the donations helping to transform the
lives of children and adults with learning
disabilities through the power of sport. To date,
Special Olympics GB has received £185,000.
Over the next two years the charity will be
reaching out to more than 3,500 new young
athletes, 1,000 of these severely learning
disabled, with innovative projects such as the
Motor Activity Training Programme and a
London 2012 Legacy Project, Project Unify,
designed to activate children and young people
to be agents of change through Special
Olympics GB sports and education programmes.
We expected to see some charity fatigue,
but this just hasn’t happened and donations
have in fact increased since we launched. The
information we collate has made for some
interesting local news stories too – especially
in Formby, where our most generous customers
live! Everyone at Domino’s is glad we took
that first step into the unknown back in 2010.
Everything in life moves on – yet charity tins
hadn’t evolved. Pennies is changing that – and
successfully too.

Click & Collect elsewhere
John Lewis may extend its Click & Collect offering so
customers can pick up their orders from other retailers
The department store chain’s managing
director, Andy Street, said he has
begun discussions with several partners
about the potential venture. “We are forging
partnerships with others,” he said.
The retailer already offers the service
through its grocery chain Waitrose, allowing
customers to order items from John Lewis
but pick it up in a Waitrose store.John Lewis is
not the first to try out the idea, ASOS offers
customers the opportunity to collect their
clothes from local convenience stores through
the Collect+ service.
Street added that retailers with an online
presence will only need 60 to 70 stores to cover
the whole of the UK. “The days of needing 200
stores to cover the UK are history,” he said at
the British Reatil Consortium.
Rob Wilson, market unit leader at
Tradedoubler, adds: “John Lewis’ announcement
that it is looking to extend its click and collect
offering to other retailers highlights the way in
which the online and ‘offline’ worlds are blurring
when it comes to shopping.
“We read so much about the death of the
High Street as a result of internet-shopping,
yet moves such as this confirm our belief
that e-commerce, m-commerce and in-store
shopping complement and enhance each other
for the benefit of the customer and the retailer.
“Our research shows that customers want
their shopping experience to be seamless and
tailored to their needs. Collaboration between
retailers is a natural and complementary step.”
IN BRIEF
Mobile success
Forty per cent of visits to a site launched
by Claire’s Accessories in support of T4
On the Beach were from mobile devices.
Digital agency, Fast Fwd Multimedia
helped the jewellery store launch its
mobile site and in-store QR codes.
ukash deal
Ukash has announced a new partnership
with ekmPowershop.com, the UK’s
largest e-commerce and email marketing
platform. New and existing ekmPowershop
retailers (the O2, Lotus Cars, PGA
Golf and Michelin Tyres) will now have the
option to accept cash online with Ukash.
iT overhaul
Dairy Crest, the UK dairy foods business,
has chosen Avaya Virtual Services Platform
7000 to overhaul the company’s IT
environment and deliver robust disaster
recovery capabilities.
June - July 2012 RS 07

RS
Genius idea
08 RS June - July 2012
news general
IN BRIEF
Widget UK Ltd, a specialist distributor of
consumer electronics products to retailers
and resellers, has created and launched its
own iPhone app supported by the Maginus
multi-channel solution. It enables customers
and suppliers to have a real-time view of
product availability, details and pricing from
any location via their iPhone.
in-store app
PayPal has revealed the technology partners
behind its in-store app – Eagle Eye Solutions
and BT Expedite – and how they are helping
Aurora Fashions bring together the online
and bricks and mortar retail experience
using mobile. By partnering with PayPal,
Eagle Eye Solutions and BT Expedite, Aurora
Fashions can now offer PayPal’s 15 million
customers the ability to make in-store
purchases using their PayPal account.
Gs1 members
GS1 UK, the not-for-profit supply chain
standards and solutions organisation,
membership has increased to over
25,000, fuelled by the growing UK internet
economy. GS1 UK members include
retailers of all sizes, from small start-ups
to the likes of Sainsbury’s and Tesco.
social complaints
Over a quarter (26 per cent) of Britons
are complaining more now they can
use social media to communicate with
companies – but organisations simply
aren’t listening. Seventeen per cent of
their complaints are left unanswered and
an enormous 83 per cent of those who
have complained are unhappy with the
response they received.
ask an owner
Reevoo, the social commerce solutions
provider, and Kia Motors (UK) Ltd have
expanded their partnership. The car company
selected Reevoo earlier this year
to provide verified, authentic customer
reviews and an ‘Ask An Owner’ platform
on the Kia.co.uk website. This has
resulted in increased engagement with
car buyers who are researching online.
Unifying channels
Consumers may move through many different channels,
but mobile touches them all, writes Glynn Davis
There is no escaping mobile technology,
and the impact it will have on the
retail sector, as there is an increasing
belief that it will be the vital connective tissue
between multiple channels.
Speaking at the recent IDC E-commerce
Conference 2012 Christine Bardwell, research
manager at IDC Retail Insights, suggested: “The
biggest reason mobile is important is that
customers move through various touch-points
[with retailers] but the common theme is that
mobile touches them all. It’s the channel unifier.”
David Hogg, commerce solutions executive
at IBM, agrees and points to the growth already
seen in mobile commerce – with the likes of
Debenhams generating 10 per cent of its sales
over the channel. “Retailers need an investment
plan to deal with this,” he suggests.
Such is the growing influence of mobile
devices around the world that Matt Jeffers,
international development manager for Tesco.
com, told delegates that some Asian countries
are “leapfrogging [e-commerce] and going
straight to m-commerce”
He views this as a warning to UK merchants
to not think that because they have been
leaders in non-store retailing that they are
therefore ahead of other parts of the world.
For instance, in South Korea he says Tesco has
been installing virtual stores on subways that
enable pictures of products to be scanned
via mobile phones and added to consumers’
shopping baskets for home delivery.
To handle these various channels Jeffers
regards the ideal scenario for retailers as having
a single core platform that “sits underneath
everything and the channels sit on top”. He
adds: “It’s not easy but ultimately this is the
way to compete with pure online retailers.”
The potentially seamless customer
experience that should derive from such an
infrastructure will help create what Ivano
Ortis, head of international at IDC Retail
Insights, describes as omni-channel baskets
and payments for those customers that shop
across multiple touch-points with retailers.
He says such omni-channel shoppers can
help retailers drive greater sales and efficiencies
because these customers typically deliver:
15-35 per cent increases in average transaction
values; 30-45 per cent increases in online
conversion rates; and help merchants enjoy
20-60 per cent reductions in inventory losses
as a percentage of sales.
The IDC Retail Insights E-commerce
Conference took place took place in
London and brought together e-commerce
professionals from UK retailers such as; Tesco.
com, Carphone Warehouse, Mothercare, Schuh,
Debenhams, M&S, Ocado, and John Lewis PLC.
“It was a fantastic event, great to have
professionals from retail and technology
sectors in the same room,” said Matt Jeffers,
international development manager of Tesco.
com. “I particularly liked the combination
of networking opportunity where you can
ask questions and formal sessions where
you can learn about new trends in the
ecommerce market.”
Online stories
most clicked on stories at www.retailsystems.com
during June
eCommera launches mobile app service
Retail Systems to hold discussion panel evening
E-com giant, Rakuten, extends global reach
Jubilee holiday helped boost e-tail sales
Contactless a mystery to consumers
Man City employ Postcode Anywhere software
Salon launches Facebook loyalty card
Aurora Fashions to enter the Dutch market

FOCUS
Retail systems multi-channel
systems
20 September
London
www.retaiL-SyStemS.com/
muLtichanneL
times are tough, there’s no denying it.
Last year’s poor high Street trading
conditions saw the demise of several well
known names in the retail industry. So what
can retailers do to ensure they are engaging
customers, and more importantly – getting
them to spend money?
many brands believe the answer lies
in having a fully developed multi-channel
strategy, a completely seamless customer
experience.
technology has become more important
than ever to retailers, with the rise of
mobile devices like smartphones and tablets,
the consumer now has the power to shop
anywhere and everywhere, and they have a
world of information at their fingertips.
and it is not enough anymore to simply
reach your customers across all channels,
they expect a personalised service whether
at home, in-store or on the go.
this year the 5th annual retail Systems’
multi-channel Summit will be held at the
tower bridge hilton, London, 20 September
2012. the conference will cover a vast
range of subjects, including:
• the technology trends retailers can’t
afford to ignore
• how retailers can effectively join up
their channels
• the rise and rise of mobile
• the rise of mobile tV and tV
commerce
• the importance of social media
• personalisation, getting it right
• Going international, but staying local
• how logistics impacts multi-channel
strategies
JuLY
1 Independent Retailer Month
Conference
Location: cranmore park, Solihull
tel: 01727 238890
2-3Charity
Retail Conference
Location: Staffordshire
contact: charity retail association
tel: 020 7255 4470
august
9-10 Edinburgh Interactive 12
Location: edinburgh
contact: alexa turness
tel: 0207 534 0580
13 Internet Retail Conference
Location: boston, uSa
contact: etail boston
tel: +1 (888) 482 6012
September
9 The Retail Conference 2012
Location: London
contact: the retail conference
tel: 0844 4145153
19-21 World Retail Congress
Location: London
contact: i2i events
tel: 020 7554 5800
diary
16-19 Online Retailer Conference
& E-commerce Expo
Location: Sydney, australia
contact: +61 (0) 2 9281 2788
27 Retail Systems Awards entry
deadline
contact: hayley Kempen
tel: 020 7562 2401
19 Pure London
Location: olympia, London
contact: hannah Ford
tel: 020 7728 3511
18 Retail Summer School
Location: oxford
contact: the retail trust
tel: 0808 801 0808
20 Retail Systems Multi-channel
Summit
Location: London
contact: hayley Kempen
tel: 020 7562 2401
27 Retail Systems EPoS roundtable
Location: London
contact: Lisa Gayle
tel: 020 7562 2428
RS
June - July 2012 RS 09

RS
10 RS June - July 2012
Hot Shops 100
IMRG Experian Hitwise Hot Shops List
MAY 2012 (based on April 2012 data)
May 2012 May 2011
- 1 1 Amazon UK
- 2 2 Argos
3 8 Apple
4 3 Tesco
5 6 Amazon.com
6 5 Next
– 7 7 Your M&S
8 4 Play.com
9 10 John Lewis
10 14 ASOS
11 13 Debenhams
12 15 New Look
13 9 B&Q
14 18 Thomson
15 11 Tesco Direct
16 17 Expedia.co.uk
17 27 LoveFilm.com
18 16 Topshop.com
19 12 easyJet.com
20 24 ASDA
21 25 The Train Line
22 19 Ryanair
23 21 River Island
24 29 Currys
25 22 Sainsbury’s
26 32 ASDA Direct
27 20 Homebase
28 23 Thomas Cook
29 43 Very.co.uk
30 40 Sportsdirect.com
31 35 IKEA
32 28 Lastminute.com
– 33 33 Cineworld Cinemas
NEW 34 NetFlix.com
35 39 British Airways
36 34 House of Fraser
37 26 Boots
38 41 Ticketmaster UK
39 46 TravelRepublic.co.uk
40 51 Odeon Cinemas
41 31 Littlewoods.com
42 47 ScrewFix.com
43 38 Comet
44 52 H&M
45 30 Halfords
46 44 QVC UK
47 45 Travelodge UK
48 55 Premier Inn
Top of the shops
Retail Systems brings you the full results of a recent
IMRG-Experian survey of online pureplayers
The sixth annual Hot Shops Top 100 list
was as competitive as ever as only five
of the 100 retailers which made the list
this year kept the same place as they did in
2011. It was the online-only fashion retailers
which were the most impressive, with ASOS (up
four positions year-on-year), Very (+14) and
boohoo (+13) all improving their rankings from
this time last year.
Zara, TK Maxx and Urban Outfitters were
the stand-out performers from the multichannel
apparel retail section, with all three
seeing significant gains in the yearly rankings.
Zara only started being fully transactional last
year and since the 2011 Hot Shops Top 100 list
has gone from just scraping into the top 100
to becoming a well-established member firmly
placed at 73 this year.
New Look also performed well to break back
into the higher echelons of the list. Despite
fierce competition at the top, New Look was
ranked 12 in this year’s list, up nine places since
February and an improvement of three places
• Netflix was a new entry
to the Hot Shops top 100
this year featuring at
number 34 in May. Since
the last Hot Shops list in
February Netflix has jumped
an impressive 63 places.
on 2011. Although a newcomer to the Top
100, the overall fastest mover this quarter was
Netflix. The American company had previously
tried and failed to break the UK movie rental
market but with a new business model which
includes online streaming,
Netflix is making great strides and this
quarter jumped an astonishing 63 places
to take the number 34 spot. Netflix’s top
competitor LoveFilm was ranked 17 this year,
• Cycling websites Halfords,
Wiggle and Evans Cycles all
rose up the rankings from
the previous quarter ahead
of the more favourable
summer weather and the
forthcoming London
Olympic Games.
up an impressive 10 places year-on-year.
The sectors which did not fare so well this
quarter were travel and electronics. Because of
the two seasonal peaks in the year in January
and July it was to be expected that this quarter
travel sites would slip in the rankings.
Bucking that trend was budget airline Ryanair
which actually managed to rise three places to
22, the only travel brand to improve its position
from last quarter. Year-on-year, travel agencies
Thomson, First Choice and Expedia all improved
on their positions indicating a recovery in
the travel sector from last year’s challenging
trading conditions.
In the electronics industry PC World, Comet
and Currys all fell in the rankings due to a
decline in interest in buying big ticket items
such as TVs, laptops, computers and white
goods. However, despite falling in the quarterly
rankings, Comet was five places ahead of
where it was this time last year. After going
into administration video games retailer GAME
predictably plummeted down the Hot Shops
list, finishing at 64.
James Murray, digital insight manager for
Experian Marketing Services commented: “The
return of Netflix to the UK market has been
interesting to watch over the last eight months
and the website now commands 11 per cent of
the online Video & Games shopping market.
"At its current rate of growth it won’t be
long at all until Netflix is mounting a serious

challenge against LoveFilm although at the
moment it seems there is room in the video
streaming market to sustain growth for both
competitors.
“So far 2012 has been an encouraging
year for fashion retailers and in particular the
online-only retailers including ASOS, Very and
boohoo. We’ve been saying for a while now that
the gap between multi-channel and online-only
retail has been narrowing and these results are
further evidence of that trend. Finally, with less
than 100 days to go until the London Olympics
it is not surprising to see increased visits going
to cycling websites Halfords, wiggle and
Evans Cycles.
"In 2008 when Chris Hoy won three gold
medals at the Beijing Olympics we saw visits to
cycling websites triple, and we would expect a
similar effect this year if our top athletes can
perform at the London Games.”
Tina Spooner, chief information officer at
IMRG, commented: “The rising popularity of
digital content-providers is clear to see, with
both LoveFilm and Netflix recording very strong
traffic growth. We would expect to see this
trend continue over the coming period as this
kind of content works particularly well on long
• Online-only fashion
brands had a strong year
with brands like ASOS, Very
and boohoo climbing the
rankings. Multi-channel
apparel brands New Look,
Zara, Republic and TK Maxx
also improved their positions
from last year.
train journeys through tablet devices and when
Smart TVs start to become pervasive, it will be
a perfect fit.
• This year’s five fastest
movers in the Hot Shops list
were Zara (+25), TK Maxx
(+16), Very (+14), Urban
Outfitters (+13) and boohoo
(+13).
“It is very interesting to see the fashion
retailers doing well in terms of traffic, as
during the same period (April) we saw the
clothing sector record its lowest ever growth
throughout the 12 years of our Index: just 1
per cent. It seems that people were thinking
about updating their wardrobes for summer
even if they were not buying due to it being
one of the wettest Aprils ever.”
• The IMRG-Experian Hitwise Hot Shops
List of the top 100 UK e-retailers* is the key
indicator of online merchant performance. The
Top 100 List is published annually and tracks
popularity, as indicated by visits, of those selling
goods and services within the IMRG Capgemini
Index Classification**. This List is based on April
2012 data.
* The IMRG-Experian Hitwise Hot Shops
List excludes eBay and price comparison/
aggregator websites.
** IMRG Capgemini Index Classification:
Beer /wine/spirits; Books; CDs/tapes/
records; Clothing/footwear/accessories;
Computer hardware/peripherals/consumables;
Consumer electronics; Digital downloads (e.g.
music, software); Flowers; Food, beverages
and household supplies; Furniture; Garden/
DIY; Health and beauty; Home appliances (e.g.
washing machines); Household goods (e.g.
kitchenware, bedding); Jewellery/watches;
Software; Sporting goods; Tickets (e.g. cinema,
theatre, events); Toys; Travel (e.g. flights,
holidays, hotels, car hire); Video games;
Videos/DVDs.
Hot Shops 100
– 49 49 Wickes
50 54 Matalan
51 50 PC World
52 37 HMV.com
53 63 On the Beach
54 67 Boohoo.com
55 53 Dorothy Perkins
56 59 First Choice
57 66 Republic
58 57 O2 Shop
59 48 HP
60 62 BHS
61 69 National Express
62 65 Toys R Us - UK
63 61 MandMDirect.com
64 42 GAME
65 71 Miss Selfridge
66 82 TK Maxx
67 60 The Carphone Warehouse
68 81 InterContinental Hotels Group
69 72 JD Sports
NEW 70 Dunelm Mill
71 64 Jet2.com
72 84 Monarch.co.uk
73 98 Zara
74 75 Wiggle
75 68 Wilkinson
76 73 Waitrose
77 58 Mothercare
78 74 Boden
79 90 Clarks UK
80 70 Topman
81 85 LEGO Worlds
82 95 Urban Outfitters
83 77 Maplin Electronics
84 86 Virgin Atlantic
85 78 Monsoon
86 91 Laura Ashley
87 56 See
88 87 Schuh
89 83 Evans Cycles
90 89 Teletext Holidays
NEW 91 3 Store
92 100 Ann Summers
NEW 93 Kiddicare
NEW 94 GO Outdoors
NEW 95 Thomson Airways
96 76 Orange Shop
97 88 Hoseasons
98 80 Dell EMEA
NEW 99 Virgin Holidays
100 99 Haven
RS
June - July 2012 RS 11

RS advertorial
Meet the new standard in safe e-payments
Call us 0203 147 4966 - www.ogone.co.uk
“How can I protect myself against fraudsters?”
Payment service provider Ogone announces a new fraud detection module
12-NL-V10-ad.indd 1 15/06/12 15:06
Interview with
Julian Wallis,
Country Manager,
Ogone Payment
Services
1. Is fraud prevention still an important issue
for online businesses? Can you tell us more
about the current trends?
Fraud is one of the main concerns for our 35,000
customers globally. As more and more people shop online,
the opportunities for criminals increase. Fraudulent
transactions can cause enormous problems for merchants.
Only sophisticated security measures and standards can
protect against this. We work constantly to develop such
solutions.
2. What are the costs of fraud?
Fraud can impact merchants in many ways, not just in terms
of the direct costs where goods are sent but no money is
received. Typically there are also costs associated with the
in-house management of fraud and dealing with cases as
they arise. Furthermore, the suggestion that a merchant’s
security arrangements are weak can cause reputational
damage across its entire customer base and affect future
sales revenues. Fortunately, Ogone’s cost-effective approach
helps to minimise these significantly.
3. What does Ogone do to help online
merchants?
Ogone is well placed when it comes to fraud prevention.
Our advanced fraud detection module (FDMA) tool conducts
risk analysis for each paid transaction, in real time, for
more than 65 criteria that are controlled and defined by
the merchant. These include, for example, geolocation,
velocity check (frequency verification), blacklists and white
lists, maximum amounts, etc. In addition, we offer specific
parameters for individual industries, such as the travel
industry. By investing in research and development, we
aim to be innovative and offer merchants the best fraud
detection tools. Consequently we are bringing a new solution
to the market in July to help combat the increasingly
sophisticated methods deployed by fraudsters. This will
include further checks, such as device fingerprinting and
outsourced manual review options and will be available
not only to existing Ogone users, but also to users of other
payment gateways.
4. What prompted you to offer a new solution?
Online fraudsters are organised and constantly evolving.
Fraud detection tools must be up-to-date in order to detect
new fraud patterns. Our customers want to minimise the
cost of fraud without investing a lot of money to develop
their own tools. This is an opportunity for Ogone. We can
offer the best, most cost-effective protection and now, we
are extending our existing platform with a complementary
solution. Whilst our current tools offer comprehensive
protection, configuration is carried out by the merchant.
This means that the merchant has full control - with all the
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provides merchants with additional expert advice, enabling
them to block only the genuine fraudsters and maximise
their online revenues.
5. What will the new expert module offer?
Our advanced fraud detection modules screen transactions
in real time, instantaneously providing second
opinions. Transactions are then categorised as low-risk,
high-risk, or flagged for review. This additional expertise
uses predefined templates of rules, combining around
1,000 criteria which are all industry-specific. Fraud
experiences are shared amongst merchants, therefore
fraudulent patterns are detected as they occur. Device
fingerprinting is a significant new parameter that has to
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RS news general
Mobile site
IN BRIEF
Laura Ashley has launched a mobile optimised
store (www.lauraashley.com) based
on the latest enhanced version of Venda’s
mobile platform. The new mobile store
will provide Laura Ashley customers with
a seamless and frictionless cross-channel
shopping experience.
AlwAys on
HP Enterprise Services today announced
that Procter & Gamble (P&G) has signed a
multiyear agreement for HP to help provide
an “Always On” operating environment that
enables the consumer-goods leader to keep
products moving on time, from production
all the way to shoppers’ carts in the retail
store.
loyAlty splAsh
Contis Group has made a UK-wide splash
with specialist retailer Maidenhead Aquatics’
new gift card customer loyalty scheme.
Don’t miss out
New research by nToklo reveals the financial dangers for retailers
who ignore social commerce
According to research into social
commerce by nToklo, UK retailers are
missing out on a potential £9 billion in
additional revenue online. The survey revealed
how user generated content is shaping online
retail faster than the retailers themselves.
The use of user content and
recommendations could account for a 27 per
cent uptake in sales. IMRG reported that the
UK’s online retail spend for 2011 was £68.2
billion and this is expected to grow by a further
13 per cent in 2012. Considering that half of
retailers don’t offer online recommendations
to consumers, it can be estimated that retailers
missed out on an estimated £9 billion worth of
additional revenue online last year.
Anton Gething, co-founder & product
director at nToklo, says: “The increasing interest
in social commerce stems from two trends
that have seen tremendous growth in recent
years: online shopping and social networking.
This research shows that many businesses
are missing out on a potentially significant
additional revenue opportunity. In strained
times, this additional revenue could provide a
much needed lifeline for British retailers.”
Over 90 per cent of those surveyed had a
presence on Facebook and Twitter. However,
only 65 per cent of retailers’ sites utilise the
integration technology these social platforms
offer. And over three quarters of retail
sites reviewed did not have their own social
community functions, despite many requiring
customers to sign-in to make a purchase.

A breathe of fresh air
Casio’s new EPoS and business portal helps two London businesses
breath new life into their local High Street.
Shane’s Restaurant and Venetia’s
Coffee Shop have both installed a Casio
VX-100 AndroidTM platform electronic
point-of-sale system using the cloud-based
Casio business portal. The solution is designed
to speed up business processes, assist in
business planning and forecasting, as well as
help control business costs, stock and wastage.
The high cost of implementing a full-function
EPoS system has often been seen as a barrier
to adoption amongst independent businesses,
leading them to rely on basic cash register
technology instead. “EPoS systems are an
invaluable tool that really help you understand
what is happening with your business” explains
Shane Harrison, chef proprietor of Shane’s in
east London.
“By giving you detailed overview and analysis
of sales data, it gives you the power to forecast
required stock and staffing levels accurately.
I’ve calculated that this level of understanding
can add up to 12 per cent to the bottom line
of a business and in today’s tough trading conditions
it is these small savings that can make
the difference between success and failure.”
Based on Chatsworth Road, in Hackney, these
two businesses have helped to raise the profile
of an area that was previously home to a high
number of vacant units. Shane believes independent
businesses can be the driving force
behind reigniting High Streets.
Par for the course We have lift-off
Europe’s biggest golfing retailer, american
golf, has partnered with Esteem Managed
Services to remove the headache of dayto-day
EPoS system management, increasing
employee productivity, reducing downtime and
maximising revenue intake.
EPoS Systems are critical to american golf
trading. On average, american golf stores in the
UK process 2,800 transactions per day, worth
over £400,000. Slow or faulty EPoS equipment
can result in large queues, dissatisfied
consumers and ultimately, loss of business.
With an in-house IT support department
of only four employees, all based near
Warrington, dispatching staff to locations
across the UK to undertake maintenance
and installations of EPoS systems would be
costly and time consuming.
Head of IT for american golf, Phil Barker,
says: “Seventy-five out of our 91 stores in the
UK only have one EPoS System, if this goes
down the simple fact is we struggle to provide
a satisfactory service to our customers.”
Apollo Cinemas has turned to cinema
sector specialists for a new EPoS
solution. Their 14 cinemas are now
equipped with a point-of-sale solution
comprising PC-based touchscreen terminals
from J2 Retail Systems running software from
Vista Entertainment Solutions. Between them
the cinemas have 40 points-of-sale, each a J2
615 terminal running Vista POS and enterprise
management software, running ticketing and
sales of food, drinks and confectionery.
Imtiaz Ullah, head of IT at Apollo Cinemas,
says: “We pride ourselves on being innovative.
We were the first fully digital circuit in the UK
and use equipment such as Sony 4K Digital
Cinema projection, Real D screens and Dolby
Surround sound. We are equally demanding
when it comes to the systems that run our
commercial and customer-facing operations.
Efficiency at point-of-sale is critical to keep
queues down and customer service standards
high.” Apollo is also developing café-bars, lounge
areas, gaming and Wi-Fi for their cinemas.
EPoS news
IN BRIEF
Top TweeTs for June
Karen Moss brings you the Retail Systems’
tweets that got the twitterati talking this
month...
1. salon launches facebook
loyalTy scheme
This was the top tweet in June – our
followers were all atwitter at the news
that Andrew Collinge have brought
Facebook into their stores. With the help
of Excelerated Apps the hairdresser has
introduced a loyalty card that customers
can touch on a ‘LikeStation’ to share
their experience on Facebook and
access special offers. Pretty cool.
2. 64% of smarTphone users
shop via mobile
Mobile is certainly a hot topic at the
moment so this news may not have come
as a shock. It’s still a formidable statistic
for the rise of m-commerce though...
3. fashion reTailers Top The
hoT shops 100 lisT
Always a firm favourite with our followers,
the Hot Shops 100 came in at number
three. No surprises that e-commerce
fashion giants ASOS, Very and boohoo.
co.uk topped the charts. For the results
in full see our report on page 10.
4. 41% of uk shoppers will be
social by 2021
The next generation of ‘social shopper’
is expected to emerge as a force to be
reckoned with by 2021, according to
new research from Barclays. Whether
you agree or disagree with the idea of
social commerce, this one certainly got
our followers tweeting.
5. amazon will be second
largesT reTailer by 2017
This was according to Scott Wingo,
CEO of ChannelAdvisor, speaking at
their EU Catalyst event in June, and I
don’t think anyone would disagree with
him on this one. Amazon don’t show any
signs of slowing down in their quest for
world domination.
RS
June - July 2012 RS 15

RS
going live
16 RS June - July 2012
news contracts
IN BRIEF
BT Expedite announced a deal with
independent footwear retailer Charles
Clinkard. The contract will see BT
Expedite install its Connected Retailer
multi-channel system, including Mercatus
central merchandising, Store 6 pointof-sale,
integrated store and Customer
Relationship Management (CRM).
Magic nuMber
Mobile operator 3 has chosen RELEX’s
solution to manage and optimise replenishment
of their stores and central warehouse.
RELEX provided a flexible solution
that met the needs of 3’s multi-channel
operations, including sales in its own retail
outlets, online, and via resellers.
Shoe Sign
LABELUX, the group behind a range
of luxury brands including Jimmy Choo
and Bally, has signed a global deal
with eCommera. The signing is key to
LABELUX’s strategy to expand its brand
presence internationally and across
channels.
global reach
Rakuten, the world’s third largest
e-commerce company, has acquired
Spanish streaming and video on demand
business, Wuaki.tv. The acquisition will see
Rakuten further extend its global reach
as it enters the Spanish market for the
first time.
WinS over aSda
The UK‘s leading supply chain solutions
provider, Wincanton, has won a five-year
contract to manage Asda‘s new distribution
centre (DC) in the North West. The
contract was won through a competitive
tender and starts in September 2012.
MicroSoft deal
Microsoft has bought the office social
network site Yammer for $1.2 billion. The
business, which is four years old and has
five million users, operates like Facebook
for communication within companies.
Caution: wet ink
Retail Systems brings you all the hottest deals from across
the industry
Zmags have signed a brand new deal with
notonthehighstreet.com. The SaaS-based
rich media marketing platform will help
the online retailer enhance their customer
engagement and order value.
Their interactive catalogues include video,
can link to social media – such as Facebook,
Pinterest and Twitter – enable in-catalogue
payment for customers and are available across
any web, tablet or mobile device in html5.
Notonthehighstreet.com is also able to inspire
purchases, monitor performance and make
real-time decisions with Zmag’s analytics tool.
For father’s day in June, notonthehighstreet.
com created a magical catalogue to inspire
their younger customers with loads of quirky
gift ideas and ways to tell your dad that he’s
your hero.
Gail Caulfield, product manager, notonthehighstreet.com,
says: “Creating our digital
catalogues is easier, smoother and quicker than
before. We chose Zmags because it has a
much easier set-up, better reporting and gives
us the possibility of adding Flash and video in
the future. It puts us onto mobiles and tablets,
and we’re selling from Facebook without having
to create a specific Facebook store.”
Geoff Wright, Zmags vice president of sales
for Europe, Middle East and Africa, says: “UK
High Street footfall has declined by 12.6 per
cent in April and 6.4 per cent in the first few
months of the year overall, according to a
study published by BRC published in May 2012.
This is a clear sign that British retailers need
to have an innovative and progressive online
strategy to replace traditional shop sales.
“Zmags plays a critical role
for retailers, in giving them the
power to present consumers
with a deeply engaging, curated
experience that delivers dramatic
return, in terms of both engagement
and order value.”
W. Sean Ford, Zmags COO
and CMO, adds: “Leading brands
and retailers have been actively
searching for a way to attract and retain the
attention of potential consumers who are
spending more and more of their time on
iPads, iPhones and on Facebook.
“With Zmags presence in the UK, we are able
to help British retailers exploit their online assets
and drive further revenue growth.”
Also this month, supermarket giant Sainsbury’s
has signed a new long-term contract
with Valassis Ltd to manage its coupons and
vouchers.
The agreement between Sainsbury’s and
Valassis extends an 18-year working relationship
and sees Valassis responsible for managing
the coupons and vouchers that pass through
Sainsbury’s tills each year, across its 1,000
stores nationwide.
For Sainsbury’s, Valassis designed PromoHub,
a bespoke web-based coupon campaign management
solution. Sainsbury’s uses PromoHub
for Nectar loyalty card offers, coupon-at-till
promotions, direct mail offers and Sainsbury’s
specific supplier funded coupons.
Andrew Mann, director of customer insights
and loyalty for Sainsbury’s, says: “Valassis
has been an important coupon partner for a
number of years. The decision to extend our
relationship is the result of their past performance
in conjunction with a commercial review
of the market place.”
Valassis will continue to provide Sainsbury’s
with a range of other coupon and voucher support
services including courier management,
data capture, reconciliation, financial recovery
and reimbursement, management reporting
and account management.

Continental style
Retail Systems finds out what’s happening among retail’s
fashion giants on the continent
Aurora Fashions announced it will
replicate the success of its
andotherbrands.com strategy as
part of new plans for the Dutch market.
A local language, multi-brand e-commerce
site will be rolled out in September this year.
Ahead of the launch, Aurora will exit 11 Oasis
and Warehouse concessions in the Netherland’s
department store chain Vroom and Dressman
over the summer.
The decision is in line with the group’s
innovative omni-channel retail strategy for
2012 which aims to drive international presence
and growth for all three brands via a ‘right-fit’
market approach, without always relying on a
traditional bricks and mortar footprint.
The tabulated site platform, already
launched in Germany, the US and Australia,
provides a one-stop-shop for all of the brands,
allowing customers to shop using one basket
and combined checkout. It delivers a more
compelling aggregated consumer offering
and, supported by a sophisticated distribution
system and local payment terms, guarantees
a strong brand experience in any given
international market.
Mike Shearwood, CEO of Aurora Fashions,
says: “Omni-channel isn’t multi-channel by
default; it’s also about adopting an intelligent
approach to market presence that provides the
best customer journey. Based on the success
of our existing multiple brand sites, we believe
we can best serve the customer and accelerate
growth in the Netherlands with an online only
approach in the short to mid-term.”
This year Oasis was named as one of the top
five omni-channel retailers in the world in a Kurt
Salmon survey of fashion retailers.
And in France, ChannelAdvisor, a global
e-commerce platform provider, announced its
support for La Redoute.
La Redoute is France’s leading online retailer
for fashion and home, and a major player in
the UK e-commerce landscape. Its marketplace
was successfully launched at the end of 2010.
Support for La Redoute will soon be available
for all ChannelAdvisor customers that have
inventory in the Marketplaces solution.
The partnership is part of ChannelAdvisor’s
focus on supporting third-party marketplaces,
which have seen impressive growth across
Europe and the US. ChannelAdvisor aims to
support the diversity of marketplaces and also
enhance cross-border trade for its customers.
“We are very excited to be working with
ChannelAdvisor. Its strong reputation and
e-commerce experience as a leading platform
provider were the main reasons we chose
ChannelAdvisor as a partner,” comments
Jeremy Pallot, head of marketplace seller
team at Le Redoute. “We are confident that
together we will successfully expand our
thriving marketplace and help retailers reach
out to a new customer base.”
Le Redoute has 11 million active customers
globally, attracting more than nine million
unique visitors per month to its French site.
“Cross-border sales and international expansion
are important goals for retailers and
integrating into marketplaces across Europe
is a great way for them to penetrate these
markets,” says Seamus Whittingham, managing
director EMEA at ChannelAdvisor.
“This partnership has been driven by
customer demand. We are committed to
expanding to the most relevant channels, such
as La Redoute, to help connect our retailers
with new sources of revenue and customer
acquisition. By partnering with La Redoute, our
customers will soon be able to use their existing
ChannelAdvisor integration to easily access La
Redoute’s loyal customer base and world class
e-commerce platform, without any additional
internal resources.”
european news
IN BRIEF
Breaking Barriers
MasterCard intend to appeal Luxembourg’s
decision to throw out their
challenge of a European Union ban on
cross-border credit card fees. The ban,
introduced in 2007, aims to break down
barriers to e-commerce and cut costs for
businesses. Competition commissioner
Joaquin Almunia said that fees on card
transactions were too high. According
to reports formal charges against Visa
Europe are now being readied.
rocket Fuel
Epson has seen a 30 per cent lift in consideration
for its printers in the UK, after
a highly successful online brand campaign
delivered by Rocket Fuel. The pan-European
real-time campaign generated a 19
per cent lift in brand consideration on
average across the whole of the region,
with the highest results in Germany (56
per cent) and France (45 per cent).
PaysaFe in eu
Prepaid payment method, paysafecard,
is now available in Turkey. paysafecard
group’s main product allows fast and
secure payments for online games and
other Internet services. Personal data,
credit card or bank account details are
not required. More than 3,500 online
shops accept paysafecard worldwide.
en esPanol
Gazeley has completed work on a
387,231 sq ft (35,975 sq m) distribution
centre for fashion retailer, H&M, in
Torrejon de Ardoz, north east of Madrid.
The €25 million facility, expected to be
fully operational by 16 July 2012, marks
H&M’s continued growth within Spain and
across the rest of Europe.
e-commerce Boom
Total B2C e-commerce sales for Europe
in 2011 are estimated to have grown
to €690 billion, an increase of nearly 20
per cent. IMRG estimate that growth will
continue in the coming years, passing the
trillion-euro mark in 2013.
RS
June - July 2011 RS 17

Thank You
Retail Systems want your
views about buying online
This is an online survey of your opinion – there are no right or wrong responses, just
your views. Callcredit are interested to learn more about the whole customer journey
experience when buying online, and how retailers are responding to the multi-channel
opportunities available to more effectively target consumers and the kind of different
strategies currently adopted by them in order to acquire and retain customers
The survey should take no more than 5 minutes to complete, and is available at
http://www.retail-systems.com/call-credit/survey.html
http://www.retail-systems.com/call-credit/survey.html
With thanks to our survey sponsor
Callcredit Survey
Each entry will automatically be entered into a free
draw for a Kindle Touch
your details will be entered into a prize draw.

at a glance
MAY
PayPal’s 15 million
UK customers
can now use their
smartphones to
pay at stores owned by Aurora Fashions
group – Coast, Oasis and Warehouse
– and Karen Millen. The service was
launched nationally in May and is now
available in 230 stores. The PayPal in-store
app, available for Android and Apple iOS
(iPhone and iPad) devices, brings the
flexibility of online shopping to the High
Street. The app provides the customer
with a unique barcode and transaction
number, which the shop cashier scans to
take payment from the customer’s PayPal
account.
Rakuten Inc., one of the world’s largest
online marketplaces, announced that it
is leading a $100 million investment in
Pinterest. Existing investors Andreessen
Horowitz, Bessemer Venture Partners,
and FirstMark Capital, as well as a number
of angel investors will participate.
Karma, the mobile gift-giving app, was
acquired by Facebook. The announcement
came shortly after the markets closed on
Facebook’s first day as a publicly traded
company on May 18. Since then the
share price has fallen and investors have
treated the offering with trepidation.
In the wake of concerns about a lack of
disclosure in Facebook’s controversial IPO,
regulatory observers have asked politicians
to investigate ways to improve the
IPO process.
HSBC Merchant Services LLP, a whollyowned
subsidiary of Global Payments,
is set to deploy contactless payment
solutions to all Post Office branches in
the UK. All 11,000 Post Office branches in
the UK will be provided with contactless
terminals to allow customers with Master-
Card Paypass and Visa PayWave cards to
make payments under £20. Customers will
also be able to pay using NFC equipped
mobile phones.
The latest figures from the IMRG
Capgemini e-Retail Sales Index revealed
that British shoppers spent an estimated
£6 billion online in May, equating to a 13
per cent growth on the same time last
year, and five per cent on April. This marks
a return to growth in line with the last
12 months and matches the 13 per cent
growth estimate for the full year.
JUNE
Marks & Spencer is using the Demandware
Commerce platform to power its
new international websites, including its
recently launched Ireland website, www.
marksandspencer.ie. This follows Marks
& Spencer’s first international website,
www.marksandspencer.fr, serving customers
across France since October 2011.
According to the latest ChannelAdvisor
UK Facebook Commerce Index, Clarks and
John Lewis profited from their Jubilee
themed pages. The retailers had an 18
and 10 per cent increase in Facebook fans
respectively.
Leading iPhone accessory makers Griffin
have opened their first bricks and mortar
store. The US-based company chose the
new Westfield Stratford shopping centre
to launch an interactive shop which allows
consumers to immerse themselves in the
Griffin brand and experience its products
firsthand. Showcasing their range, the
store includes an indoor space for testing
out their Helo TC remote controlled chopper
range and a motorised 12 foot drop
at a glance
Rounding up all the major retail tech related stories
chute to prove how well protected their
Survivor cases make Apple’s iPads. There’s
even a charging station if your mobile
battery needs a top-up
Only five per cent of consumers are
using contactless payment options in
the small number of stores where it is
available, says vendor Vista Retail Support.
According to the company’s research 37
per cent believe that a lack of awareness
is the main factor holding back consumer
take-up, though 30 per cent recognise
that end-customers are still concerned
about the security of contactless
transactions.
Manchester City Football Club has
installed address auto-fill technology
from Postcode Anywhere on its office
administration software. The address
validation service increases the speed
of contact data entry and ensures
the accuracy of any details entered,
preventing tickets and other orders from
being dispatched to the wrong address.
eCommera launched
a mobile app service,
designed to provide
brands and retailers a
quick route to market
to sell via mobile
devices and deepen
customer engagement.
The mobile app service
is a configurable out-of-the-box solution
that works across multiple mobile devices
and operating systems.
Underbelly, the live entertainment
company, revealed it had become the
first in the UK to integrate new payments
security from Phoenix Managed Networks.
As part of a multi-year agreement
the company is using Phoenix’s PaySecure
at its site on the London’s South Bank and
at the Edinburgh Fringe festival as well.
at a glance
RS
June - July 2012 RS 19

RS advertorial
Working smarter, not harder
to fight online fraud
It seems that as customer-not-present (CNP) sales grow, so does the threat
of fraud. And for merchants predicting significant growth in online sales, the
challenges are even greater.
Last year, the IMRG predicted that the European online
retail market would reach £214 billion making Europe
the world’s largest online shopping region, overtaking
the US for the first time1 . However, in Chase Paymentech’s
recent research, nearly half of large retailers surveyed
saw fraud levels increase last year and companies trading
internationally were three times more likely to see higher
levels of CNP fraud2 . Yet despite the threat, retailers are
still predicting strong growth and remain confident that the
opportunities far outweigh the risks.
So, how can your fraud prevention methods be enhanced
to help power this growth? The key is to work smarter,
not harder and look for new ways to identify and block
fraudulent attempts. For example, improved fraud screening
may enable merchants to manage growth whilst minimising
the cost of fraud (lost goods, shipping, chargebacks etc.).
A superior fraud prevention strategy will also consider the
number of legitimate orders that are rejected on suspicion
of fraud. By accepting more good orders the first time round,
you could increase sales.
Talk to your payment acquirer about how to analyse
trends and implement additional fraud prevention tools.
They will be able to explain how to get a universal picture
of your fraud by integrating reports and payment acquiring
together. If you are trading internationally, it may also be
useful to get a picture of fraud broken down by country to
identify specific threats, analyse fraud rates by country,
customise fraud scores and set targeted rules.
Empowering your manual review team may also bring
savings. Maintaining a dedicated team of fraud analysts
can be expensive, with some retailers spending as much as
half of their total fraud budget on manual reviews. As sales
grow, manual review teams may have an increasing number
of orders to review daily. A dedicated fraud management
system, like Chase Paymentech’s SafetechSM Fraud Tools,
can help by integrating your fraud prevention and payment
acquiring together to provide fraud analysts with the
intelligence about each transaction on one screen.
With the growth of mobile shopping, social media and
new technologies such as tablets and smartphones, new
patterns of fraud are emerging. Many retailers are certain
that fraud levels will increase in the next few years as these
channels become more widely adopted. To keep up, fraud
prevention methods will need to evolve too.
One thing remains paramount throughout - consumer
confidence. Plan strategically to ensure that you can detect
fraud across all channels as close to real time as possible,
enabling you to identify and counteract threats quickly and
prevent future fraud.
Chase Paymentech Europe Limited, trading as Chase Paymentech, is a
subsidiary of JPMorgan Chase Bank, N.A. (JPMC) and is regulated by the
Central Bank of Ireland. The information herein does not take into account
individual client circumstances, objectives or needs and is not intended as a
recommendation of a particular product or strategy to particular clients and
any recipient of this document shall make its own independent decision. This
document and the information provided herein may not be copied, published,
or used, in whole or in part, for any purpose other than expressly authorised
by Chase Paymentech Europe Limited. © 2012, Chase Paymentech Europe
Limited. All rights reserved.
References
1 IMRG/IMRWorld Research (November 2011)
2 Dynamic Markets: The Changing CNP Payment Landscape - March 2012

thoughts from the frontline
With the EU Cookie Directive
now in force, digital marketers
and retailers are going to have
to ensure they comply, while
still aiming to gather valuable
data on online behaviour.
Companies with online services
need to ensure compliance with
the law as the Independent
Commissioner’s Office (ICO)
has powers to penalise noncompliant
companies after May.
Retail Systems got the experts’
reactions...
Michael Ross, director of
eCommera, says: “Finally, last month,
the ICO issued their updated guidance
on the cookie policy – to say there was
a last minute change of heart would be
an understatement.
The whole premise of the cookie
regulation has moved from requiring
‘informed prior consent’ to now accepting
that ‘implied consent’ will suffice for
most situations.
It is a banal end to a year of stress and
anxiety for commercial players online
where the only people to benefit have
been the lawyers.
The banality of the ICO’s approach
is embarrassing. They appear to
have decided that it is important for
consumers to understand the intricacies
of cookies before they are safe to use
the internet. Really? It is like expecting
people to understand the basics of
quantum mechanics before they can buy
a microwave.
I have worked in the online world for
18 years and, whilst I understand what
cookies enable, I have little understanding
of how they work in practice. And why
cookies? What about HTML5? What
about browsers?
The reality is that consumers want
things to work and they want to make
sure that their information is not abused.
How that happens in practice is the job
for intelligent legislators and regulators.
It is shameful that the UK is kowtowing
to pointless EU legislation at a time when
when should be positioning the UK as a
global internet hub.”
Mark Haviland, MD at Rakuten
LinkShare, says: “While the EU
Cookie Directive has given a few online
businesses and marketers headaches
over the past year, ultimately the
conversation about privacy has
been productive. Trust and privacy
are paramount and we should all be
actively promoting open dialogue and
transparent business models.
Shoppers are becoming increasingly
discerning online, and the debate has
encouraged brands, agencies and other
online businesses to assess the quality
of marketing they serve to audiences,
and the respect they show for privacy.
It’s a call to action to turn data insights
into a better online experience, so that
consumers want to opt-in, be it implicit
or explicit.
As an industry, if we want to deliver
the tailored and personalised experiences
that shoppers increasingly expect, the
proper use of data is essential.”
Andy Mulcahy, head of
communications at IMRG, says:
“There has been a lot of concern
in the industry that the new cookie
opinion
requirements could prove disruptive
to the user experience and lead to
potential customers leaving a site.
While many consumers seem to find
the whole concept of cookies and what
they are used for confusing, the fact
that the latest eCustomerServiceIndex
results from eDigitalResearch and
IMRG showed 89 per cent regard
the new regulation as a positive
step suggests there is actually a real
opportunity for retailers to increase
trust and loyalty.”
Derek Eccleston, Head of
Research, at eDigitalResearch,
says: “It’s unsurprising that general
consumer knowledge surrounding
cookies and their uses is a bit confused.
However, now that the new rules and
regulations have come into force,
retailers and websites will need to be
doing everything in their power to
effectively and efficiently educate
visitors on how cookies are used,
especially those most essential to
site performance.”
• Of the 2,000 online consumers
surveyed by IMRG and eDR, 75 per
cent had not heard of the new
EU cookie directive. And of those
that had, only 16 per cent were truly
aware of what changes would come
into effect.
opinion
RS
June - July 2012 RS 21

RS
22 RS June - July 2012
feature cloud computing
A perfect storm?
The huge appeal of cloud computing
is undeniable, but what is it that’s
drawing retailers towards this kind
of technology? Is it the agility cloud
promises or is it the cost and time
savings it delivers? Karen Moss
finds out
In a recent Microsoft-commissioned survey of about 3,000
business decision-makers across the United States, nearly half
of the respondents (48 per cent) from the retail industry said
their companies have used cloud computing. One-third (32 per
cent) said that their companies were ready to move all applications
to cloud computing.
So, what’s pulling retailers toward the cloud? Many believe it
is the agility that cloud offers in a fast paced and unpredictable
industry like retail. This could be anything from ramping up web
capacity during busy times on an e-commerce site to updating
large, complex legacy systems without having to replace the
expensive hardware.
Srini Pallia, SVP, retail, CPG, transportation and government,

SBU, Wipro Technologies, says: “When it comes to pulling retailers
toward the cloud, it is important to consider the different
drivers for large enterprises versus smaller businesses. What
we’re seeing is that for larger businesses, the cloud presents a
real opportunity to optimise their existing infrastructure, particularly
if they are expanding into a new geography or launching
a new brand. For smaller businesses, current pressures mean
they’re ready to do really interesting things with their infrastructure
and reinvest in their core platform.
“While agility is a much talked about term, it is often misplaced.
The key question is agility for whom? Retailers need
agility at customer touch points, which is why CRM in the cloud
is really taking off.
“There is a huge opportunity for retailers to use the cloud
to enhance the customer experience in-store. This opportunity
isn’t just about providing customers with free Wi-Fi, but what
this then enables that will convert the customer into a loyal
shopper. For example, using Wi-Fi to deliver apps for special offers
or other geo-location services.”
Fit to change
It’s not just retailers across the pond who see cloudy skies
ahead, a recent survey by Fujitsu – Fit to Change – found that
cloud technology is really taking off among retailers in the UK as
well. Sixty per cent of those surveyed cited cloud computing as
an enabler to their business.
Andy Taylor, director, private sector division, Fujitsu, says:
“The figures are impressive, particularly when compared to
telco/utilities companies which came in at half of this result.
And with the sheer amount of change that the retail industry
is faced with – such as external factors and volatile market
conditions, it is no surprise that retailers are seeing cloud as the
panacea. It offers a great amount of flexibility, where retailers
can scale up and down – but also get their services out quickly –
we are talking weeks rather than months.
“One of the main drivers in cloud adoption is cost. IT budgets
continue to be squeezed across the board – and retailers are
feeling it as much as any industry. They have to start thinking
radically and addressing the problem – and cloud can help solve
this – when tackled in the right way. Rather than lose control
over their data, they should be working with suppliers who take
on the risk, but give the retailer control and create a dynamic
infrastructure which will drive out cost.
“Some retailers are already exploiting public clouds as their
web hosting platforms. However in order to overcome security
and privacy issues and for retailers to really maximise the use of
cloud in the back office , the next step is an ‘enterprise ready’
public cloud that can cope with the specialised IT needs of large
retailers. The potential for collaboration within the retail sector
with such a platform is significant.”
Taylor believes retailers need to look for cloud solutions that
provide them with the best of both worlds – a combination of
in-house delivered IT coupled with applications and infrastruc-
cloud computing feature
ture provided across as mix of public and private cloud(s). An
approach which provides the flexibility and agility required to
remain cutting edge and competitive while ensuring business
critical data and processes are as secure as they need to be – a
hybrid cloud model.
Pub chain group, Mitchells & Butlers, implemented a superfast,
commercial-grade broadband service and private cloud
after partnering with Fujitsu. “The cloud creates tremendous
business innovation,” comments Tony Bentham, CIO, Mitchells &
Butlers. “Thanks to the flexibility offered by cloud technology,
we can design new applications in weeks rather than months,
ensuring that new ideas can be deployed faster. This enables us
to offer new services such as electronic order capture, table
booking and employee training, at minimal cost and without the
need for further substantial investment in technology.”
Another retailer realising the benefits of cloud technology is
Ocado. through Google Apps for Business they were able to give
their employees the power to access emails at home and on the
go via the cloud.
Paul Clark, director of technology at Ocado, says: “Eighteen
months ago we were one of the first retailers to adopt Google’s
cloud-based collaboration suite, Google Apps for Business. 1,600
of our staff needed access to emails, documents and other
data from multiple sites, on the move and even from home, so
we were looking for a way to liberate them from their desktops
and made the decision to take that step into the cloud. As a
web-based service, Google Apps for Business offered not only
a solution to this requirement but also the promise of improved
productivity and internal communication.
“Cloud computing has helped us improve collaboration
through being able to quickly access and work on shared documents,
even from mobile devices. This has led to more efficient
and smarter working practices, helping to drive further innovation
within the business and ensure that we continue to provide
our customers with the fastest and most reliable delivery
service possible. We love the fact that Google Apps continues to
innovate and develop new features and are excited about the
further benefits we expect to see across the business.
“Using Google’s BigQuery technology, we are also starting to
use the cloud to securely store and analyse some of the huge
volumes of data that we generate on a daily basis”
Managing peaks
One word that is frequently associated with cloud technology
is agility – something that is all important for retailers. Having a
cloud hosted solution gives the IT team more time to focus on
coming up with cool new consumer facing features, like apps
and store locators. So in that way cloud can be a god-send, as
Simon Dunleavy, director of managed services at Maginus, attests.
“More and more retailers are leaning towards using a hosted
cloud service, as it relinquishes the burden of IT maintenance
enabling them to concentrate on their core business competen-
RS
June - July 2012 RS 23

RS
24 RS June - July 2012
feature cloud computing
cies, as opposed to IT infrastructure,” he says. “Instead allowing
the managed services experts to ‘do what they do best’ – optimising
the IT functionality and maintaining the service.
“Other benefits of cloud technology include flexibility of
service and associated costs – allowing retailers to manage fluctuations
in business volumes around peak trading times more
easily i.e. Christmas or Easter, so retailers only pay for the level
of service they are using. In a competitive and tough trading
environment this pricing model is highly appealing.
“Cloud solutions also reduce the burden of capital expenditure
and what can be an arduous integration period. Retailers don’t
have to spend money up-front on servers and infrastructure,
which therefore frees up cash which can be invested into other
areas of the business, such as stock, marketing and business
development.”
Cloud also gives retailers the opportunity to store vast
amounts of data. However the issue of security could be offputting.
There have been several high profile, including Amazon.
According to the e-commerce giant, most user systems and
data were fully restored soon after the breach, although a fraction
of its volumes stored in the eastern US may never be fully
recoverable.
“The vast majority of affected volumes have now been
recovered,” the company said at the time of the breach last
year. “We’re in the process of contacting a limited number of
customers who have Elastic Block Storage volumes that have
not yet recovered and will continue to work hard on restoring
these remaining volumes.”
Amazon also stressed that it would fully investigate the cause
of the issue, with a report into the outage set to published in
the future. The outage led many commentators to discuss cloud
security, with many stating that it highlights the need to have a
fallback service when using the technology. However, when cloud
technology gets it right the benefits can be huge.
Pontus Noren, CEO, Cloudreach, says: “Google Apps and
Amazon Web Services (Elastic MapReduce – Amazon’s specially
designed data processing web service) can provide tools that enable
large data sets to be crunched so that retailers can extract
value. For example, this data can be used to create statistics
around retail patterns and buying behaviour.
“With such a high volume of information to process, outsourcing
this to Google or Amazon means retailers can avoid the
cost and administrative burden of running an internal IT system.
The benefit of working with these cloud providers is that their
services are on a moving scale. An added benefit is scalability –
services can be easily increased or decreased to match demand
(for example to tie in with seasonal busy periods). Retailers can
switch it on or off at the drop of a hat if necessary, so they only
need to pay for what they use.
“Another key benefit is that it is a hardware-free solution –
there is limited initial outlay and the risks around owning servers
as an asset are reduced. This allows retailers to focus resources
on the core business function.
“Retailers face the challenge of ensuring that IT systems are
connected across all retail units and offices. It is challenging
enough considering that IT mechanics have the task of visiting
different outlets to fix problems as they arise. Cloud computing
cuts through that problem, providing a system that can be
accessed from anywhere, at anytime. Encouraging centralised
and simplified IT systems would have an incredible impact on
efficiencies within the UK retail market.”
Will Kennedy, corporate sales director at Daisy Group plc, says:
“Retailers are typically large, fast-moving businesses, focused
solely on generating sales and providing customer satisfaction.
Although IT is, and always has been, very important to retailers,
it often falls further down the list of priorities than sales and
service, but we are starting to see retailers pay more attention
to IT as they begin to realise the benefits of cloud.
“Because cloud computing provides real-time insight into
business performance, retailers that have adopted the technology
benefit from increased agility, as they are able to respond
immediately to any problems and manage their entire operation
through the cloud. This ensures stock levels are adequately
maintained and deliveries are made on time.
MACS Software’s MD, Tony Liddar, adds: “Rather than getting
bogged down with the science and technicalities of a prospective
new system it is better to look at the practicalities of how
the system would work in the business on a day-to-day basis and
ask some simple questions. Am I in control of my own destiny
(data/system)? If my vendor goes bust, can I demand return of
my data? Servers can always fail, but what is my backup operating
procedure and am I comfortable with that?
“The answer to these questions will be different for every individual
business so it’s important to look at every case carefully
before making a decision.”

contents
26..... Underlying risk
More than half of all fraud cases involve card not present (CNP) transactions,
but recent figures reveal that improvements are reversing an
upward trend. Wayne Tuckfield investigates
28..... Shrinking feeling
With the UK economy looking very much the worse for wear, shrinkage
(crime, waste and error) continues to threaten retailers’ ever tightening
margins, Dave Adams reports
30..... Reversing trends
Many retailers find the requirements for PCI compliance confusing. But
more worryingly some have adopted a ‘tick box’ approach rather than addressing
real security issues, writes Liz Morrell
supplement
Self defence
RS

RS supplement CNP fraud
26 RS June - July 2012
Reversing trends
More than half of all fraud cases involve card not present (CNP) transactions,
but recent figures reveal that improvements are reversing an upward trend
and providing more protection and security for both customers and merchants.
Wayne Tuckfield investigates
Every year, millions of shoppers make purchases without
their card being swiped or using chip and PIN, whether
that is through the internet, over the telephone or by mail
order – with internet sales particularly seeing massive growth
over the last decade.
These Card Not Present (CNP) purchases are obviously vital
to the retail sector, but the fact neither the card nor the
cardholder are there when the payment goes through exposes
a clear fraud risk. More than half of all fraud cases involve CNP
transactions, but recent figures reveal that improvements are
reversing an upward trend and providing more protection and
security for both customers and merchants.
According to financialfraudaction.org,uk CNP fraud peaked in
2008 at a massive £328.4 million, but since then we have seen
year-on-year decreases down to £220.9m. But what is driving
this improvement, and what can be done to make sure that
trend continues into the future?
The secret of the success in recent years, according to
Nick Mothershaw, UK and Ireland director of ID and fraud for
Experian, is more robust processes for detecting fraud before
it happens. “Detection processes are getting more and more
successful all the time so the number of frauds going through is
reduced. 3D Secure, like MasterCard Secure and Verified by Visa,
is being used more and that’s helping prevent fraud.
“The system we offer, for example, looks for repeated
patterns of use. Transactions can be allowed through and stored
away, aimed at getting as many good transactions through as
possible – and if there are any problems we can refer it to the
merchant.”
However, it’s not all good news for retailers, as some
customers grow frustrated by ever more complex security
devices and often scrap their purchases before they complete.
Complex security
“The abandonment rates are quite shocking,” Mothershaw adds.
“So much revenue is lost because people don’t carry on after
a bad experience. They get asked for their address, long card
numbers, CVV codes, 3D Secure codes and passwords, which all
slow them down and often they just stop.
“We are working on establishing someone’s ID and putting
that on their mobile phone. Then if you want to continue you
just have to give your credentials. We send a code to your
device and that code is entered into the website. It’s quick and
easy, but it might take three to five years to roll-out because
there are standards to meet.”
Ian Harmon, product marketing manager at Thales e-Security,
backs up the point that customers must find purchases simple.
“Retailers are faced with a dilemma when it comes to online
security and fraud. It’s very expensive to upgrade systems
and consumers don’t like these measures as they impact
convenience. Consequently, many merchants prefer to risk
losses from CNP fraud rather than invest in improved security.

“A more convenient token based on a mobile phone is how
the market is likely to evolve which will at least start addressing
the customer inconvenience problem. Let’s face it, the average
person these days doesn’t leave the house without their chosen
mobile device, and therefore will always have one available to
provide authentication.”
This mix of security and convenience is vital to keeping your
customers both happy and protected, adds Sascha Breite,
managing director of SIX Payment Services. “It is very important
to show customers that you have a secure website – showing
that you have authentication and also a security certificate.
These things are easy to achieve but must be done.
“The more convenient your system is, the better – and that
is why mobile devices will be so important. In Germany for
example, 80 per cent of the market is using smartphones so
your applications should be shaped to separate devices.
“Offering one-click payment like Amazon is important too.
Merchants can store customer details to save them entering
them again and again. But for that the customer must trust the
merchant.”
However, risks go far beyond internet payments, and one
of the main areas targeted by the fraudsters is call centres,
according to Graham Thompson, sales and marketing director
for Semafone.
Fraudster targets
“Because chip and PIN has eliminated a lot of fraud in shops, and
3D Secure has done the same in e-commerce, there is increased
fraud in the mail order telephone industry, where people
contact call centres to make fraudulent purchases.
“You also have criminal gangs infiltrating centres, working
hard to build up to management and then hiring other
members, or gangs leaning on call centre workers to get them
to pass on details.
“There is no authentication process for the cardholder to
identify themselves, but we are looking at ways to change
that. We want to utilise mobile phones but the challenge is that
phones are not yet seen as secure devices themselves, but I’m
sure that will come within the next few years.”
Investment in new systems and new technology has played
an important role towards the reduction of CNP fraud in recent
years, but how vital is it to continue that investment in the
future?
Neira Jones, head of payment security for Barclaycard,
believes sophisticated screening tools introduced in recent years
have been instrumental.
“New technologies, such as those using behavioural real-time
session analysis as opposed to traditional transaction analysis,
are making great strides to combat CNP fraud. The growth of
MasterCard Secure and Verified by Visa has definitely played a
major role,” she said.
However, she is reluctant to say investment in new technology
is needed right now, believing that openness can be every bit
as important.
CNP fraud supplement
“Solving the problem of fraud doesn’t necessarily mean
investment in new technology. There is a perception that
security is always a technology issue, but I disagree. I have
often heard problems with security being tarnished as too
expensive, complicated, hindering innovation and something
for the ‘techies’ to deal with. Most worryingly, opinions
that data breaches ‘won’t happen to me’. It’s only when
experiencing a crisis that everyone pays attention and starts
pointing the finger.
“Conversely, the information security community has also
been, in the main, guilty of perpetrating a certain mystique by
relishing in the kind of techno-speak business colleagues will
never be interested in.
Dispelling myths
“Therefore it’s vital for everyone within the industry to start
talking about security in plain English, to dispel these myths.
Security should be an inherent and recognised part of any
business at all levels. At the risk of being trite, it’s about people,
processes and technology, and sometimes just changing a
process can make you more secure.”
So while things are improving, the fraudsters are always
looking for new methods of infiltrating security – so what about
the future.
SIX Payment Service’s Briete adds: “Online merchants will have
their security in place by now, but what will be important is to
get the trust of cardholders and bring the use of mobile phones
together. We will have contactless cards until we get contactless
phones.
“But we have to be open and make some hard decisions about
what technology comes through. It’s 10 years since the start of
contactless technology and I now feel something is changing in
the market, but that will take another five years.”
But with the general view seeming to be that the next huge
change will be mobile phone authentication and contactless
devices – still a few years away – what methods of payment
security are going to bridge that gap to protect customers and
take on the criminals?
Maria Jose Goncalves, director of the retail market for WeDo
Technologies, believes there are already systems in place to help.
“Studies have shown that people are using PayPal much more
now and new options of payments like mobile phones have to
be looked at. There have been so many stories of credit card
abuses that people are using other types of payment. Of course
there is always a risk, but they are much smaller when using a
service like PayPal, which is controlled and offers a different
type of validation.”
She adds that the PCI’s Security Standards Code will also have
an important job to do going forward.
“There needs to be support for the development of more
secure systems, and if we are going to start using mobile
phones for payments then all stakeholders will have to be
involved in that process. If you don’t know how things are
working and changing then you cannot control them.”
RS
June - July 2012 RS 27

RS
28 RS June - July 2012
supplement loss prevention
Shrinking feeling
With the UK economy looking very much the worse for wear, shrinkage
(crime, waste and error) continues to threaten retailers’ ever tightening
margins. Dave Adams finds out what role technology plays in combating
this expensive problem
Shrinkage rose during 2011, to 1.37 per cent of sales,
according to the Centre for Retail Research, up from the
1.29 per cent recorded in 2010 but roughly level with the
figure for 2009. In 2011 customer theft cost UK retailers £2,146
million, employee theft cost £1,765 million, supplier fraud £191
million; and card fraud £120 million. It’s also important to bear in
mind that a huge amount of retail crime is not actually reported
or even recorded. The CRR estimates that total costs of retail
crime, including security costs, were £5,429 million in 2011, up
from £4,840 million in 2010.
But shrinkage as a proportion of sales has fallen in the
past ten years, having reached 1.77 per cent in 2002. Might
technology that was intended to tighten security and reduce
waste take some of the credit?
Security technologies are becoming more sophisticated, but
so is the way some retailers use them to address shrinkage at
a strategic level, says Jason Trigg, CEO at the Cardinal Group.
“There has been a change from a traditional ‘cops and robbers’
form of security to a drive to understand and analyse data.”
More UK retailers are considering using business intelligence
and analytics software supplied by companies like WeDo
Technologies. Its customers include Portuguese retailer Sonae,
which has stores across Europe, the Middle East and Latin
America. Sonae uses WeDo’s RAID Business Assurance solution
to drive more efficiency out of operational costs. Jorge Santos,
knowledge and supply chain solutions manager at Sonae, says
the solution has proved to be particularly useful for reducing
shrinkage in lines such as perishable foods.
Reducing crime
Another provider, Hicom, now hosts risk management
software for several major UK grocery retailers, helping to
reduce crime and fraud, including fraudulent ‘slip and fall’
compensation claims. Hicom has also been instrumental in
initiatives designed to share data gathered by retailers for
proactive risk reduction activity.
This data can help retailers to identify security threats. For
example, such data has helped to reveal the big rise in meat
theft in recent months. Research commissioned from the
Centre for Retail Research by the Financial Times earlier this
year revealed that supermarkets’ shrinkage rates for fresh meat
rose from 2.64 per cent in 2010 to 2.89 per cent in 2011, a
year-on-year rise of 9.5 per cent. Only analysis of the data can
show retailers this level of detail, so guiding their loss prevention

strategies, says Richard Paterson, business development
manager at Hicom.
But if analysing data drawn from EPoS systems and other
sources allows retailers to gain an understanding of where and
how particular goods are being targeted by thieves, it still helps
if a CCTV system can gather visual evidence, or, better still, give
store staff a chance to prevent a theft.
One consistent trend over the past decade has been the
shift away from analogue to digital CCTV systems. IP-based
digital CCTV systems have advanced impressively in recent
years, becoming particularly effective since the arrival of
High Definition (HD) TV technology. They can be integrated
with business software like ERP platforms or building
management systems and are often accessible remotely.
Image quality is now good enough to be integrated with
facial recognition technology.
The cameras can also be used in a wider variety of locations
in store. Cameras supplied by surveillance specialist Axis
Communications work with StopLift’s Scan-It-All software
to spot suspicious activity at self-scanning EPoS units. The
cameras can also be linked to software that can detect sudden
and mysterious disappearances of goods from shelves: of lots
of luxury goods that people wouldn’t usually buy in bulk, for
example. The cameras can be used to improve in-store service
too: as people counters prompting the retailer to send more
staff to the checkout when necessary: or to trigger in-store
marketing technologies or identify VIP customers.
But in addition to the gains that come from keeping an
eye on customers, perhaps the most important function of
an advanced CCTV solution is the role it can play in stopping
employee theft. For example, it can combat ‘sweethearting’,
whereby staff work with a customer accomplice to dupe the
scanner, with a camera above the till that can spot non-scans
and integrate with EPoS data enabling managers to be made
aware of and then to analyse suspicious transactions.
The cameras produced by Oncam Global also offer a 360
degree view. Oncam has partnered with another technology
company, ClickIt, to build its Grandeye cameras into an
integrated management and security solution now used at
more than 2,000 retail outlets in the US. Its HD images can
be searched quickly and easily, allowing retailers to obtain high
quality images of things that were happening in completely
different parts of the store at the same moment. Oncam sales
director Greg Alcorn says the company is hoping it will soon be
able to talk in public about large scale roll-outs planned by big
names in both US and UK retail.
Alongside cameras, the latest versions of in-store security
hardware, including EAS tools and security wraps and tags
can also now be integrated into solutions with data analysis
capabilities. Checkpoint’s EVOLVE platform is compatible with a
range of loss prevention tools including, for example, its Spider
hardware wraps, which sound an alarm if tampered with, as well
loss prevention supplement
as if carried past EAS gates.
Neil Matthews, vice-president at Checkpoint, says one notable
trend is the drive among some retailers to get tagging attached
to items at source by manufacturers, thus offering additional
protection within the supply chain and ensuring goods can go
straight onto shelves when they arrive in-store.
He also highlights the increased use of RFID tagging. Another
useful solution is the wireless headset solution offered by Quail
Digital. The integration of keypads with the headsets can make
staff communications faster, with positive effects on customer
service as well as security. End users include the Co-op, where
the Quail solution is just one part of a revised strategy for
improving security. The first step is improved staff training, says
Jenny Alleyne, store services manager for Co-operative Food.
The company now uses an online training tool, Citrus, adapted
to suit the requirements of staff at individual stores.
The Co-op also uses risk modelling software to assess the
likely security requirements for a store in a particular location,
so determining which technologies will be deployed; and a
MicroStrategy data mining solution to analyse EPoS data, looking
for anomalies in customer or staff behaviour. “We tend not to
use the word ‘security’ so much, because really everything is
about managing cost,” says Alleyne.
Elsewhere, another notable development in recent years
has been the development of more solutions suitable for use
by smaller retailers. Although it offers solutions to retailers of
any size, one vendor serving this market is PXtech. Its CCTV
surveillance solutions can be integrated with its EPoS software
and PXportal Business Intelligence platform and used by smaller
retailers on a software as a service (SaaS) basis.
One PXtech customer is SubStores, which owns and operates
five Subway stores in and around Derby and Buxton. “Wherever
I am I can look on the laptop or my phone to see who’s clocked
in and what’s happening,” says SubStores operations manager
Dave Beecroft, responsible for all five stores. He says one of
the solution’s most useful features is the way the retailer can
set their own criteria for alerts. Beecroft can then go into
the system and look at the individual transaction in question,
including CCTV footage and the receipt.
“The majority of these are legitimate errors and the CCTV
footage allows you to see it’s an error,” says Beecroft. “But
there are occasions where you log on and see that people are
stealing. About three or four months ago we had someone who
would take the correct money from the customer then back
transactions out and keep the money. He didn’t know that the
portal system was recording all those transactions.”
And perhaps that is the ideal outcome: technology and
processes that enable retailers to nip criminal activity in the
bud with the criminal as unaware of what’s happening as
they suppose the retailer is of their own actions. In times
like these, retailers need to be as cunning and ruthless as
the thieves themselves.
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supplement PCI DSS
Underlying risk
Many retailers find the requirements for PCI compliance confusing. But even
more worryingly there are some who adopt a ‘tick box’ approach rather than
addressing real security issues, writes Liz Morrell
Any retailer that takes card payments must comply
with the Payment Card Industry Data Security Standards
(PCI DSS) or risk hefty fines. But many feel that the
PCI standards, which comprise a list of 12 requirements covering
both technology and business processes and procedures
surrounding the electronic or manual storage, processing or
transmission of cardholder information, are confusing and
therefore difficult to adhere to. Especially as there are also
different levels of compliance according to the size of a
retail business.
And although the current version of the standard, which is
updated in three yearly cycles, has been in place since October
2010 there have been minor enhancements which retailers have
to keep on top of – for example the announcement in January
of an internal vulnerability assessment which comes into force
at the end of this month and must be completed on a quarterly
basis as well as the necessity for payment applications to also be
compliant with the standard at the same time.
Acquiring banks now have a bigger focus than ever on PCI
compliance and are imposing monthly fines to spur retailers into
achieving compliance.
“The acquirer is tending to give quarterly reports back to
the card schemes who are imposing monthly fines and can also
charge higher transaction charges of retailers because they
view them as an increased threat,” says Robin Adams, director
of security, fraud and risk management at The Logic Group
and also a QAS (qualified assessor) for PCI DSS.
Solution explosion
The stricter enforcement has led to an explosion in technology
vendors rushing to market with PCI solutions and that in itself
can be confusing.
A number of solutions are becoming popular, including
point-to-point encryption (P2Pe), tokenisation and outsourcing.
“Many retailers are now looking at point-to-point encryption
(P2Pe) and tokenisation as potential ways to minimise their
PCI requirements – taking legacy environments out of scope
can dramatically reduce the effort and cost involved,” says a
spokesman for VeriFone.
“For others, who want to reduce the PCI burden even
further, opting for a ‘Payments as a Service’ which involves a
third party managing the entire payments process, can offer a
cost-effective and less-disruptive route to PCI.”
Tony Hammond, product director at Torex, says the ultimate
protection is from using P2PE in conjunction with tokenisation.
“Point to point encryption (P2PE) utilising hardware based
encryption used in conjunction with a tokenisation process not
only secures data but can mitigate up to 70 per cent of PCI
controls,” he says.
Graham Thompson, sales and marketing director at
Semafone, saysremoving card data from retail environmentscan
provide big savings. “As decryption keys are not available to
the merchant this encrypted data can cross their networks
without bringing them into scope for PCI DSS.This can then save
merchants millions of pounds of cost in not having to secure
their networks and information systems to the standard of PCI
DSS,” he says.
Tim Allitt, sales and marketing director at independent
payment processor SecureTrading, says in the world of
e-commerce payment service providers (PSPs) need to help
retailers by giving them different options to help them become
PCI compliant based on the merchant’s requirements.
“For example for small to medium enterprises or larger
companies who prefer to outsource, a hosted payment page
is ideal. The PSP hosts the relevant website page on their own
PCI DSS compliant server. Card data gets captured, transmitted
and stored by the PSP and all the retailer has to do is fill out a
simple self-assessment questionnaire to become compliant, with
no technical work involved for them,” he says. The Logic Group’s
Adams believes that the stricter enforcement of PCI DSS has
come as somewhat of a surprise after its introduction way back
in 2004.
Retailer’s concerns
“Retailers in general find it far more rigorous than they
expected. They find it onerous which is why a lot are
outsourcing it because it’s easier as in a lot of cases merchants
would have to make significant changes to their infrastructure,”
he says. This was a concern for Debenhams when it began a
programme to achieve PCI DSS compliance in 2008.

Aqil Nasser, Debenhams’ technical architecture controller,
says the retailer wanted an all-encompassing solution to avoid
having to undergo a complete overhaul of its IT infrastructure
which comprised a mix of systems.
“We wanted a solution from a single provider that would
protect credit cards from the point-of-sale through our
back-end decision support systems, including our merchandising
data warehouse and processing systems,” he says.
The retailer eventually chose a tokenisation solution
fromLiaisonTechnologies which Nasser claims reduced
programming and hardware costs as well as storage
costs. “Because of its ability to run on all of our systems
non-intrusively, we were able to meet all PCI DSS encryption
requirements with minimal effort,” he says.
Mikko Soirola, VP European sales for Liaison Technologies, says
tokenisation is an increasingly popular solution for cardholder
data protection. “This advanced form of encryption is a process
of replacing sensitive data with surrogate values, or tokens,
that can be used within company systems, but not outside of it.
Therefore, like a gambling chip in a casino, the data has no value
when it is taken from its intended location. The benefits of using
tokens include protecting staff and significantly reducing the
need to reengineer installed systems – further reducing costs.”
With so many solutions Soirola says retailers should be asking
questions of their providers such as How does your solution
address the PCI-DSS compliance and scope of audits? How do
you ensure my existing business processes, workflows and
systems can continue operating whilst you implement the
solution and can you offer me any benefits of PII data security
when I move into this phase of my compliance journey?
Of course retailers as well as completing their own selfassessment
questionnaire (SAQ) or undergoing an audit by a QSA
(Qualified Security Assessor) should also ensure their providers
are PCI compliant asking suppliers to provide their certificate
of compliance or checking approved suppliers against lists from
MasterCard and Visa.
“Vendors should have a PA DSS (Payment Application Data
Security Standards) Certificate that proves their application has
been audited by a Qualified Security Assessor (QSA) and Service
Providers should have a Level 1 Service Provider Certificate
again signifying that they have been audited by a QSA and that
their service is PCI DSS compliant,” says Semafone’s Thompson.
PCI compliance remains a complicated and costly process.
“Retailers are starting to appreciate the reputational damage
but there is no link to profits. The success is you don’t suffer
security breaches,” says The Logic Group’s Adams.
But Neira Jones, head of payment security at Barclaycard,
says it is being taken more seriously be retailers. “Four years
ago when I would do a presentation on this I would get an
interested or semi-interested audience of IT managers. Now in
2012 I talk to finance directors, governance and risk directors
PCI DSS supplement
and marketing and PR and legal managers because it has wide
implications. There is definitely more awareness and knowledge
but we do need to move forward more,” she says citing smaller
companies as being particularly at risk.
‘Tick box’ compliance
Andrew Henwood, director at Foregenix, says there is a worrying
trend in SMEs. “It is fair to say the smaller the merchant,
unfortunately, the less likely they are to be working towards
compliance. A “tick-box compliance” attitude is becoming
prevalent. i.e. compliance for the sake of satisfying quotas
rather than addressing the actual underlying risk,” he says.
But the managing director of one such retail business, who
asked not to be named, agrees: “Ultimately you only have to say
you are compliant not be compliant. For small businesses the
ambition is to ensure you are not being charged for not being
compliant,” he says.
PCI compliance is a necessity but one that still more could
be done to simplify the process according to Clive Kahn, CEO
of CardSave: “Frustratingly all too frequently banks relay
the message of PCI compliance in a manner that makes it
unpalatable for the businesses to which it applies. Traditionally
steeped in complex terminology and elaborate acronyms,
compliance has been seen as little more than a paper shuffling
exercise and, for smaller retailers in particular, one that distracts
from their core business activity,” he says.
If achieving true PCI compliance is really the goal there still
seems be more than can be done to help retailers.
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roundtable
No pain, no gain
PCI standards deliver real benefits for
retailers, but many find the compliance
a headache. In April a panel of experts
assembled at Tower 42 to discuss PCI.
The event was chaired by Andrew
Johnson, director general, UK Gift Card
and Voucher Association.
The panel consisted of: Diane Bamford, head of procure
to pay NMP, Marks and Spencer; Luisa Carella-Naylor,
payments manager, Marks and Spencer; Birte Fynes,
analyst, Berry Bros & Rudd Ltd; Mathieu Gorge, CEO, Vigitrust;
Alex Harling, head of IT, W&G Foyles; Jeremy King, European
director, PCI-SSC; Cathy McCabe, IT relations director, Burberry;
Chris Nation, commercial manager – Europe, Mako Networks;
Connie Penn, chair, UK Merchant PCI-DSS Working Group,
managing director, Kilrush Consulting; Clive Smith, account
manager, Evolution UK; Alan Stephenson-Brown, director,
Phoenix Managed Networks; Graham Thompson, sales &
marketing director, Semafone and Angela Yore, director,
Sky Parlour.
AJ: Why is it that almost 80 per cent of retailers are
non-compliant with PCI standards?
AH: From the point of view of a small retailer that does not
provide its own payment systems, does not process the cards
themselves and therefore uses Commidea, PayPal, etc – the
tools are not fair, the tokenisation solutions are immature.
Therefore you can tokenise people and do 3D Secure at the
same time. The two technologies we would like to see; pointto-point
encryption, proved by the council, and tokenisation.
You work with the business process because it is no good for a
smaller retailer to redirect that customer every time, we lose
the competitiveness. We need to somehow store that number.
Once you’ve stored that number you have the challenge of
having that transaction come through at the bank rates that
“For small retailers the challenges of implementing the harder PCI standard regulations are just too great.”

you’re looking for. So, this is in a pre authentication scenario, you
need the transaction to be both 3D secure and tokenised and
correctly charged. So once we have this more retailers out there
will find it easier to become compliant.
AJ: So what you’re saying is; it’s not a lack of awareness, it’s
just the tools aren’t really out there?
AH: I believe the tools are not available. The technical challenges
of implementing the harder PCI standard regulations are
just too great. Retailers have commercial drive and a limited
amount of money to implement these kinds of technologies.
The reasonable take on this would be to wait until the right tools
are out there, which is dangerous in itself because it becomes
too tempting to simply tick the box with your card portal and
implementation plan.
A SB: When we’re out speaking to merchants the thing that
often strikes me is that merchants don’t understand their
requirements around PCI. The biggest response we get is that
they’ve taken on a solution – whether that be a standalone
solution or PSP service – and as part of that the stand they’re
taking on everything is that they’re compliant. There’s a lack
of understanding on the retail side, they don’t understand all
the requirements around PCI. Yes, there’s a self assessment
questionnaire to fill in but how many retailers have actually got
somebody who’s got the expertise to answer those questions
and actually understand what those questions mean. In my experience
very few. It is for this reason why Phoenix, as vendors,
has taken it upon ourselves to help educate the smaller merchants
we are working with through various trade organisations.
Yes the acquirers have a responsibility to help and educate their
merchants but I believe everyone in the payments chain has a
duty to educate including the PCI Council and the vendors.
BF: I think the biggest problem we have in our company
is to get management to understand that it is a continuous
job and it does take a lot of energy away the likes of the IT
department, the infrastructure – because PCI is not only IT –
and educating the whole business. Our top management doesn’t
understand that we have to invest in that as well.
CM: We’ve had quite a focus on PCI for a number of years now
but we’ve only just become compliant in the US. And the UK,
which is another key market for us, is the only other market
where we’ve integrated solutions and at the moment we’re on a
standalone piece which removes the scope to a certain degree
depending on country by country and acquirer by acquirer. I
think it’s more difficult for an international brand to go across
the board with one solution and we’ve just have to tackle it
market by market.
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AJ: Did you take the same approach as Alex – taking your systems
out of scope of the PCI standard altogether by making
sure that sensitive payment information from customers does
not enter your systems?
CM: We de-scoped completely, that was our whole approach;
a semi integrated solution that de-scoped PCI completely.
We’re very much watching the market because of the dynamic
changes there are in payments solutions at the moment, that’s
got a big pull in terms of our vision going forwards.
CP: I always had the philosophy that if you don’t have it you
don’t have to protect it. I told my merchants to keep the cards
and payments area outside in e-commerce – this was way
before PCI. So when PCI came along I continued the philosophy.
In the five years that I did consultancy for the Post Office, from
the very beginning it was – get rid of the data. The Post Office
is the biggest retailer in Europe. And if the biggest retailer in
Europe doesn’t need to hold card data, then no-one else does.
There are 20 people who have access to data at the Post Office,
because they need to have access to data for prosecution
purposes. The key to it is outsourcing.
JK: Just to say that the big merchants, the tier 1 merchants of
the UK, don’t understand PCI is wrong. From my experience they
do and the vast majority if they aren’t compliant are in the final
stages of reaching compliance. Is there a problem with the small
merchants? Absolutely. The main problem is that they don’t
understand the language we’re talking. And it is our role, along
with everybody involved in this process – acquirers, banks, card
associations and brands – to try to simplify the message. If small
merchants only took payments face-to-face they wouldn’t have
a problem, but many small merchants are moving into e-commerce.
The problem is that they’re not IT experts, they haven’t
got a clue about security and they’ve walked into a minefield.
AJ: So is it more of a problem for the acquirers and the banks?
JK: It’s a problem for everybody, including the acquirers and
schemes and banks and brands. We have to get down there and
talk to the small merchants and say to them: ‘Just use a third
party payment provider. It’s going to cost you £60 a month, and
I know that’s a lot of money, but you’re going to save yourself a
whole heap of bother.’
AJ: Is the message then to outsource?
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roundtable
JK: It is for the small merchants – it’s just easier for them.
AY: My question to you Jeremy is; where do they go? Some of
them don’t even know what PCI is and they wouldn’t know who
to outsource to if you asked them. There are great solutions
out there, some with one vendor, others across several vendors.
JK: They have a relationship with their acquiring bank and so
that has to be the gateway for them. How good it is, I don’t
know. Some of the acquirers will have hundreds of thousands
of small merchants. Do they talk to them all individually or do
they just blitz them? However, those acquirers will have access
to suppliers who are PCI approved service providers so they can
give the smaller merchants this information. Essentially I’ve got
to work with the UK cards and the UK acquirer groups. Firstly
we need to be able to get some information to the merchants
and then once they’ve read that give them a list of people they
should be talking to, let them know how much it’s going to cost
and tell them what they’re going to get. And we need to let
them know what could happen to them if they don’t go this
route. The brands don’t differentiate between big and small
merchants when there’s a data breach, they just come in and
hit you. For small merchants it’s end of game.
AY: When chip and PIN came out there was a whole load of
education. Not just to the consumers but to the retailers as well
and that was pushed down by the acquirers. We don’t have that
same infrastructure for PCI and I think it’s that whole education
process that’s lacking, that’s what the retailers need.
JK: In some regard we’ve done a sort of top down approach.
We’ve started off at the big retailers and we’ve gone down
to the next level and now we’re getting down to the smaller
merchants. Whether that’s right or wrong, I don’t know.
“Outsourcing PCI is key for tier 3 and 4 retailers.”
AH: I think there’s a vast difference between the council
interpretation of the standard and the acquirer interpretation
of the standard. And sometimes you almost get the feeling that
they don’t want you to worry. They want you to be seen to be
trying so therefore there’s a small, tiny penalty per merchant
should you not register with the PCI DSS there’s a small monthly
fee, but that is all. So if you don’t meet the requirements you
tick a box for an implementation plan and this is never reviewed
and that almost gives you the ability to perpetually say: ‘We’re
working on implementation.’ At the moment acquirers don’t
appear to be serious.
CP: UK card acquirers, who come together on a monthly
basis and meet in a non-competitive environment, they’ve
been really trying and worrying about how they’re going
to get at the small business merchants. So, encouraged by
Jeremy, they have started to put together an education
package particularly focused at level 4 merchants around the
e-commerce environment. That was sustained and upheld
by the PCI council in the autumn. When the council asked for
suggestions of what they should focus on in a 12 month period
they got 31 suggestions, that was whittled down to 13. These
were voted on by the participating organisations, of which there
are over 600 across the world. The vote came out in favour of
e-commerce solutions and education for smaller merchants but
they broadened that and said e-commerce education. Here in
the UK we’re focused on smaller merchants, looking at risk and
looking at cloud. And in the UK the card acquirers have come
together and they’ve written some guidance which has been fed
into the special interest group, which will hopefully be published
before September/October.
AH: Say a retailer already knows what they’re meant to
be doing. I meant in the process of monitoring someone’s
compliance maintenance, there is the ability to just indicate
that you have an implementation plan in place. Even if that plan
is that you’re waiting for your payment supplier to provide a
solution – that is also accepted. But this could roll over into a
number of years and in my opinion it’s not a realistic review of
that retailer’s compliance.
CP: Waiting for your supplier is another area that is being
addressed. The challenges for merchants has been that some
of the suppliers are saying: ‘Well there’s nobody chasing me
to do it. You’re going to pay for it Mr merchant.’ The merchant
says: ‘No I’m not.’ So that’s also been addressed now. Visa
particularly have launched a program to get the service
providers to register online to indicate they are compliant or
that their solution means card data is not in the merchant’s

environment. Anyone who is a service provider can register the
elements of their company that says the merchant data will
not be in scope. So it completely defines how the suppliers are
addressing PCI.
CN: it’s probably worth stressing that the delineation is between
the certified and self certified as well. We’re certified so we’ve
been independently audited as a level one service provider and
that’s the other important thing. The intent is that if, as a merchant,
you use the services or solutions provided by a certified
provider there’s an element of safe harbour. Choose someone
who’s self certified then the risk still sits with the merchant.
The compliance portals need to have an element of intelligence
behind them.
AH: They do, they’re very automated and email every five
minutes. They do actually appear to maintain the compliance.
CN: Well they might appear to be, but are they actually
monitoring in real-time the environment they’re supposed
to be protecting? Providing a dashboard which is really an
interface that just provides some ticks and boxes online rather
than a piece of paper isn’t good enough. As a level 4, unless
you happen to be selling IT products, there’s no knowledge of
IT infrastructure let alone the day-to-day challenges of PCI.
What it should be is an intelligent system. A portal should be an
intelligent system that looks outwards at information coming in
real time that reports a system as compliant, not just when it
was signed off but at any point during the 12 months.
AH: Does your system do all of that? In the sense that they will
generate an alert every time a repeated action is not done, for
example a wireless scan. So in that sense it will remind you of
everything that you’re meant to be doing and enforce that?
CN: We protect all the core networking elements. I think enforcement
is key because the scan is very much ingrained. But
it’s a good thing to go out and check your systems. If you think
about it in a very traditional security context, the reason that
group four and others pay for people to walk round perimeter
fences and fill in the gaps between CCTV, is that when you don’t
have someone walking round and you don’t have the coverage
in security you don’t know what’s happening at that time. In my
view we have to move to something with continual monitoring
enforcement and this extends to payments and non-payments
connections to public networks.
AH: The very interesting development has been that the hosted
page redirection is actually potentially weakening the retailer
because you’re completely taken out from having to implement
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all other measures and the council already has a take on that in
that the weakest website in the world can redirect the customer.
Thankfully that doesn’t work very well with business processes
because you can’t redirect them every time if you want to save
their card and all other bits and pieces that come into play. It will
be interesting to see what the next level will be after all of those
insecure sites start using the redirection.
MG: What we’re seeing from the survey that we’re carrying out
with Visa and Barclaycard, from a small merchant perspective,
is that they don’t even understand the payments ecosystem,
never mind PCI. If you ask them to tell you how they accept
payments by card, most of them don’t even know what it
means. So we ask them for what’s known as an ecosystem
diagram. It’s really just ways to data flow in terms of payments,
and maybe not just credit card payments, but payments via
wire and other ways. What we’re seeing is that those merchants
who are trying to map their payments ecosystems, when
they receive the letter from the bank saying: ‘You have to
become compliant’ they kind of get it – they still don’t do it –
but they get it. And that’s the first step. One of the things that
the council and the whole industry needs to do is define the
payments security issue. The second point I wanted to raise was
something that’s coming out of the survey – security for small
merchants is actually being driven by data protection. The ICO
in the UK has actually said that merchants need to be compliant
with PCI in order to be compliant with government regulations
that apply to your jurisdiction.
DB: Actually for most online merchants there’s a percentage
of transactions that are lost or stolen and these will by
default be handled by a person. Whether it’s from a call
centre environment or however they then handle that
transaction, that also needs to be taken care of, not just the
one handled online.
CP: In my experience where there’s an e-commerce environment
there’s also a call centre, the two can’t be separated.
But I’d still agree that both should be outsourced.
JK: I think it’s also worth mentioning that the point-to-point
solution that the council envisages, certainly at this stage, is a
face-to-face solution, it doesn’t cover e-commerce.
CN: One of the confusing messages coming out of this, and you
can understand why, is that merchants think it’s this magic thing
that’s going to take their card present fraud away and they
don’t need to care about it because the bank’s looking after
that.
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roundtable
A SB: I think that extends because PCI – and this is another
message that’s poorly communicated – is a way of securing
your business. Obviously for the larger organisations you have
IT departments that protect you day in and day out but as you
move down that payments ecosystem to the smaller merchants
you don’t have that. The data protection act is going to be a
real force here in the UK in terms of fining and forcing public
declaration of data breaches, which is going to kill merchants.
If they’ve adopted systems being driven by the banks to adopt
things like IT and they suffer a data breach in other areas because
they weren’t taking the proper precautions, then who are
they going to blame? It’s going to be whoever was influencing
them down this route, so our view still has to be holistic. Merchants
can’t think of internal encryption as absolving them of
all responsibility for card data, you’re still going to have to police
your staff. That’s the bit that worries me.
MG: I think the main issue with changing the way you do things,
or de-scoping – whatever you want to call it – is that we’ve
seen customers that implemented tokenisation and left their
legacy systems in-situ. And so what’s actually happening if you
do a scan for credit card data is that you find it on the legacy
systems. Technically that system is still in scope even though the
new system is totally fine. And again that’s an education problem
with merchants. I actually advised on this with larger merchants
as well as the smaller ones.
GT: Isn’t the issue, as you implement point-to-point encryption
or de-scope on e-commerce or your call centre, you’re actually
starting to complete different self assessment questionnaires,
so it’s quite clear which rules still apply and which do not. So,
with point-to-point encryption in the PED, there’s still going to
be audit requirements around that but they’re going to be different
from a complete SAQ D format.
JK: You’re going to simplify your PCI DSS compliance process
significantly, provided that you’re using an approved point-ofsale
device in a face-to-face environment and all the card data
is going through that device. So it does make life a lot simpler if
you can use the point-to-point encryption in the face-to-face
environment. Even with legacy systems, you shouldn’t have card
data in that store. Then you have to make sure you don’t have
any card data through people calling you up and complaining
or wanting refunds. You should move all the data to your data
centre, which are designed to be more secure and they’re easier
to audit. In January the European Union produced a proposal
on data protection that says you have to inform your information
commissioner within 24 hours of a breach. At the moment
the law says that if there’s ‘serious harm’ or if it’s a ‘significant
breach’ then you must notify, but it doesn’t define what that is.
If you have a breach and you’re found to be the cause of that
breach, the proposal is that they can fine you two per cent of
your global turnover. I think people should be forced to notify if
there is a breach because the problem becomes publicised.
AY: Jeremy, I remember you saying that on average in Europe
there are a couple of breaches a week but they were never
reported. So there are a lot of victims out there too.
JK: Yes, there are a lot of victims out there. Because governments
in different countries say a serious breach must be
reported, but they don’t say what a serious breach is. The good
thing about publicised breaches is that it persuades of retailers
that they need to invest in security because they could be next.
AJ: Can we just discuss that there is only one reason for actually
needing card data – Connie alluded to it – and that is when
you need to bring the information to court.
CP: I’ve been told by organisations I’ve worked for that everyone
there needed card information to do their jobs. I did the analysis,
I talked to the people I needed to talk to and I removed the
data without there being a big blow-out about it, nobody picked
the phone up and said: ‘I can’t do my job today.’
AJ: Alex, you said that it was key for your organisation to have
the data.
AH: I made the point that the solutions by payment providers
were not fair, so that you could go ahead and not have the data.
What we’ve found is that you describe your high level business
need, so what you want is a secure transaction but at the end
of it you also want to know about transaction rates. In that
scenario we want the solution that works for us, we don’t want
to lose the customer, we don’t want to force them to re-enter
their card number, we want to save that card and that only became
available about a year ago. And the reason why we worked
towards level one, it was a suspected breach in 2006, that’s how
I got to know a lot about the technologies out there. We looked
at a lot of payment providers and finally got PayPoint to do
what we wanted but only after a very long journey and many
years of waiting for them to come up with a solution that works.
So you can do tokenisation but not with 3D Secure – which one
is the bigger driver? Today I can’t see why a retailer would need
to store data, apart from the minor chargeback cash office
type transactions, they have to because they get them faxed
by a bank. That’s the only time I can think of a full card number
validly being held by a business.

GT: So you’ve got the token, you can send the token into the
cloud and have the cloud de-tokenise it and read the card data
to the bank without the agent listening to that information.
AH: But a chargeback when a customer says: ‘I didn’t make
this purchase’ the acquirer themselves send you the full card
number to query the transaction. That’s the example I was
talking about, the only time I can think of that having card
data is valid.
GT: Again we’ve got to educate the acquirers on this. I know
they email you with this information but some of the acquirers
are the least PCI compliant organisations. They should be looking
at their systems as well because there’s no reason why they
can’t provide that information via your cloud tokenised provider
– they give you the token and you then have to match to that.
Your challenge is as soon as you bring the card data back into
your environment that all the advantages of getting to an SAQ
A, or an SAQ C, all go out the window because you’re now back
into an SAQ D because you’ve now got a process that is managing
card data.
MG: What Alex was saying obviously has a lot of technical
advantages in that it reduces the scope and allows you to do
a simpler SAQ. But if you look at requirement 12.A, managing
your third parties, and then you look at the proposals of the
DPA in the new data protection regulation, it’s putting a lot of
emphasis on the fact that in the past the data controller was
ultimately responsible. Now the data controller and the data
processor can also be held responsible. As Jeremy said, for once
in your life you have to read the contract to see where your
liability stops and starts. I think that if acquiring banks are going
to write to their merchants or to use compliance validation
portals to promote outsource solutions for tokenisation and
point-to-point encryption and so on, they also need to promote
the fact that outsourcing has risks and that needs to be in your
risk dashboard and it needs to be fully managed.
GT: Well that’s where we have to say: ‘Well done to PCI’ because
it’s actually found a way to get that external provider audited on
an annual basis and to ensure that they stay compliant between
those two audit point. That’s probably one of the best things
that’s happened within the security industry because now we do
have a standard.
JK: If you want to use a service provider who claims they are PCI
approved, ask them for their certificate. If they have it they will
give it to you because they’re pleased as punch to have it. And if
they don’t give it to you, then you just go to another provider.
“Make sure your provider is PCI approved. ”
AY: I think that’s quite an important point to get across to
the Retail Systems readers, because they won’t necessarily
know what to look for. If you were going to write a list of the
top five things you need to know about PCI, ensuring that
your provider is approved or certified is probably up there
at number one.
roundtable
JK: If you’re going to go and deal with a payments service provider,
absolutely. Ask them to prove their credentials.
AY: So, number one – PCI can be a hassle – outsource it. And
number two – make sure your provider is certified.
JK: Absolutely.
CP: There’s three things that a merchant or a supplier should
have; a certificate of compliance, an attestation of compliance
and a ROC – record of compliance. This is very important. The
middle one, the attestation of compliance is the jewel in the
crown because no company will ever give you their ROC because
that’s confidential information. The certification of compliance
is just a certificate that the QSA can produce but the real gem,
that PCI requires to be completed, is the attestation. It tells you
exactly what has been audited, what has been assessed, even
within the different environments.
GT: And the same applies for tool lenders. And with the
attestation comes an implementation guide which the QSA
has written. So if you’re deploying a certain tool it tells you
exactly how it needs to be deployed in your environment to
remain PCI compliant. It’s not enough to say that you’ve got
an assessed tool there; it’s only if it’s deployed in a certain way
that it is compliant.
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roundtable
AJ: In the education process is that listed as one of the areas
retailers should look at?
CP: Yes, but perhaps there hasn’t been enough emphasis on it.
When you look at the guidelines for PCI on the council website
it goes through the details, but I think it’s probably one of the
details that hasn’t been brought up sufficiently. If you’re talking
to a supplier who’s perhaps doing something internationally,
their data centre in Phoenix, Arizona, is compliant, but they
may have a data centre here in the UK that hasn’t gone through
compliance. So as a merchant you need to know which data
centre your data will be going to and whether or not it has been
assessed. That’s the beauty of the attestation. If you look at
Phoenix Networks and Semafone and the detail in which they’ve
been assessed, that’s how you know they’re the right partner
for you as a merchant.
CN: It’s probably worth saying that the level one, level two
service provider – level two is only processing up to 300,000
transactions a year. So do you really want to be putting your
business in the hands of a company that’s only dealing with
300,000 transactions a year? And they are the ones who are
allowed to self assess. You want to be dealing with level one
service providers; level two is just too much of a risk because
you’re just back to ticking boxes again.
AY: Fraudsters are very clever aren’t they? They know that
level one and level two have probably got it sorted and so they’ll
go for the weakest link. Recently Alan and I spoke to various
trade bodies, the retail motoring industry, the association of
convenience stores and several others. We found that now is the
time to get that message out there to the wider audience about
outsourcing and the importance of PCI, because that’s where
the breaches are going to take place.
MG: But only if we do it using language that they will
understand.
GT: And they probably need to understand what outsourcing
is because outsourcing isn’t like, take a call centre and give it
to somebody else. It’s like using a service that ensures you can
continue to use your own contact centre except you’re not
bringing any card data into your organisation. So we even need
to be clear about what we mean by outsourcing because it could
be totally misunderstood. Merchants might think they have to
outsource all their IT to a separate business because that’s how
they use the term within their own environments.
CP: I think that’s a very key point because when you look at solu-
tions that are available, a number of them bring the card data
into the environment; therefore you’re left with the expense
and worry of having to protect all that data. Whereas there are
other solutions where the data never comes into the environment.
And that’s key because if you’re looking at the cost of
compliance, especially as you go down the food chain, you have
to be conscious of the ongoing costs because it isn’t a one off
solution. Especially in the level one group that I chair, we talk
about the importance of establishing what level everyone is at.
Of the 35 merchants in my group there are five who have been
compliant since 2010/11 but at the meeting on 6 March almost
all of the rest of the group said they would be compliant by the
end of this year.
A SB: There is a perception out there that PCI compliance is a
very hard thing to achieve.
CP: And there’s a perception that it’s simply a one off job. But
it’s not, it’s continuous. That’s why outsourcing is so important;
it means retailers only have a limited amount to do. You never
get rid of the SAQ, there’s always an SAQ of some sort which
obliges you to be secure in the important areas.
GT: It’s very interesting looking at North America now because
the merchants started this journey so much earlier than us.
Most of them have already reached compliance and now they
have seen the business as usual costs they are much more keen
on the de-scoping issue. So it’s very easy for them to justify
taking that card data and removing it from their environment.
The challenge in this market is that PCI kicks off a whole load of
other projects, it kicks off a network project, a desktop project,
a CRM project, a telephony project. And everybody gets their
budget and goe on their journey without looking at the holistic
card journey. The problem with that is all those departments
have been wanting to buy a whole series of tools forever and
then PCI comes around and they think: ‘Hey, I’ve got a budget to
buy exactly what I wanted to. We should have invested in that
years ago, that’s good information security.’ And so everybody
goes and spends their budget on that instead of questioning
whether they really want card data in their environment.
CP: One of the key things to take away from this is that you
can manage without data. My experience with the Post Office
proves that. Retailers should be limiting the scope by keeping
card data and personal data in one particular area so it can
be easily protected. This is not about abdicating responsibility.
You can’t build a business case on protecting card data but we
should all be responsible for protecting personal data for our
customers. Anyone who has data has a responsibility.

soapbox
During a time of economic
squeeze, where household
budgets are tighter than
they’ve perhaps ever been, and food
and other essentials bills are on the
rise, customer loyalty is the number
one priority for retailers.
In an increasingly competitive sector,
grocery retailers are constantly
struggling to win over new customers, but are now at increased
risk of losing loyal shoppers that they already have. At a time of
real financial strain for the shopper, retailers must do everything
they can to attend to their needs.
Retailers have long been enticing shoppers in with ‘buy one,
get one free’ deals or ‘buy two for £10’ when one costs £6, but
with promotions hitting an all-time high, so has shopper cynicism.
Recent research shows that 26 per cent of shoppers regularly
spend time in store trying to work out if a promotion is a good
deal and that over 30 per cent wish they could buy products at
their lowest price rather than in bundles. This confusion has a
clear impact on loyalty.
Recent findings from consumer watchdog Which? that
suggested supermarkets are intentionally misleading shoppers
with multi-buy promotions, will only serve to cement cynicism
amongst shoppers. Something retailers can ill afford.
Of course, when trying to save money, shoppers will question
existing purchasing habits and shop around to get the lowest
price. Retailers that persist with complex multi-buy deals are
The Retail Champion: 10 Steps to Retail Success – Clare Rayner
She may have come from humble beginnings – flipping burgers
part time at McDonald’s – but Clare Rayner has certainly earned
her title of Retail Champion. In her book you’ll find plenty of
endorsements from retailers, but it is her humorous and accessible
style of writing that will make this guide to retail success
a must read for independent startups. How often is it said that
the little guy doesn’t have a voice? Well, now he does. And with
Clare championing the sustainability of small and independent
retailers, you can be sure people will sit up and take notice.
The idea for the book originated – quite aptly in this age of engaging
customers via social media – from a tweet. Sarah Decent,
who runs a shoe retail business called Modish, tweeted: “Help me.
Where can I find a book to help me run my retail business? I need
to stop playing at shops!”. Realising that it was about time she did
bits and pieces
Mark Croxton head of global customer support, Aldata
book reviews
missing the strong trend of shoppers focusing on value lines
in order to save money, coupled with the occasional treat.
Pulling back from these types of promotions, concentrating
more on everyday low pricing, moving towards assortments
tailored to the local store demographic and reinforcing loyalty
schemes are the tactics more suited to the current shopper
needs – and if executed well will ensure a strong loyal customer
base into the future. But how easy is this to accomplish?
These adjustments can be complex, and for retailers to
ensure that they refrain from making mistakes they need to
have efficient back-office systems in place. Having a unified
overview of shopper buying habits allows retailers to make
informed loyalty decisions in relation to price, assortment and
promotions from the data they collect both in-store and online.
Through such IT systems, retailers can make informed loyalty
decisions and expand promotions to introduce customers to new
ranges based on complete customer knowledge. This type of
business intelligence and insight into shopping behaviour can be
crucial to having a complete overview of your customers. In turn,
this will improve a retailer’s chances of keeping their shoppers
happy, not to mention loyal.
The importance of focusing on customer loyalty now is
greater than ever as is the need to approach back-office systems
as an essential tool for securing opportunities, not only to keep
customers satisfied, but also by impressing the shopper who
hasn’t already aligned themselves to a particular retailer. Get the
right systems and approach in place, and there’s no question
who will be crowned winner at the end of the battle for loyalty.
what Sarah suggested, Clare answered her – the rest is history.
In her book The Retail Champion: 10 Steps to Retail Success
Clare outlines case studies, such as Mike Clare, founder and
president of Dreams Plc and Jacqueline Gold, CEO of Ann
Summers and Kinckerbox, that are sure to inspire anyone
thinking about starting their own retail business. Mike Clare
himself calls the book ‘invaluable’, praising the golden nuggets
of tips and advice for new startups hidden within.
Readers can assess their progress through the 10 steps: Goal
and mission; Positioning; Ideal customer; Range planning; Pricing
and promotions; Channel and location; Customer engagement;
Supply chain; Planning and controlling and Back office (HR, legal,
finance and IT). As Clare says herself in her book: “The 10 steps
to retail success are not complex – we’re talking about serving
consumers, not solving famine!”
bits and pieces
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feature in-store media
In-store evolution
With the boom in digital signage, kiosks and mobile devices for staff, the way
retailers engage with their customers in-store has changed dramatically in a
very short time. Ellie Robinson investigates
Visitors at many recent trade shows will have been greeted
by a wealth of plasma video displays, kiosks and digital
signage aimed at boosting shoppers’ retail experience.
While all the “bells and whistles” may look great in the exhibition
hall, how are they being used in retail space and to what effect?
Wincour Nixdorf is currently working with Marks & Spencer to
supply kiosks.
“It is an emerging market,” explains marketing director Ed
Brindley. “The kiosks in Marks & Spencer look like giant iPhones.
Retailers are using them for information on products and for
range expansion. A lot of people are used to online shopping and
have done some research online before going in-store.”
He adds: “When they do come to the store, they can go to
the kiosk where retailers can be offering their full range of
goods in store. The amount of trade that is lost by people not
being able to find what they want and walking out of the store
is pretty high.
“Another advantage is you do not have to pay a massive
square footage.”
Brindley said the next step in the expansion of the kiosk
system would be adding paying terminals to the kiosks so
customers can do everything at one point.
“There is a sense you have got to invest to survive”, he says.
“The retailers who do not do this are at risk of being left behind
by their peers. The technology enables customers to be more
self sufficient and staff to be more efficient, for example, they
won’t have to be checking stock for customers. I’m not saying
that the technology does pay for itself, but it does help.”
Five years ago, digital signage consisted of TV monitors
playing promotional material. Dharmendra Patel, managing
director Europe at PlayNetwork, however believes the next
stage in in-store media’s evolution is upon us as retailers look
to enhance customer’s experience.
Digital signage
He says: “We are looking at digital signage to engage through
mobile phone handsets. A screen is no longer a screen – it
is a two-way communication tool. A lot more retailers are
using screen media. It is a way of engaging with the customer
delivered through a software application.”

While facial recognition technology in digital signage may
have taken off in the US, here Patel believes retailers would not
know what to do with the data. But, as mobile phone technology
moves on, retailers will have to think about how to integrate this
into their shopping experience.
“I think that is where it is going over the next five years”, he
says. “From my experience we are having to educate a lot of
retailers on how they can use technology, screens and mobile
phones and connect that technology together.”
PlayNetwork is currently working with a pub chain to use
media to encourage customers to stay there for another hour.
Referring to Tesco’s plans for online dressing rooms, Patel
believes this concept would be transferred in-store where it
would take off in the next five years – particularly if used in a
dead space area of the store.
He adds: “I think one of the issues is it is a big investment. The
big question is what’s my ROI? If retailers think like that, they are
not going to do it. How do you measure its success? Another
measure is how it impacts on your brand.”
Steve Thomas, chief technology officer at BT Expedite also
believes smartphones will direct the progression of in-store
media.
Customer engagement
He anticipates the concept of online shopping being taken
into stores as customers are used to having a very personal
experience at home and the retail solutions company sees that
trend transferring into stores.
Thomas says: “Retailers need to engage in conversation with
their customers as what drives customer experience also drives
customer loyalty.”
BT Expedite is working with Aurora to equip staff at an Oasis
branch just off Oxford Circus with iPads to use around the
store. The computers could also be fixed for customers to use
themselves.
“I think the success of implanting something like this is
making sure the staff buy into it,” Thomas adds.
Meanwhile, Tensator told Retail Systems that it has seen
growing demand for its systems from stores looking to install
state-of-the-art messaging platforms. The Tensator Virtual
Assistant, an audio-visual platform that creates the illusion of
a real person, is one such example.
Ajay Joshi, head of Tensamedia Solutions Tensator, says:
“Retailers are adopting the fully-customisable system as an
innovative way to provide customers with valuable information,
such as marketing promotions, whilst creating a ‘wow’ factor
in-store.”
Joshi adds that digital media can be employed to entertain
customers by screening content on corporate TV screens
relevant to a retailer’s customers. It can also create additional
revenue streams for stores e.g. by promoting store cards, and is
particularly effective when implemented
in-store media feature
in areas of ‘dead’ space, such as the queue, where you have
a captive audience.
Derek Buchanan, chief executive at Episys also argues
retailers should be investing this technology to ensure they can
be competitive and react fast to market pressures, comply with
trading standards, create a memorable shopping experience by
delivering excellent service, minimise inefficiencies to reduce
costs and increase sales.
Into the future
More importantly, Buchanan, says it provides them with a
platform for the future.
“At any point the retailer can introduce and drive, from the
same platform, the most appropriate mix of communication
methods whether that is highly impactful colour point-of-sale
material, electronic signage, multimedia devices, kiosks,
smartphones or, externally, through the web site or catalogue,
or future technology, or all of these.”
But how can the plethora data gathered be processed for a
retailer’s benefit? Network video, also known as IP surveillance
feeds information from cameras into customer behaviour
analysis tools that can determine all types of information from
how long customers spend browsing to how they walk around
the store.
Atul Rajput, retail specialist at Axis Communications, explains:
“This can be achieved through integrating network cameras with
facial recognition analytics, which can for example determine
the gender of the customer looking at a digital signage display.
The video analytic can measure customer dwell time to gauge
engagement levels and also trigger the digital signage device to
reconfigure the display with promotional content that targets a
specific gender audience.
“Retailers are starting to use IP video surveillance to instantly
tailor in-store media to individual customers.”
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feature outsourcing IT
Under threat?
Like it or not, all retailers will be using cloud computing in the future. But will
they opt for the traditional IT outsourcing companies, or the new kids on the
block, such as Amazon and Google? Glynn Davis reports
Amazon’s $1.5 billion of annual revenues derived from its
cloud computing division is just one chunk of IT business
that is being shifted into the hands of a batch of
newcomers now offering outsourced processing capacity.
The arrival of Amazon along with the likes of Google, Microsoft,
Salesforce.com and Dell is prompting the question of whether
these upstarts are a threat to the traditional IT outsourcing
(ITO) companies.
Mark Skilton, global director of infrastructure services
business at Capgemini, suggests they are a threat – since they
are taking business within the area of application software
and business processing – but that the reality is many retail
customers, especially the larger players, require much more than
simply buying off-the-peg capacity.
“Google and Amazon have been great at how you consume
[computing power] and have empowered people to buy cloud
computing, which has revolutionised ITO but you need to be
aware of where your information is going and whether this data
is in sync. You can potentially reduce costs by hosting your IT
on Amazon but what’s the competitive advantage. Utilisation
costs are good but companies also want to run their businesses
better,” explains Skilton.
It is traditional ITOs who are in a position to ensure retailers
have data synchronisation across the various platforms on which
they operate and provide them with the skills to integrate these
various elements.
Andy Taylor, director of the private sector division at Fujitsu,
says another example of a traditional ITO provider adding value
is through ensuring PCI compliance. Whereas directly purchasing
public cloud space would not provide data compliance for a
retailer, if they went via a traditional ITO provider then this PCIcompliance
could be assured as part of the overall outsourcing
agreement.
The big reality check, whether ITO providers like it or not, is
that all retailers will be using cloud computing in the future. A
survey by Tata Consultancy Services (TCS) found that of 800
enterprises questioned, the propensity of them to use cloud
computing will double by 2014 and in the US 50 per cent will be
using public or hybrid public/private cloud models.
Taylor says traditional ITOs therefore need to work with
the likes of Amazon as these newcomers can be providers of
complementary services. “The model has changed and at Fujitsu
we now work with all cloud providers. We see their emergence
as a huge opportunity because all retailers will have multiple
cloud solutions in the future,” suggests Capgemini’s Skilton.
Changing world
Taylor agrees that the world has changed and that traditional
ITOs have to adapt: “The pace of [technological] change has
increased so if ITO providers are to be successful they need to
be more flexible and this includes having cloud as part of their
overall solution.”
His view is that this involves ITOs providing a mixture of
private, public and hybrid cloud solutions to their customers,
which means they will inevitably be using the services of the
newcomers. For non-critical applications where there is no
perceived security issue with multi-tenancy and co-mingling of
data they offer the most cost-efficient cloud proposition
“ITO providers need to challenge themselves to put some of
their client’s activities in the cloud otherwise they’ll be running
on an old model and retailers will spot that there cheaper
alternatives elsewhere,” says Fujitsu’s Taylor. Capgemini does an
‘application value assessment’ for each application to see what
infrastructure best supports it and whether this is private or
public cloud.
This consultative approach is the big value-add for traditional
ITOs and can help them provide retailers with their number one
demand – to ultimately have greater flexibility and agility within
their businesses.
Ananth Krishnan, vice president and chief technology
officer at TCS, says a survey from TCS found that while cost
was number five on retailers’ lists of why they were looking at
implementing cloud solutions, the top priority was on deriving
agility and speed from the technology.
“Traditional ITOs proving an advisory role is happening as
we speak. They can assist retailers by saying that the physical
consumption [of cloud services] is easy and that they can
partner with Amazon, but they can also show them how the
cloud can be bought on an agility proposition rather than just
on a lowest-cost basis. Translating infrastructure agility into
business agility is a big opportunity for us,” he explains.
As with other traditional ITO providers TCS now has a cloud-

type solution within its armoury that it describes as a ‘business
process cloud’, which is a multi-tenancy solution. It only hosts
TCS customers who are using the same software. Applications
likely to be hosted on this cloud solution include the likes of
finance and accounting, order management, and HR software
products.
This highlights how the traditional ITOs are to some extent
encroaching on the services offered by the newer cloud providers.
The lines are inevitably blurring somewhat. It is a similar
story at JDA that developed a cloud proposition 12 months ago.
outsourcing IT feature
Joseph King, senior vice president of
cloud services at JDA, says it is a private
cloud that mimics that of Salesforce.
com, but in contrast it is a single-tenancy
environment. It also differs in being part
of the “totality of the JDA offering”,
according to King, which means that it is
only available to users of its software.
Unlike some other traditional ITOs
King has a wariness of the new players
and he warns that their co-mingling,
multi-tenancy models might be “okay
for certain business needs such as web
messaging” but care has to be taken if
they start to broaden their outlook.
“The newcomers were initially aiming
at less critical areas but they are now
starting to get into the customer base
[data]. What other applications that are
run behind the firewall could they look
to put onto their clouds? They are an
interesting play but under the covers I’m
not so sure,” he suggests.
Value vs experience
Although he admits that these new
providers offer a good value service he
says the benefit of the traditional ITOs
is the years of experience that they can
bring to bear on their clients’ businesses
– pointing to the 25-year history of JDA.
But there is some concern, according
to Fujitsu’s Taylor, that the old guard are
finding it difficult to work together with
retailers to put long-term strategies in
place, such is the pace of change of IT
developments in the marketplace – partly
as a result of the emergence of the
cloud, which is without doubt a serious
disruptor.
Capgemini’s Skilton says there is also
the issue of uncertainty within the EU
around cloud adoption that is centred on the lack of training,
lack of awareness of different standards, the safe harbour of
data and privacy, as well as the terminology that is used by the
different cloud providers. “This terminology debate will run and
run,” he suggests.
There is undoubtedly plenty that needs to be made clear
and clarified to retailers about the cloud and quite possibly
the people best placed to deliver this are the incumbent ITO
providers. Provided that is, that they offer thorough objectivity
and have embraced a future that, however you choose to define
RS
June - July 2012 RS 43

RS
44 RS June - July 2012
feature merchandise planning
Minding
the gap
Sudden spikes in demand for a
product can still catch out even
big names. Graham Buck examines
the importance of merchandise
planning in preventing empty
spaces on shelves
Honesty is always the best policy after a corporate slip-up,
so Marks & Spencer chief Marc Bolland was upfront in
explaining the reasons for the retailer’s disappointing first
quarter UK results. Lost sales opportunities were a major factor;
many M&S stores ran low on supplies of women’s coats, jackets
and knitwear after weeks of mild winter weather gave way to a
sudden cold snap in February.
M&S sold 100,000 cardigans and jumpers from its core
M&S Woman collection, but Bolland admitted that it could
have shifted three times the number had temporary stock
shortages not caused gaps on the shelves. Failure to order
enough of other in-demand items such as women’s ballet pumps
compounded the problem.
According to David Noble, chief executive of the Chartered
Institute of Purchasing and Supply (CIPS), the company’s sales
slippage demonstrated the difficulty of managing stock in the
face of consumer demand, particularly when weather-related.
“The results show the importance of demand management
and ensuring supply chains are sufficiently flexible to respond,”
he commented. Noble cited further challenges for retailers
this summer from events such as the UEFA European Football
Championships and the London Olympic and Paralympic Games.
“Accurately judging the impact hot weather or otherwise
will have on sales will be critical for retailers looking to take
advantage of the traditional increase in consumer spending
during these kinds of events,” he added.
And consumers show less brand loyalty and have more choice
about where to spend their money than ever comments Julian
Clay, chief operations officer at supply chain management
software company ediTRACK.
“A 2011 survey found that half of consumers look forward
to visiting a High Street store because of the image they have
of a brand – only to be disappointed by poor product availability
when they arrive,” he reports. “One in four consumers now
uses the mobile internet to see if the goods they want are
cheaper elsewhere.”
And as Cindy Etsell, industry marketing manager – commercial
for SAS UK & Ireland, observes: “Retail needs to be come
theatre, as it’s an experience. And with consumers spending
less, retailers need to up their game. Yet you still don’t see that
much technology employed in many stores. Indeed, often retail
employees are savvier about technology than their employer.”

Unpredictable weather patterns are not the only challenge to
maintain well-stocked shelves. Way back in the 90s, Delia Smith’s
TV cookery series sparked sudden demand for items ranging
from cranberries to omelette pans. This trend has accelerated
in recent years thanks to the rise of celebrity culture and also
social networks such as Facebook.
As NCR’s retail industry director, Stuart Henderson, observes a
High Street dress worn by one of the Middleton sisters will be an
immediate sell-out. Consumers also increasingly have the option
of “shopping ahead of the curve” and pre-ordering items before
they hit the stores.
“Getting the seasonal phasing of stock right and predicting
which products will be the “hot sellers” is a key challenge in retail,”
he says. “Retailers can look at long-range weather forecasts,
how bloggers and journalist are responding to product previews,
and work to ensure their supply chains are more responsive to
constantly shifting levels of consumer demand.
“But there is no silver bullet, as many factors are beyond
retailers’ control.”
Being out of stock of in-demand products means that a
retailer is out of pocket. The damage is even greater when
frustrated customers transfer their custom to a competitor
because they cannot find an item. Conversely, being overstocked
erodes profit margins; end-of-season markdowns
are needed to shift items that haven’t sold well and more
time-sensitive goods, such as perishable items, will either be
given away or disposed of.
“This means retailers need to take an integrated, multichannel
approach to analysing, responding to and influencing demand to
boost sales and profit levels,” says Henderson.
Gary Lynch, chief executive of GS1 UK agrees. “The explosion
of data within retail – driven both by consumer demand for
a seamless multi-channel retail experience and more product
information – is having a major impact on inventory control,” he
reports. “It’s clear that poor inventory control and inaccurate
data can have a hugely negative impact on retailers, particularly
in today’s tough climate.
“Accurate inventory control is crucial to the business bottom
line. By standardising data throughout the supply chain, retailers
can control their inventory more efficiently, cut costs and
create a consistent and trustworthy experience for consumers.”
Cost versus flexibility
Lee Gill, vice president of retail strategy at JDA Software, says
that M&S’s recent stock shortages are typical of a problem
shared by many other big names and admires the company for
being more candid than some of its rivals. Until the Eighties M&S
stores proclaimed that at least 90 per cent of all goods sold
were British-made, but that policy was steadily abandoned as it
moved to overseas suppliers.
“There was a wholesale exodus of procurement to China, India
and Eastern Europe; a change that generated improved margins
merchandise planning feature
but meant a less responsive supply chain – lead times got longer
and grew to between six and eight weeks.”
Gill observes that lead times have become a major issue, with
retailers obliged to assess the trade-off between the lower
costs that come from having an overseas supplier and the
greater flexibility in responding to demand in sourcing from
closer to home.
“Resources should therefore be devoted to more unpredictable
products – as opposed to “flow products”; items for which
demand is more predictable as it remains relatively consistent
over the year,” he suggests. “Fashion ‘plagiarists’ who quickly
knock off copies of a new fashion have the raw materials close
to hand and a nearby supplier.
More time-sensitive goods, such as fresh produce with a
limited shelf life, also requires active management in terms
of allocation and replenishment planning for the supply chain to
ensure they are sold in time says Nishant Thusoo, sales manager-
Europe for retail, consumer packaged goods and logistics at
Infosys. Technology can assist by optimising which items to
stock and the amount of shelf space to be allocated to each.
“By feeding in merchandising rules and optimisation
algorithms, technology can create store-specific planograms
(POGs), which can maximise sales or margins, depending on the
retailer’s priorities.”
Multi-channel challenge
There is general consensus that merchandise planning is even
more of a challenge for multi-channel retailers who provide
Click & Collect services or home delivery of items. In North
America, Nordstrom and JC Penney are regarded as among
the names that have become most adept, while closer to
home Boots, B&Q and John Lewis are well-regarded for their
multi-channel strategy.
“Multi-channel planning is important as many retailers claim to
offer cross-channel integration,” says Thusoo. “But this planning
has often been rather disjointed – even though online offers
huge potential for carrying more lines.
“Much better integration is required in the planning process,
which needs to consider cross-channel customers’ shopping
behaviour to take the right merchandising decisions.”
Cloud-based supply chain systems can assist the process by
providing retailers with the latest information on stock held
together with stock that is on the way, where it is and where it
needs to be to achieve maximum levels of sales and customer
satisfaction, says Clay.
“Using this kind of information the retailer may decide to
“fast-track” certain items and delay others to maximise sales and
minimise costs.
“Some retailers also utilise it to give online customers precise
shipping times when an item is out of stock. By keeping them
informed they are more likely to maintain brand loyalty – even in
short stock situations.”
RS
June - July 2012 RS 45

RS
46 RS June - July 2012
profile ShopperTrak
On the right Trak
Karen Moss catches up with newly appointed
CEO for Europe at ShopperTrak, Todd Starcevich,
to find out why measuring footfall is more
important for retailers than ever before and
how it can help them boost sales
In a world where data is king retailers are constantly striving
to collect more and more information on their customers.
But with all the complex facial recognition and motion capture
technology available today, is it possible that retailers are forgetting
a simple truth? That they need foot traffic first
and foremost. After all, there’s no point spending cash from
an already squeezed IT budget on expensive new technologies
if your customer base is not there.
The message from ShopperTrak, the world’s largest provider
of retail foot traffic counting, is that companies with a true
idea of how many consumers are crossing their thresholds
across their entire store estate can more accurately plan
everything from marketing and staffing to the location of
new store openings.
CEO for ShopperTrak Europe and the Middle East, Todd
Starcevich, says: “Many customer counting systems being used
by retailers in Europe today simply lack the accuracy they need
to deliver the business insights that retailers expect. The fact
is that monitoring the footfall of each store separately is not
enough. You need to be able to measure footfall across the
entire store estate. Only that way can a retailer truly measure
store performance locally, regionally or nationally.
“If a retailer has two stores in similar locations, serving a
similar customer demographic but those two stores have very
different conversion rates, they need to know that. Being
presented with that information allows them to go and find
out what those two stores are doing differently and make
changes as necessary.”
As many retailers know to their cost, the way people shop
has changed dramatically since the birth of e-commerce and
it has shifted again in the last few years thanks to smart mobile
devices. The advent of online shopping has meant a decrease
in footfall on the High Street, but Todd says this means
understanding your customers and having up-to-date data
is more important than ever.
ShopperTrak, a fully managed solution that provides real-time
traffic data, has managed billions of shopper visits across the
globe for the last 20 years. Because of their longevity their
algorithms can predict when and where people will shop and
how many consumers to expect. Last year they predicted the
week before Christmas would be especially important for retailers,
as five of the top sales and foot traffic days would occur
between 18 and 24 December. ShopperTrak said retailers could
expect consumers walking into their stores that week to have
conducted plenty of online research and would be ready to buy.
Todd says that having one system across many stores means
that retailers can more easily predict and plan for these kinds of
busy periods. “We install and configure the hardware,” he says.
“We then remotely collect traffic and PoS data and format
web-based daily reports for our clients. Using this real-time
information retailers can better plan their staffing schedules
around peak times and their busiest stores. It can also impact
their stock planning, which can be one of the most challenging
areas for retailers – especially in a multi-channel world where
you have Click & Collect or even online delivery orders being
picked from stores. Knowing when their peak traffic times are
means they can ensure their shelves are fully stocked.
“Historical data allows them to see which times of year they
get the most footfall, for example Christmas, so they can
prepare. Reviewing this data can even help retailers assess the
impact or success of marketing strategies. Did a certain offer
get more people through the door? And then, once there, did
that encourage them to buy? Was there an uplift in sales? These
are important questions that every retailer wants to answer.
“When retailers install our system they can often be quite
shocked by the findings we present to them. Many had no idea
so many people were entering their stores without making
purchases. But we like to think that through discovering the
problem retailers will have the chance to improve conversion.”
ShopperTrak counts people, analyses data, and reveals total
sales opportunities for retailers and mall owners, worldwide.
With over 45,000 managed devices in service and billions of
shopper visits counted annually, they’re the global leader in
people counting and store performance analysis.

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RS
letters to the editor
48 RS June - July 2012
letters
MEASURING SOCIAL ROI
A recent survey that states 90 per cent of UK businesses
are failing to effectively measure social media ROI,
highlights some fundamental flaws in the way in which many
organisations approach their social media marketing and social
user engagement. KPIs in social media are currently measured
by likes and fans. Although this is increasingly recognised as
a flawed and ineffective method for evaluating social media
success, the industry at large is failing to come up with any
other measure for success.
And this is the key: In the new social landscape, there is no single
right way of engaging in social media marketing. Likewise,
social media KPIs and return on investment will be unique to
every brand because the very nature of the interaction and
consumer engagement is personalised and unique.
The key therefore for any brand is to know and understand
who their ‘likes’ are from; everything else is just extrapolation.
Social login – the ability for consumers to use their social
media profile to register on a brand’s website – is now
providing brands with the ability to find out who their users
are by gaining insight from their social data. Indeed, consumers
are becoming more open to data sharing and expect to
receive the more targeted, relevant engagement in return
for sharing their personal profile. In recent research, Janrain
established that 85 per cent of UK consumers would like social
login to be offered as an alternative when registering for
sites over the standard web registration process.
The rise in social media and the effect it is having on
consumers’ willingness to share personal data with brands,
as part of a value-exchange, means that the goal posts for
b2c engagement are changing. Brands need to recognise
that social media marketing is personal and start measuring
their social media success on the depth of their own unique
engagement with their individual customers.
Russell Loarridge, European sales director, Janrain
CONVENIENCE STORE SHIFT
In the face of recent growth and profit figures released by
some of the multiples, it is clear to see that something is
afoot when comparing their figures against those of the
convenience sector. Fascia groups’ annual growth is nearly
in double figures at 9.2 per cent compared to Sainsbury’s,
currently one of the leading multiples in terms of growth,
who only achieved 5.6 per cent growth.
Similarly, at the lower end of the growth scale, Morrison’s reported
1.5 per cent like for like growth. The growth figures in
the convenience sector will have the multiples reeling as they
try to get to grips with the disparity in consumer behaviours
and retailer results. However, with a greatly improved product
offering and range, particularly within fresh chilled and bakery
goods, competition is hotting up. There has been a big shift in
consumer perception towards convenience stores, attributable
to a drive on their part for competitive prices comparable
to the multiples. For example, Budgens now price match large
retailers and have been advertising the top 800 line to be the
same price as Tesco. Moreover, many convenience stores are
also embracing smarter marketing and investing in larger
campaigns such as Nisa’s recent national TV advertising
campaign outlining their product ranges available in store.
Add to this that consumer shopping patterns have altered
dramatically due to austerity, with a shift to higher frequency
shopping trips, visiting stores four to five times per week,
spending less but more often, and you start to see where the
growth is coming from.
But the convenience sector is also getting savvy. The quality
and quantity of sales performance information now available
at an individual store level is allowing stores to use data
insight into product performance by range, by brand, by
geography and by outlet type to better equip their stores
to serve the local consumers they want to attract.
Hand in hand, this growth in the convenience market has also
encouraged manufacturers to increase their investment,
offering bespoke promotional brand activity, such as new
product variants and pack sizes. This change in attitude and
indeed perception by the product providers is further fuelling
the convenience market’s growth and opportunity to succeed
further.,
Roger Suddaby, head of sales, SalesOut
FACEBOOK ENTERS M-COMMERCE
There are estimates that the social commerce market
will be worth up to $50 billion in the next eight years and
undoubtedly Facebook is positioned to be the main primary
beneficiary. With the company’s IPO garnering so much
interest it is clear that shareholders will be wanting to see a
return on their investment in the future. With this in mind
it is a logical step that Facebook is trying to position itself
as more than just a social networking platform. Facebook’s
acquisition of Karma is a further indication that it has serious
aspirations to become a commerce platform. Certainly we
have already seen a positive trend from businesses selling
through Facebook. Our own figures have shown that those
e-commerce businesses that also have Facebook stores saw a
17.7 per cent increase in revenue in the first quarter of 2012.
Eugene Kaznacheev, product manager Ecwid
Letters to the Editor should be emailed to: karen.moss@retail-systems.com

Imagine the scenario – a young female
shopper takes a handful of new clothes
into the changing room of a High Street
retailer to try on. They look good, but her
mood is not quite right. Just then, her
phone sounds with an SMS suggesting
some music that might suit her outfit.
A quick listen and download and her
decision is made – the clothes are going
to be bought after all.
But this scene is not imaginary – it has
already been trialled by a number of High
Street brands working with mobile phone
network O2. Using a combination of RFID
tags in swing tickets, profiling music
tracks to match certain clothes, and
location-based advertising, the clothesbuying
experience is transformed into
a mood-enhancing multi-channel event.
Something similar is happening in
Andrew Collinge’s hair salons. Customers
can receive a loyalty card that links
their visit with their Facebook profile
when they tap on a special device
during their visit. Both parties get the
benefit of profile updates and loyalty
across the retail space as well as the social
network. Both of these solutions require
the same things – a recognition that
the new customer wants more than just
the standard shop visit, an understanding
that data is the new asset to support
these multi-channel interactions, and an
investment in data management. Without
spending money to get the product, sales
and customer data right, retailers risk
losing those precious customers who are
still actively transacting in their outlets.
In a cash-constrained era like the
present, however, making the case for
putting more of the budget into loyalty
systems and data management can look
difficult. Many retailers already have
some form of customer database in place
and may be using the information they
have captured to run loyalty marketing
programmes.
Times change, however, and data
changes, too. At the simplest level, a
retailer that wants to stay in a dialogue
with its customers must make sure it is
maintaining their personal information
and keeping it up-to-date. In 2011, there
were nearly one million house sales
completed, so any retailer with a national,
mass market could find one in 23 address
records that were correct at the start of
the year but not by the end.
Spending money on managing that
address data makes simple business
sense, especially if it is used to send out
physical messages in direct mail, and even
more so if it is relied on for deliveries.
IMRG has calculated that a failed delivery
costs an average of £4.25 (and losing
a customer as a result costs £91.34 on
average). The total cost to the e-tail
industry each year is put at between
£790 million and £1 billion, or 70p for
every parcel dispatched in the UK.
Recognising the underlying costs
to the business from poor data
management is at the heart of data
governance. Identifying where they
result from poor processes – such
as customer data being incorrectly
entered the first time they are given a
loyalty card – or simple demographic
shifts – such as social mobility – is the
basis of a robust business case for
further investment.
The Data Governance Forum has
developed a business case whitepaper
for its members that works through
six of the most typical dimensions on
which a compelling argument for more
investment into data management can
be made. These range from the highly
CFO-friendly (revenue generation, cost
mitigation) through to the more arcane
(risk mitigation, asset creation), but all
provide clear reasons for investment
that can be linked to a positive ROI.
Most retailers already know the
comment
Closing the sale for data investment
David Reed, founder of the Data Governance Forum, explores how the correct use
of data can transform the buying experience
impact that data can have, not least
because of the large-scale and bestin-class
examples in this sector. Tesco
Clubcard is a well-rehearsed case
study in transforming a business by
applying customer data to everything
from product assortment through to
loyalty marketing.
The success Tesco found with its
scheme may be assumed to be a
fixed and mature example. Yet the
experience of Christmas 2011 is very
telling, when the retailer moved away
from its key customer asset (the loyalty
card) by cutting its points allocation. It
allowed Sainsbury’s to make up ground
by leveraging its own well-established
Nectar card database to drive highly
targeted and tactical promotional activity.
Both of these supermarket giants
spend hundreds of millions of pounds on
their data every year, accepting it as a
simple cost of business. Other retailers do
not have to spend such large sums – the
Andrew Collinge scheme will be running
at a fraction of that cost. But the return
on investment from any spend on data
is invariably positive. Now how many
other aspects of retailing can you say
that about?
David Reed founded The Data
Governance Forum to represent, inform
and connect end-user organisations
which manage personal information
RS
June - July 2012 RS 49

RS
appointments
50 RS June - July 2012
People on the move
Richard Swift
Maginus has further strengthened its
JunctionMCR team with the appointment of
Richard Swift, as its new head of consulting.
Richard joins Maginus from Microsoft Dynamics
AX partner, Junction Solutions UK, and brings over 15 years
experience with him, working with significant tier 1 companies
both in the multi-channel retail and distribution market.
He says: “I am excited at the prospect of helping Maginus
become the partner of choice for retailers and distributors.”
Andy Hood
And Maginus has added yet another member
to its JunctionMCR team, with the appointment
of Andy Hood as its new head of
delivery. Andy joins Maginus from Microsoft
Dynamics AX partner, Junction Solutions UK and brings extensive
experience with him of working with enterprise systems
within the multi-channel retail and distribution markets. Andy
has over 10 years IT management experience working with
companies such as Sainsbury’s, Barclaycard, Vodafone, Netto
and the Co-op.
Erika Krolikowski
eDigitalResearch (EDR) have appointed Erika
Krolikowski as panel operations manager as
they continue to strengthen their HUB panels
and communities offering and capabilities.
Working alongside EDR’s 50-strong research team, Erika will
provide support and management to EDR’s vast range of panel
and pommunity clients, oversee the health of panel and community
sites and provide recommendations to help eDigital-
Research continue to build indispensable research tools.
Jason Delport
K3 Retail, the UK’s leading provider of retail
solutions based on Microsoft technology, has
appointed Jason Delport to drive forward
all digital marketing activity. Jason has a
proven history of developing and delivering successful digital
campaigns. His appointment reinforces K3’s market leading
position in the retail sector and their commitment to ensure
K3 continues developing industry leading solutions to the
retail sector.
Carmen Busquets
Online jeweller Astley Clarke has appointed
luxury fashion entrepreneur Carmen Busquets
to its board. The business has recently
secured a second round of investment funding
from Busquets, taking her total investment to $1.2 million.
As a founding investor and board director of Net-A-Porter.com,
Carmen recognised Astley Clarke’s potential early because of
the brand’s online capabilities and inherent understanding of
the international growth opportunities.
Masaru Tamagawa
Sony Europe announced the appointment
of Masaru Tamagawa as the new president
of the company, effective 1 July, 2012. The
current President, Fujio Nishida, will step up
to become chairman of Sony Europe to oversee the transformation
programme currently being implemented throughout
Sony’s consumer electronics operations in Europe, and to
ensure a seamless management transition. Tamagawa has
been managing director of Sony India since 2007 where he has
overseen a growth business.
Fergus Gloster
Brightpearl, a pioneering vendor of cloudbased
commerce software for small
businesses, has announced that Fergus
Gloster, currently managing director EMEA at
Marketo, will join Brightpearl’s board of advisors. With over 25
years industry experience, including founding Salesforce.com’s
sales and marketing operations in Europe, Gloster will advise
Brightpearl on sales and marketing initiatives to support future
growth.
Veronika Hofer
paysafecard group, Europe’s leading prepaid
payment provider, has appointed Veronika
Hofer as COO. In this newly created role,
Veronika will manage the customer service
and service teams for online shops and distributors. The main
tasks of the service teams are the organisational and technical
integration as well as the ongoing support of the partners.
Veronika studied Business Informatics at the University of
Regensburg with a focus on Information Systems.

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d i r e c t o r y
RS
M a r k e t p l a c e
d i r e c t o r y l i s t i n g
To Advertise contact Lisa Gayle Telephone: 0207 562 2428 Email: lisa.gayle@retail-systems.com
To make the directory section as easy as possible to use, we have added an index of headings below. These are listed alphabetically in order for you to find
the products and services you are looking to source.
To list your company within the section, please contact Lisa on 020 7562 2428 or email lisa.gayle@retail-systems.com for a quote.
address management software
business software
delivery solutions
Capscan Ltd
Grand Union House
20 Kentish Town Road
London
NW1 9BB
Tel: +44 (0) 20 7428 1255
Fax: + 44 (0) 20 7267 2745
E-mail: enquiries@capscan.com
Website: www.capscan.com
Enigma House
Elgar Business Centre
Moseley Road, Hallow
Worcester
WR2 6NJ
Tel: 0800 047 0495
Keystone Software
Development Ltd
4-5 Hill Court
Grantham
NG31 7XY
T: 0845 25 75 111
marketing@keystonesoftware.co.uk
W: www.khaoscontrol.com
MetaPack Ltd
12-16 Laystall Street
London, EC1R 4PF
Tel: 020 7843 6720
Fax: 020 7843 6721
Email: info@metapack.com
Web: www.metapack.com
Capscan is a leading supplier of international addressing solutions and data integrity
services. Our award-winning addressing solutions enable retailers to capture, verify and
enhance name and address data for:
• Responsive customer service and contact centre management
• EPOS data collection and online retailing
• Efficient HR and payroll management
• Effective Sales and Marketing campaigns
• Accurate delivery of goods or services
Capscan's addressing system is available as a stand-alone programme for data capture or
batch cleansing of commercial databases and as a web-based tool for online data capture.
Capscan also supply store-location and mailsorting solutions, and bureau services.
Postcode Anywhere is a UK-based company well known for its award-winning “what’s
your postcode” technology, used to quickly complete your address when buying online.
The company’s range of services, all delivered online, are specifically designed to boost
business efficiency and include route optimisation, international address auto-fill, data
cleansing, business information services and lifestyle profiling.
Over 8,000 customers worldwide use Postcode Anywhere for better data cleanliness,
speedier form-filling and increased conversion rates. Postcode Anywhere processes over
a million transactions a day.
Khaos Control is a leading business software solution, with a strong focus on the multi-channel
retail industry.
It is Sales Order Processing software, but with integrated and powerful stock control,
purchasing, accounts, CRM, contact management, invoicing, marketing and promotions.
It integrates with most e-commerce web sites, complementing them by providing a powerful
back-office solution for controlling the picking, packing and despatching of orders and
supporting the full range of customer services including returns/refunds.
It's modern, Windows based, scaleable and resilient.
MetaPack is the leading provider of delivery management solutions
• Best practise delivery solution – improve customer retention
• Single point of integration for all carriers
• Easily add new carriers and switch between them allowing for contingencies
• Complete tracking and extensive performance reporting
• Proactive customer care through email & sms messaging for shipments
• Reduce logistics costs through effective allocation
Customers range from large and multichannel retailers such as John Lewis, ASOS, B&Q,
Marks & Spenser and DGSi Group to smaller pure play companies.

direct commerce software
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MNP
91 Crane Street
Salisbury
Wiltshire
SP1 2PU
Tel: 01722 341342
Fax: 01722 341888
E-mail: info@mnp-media.com
Web: www.mnp-media.com
e-commerce and head-office (multi-channel) solutions
hybris UK Ltd.
Holborn Tower
137 High Holborn
London
WC1V 6PW
T +44 (0)207 429 4175
F +44 (0)207 329 8291
sales@hybris.com
Kudos Software Ltd
Cliff House, Cliff Road
Salcombe
Devon
TQ8 8JQ
Tel: 01548 843586
Fax: 01548 843503
E: sales@kudos-software.co.uk
W: www.kudos-software.co.uk
Nisyst
Nirvana House
89 - 99 High Street
Little Lever
Bolton
BL3 1NA
Tel: 01204 706 000
E: sales@nisyst.co.uk
W: www.nisyst.co.uk
Retail Assist Ltd
The Hub
40 Friar Lane
Nottingham
NG1 6DQ
T: 0115 853 3910
E: info@retail-assist.com
W: www.retail-assist.com
www.merret.com
Enterprise back office retail platforms for mid sized retailers, ActiveSeries comprises
order management (OMS), warehousing (WMS) and purchase & merchandising solution
(IMS) ensures real time multi channel inventory, operational efficiency with real time
business intelligence.
Interfaces into Torex, Island Pacific, RBS, Futura, Riva, Red Prairie, Hybris, Magento
and 30+ proprietary ecommerce platforms. Integrated with Channel Advisor, Royal Mail,
Metapack, GFS, Ebay, Amazon and many more third parties.
ActiveSeries platform users include Lakeland Limited, Kurt Geiger, LK Bennett, Surfdome
and Soletrader
hybris is a leading vendor of multichannel commerce & communication software. Its clear vision
about the need for consistency, co-ordination and personalization of information across all
channels and throughout all phases of the customer lifecycle has resulted in the development of
an integrated solution which supports the industrialization and automation of communication,
sales and support processes both online and offline. It is spearheading innovation in this field,
enabling companies to master the complexities of implementing and managing single site,
multi-site and multichannel communication and commerce processes step-by-step without
any compromises
Kudos Software are specialists in retail and operational stock management software solutions
with 20 years experience in the retail industry and 300+ installed sites. Supporting single or
multi-branch operations our feature rich EPOS tilling solutions increase efficiency, reduce admin
and improve profitability. Kudos’ integrated systems are designed for retail shops, workshops,
mail order operations, large unit sales (such as caravans and boats) and e-commerce. We
offer a complete solution from initial consultancy through to installation, hardware, training
and support.
Nisyst has over 20 years experience of developing and implementing EPoS systems for a range
of retail users from multi-site, multi-channel operations through to small, single-site businesses.
Nisyst delivers complete solutions from point of sale to back office, reporting and stock control
systems, giving a real commercial advantage to your organisation. Its market leading solutions,
NPoS Enterprise and NPoS Lite, can be fully customised to meet customer requirements, improve
business efficiency and save costs.
Key NPoS modules include full sales and marketing control featuring email and SMS integration,
stock control, purchase ordering, instant reporting and analysis, and pre-built e-commerce
integration for ordering and distribution. Nisyst systems operate on a comprehensive range
of electronic point of sale systems, including the latest generation of contactless and mobile
applications.
Retail Assist is a leading retail-only solutions and services company, providing UK and
international retailers with end-to-end business applications plus a comprehensive range of
services that reduce costs, optimise retail operations and support higher revenues.
Our managed services offer 24/365 Help Desk, Technical Services, Operations, Data Centre
Hosting, Hardware Maintenance and Disaster Recovery. Managed solutions offer hardware,
software and services, based on a fully-managed and hosted "software as a service" model.
Merret, our award-winning integrated supply chain solution covers all areas of stock control and
retail supply for real-time multi-outlet, multi-channel merchandising and warehousing, plus
business intelligence.
Clients include La Senza, Aurora, Paperchase, World Duty Free, First Quench and Harvey
Nichols.

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e-commerce and head-office (multi-channel) solutions
epos hardware
Torex RBS Ltd
24-26 Vincent Avenue,
Crownhill,
Milton Keynes MK8 0AB
Tel : 01908-226226
Email : information@torex.com
Web :www.torex.com
Casio Electronics Co.Ltd
Unit 6, 1000 North Circular Road
London
NW2 7JD
Tel: 020 8450 9131
E: boxallg@casio.co.uk
W: www.casio.co.uk/mobile
DED Limited
Harden Road
Lydd
Kent
TN29 9LX
T: 01797 320636
F: 01797 320273
E: pos@ded.co.uk
W: www.ded.co.uk
Star Micronics Europe Limited
Star House
Peregrine Business Park
Gomm Road
High Wycombe
HP13 7DL
UK
Tel: +44 (0) 1494 471111
Fax: +44 (0) 1494 473333
Email: sales@Star-EMEA.com
Web: www.Star-EMEA.com
Torex RBS provides comprehensive IT solutions for the retail environment; ranging from EPoS
to back office, warehousing, multi-channel and PCI DSS services. We offer systems for all types
of retailer; from tier 1 and 2, high street multiples and multi-fascia retailers to department stores,
speciality and charity retailers.
Torex RBS has a wealth of knowledge and experience of developing, implementing and
supporting IT systems within the retail sector, and is the preferred supplier of the Retail-J
solution for many leading UK retailers.
If you have a retail IT requirement, contact Torex RBS today.
Casio provides ruggedised hand-held terminals for the retail store and warehouse environment.
Our terminals are used for logistics, shelf-edge labelling, stock control and PLU applications.
Operating Windows CE or Mobile, our mobile terminals can include an auto-focus camera, WLAN/
WWAN communications, GPS mapping, a barcode scanner, contactless card reader and the
brightest touch screen display available.
Casio is a market-leader, with support and service facilities in London. Contact us
for more information and a loan sample of our retail products - the DT-X7, DT-X30 & IT-800.
DED Limited distribute a wide range of EPOS hardware for a
variety of applications. Products include:
- Dot Matrix & Thermal Receipt Printers
- Label, Ticket & Kiosk Printers
- CCD & Laser Barcode Scanners
- Magnetic/Smart Card Readers & Writers
- Cash Drawers
- Customer Displays
Star Micronics provides an extensive range of thermal and matrix POS printers designed for
a variety of applications. Key products include:
- The revolutionary TSP100 futurePRN TM series offers a range of models, including the
world’s first ECO POS printer, with a variety of unique software tools. This printer has
been successfully installed by a number of major retailers worldwide including Harrods
and Selfridges.
- Award-winning TSP800II A4 replacement printer
- High speed TSP700II combined receipt, ticket, label and barcode printer
- Versatile FVP10 front operating, vocal direct thermal printer
- Wide range of OEM kiosk printers
- Card reader/writer systems designed to instantly erase, re-write or print up-to-date
information.
epos, store, head office, warehouse and web solutions
Celtech Software
International Ltd.
East Point, Fairview,
Dublin 3. Ireland
T: +353 1 855 8200
F: +353 1 836 5509
E: info@celtech.ie
W: www.celtech.ie
ab-initio from Celtech Software is the ultimate real-time system suite for retail and wholesale
multiples.
From head-office to point-of-sale, from warehouse to web, individual ab-initio modules can be
adopted and integrated with your existing systems to fulfil immediate business requirements,
or we can run the whole suite as a complete end-to-end solution for you.
ab-initio real-time will deliver more than just live visibility and control of your business – it will
radically streamline your operations and opportunities. It will enable you to deliver unique
customer experience initiatives over your competitors – better, faster, easier and cheaper.
It will enable you to achieve maximum internal operational efficiency and cost savings.
Contradictory? Proven!
Don’t make a decision until you have seen the power of ab-initio.

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epos, store, head office, warehouse and web solutions
fraud prevention
FUTURA RETAIL
SOLUTIONS - DEDICATED
RETAIL SPECIALISTS
Contact: Paul Court
Tel: 01189 841925
Email: sales@futurauk.com
Website: www.futurauk.com
K3 Business Technology
Group plc
Corinthian Court
80 Milton Park
Abingdon
Oxfordshire
OX14 4RY
Tel: +44 (0) 870 225 1390
Fax: +44 (0) 870 225 1391
Support: +44 (0) 870 225 1392
Web: http://www.theretailpeople.com
Prima Solutions Ltd
Loughborough Technology Park
Ashby Road
Loughborough
LEICS LE11 3NG
T: +44(0)1509 232200
F: +44(0)1509 262323
http://www.primasolutions.co.uk
1st Floor Belgrave House
76 Buckingham Palace Rd.
London SW1W 9AX UK
Tel: +44 (0) 1273 693555
Fax: +44(0) 2033 643538
Email: mlong@accertify.com
Website: www.accertify.com
international payment services
Ogone Payment Services
Highbridge
Oxford Road
Uxbridge UB8 1HR
United Kingdom
M. sales@ogone.com
Tel. 0203 147 4966
www.ogone.co.uk
FUTURA RETAIL SOLUTIONS - DEDICATED RETAIL SPECIALISTS
Futura specialises in making a difference to profitability - through rapid response to customers'
needs, greater efficiency throughout leading to reduced stockholding to free up working capital.
Based on an unrivalled understanding of retailer's needs, Futura offers the most robust,
sophisticated integrated solution available, suiting lifestyle retailers, fashion houses and
department stores.
Futura is proven, reliable and affordable and gives management greater vision and control,
helping to optimise target levels, minimise losses and achieve a rapid return on investment. To
grow your business, expand on the web or streamline your Head Office to increase profitability,
call 01189 841925 today.
“As a global leader providing ERP and Retail software solutions K3 have 25 years of specialist
experience. K3 are a major provider of the award winning Microsoft Dynamics business solution
and have been certified as a Microsoft Gold Partner and are an invited member of Microsoft’s
prestigious 'Inner Circle';
K3's success has resulted in an enviable reputation for not only delivering some of the most
complex solutions for our clients; we also back up our products and applications with high quality
service and support.
At K3 we believe that our success is supported by our values, fundamental in our processes and,
ultimately, reflected in your business.”
Prima Solutions is widely regarded as one of the UK’s leading providers of complete multichannel
business solutions for the clothing, footwear, bags and accessories marketplace. The
Prima ethos is simple - by really understanding the business requirements and issues faced by
each customer, we can work together to design practical, low risk solutions that add real value.
Our aim is to work in continuous partnership with our clothing, footwear and accessory industry
clients to deliver outstanding apparel solutions covering every aspect of the business from
product development through to order management, stock control and planning, manufacturing
and sourcing, wardrobe management, customer and supplier management, financial controls
and business reporting.
Customers include: Mulberry, Joules, Nigel Hall, Curvy Kate, Blue Max Banner, Dubarry of
Ireland, Church’s Shoes, Wolsey and John Smedley.
Accertify®, Inc., a wholly-owned subsidiary of American Express, is a leader in
providing e-commerce companies with hosted software solutions, tools and strategies for
preventing online fraud and mitigating enterprise-wide risks. Our Interceptas® platform
integrates every component of fraud prevention, applies state-of-the-art automation to each
step in the process and offers advanced capabilities for managing fraud data. Accertify can
aggregate data across your organization to deliver a true, enterprise-wide view of all your
interrelated risks. Built from a merchant’s perspective, Interceptas delivers flexibility in
preventing various types of criminal behavior, including fraud related to card-not-present
purchases, online scams and policy abuse, merchandise returns and exchanges and other data
management challenges. Accertify is committed to providing online companies with the most
cost-effective, flexible solution to fraud available.
Ogone Payment Services is Europe’s leading provider of international e-Commerce
payment solutions for retailers that want to drive secure, compliant sales across European
markets. The Ogone PCI-DSS compliant platform enables our customers to process
payments from over 40 international and local payment methods in multiple
languages and local currencies. Our approach is focused on helping retailers drive
maximum revenue from multiple markets, with minimal effort. Dedicated in-market
support and consultancy is provided across all major European countries to ensure your
payment strategy consistently delivers.

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payment processing solutions
payment solutions
PacNet Services Ltd.
Payment Processing
Contact: Brian Weekes
Tel: +353 61 714360,
E: brian@pacnetservices.com
W: www.pacnetservices.com
Symphony House
7 Cowley Business Park
High Street, Cowley Uxbridge,
UB8 2AD, UK
T: +44 1895 275275
E: emeamarketing@
verifone.com
W: (www.verifone.com)
FIS Merchant Payments
Tricorn House,
51/53 Hagley Road,
Birmingham. B16 8TU
United Kingdom.
T: 0121 410 4357
F: 0121 410 4200
E: enquiries.uk@fisglobal.com
W: www.fismerchantpayments.com
Contact: mike.bradley@fisglobal.com
Commidea Ltd
100 Eureka Park
Ashford
Kent
TN25 4AZ
Tel: 08444 828 200
Fax: 08444 828 210
marketing@commidea.com
www.commidea.com
Chase Paymentech
Europe Limited
Block K
East Point Business Park
Dublin 3
Ireland
T: + 353.1.726.2900
w: www.chasepaymentech.co.uk
PacNet offers a global range of inbound and outbound payment processing
services for electronic retailers. Enjoy easy access to credit card merchant
accounts, electronic debits and credits, international payment types and the
cutting edge RAVEN payment gateway. Lift sales by offering your customers
relevant payment options in up to 130 currencies. There is no need to set up
foreign bank accounts or contract with multiple providers – no matter what
currency your customers use to pay, you will enjoy fast access to funds in the
very same bank account that you use today.
VeriFone Holdings, Inc. ("VeriFone") (NYSE:PAY), a global leader in secure
electronic payment technologies, provides expertise, solutions and services for
today with a migration strategy for tomorrow. VeriFone delivers solutions that add
value to the point of sale, resulting in improved merchant retention and the
generation of new sources of revenue for its partners and customers. VeriFone
solutions are specifically designed to meet the needs of vertical markets including
financial, retail, petroleum, government and healthcare.
FIS Merchant Payments make it easier to accept a wide range of payment types
more securely. Card payments can be processed from multiple store locations or
ecommerce sites for authorisation, fraud detection and data storage. Our
ClearCommerce solution is the world's leading ecommerce payment processing
solution that detects and reduces payment fraud before you process the order.
TRANSAXion is ideal if you operate many branch locations, offering one point of
contact for all your payment processing. We are PCI:DSS accredited.
The net results are proven to reduce your costs and protect your profits. Call us.
Commidea provide card payment processing solutions for customer
present and customer not present environments including: -
- Ocius Sentinel - An end-to-end dual
encrypted payment solution that can reduce
the scope and cost of achieving and
maintaining PCI DSS compliance by 80%
- Ocius Vx810 Duet – A two-in-one payment
solution for high volume retail environments
- A range of advanced ecommerce solutions
for real time and batch transaction processing
- Contactless payments, e-top up, gift and
loyalty schemes and more…..
Chase Paymentech is a global leader in payment processing and merchant acquiring and
is a specialist in customer-not-present (CNP) transactions, capable of authorising
transactions in more than 130 currencies. The company's proprietary platforms provide
access to a wide variety of payment methods including credit and debit cards. In 2009,
Chase Paymentech processed more than 18.0 billion transactions with a value exceeding
$409.7 billion, including an estimated half of all global e-commerce Visa and MasterCard
transactions. The company also provides a full set of solutions aimed at accelerating cash
flow and managing transaction data. Chase Paymentech's unique combination of outstanding
service, innovative solutions and financial strength offers solid benefits to companies
both large and small. Chase Paymentech Europe Limited, trading as Chase Paymentech,
is a subsidiary of JPMorgan Chase, N.A. (JPMC) and is regulated by the Central Bank of
Ireland. More information can be found at www.chasepaymentech.co.uk.

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retail and distribution
VoiteQ Ltd
Neptune Court
Hallam Way
Whitehills
Blackpool
FY4 5LZ
T: 0844 8940 322
E: enquiries@voiteq.com
W: www.voiteq.com
retail management software
Eurostop
West Africa House, Ashbourne
Road, Ealing, London. W5 3QP
T: 020 8991 2700
F: 020 8991 9561
E: sales@eurostop.co.uk
W: www.eurostop.co.uk
Contact: Mr Phillip Moylan.
Sales and Marketing Manager
supply chain solutions
Manhattan Associates
2 The Arena
Downshire Way
Bracknell, Berkshire
RG12 1PU
Contact: Corinna Walker
Email: cwalker@manh.com
Tel: +44 (0) 1344 318074
w. www.manh.co.uk
store, head office and distribution solutions
BCP - Business Computer
Projects Ltd
BCP House, 151 Charles Street
Stockport, Cheshire
SK1 3JY
United Kingdom
T: +44 (0) 161 355 3000
F: +44 (0) 161 355 3001
E: retail@bcpsoftware.com
W: www.bcpsoftware.com
Contact: Richard Marshall
supply chain solutions
RedPrairie Ltd
EMEA Headquarters:
Beacon House
Ibstone Road
Stokenchurch
Bucks. HP14 3AQ
www.redprairie.co.uk/retail
Tel: 01494 486500
Info.emea@redprairie.com
Contact: Natalie Green
VoiteQ supplies fully integrated retail solutions which incorporate Business Management
Systems for head office control and EPoS systems for the stores.
VPoS is the EPoS system that is designed by retailers for retailers, to meet the needs of any retail
business, whether that’s an independent business with a small number of stores or a major
multiple retailer.
VoiteQ also offers VoiceMan, the UK’s leading voice middleware solution for warehouse and
distribution operations.
Founded in 1990, with operations in London, Singapore and Shanghai, Eurostop provides
complete solutions for Retail Management for the Fashion, Footwear and General
Merchandise sectors encompassing both hardware and software. Eurostop’s products
include Head Office based software, EPOS, e-commerce, customer loyalty, fulfilment/
picking/warehouse management, mobile solutions, and comprehensive reporting
facilities, all fully integrated. Eurostop EPOS software is installed on over 20,000 tills
worldwide.
Eurostop Limited, Contact: Phillip Moylan, Tel: 020 8991 2700, email: phillipm@eurostop.
co.uk, www.eurostop.co.uk
Established in 1990, Manhattan Associates provides supply chain solutions to organisations that consider
supply chain software, processes and technology strategic to their market leadership. With over 2,000 staff
supporting 1,200 customers globally, Manhattan Associates is well placed to serve the local and global
supply chain needs of companies of every size in a wide range of industry sectors.
The company's supply chain innovations include Manhattan SCOPE®, a portfolio of software solutions and
technology that leverages a Supply Chain Process Platform to help organisations optimise their supply
chains from planning through execution.
Customers include Alliance Boots, Argos, Co-op, Debenhams, El Corte Inglés, Halfords, House of Fraser,
Matalan, Mothercare, Mulberry, PUMA, Sainsbury’s, Staples, Tesco, Thorntons, Under Armour, Urban
Outfitters, Vanity Fair Brands and World Duty Free.
BCP is a leading supplier of Supply Chain software solutions to the Retail and Wholesale
Distribution industry.
Our Accord ® supply chain solution is a powerful, fully integrated system offering store automation,
web, cash control, central store management, voice-directed warehousing, logistics, finance and
business analytics. Based upon a modern, cost-effective, real-time technology and single
architecture, Accord ® is an ideal solution for today's progressive retailer, empowering
companies to improve business across all channels, facilitating overall growth in revenue and
profitability.
Over 8000 users across the UK and Ireland depend on BCP solutions to control their
day-to-day business.
RedPrairie delivers productivity solutions to retailers to help manage workforce, inventory and
transportation both in the supply chain and in-store. RedPrairie provides these solutions to
enable retailers to support business strategies that increase revenue, reduce costs and create
competitive advantage.
With over 20 global offices and solutions that are installed at more than 34,000 customer sites in
over 40 countries, companies trust RedPrairie workforce, inventory and transportation solutions to
deliver an increase in productivity - with the flexibility to adapt, as business needs change.
At RedPrairie, we understand today’s operational demands and we’re committed to
delivering solutions that work. We’re committed to delivering solutions for the real world.

The 2012 FStech/Retail Systems Payments Technology Conference will be held at the IoD Hub, London and
will bring together leading figures from retail and the financial services sector to network and discuss cards
and payments services, the present and future.
This year there will be a particular focus on mobile banking and payments. Senior figures from across the
retail, financial services, technology vendor and telco sectors will come together to debate the key issues,
innovations and barriers to the mass-market deployment of mobile. Chaired by Vendorcom chairman, Paul
Rodgers, the event, a mixture of speakers and discussion panels, will also showcase the latest developments
and services and products in such areas as: contactless cards; self-service technologies, SEPA, payment
security, online payments, the future of cash and cheques and social payments.
Speakers/panellists confirmed so far include: Roy Ford, IT Controller, SPAR UK; Alex Kwiatkowski, Research
Manager EMEA, IDC Financial Insights; Rafael Eile, Counsel, Citi; Simon Barrows, Director of Financial
Services, Glue Reply; Simon Burrows, Director – FinTech, PwC.
Sponsor
Association Partners Research Partner
www.fstech.co.uk/payments
FREE TO
RETAILERS AND
FINANCIAL
INSTITUTIONS
Thursday
01 November 2012
The IoD Hub, London
09:00 – 16:30

Keith Bird is CEO of e-commerce platform provider,
eSellerPro.
Retail Systems: How did you get into retail?
KB: My path into retail has been through running businesses
that provide technology solutions specifically to the retail
sector. The major opportunity that I have been involved in
over recent years is helping retailers go to market through
marketplaces such as eBay and Amazon as part of an overall
multi-channel strategy.
RS: Who was the biggest influence in your career?
KB: I would have to say Ben White, chairman of eSellerPro.
He has built a number of very large companies including
the service provider Star and the email security company,
MessageLabs. He is quite the maverick and constantly
thinks ‘Big’, which is a rare skill. Many people think they
do this, but it is whether you follow through with your
decisions and your investments that separate the few from
the many.
RS: Who in retail inspires you and why?
KB: Sir Terry Leahy the former CEO of Tesco. He’s a
very smart guy who appears to have come from humble
beginnings as a youngster and has worked incredibly hard
to get to where he is today. He was one of the first people
to recognise the importance of market knowledge in
retailing, as well as monitoring the habits and opinions
of consumers.
RS: Which IT professional do you most admire?
KB: It has to be the late Steve Jobs of Apple. His ability to
really tune into what the consumer wanted and to be able
to scale his business to serve that need was truly impressive.
He also changed the way we save and listen to content,
ensuring his company was at the centre of that demand.
Keith
Bird
He was also one of the few that combined being an IT and
retail genius.
retail worlds
RS: What do you like most about the retail sector?
KB: Retailing faces many challenges with the current macroeconomics
and climate. However, the space continues to be
a dynamic, sophisticated and exciting area to work in with
online retailing in particular continuing to experience real
growth despite the economy.
RS: Is there anything that frustrates you?
KB: The rise in online retailing is not always being resourced
appropriately by some High Street retailers. Given that this
market place in particular offers revenues in the first year
that can be the equivalent of opening a new store, it is
surprising that many retailers do not put more efforts into
this area.
RS: What technology can’t you live without?
KB: My iPhone. Apart from the obvious of keeping me
online, it enables me to keep the business moving no matter
where I am or the time of the day.
RS: How do you relax?
KB: I am an FA licensed and qualified football coach and
have managed my eldest son’s football team for eight years,
currently as Under 18’s. When I am doing that, it is truly the
only time I am not thinking about the business and so it is a
nice way to completely switch off.
RS: What were your last purchases online and in
the High Street? Were they positive experiences?
KB: A Samsung LCD flat screen TV. I have to confess I went
to a large store to choose the one I wanted and then while
standing in the store used an app on my iPhone and found I
could buy it a lot cheaper online.
RS
June - July 2012 RS 59

Thermal POS Printers Kiosk Solutions
The POSsibilities are endless…
As the most popular POS solutions amongst the world’s leading retailers, restaurateurs, casinos, healthcare organizations and hoteliers,
it’s no wonder we’re a firm favourite. We offer the most innovative and extensive range of POS printing solutions on the planet and
we are investing in all technologies including the latest printing solutions for Mobile POS. Combine this with the free futurePRNT
software, ECO solutions, A4 replacement printers, unrivalled support and all set-up accessories, working with Star makes complete
business sense. That’s exactly why brands like McDonald’s, Harrods and Selfridges put Star at the top of their shopping list when
choosing a POS printer solution. If you want to be part of the growing success story, call us on +44 (0)1494 471111.
Mobile Printers Label & Ticket Printers
Healthcare Printers A4 Replacement Printers
WHQL
ESC/POS TM
Star Micronics EMEA, Star House, Peregrine Business Park
Gomm Road, High Wycombe, Bucks, HP13 7DL, UK
Tel: +44 (0)1494 471111 Email: sales@Star-EMEA.com
www.Star-EMEA.com

The Fifth Annual Retail Systems
Multi-Channel conference 2012
Thursday 20th September 2012
09:00 - 16:30, Hilton London Tower Bridge
FREE for
retailers &
consultants
Times are tough, there’s no denying it. Last year’s poor High Street trading conditions saw the
demise of several well-known names in the retail industry. So what can retailers do to ensure they
are engaging customers, and more importantly – getting them to spend money? Join us at the 5th
annual Multi-channel Conference to address these key issues and more.
Reasons to attend:
• 25 expert speakers • Industry case studies • 3 interactive panel discussions • Networking opportunities
PLUS: Complimentary lunch and networking drinks
Top industry speakers include:
Keynote presentation:
Gavin Sathianathan
Strategic Partner Manager
Chairman: Martin Newman
Chief Executive Offi cer
Practicology
Andrew McClelland
Chief Operating and Policy Offi cer
IMRG
Gary Lynch
Chief Executive Offi cer
GS1
For registration enquiries:
Hayley Kempen
+44 (0)20 7562 2414
hayley.kempen@retail-systems.com
For sponsorship enquiries:
Lisa Gayle
+44 (0)20 7562 2428
lisa.gayle@retail-systems.com
Rick Jones
Industry Head of Retail
Google
Sean McKee
Head of E-Commerce and Customer Services
Schuh
Hayley Meenan-Wilkin
Head of Web Operations
Tesco.com
Tom Allason
Founder & Chief Executive Offi cer
Shutl
For media partnerships:
Sarah Whittington
+44 (0)20 7562 2426
sarah.whittington@retail-systems.com
Register now: www.retail-systems.com/multichannel

The Fifth Annual Retail Systems
Multi-Channel conference 2012
Thursday 20th September 2012
09:00 - 16:30, Hilton London Tower Bridge
Join the biggest names in retail for
your day of insights, discussions
and networking.
FREE for
retailers &
consultants
Sponsors: In association with:
Register now: www.retail-systems.com/multichannel