Transformation of Australian Retail Business
December 5, 2016
On 30th Nov, Adjuno attended a breakfast briefing event “Fit for Business – Australian Retail transformation”, organised by Retail Doctor in Melbourne, Australia. This event was designed to help businesses learn about opportunities to transform their retail and be fit for business in a digital / omni-channel age.
One of my key take-away messages was, “profitable growth is no longer available through footprint expansion: omni channel is a given. The question is how to make on line sales synergistic with a reformatted bricks and mortar footprint.”
Brian Walker, CEO of Retail Doctor Group made an opening introduction and spoke about the Retail Doctors approach to facilitating growth and brand development, and that bricks and mortar stores will remain a key part of retail.
The other speaker Anya Anderson of Redseed presented a series of statistics showing how improved customer responsiveness in staff drove brand and store loyalty and greater revenue.
Richard Umbers, (MD of Myer) was the highlight of the event, when he overviewed the significant turnaround in the Myer Transformation. The key points are summarized as below –
- No turnaround story can be superficial, and this is not exception – this absolutely must be root and branch and a rebirth of the Myer name.
- Digitization is pivotal – developing your omni-channel strategy so that it drive customers to the stores is critical piece of the strategy.
- Customers are increasingly brand followers. Thus Brand clustering in store – rather than departmental groupings – drives the new store layout. The Sydney Warringah store is a great example of where being bigger is not the key – the tag line is that it is no longer a Department Store, but a “department of stories”, where customers are able to follow their brands.
- Change management has been devolved to local accountability, which enables changes to become more rapid. Localisation of change results in more responsive management, leaving “clean up” of the exceptions that do not meet standards.
- They regard the last mile delivery as still the hardest logistics challenge in Australia.
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Customer Success Stories
We have found them to be an excellent business partner. Through the implementation of both their supply chain and sourcing software they have more than proven themselves in giving us a product that functions the way we need it to. LIMA has been a fantastic supply chain visibility tool, calculating real accurate landed cost position throughout the order lifecycle. The LIBERTY software matches our product sourcing business needs perfectly. PLM systems I’ve previously used, often bring lots of issues through implementation, but these guys managed this and I’ve got highly satisfied users.John Amm - GM Global Sourcing, Myer
The solution has realised more benefits than we initially thought possible. Claims notifications are being handled in a fraction of the time. Suppliers are making fewer calls into the office and quality scores have increased dramatically. All of this can only have had a positive impact on the customer experienceMartin Ashfield, head of commercial property claims, AXA
The system alerts us to exceptions against our plan, allowing us to focus our attentions on solving the real issues in the supply chain. Having a comprehensive audit trail of events for everyone to see has resulted in significantly improved service levels from our suppliers and agents.Darren Walker, head of generics buying and UK trading, Alliance Healthcare
Now our buyers can exchange photographs with suppliers and have a real-time dialogue as they develop styles, while buyers out in the Far East can send detailed and accurate information back to their teams in the UK. It has certainly cut lead times and reduced errors.Maxine Walter, supply chain co-ordination manager, New Look
The time it takes to compile reports has been significantly reduced; a report which used to take five whole days to complete is now accomplished within a single day!Sam Brown, Responsible Sourcing Co-ordinator - John Lewis.