Industry News - October 23rd, 2009
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RETAIL AND TECHNOLOGY
NEWS
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Walmart Launches Game-Changing Cell Phones
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Walmart recently announced it will offer a branded low-cost prepaid
service, "Straight Talk," which could end up being the "tipping point
for millions of consumers who are already considering moving away from
expensive contract-based cell phone service," according to New
Millennium Research (NMRC) executive director Allen Hepner.
Walmart will offer this service its "Straight Talk" prepaid wireless
service at the $30 and $45 levels with average monthly contract plans
reported to be about $81. More than 140 million U.S. contract-based
wireless customers who use less than 550 minutes a month may now have
even more reason to consider switching to a less expensive cell phone
option, particularly in a changing environment in which plans for 1,000
minutes are available through Walmart for $30 per month, says Hepner.
The $30 plan (with 1,000 minutes, 1,000 texts per month, mobile Web
access and no-extra cost 411 calls, with no contract and no penalties)
and the $45 plan (unlimited calling, texting, mobile Web and 411) that
Walmart now offers under the "Straight Talk" brand are likely to play
out as real "head turners": for consumers who associate the massive
retailer with the experience of buying goods and services at the lowest
possible price according to Hepner.
The NMRC published December 2008 and March 2009 public opinion survey
projects that gauged the attitudes of U.S. phone consumers about
contract-based and wireless cell-phone service.
Highlights of the March 2009 and December 2008 NMRC surveys include:
-Two out of five Americans with contract-based cell phones - are likely
to cut back on their cell phones to save money if, as is widely
expected, the economy gets worse over the next six months.
- 26 percent of consumers with contract-based cell phone service - are
more inclined today than six months ago to look at a way to save money
on your cell phone bill, such as by switching to a prepaid cell phone
service.
- Of those Americans with cell phones, fewer than one in five (16
percent or nearly 29 million people) have a prepaid phone. Of the
balance, 85 percent have postpaid/contract-based service where they pay a
monthly fee.
For the full March 2009 and December 2008 survey findings, go to http://www.thenmrc.org.
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Hugo Boss Adds Digital Displays to Promote Fragrance
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Hugo Boss adds engaging digital displays and deploys GestureTek ScreenFX
for Retail Mall Advertising. Over 70 head-turning special effects come
included with the program along with interactive, customizable screen
applications.
Hugo Boss turned to Trinanda Media, GestureTek's dealer in Brazil, to
install motion-responsive interactive advertising signs in four São
Paulo retail malls. The interactive gesture-control digital signs were
used to promote the release of the perfume, Hugo Element.
The ScreenFX system is designed for use on retail screens and store
windows because the camera is positioned behind the display, looking out
at the surrounding environment. Using GestureTek's gesture recognition
software, the ScreenFX system reacts directly to the movement of people
nearby and responds with various changes to the interactive images and
special effects
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Mattel Launches Interactive, Social Shopping Destination
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Mattel announces the launch of MattelShop.com, an online shopping
destination that offers a complete selection of Mattel products,
informative content, and an immersive social shopping experience.
"We have developed a unique online shopping destination that is playful,
social and informative," said Chuck Scothon, General Manager &
Senior Vice President, Mattel Digital Network. "The MattelShop.com
serves as a research and shopping tool allowing parents, grandparents
and gift givers alike to choose the best toys for children this holiday
season."
The MattelShop.com features innovative tools including ShopTogether, a
social shopping tool from DecisionStep that allows anyone to browse the
site together with family and friends anywhere around the world. The
ShopTogether feature allows shoppers to chat in real-time regarding the
toys they like most, just like one would do on a shopping trip.
The site includes a complete catalog of Mattel's popular brands plus
many other toys, games and licensed products. Shoppers can choose to
shop by age, gender, play preference, or find the hottest new products
on the big or small screen from Mattel's entertainment related
portfolio.
MattelShop.com e-commerce innovations include:
Shop Together: MattelShop.com shoppers will be able to
invite friends and family to browse the Web site with them, so they can
see what products others are looking at and "talk" about them at the
same time using real-time chat.
ConciseClick: When watching videos, this
rollover-and-click technology provides a description, price and
opportunity to drop products immediately into a shopping cart.
Play Pattern Navigation: Shoppers can navigate the site
based on child's play behaviors.
Shoppers can also become fans of the MattelShop.com on Facebook to get
the inside scoop on what's hot for the holidays, follow the Mattel Shop
on Twitter for updates and special promotions and subscribe to the
Mattel Shop YouTube Channel to view product content.
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United Natural Foods Optimizes Supply Chain Processes
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United Natural Foods selects the Manhattan SCOPE supply chain process
platform from Manhattan Associates to optimize its supply chain from
planning through execution.
"Our supply chain transformation is driven by an overall goal of
improving our service to customers while better managing inventory and
ultimately the operating performance for our company, as well as our
vendors and suppliers," said John Stern, Senior Vice President and Chief
Information Officer, UNFI. "In addition, a fully optimized supply chain
will support our plans for growth over the next 3-5 years."
UNFI's Manhattan SCOPE portfolio selections include:
-Solutions from the Manhattan Distribution Management product suite will
be implemented within UNFI distribution centers across the country.
-Solutions from the Transportation Lifecycle Management suite will
optimize the logistics of delivering more than 60,000 products to more
than 17,000 customers.
-Manhattan Inventory Optimization and Demand Forecasting solutions will
replenish inventory and free cash flow while getting the right products
to the right place at the right time.
-Solutions from Manhattan's Order Lifecycle Management suite will help
enhance UNFI's industry-leading order fulfillment rate.
- Manhattan's Supply Chain Intelligence and Supply Chain Visibility
applications will provide real-time insight into supply chain
performance.
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Mi Pueblo Food Centers Manage Labor, Sales with Workforce Central Suite
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Mi Pueblo Food Centers, a California-based grocery chain, upgrades to
version 6.1 of the Kronos Workforce Central suite. The new version will
help Mi Pueblo further balance labor costs, variable staffing needs, and
complex labor laws with customer loyalty, employee satisfaction, and
profitability.
Mi Pueblo standardized processes with Kronos to improve organizational
visibility and better manage labor to sales. Also, through biometric
data collection terminals, Kronos enables the retailer to eliminate
buddy punching (the costly act of employees punching in for one
another).
By automating error-prone processes, including timekeeping, attendance
tracking, and leave management, Mi Pueblo minimizes risks of
non-compliance with federal, state, and union labor regulations
including complex California meal and break laws.
The new version from Kronos offers hundreds of ease-of-use, integration,
and deep functionality enhancements. Through integration with Microsoft
SQL Server Reporting Services (SSRS), the latest version of the
Workforce Central suite helps Mi Pueblo transform enterprise data into
critical information. Additionally, managers are able to analyze
sales-per-labor-hour through seamless Microsoft Excel integration.
Workforce Central 6.1 also helps Mi Pueblo further simplify key HR
processes of compensation planning, performance reviews, and employee
training and development.
"At a time when we are rapidly expanding, it is a big bonus to have our
critical workforce business processes completely automated and optimized
with Kronos," says Hector Salas, vice president of human resources, Mi
Pueblo Food Centers. "With the new version, we are looking forward to
further improving productivity, customer service, and employee
satisfaction. This aligns with our core values of care and respect for
each employee that translates to a satisfying customer experience across
our stores."
Rite Aid’s Inventory Reduction Initiative Cuts 13% of SKUs
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Rite Aid has reduced its SKU count by about 3700 SKUs, or about 13
percent since launching its inventory reduction initiative last year. "I
think we are through the steepest part of the inventory reduction,"
says John T. Standley, President, Chief Operating Officer of Rite Aid.
According to Standley, ongoing initiatives include the company's
back-room inventory reduction program and its SKU optimization
initiative.
"These two initiatives will provide some smaller more gradual inventory
reduction over the remainder of the year and should help us put the
disciplines in place to help keep our inventory under control going
forward," says Standley.
Other initiatives that began last year and continue to roll out this
year include more efficient transportation, routing, bi-weekly
deliveries in 1800 low volume stores, a reduction in administrative
headcount in its distribution facilities, lower fuel costs and lower
product handling costs resulting from a significant reduction in
inventory.
Also, the Bohemia Long Island facility and the Atlanta facility are now
closed.
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