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John Ibbotson

UK Retailing Elements of Best Practice

We help Retailers increase Customer Satisfaction, Sales and Profits by implementing best practice.

Introduction
RETAIL VISION was established in the UK in 1992 to help retailers and suppliers implement best practice. We work in all sectors of retailing from the smallest convenience store to the biggest hypermarket. We know all the systems, processes and techniques that will increase your customer satisfaction, sales and profits. RETAIL VISION covers a wide range of disciplines, from a complete project team to providing an expert to focus on the smallest detail.
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Consultants
consultants understand the issues and challenges shaping the retailing industry both in the UK and globally. We offer retailers and suppliers the deep experience of our team of consultants who have spent many years working for the leading UK retailers. All our consultants have held senior positions in the retail and distributive industries.
RETAIL VISIONS

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Some Clients

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Example Projects
Category Management Partnerships with Suppliers and UK Multiples, Tesco, Asda, Sainsbury, Focus DIY, B&Q, CWS. Big Food Group UK, Total Category Management Organisation for Booker Premier Retailers. Safeway USA, Total Category Management and Automated Ordering Development for Fresh Meat .
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Example Projects Migros,Turkey, Category Management, Store Planning and Design for Hypermarkets and Supermarkets Ramstore, Russia, Store Planning, Store Design Category Management for Hypermarkets and Supermarkets
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Approach
Fully understand you needs, aims and aspirations by Total, Format and Category. Tailor projects exactly to your needs. Work with you to: Review Plan Construct Implement

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Retail Health Check


As a practical way of finding out the effectiveness of a retail organisation, RETAIL VISION provide a retail consultancy review and assessment of an organisations retail capabilities. A fixed cost 10 day, Retail Health Check to include: Retail Strategy Review Head Office Assessment Store Operational Review Recommendations Action/ Implementation Plan

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Current Practice Review


For any process within a retail organisation, RETAIL VISION provide a Current Practice Review. A Review to analyse any Retail Process to include: Current Systems Rules and Criteria. What works. What doesnt. Information Sources. Current Outcomes Benchmark against best practice Action/ Implementation Plan

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Retail Intelligence

With years of experience in all types of UK retailing, RETAIL VISION can investigate any Retail Market, the companies within it and provide any retail intelligence required. We also provide Diagnostics and assessments of any retail situation.

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UK Best Practice

UK Retail Developments Success Factors Response to Saturation Tesco Retail Strategy

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UK Retail Market

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Retail Developments UK 67% Market Share


Market Share

25.0%

23.1%

20.0%
15.7% 14.4%

15.0%

13.9%

10.0%

5.0%

0.0% Tesco Sainsbury Asda Morrisons

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Retail Developments
Grocery Stores 1000s
160 140 120 100 80 60 40 20 0 Year 1961 Year 1971 Year 1981 Year 1991 Year 2001
56 41 27 105 147

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Retail Developments
Superstores Growth
1400 1200 1000 800 600 400 200 0 Year 1986 Year 1991 Year 1994 Year 2001
457 944 803

1260

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Retail Developments
UK Superstore 3,500sq mts + Stand Alone Out of Town Car Park New or Refurbished

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Retail Developments Central Control Central Distribution Advanced IT Customer Service Category Management Own Label Penetration High Net Margins
Tesco 6% Sainsbury 4%

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Central Control
Head Office Decision Making

Retail Organization

Communication

Store Execution

Store Execution

Store Execution

Store Execution

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Central Distribution

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IT Systems
Business Management

Supplier Relationship Management Master Data Management

Customer Relationship Management

Distribution Operations Management

Retail Operations Management

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IT Systems

EPOS Sales

Forecast & Calculation Host

Store

on i t t p a e m r D fo In

rd O er

Store

Order Del iv

ered

Central Distribution
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Customer Service

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Category Management
Managing Product Categories as Business Units to Satisfy Customers Needs.

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Retail Strategy

Satisfy Customers Needs. Find out what the Customers want and give it to them. Focus on all Customers

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UK Developments Marketing Led Category Developments


Fresh Foods Fresh Prepared Foods Beers Wines Spirits Snacks Soft Drinks Confectionery Health & Beauty Non Food

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Fresh Prepared Foods

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Fresh Foods

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Own Label Developments

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Own Label Developments

Tesco
Tesco Tesco Finest Tesco Value Healthy Living Organic Free From Low Carb
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Sainsbury
Sainsbury Taste the Difference Blue Parrot Cafe Way to Live Organic Free From Jamie Oliver
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UK Own Label 20% Total Food Sales


38.5% Value Grocery Sales 10.2 billion Sales Tescos Finest = 600m year Growing 30% O/L 38% Sainsbury's Sales 98% Chilled Food Ready Meals 71%
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UK Own Label
Brand UK Retail Sales 2001
Tesco Finest 600m Sainsburys Taste the Difference 350m ASDA George 1bn Mars (including dairy) 255m Avon 184.7m Boots No.7 104.2m
Source: Euromonitor

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Own Label Non-Food

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Own Label Non-Food

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Retail Developments
Superstore Openings
80 70 60
52 77 72 70 61 55 43 37

50 40 30 20 10 0

Year Year Year Year Year Year Year Year 1993 1994 1995 1996 1997 1998 1999 2000

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Retail Developments Response to Superstore Saturation


Loyalty Cards Non Food Development Intensive Use of Space. Financial Services Internet Shopping Format Development

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Loyalty Cards

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Format Developments
Superstore 20005000sq mts

Extra 6000sq mts +

Metro 700-1500sq mts

Express up to 300sq mts

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Internet Shopping

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Success Developments

Central Control Central Distribution Advanced IT Category Management Own Label Retail Developments

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Key Factors

Retail Strategy Planning Delivery

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Retail Strategy

Satisfy Customers Needs. Find out what the Customers want and give it to them. Focus on all Customers

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Retail Strategy

Basic Customer Understanding Function within the organisation that Defines what the customer wants now and in the future. Store Formats

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John Ibbotson
I hope you found the presentation useful, if you want to know more about our consultancy services or would like our help please contact me, john.ibbotson@retail-vision.co.uk +44(0)1484607143

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