Retail: Creating a > Experience for Customers

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Retail at the EdgeThe next wave of retail is happening now. And Accenture sees a future ripe with opportunities to serve customers better than ever before.

In what Accenture calls the “influence marketplace,” retailers can connect in new ways with the socially networked digital customer. Through context retailing, companies can present their wares within a dynamic kaleidoscope of contexts—the customer’s home, car or social setting. Retailers at the edge can tap the streaming environment, taking on the role of “connector” to present solutions that may be made up of offers from multiple organizations, and create a seamless, bi-directional flow of goods and services.

In the thick of the ever-changing retail landscape, the digital consumer is connected and empowered and expects a relevant, differentiated “greater than” experience. Forward-thinking retailers are responding by working in new ways to be more flexible and adaptive, operate across markets and channels, manage inflationary and deflationary pressures, and compete on a global scale.

Accenture understands these challenges and teams with retailers to: • Gain customer insight, using

technology to capture actionable information and deliver a better customer experience.

• Drive growth through penetrating new markets, developing new services and fostering new partnerships.

• Power innovation through more relevant private label products, services, partnerships, formats and channels.

• Achieve operational excellence by integrating key information, processes, systems and organizations to drive multichannel supply chain mastery.

Through tailored strategies, expert teams and digital solutions, Accenture helps retailers deliver a “greater than” experience that engages customers, enhances value and relevance, and helps build a competitive advantage.

Delivering Striking Results in the Dynamic, Global, Multichannel Retail World, by:• Collaborating with a global retailer to

achieve €200 million in savings from IT and supply chain redesign programs.

• Helping a Japanese retailer apply marketing analytics to better target promotions, identify optimal sites for new store development and improve replenishment processes—driving benefits including $9 million in marketing return on investment, and estimated benefits of $30 million per year in replenishment and a 15 percent sales increase through improved space allocation.

• Working with a large online retailer in Asia to deliver a more relevant and differentiated customer experience, establish better business controls and build a more sustainable IT architecture. We are leveraging Accenture’s comprehensive global capabilities, including Accenture Digital Optimizer, which will enable the retailer to test different online experiences to optimize the user experience and increase conversion rates and basket sizes among its customers to ultimately increase sales volume.

Accenture Retail works with hundreds of retailers around the world, including 9 of the top 10 global retailers.

More than 10,000 professionals globally work with our retail clients.

We combine the best talent from the retail industry with highly skilled consulting, technology and outsourcing professionals to deliver high performance.

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Accenture Retail is dedicated to the advancement of the industry through our participation and leadership across a wide range of retail-relevant associations and events, including: • Retail Industry Leaders Association• National Retail Federation• Consumer Goods Forum• China Chainstore and Franchise Association• Food Marketing Institute• National Association of Chain Drug Stores• National Association of Convenience Stores• Grocery Manufacturers Association• Efficient Consumer Response• EPCglobal

• Network of Executive Women• Singapore Retailers Association• Korean Retailers Association

Accenture—Part of the Fabric of the Retail Industry

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Accenture Retail Clients (partial list):

Accenture Retail serves a wide spectrum of companies across the globe—among them supermarkets, e-tailers, hard-line retailers, mass-merchandise discounters, department stores, fashion and other specialty retailers—that includes the following representative companies:

360buy.com Best Buy Co., Inc. Carrefour S.A. Coles Fast Retailing (Uniqlo) Koninklijke Ahold N.V.Loblaw Meijer Metro AG NordstromOBI Otto Group Staples Starbucks Tesco plcWalmart

You and Accenture. The future of retail.

Our vision is to help you, as a retail executive, lead the future of retail. By sharing ideas, assets and talent, we help our clients drive value and differentiation through customer-infused, analytically powered marketing and merchandising.

We optimize both the use and the integration of key channels to increase speed and improve the relevance of offerings to customers. And we deliver innovation through advanced core technologies and services, as well as improved cross-functional integration and operations. With Accenture’s help, you are one step closer to today’s digital consumer, and one leap ahead of your competitors.

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A New Operating Model is Transforming Retailers into More Customer-centric, Integrated Organizations

Marketing Marketing

Merchandising Supply Chain

Merchandising Supply Chain

Channels

Mobile

Storese-Comm

Mobile

Stores e-Comm

Merchandising Supply Chain

CustomersMarketing

Accenture’s end-to-end retail services and capabilities span the full spectrum of consulting, technology and outsourcing to help our clients tackle business issues and achieve high performance. Through our business services, we bring together our unique skills, processes, alliances, assets and market-relevant insights and drive profitable growth for our clients.

We stand ready to launch from any point in our solution set, including IT services and transformation, and business process outsourcing services. With a management consulting team of 13,000 global professionals, we have full bench strength. Our technology solutions bridge the gap between a retailer’s IT systems and capabilities and its strategic vision for high performance. And our outsourcing team brings 20 years of experience and 50+ delivery locations to serve customers in more than 120 countries. Explore each of these areas to learn more.

Service Offerings for RetailAccenture’s four core service offerings are the cornerstone of how we help our retail clients along the journey to transform and succeed in today’s digital environment. These services are built on integrated core retail processes and encompass proprietary software and assets, strategic alliances and industry innovation.

Accenture’s four core retail service offerings are:

• Customer-Infused Retailing• Integrated Channels to Customer• Speed to Customer• Retail ERP

According to AMR Research, now more than ever clients are looking for customer intimacy, global scale, rapid savings, high quality and low risk—all strengths of Accenture’s.

Service Offerings to Transform Retail on a Global Scale

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“We had a vision to embrace the challenge of building a worldwide company...truly global in vision, leveraging each country’s experience as we optimize our resources and our technology. We turned to Accenture to help make this vision a reality—their involvement was critical to the program’s success.” – Controller, Carrefour Group Controller.

Customer-Infused Retailing Consumers are highly fragmented and have complex values that make them difficult to predict. To stay relevant, retailers need more integrated and social consumer-facing capabilities and real-time responsiveness to identify, target and win over key customers and influencers. A comprehensive yet granular view of the customer can be infused across the enterprise to guide more informed daily decision making about pricing, assortment and promotions.

The need for granularity brings an added layer of complexity. Accenture provides data management and customer segmentation solutions that allow retailers to cut through the complexity and gain a 360o view of the customer. We deliver state-of-the-art data analytics, data warehousing, analytical and optimization engines and applications to conduct customer segmentation and rich segment profiling. Through multichannel campaign management, digital marketing, and assortment and space optimization, we are helping clients to engage customers and impact profitability and growth.

Accenture Customer Insight is the business intelligence answer to understanding customer behavior and building the foundation for becoming a customer-infused company. With Accenture’s suite of digital capabilities, marketing analytics, retail marketing and merchandising solutions and platforms, business users across the organization perform precise customer analyses, create unique customer and location segments and visualize answers to their key questions about customer behaviors.

The Accenture Customer Insight team partners with clients to move beyond the vision and quickly develop, drive and sustain growth through customer-infused marketing and merchandising initiatives.

Accenture Customer-Infused Retailing is helping clients to:• Tailor business strategies and tactics to

deliver the greatest value to the best customers for the least cost.

• Integrate online and offline strategies and tactics to drive integrated channels and alignment in marketing execution.

• Coalesce around a common view of the customer and elevate the role of marketing in the organization.

• Target promotions to result in higher return on investment.

• Increase performance of category assortments.

• Enhance loyalty of target customers. • Drive segment growth and improve

sales through targeted migration tactics.

Large Asian Convenience Store RetailerBy collaborating with Accenture to apply marketing analytics, this retailer is able to better target promotions to customer clusters, identify optimal sites for new store development and improve replenishment processes—enabling consumers to buy what they want, where they want. Benefits to date include $9 million in marketing ROI, and estimated benefits of $30 million per year in replenishment and a 15 percent sales increase through improved space allocation.

Global RetailerTo help stimulate growth for this global retailer, Accenture proposed an approach that used three commercial levers—shelf pricing, promotions and loyalty rewards—and took advantage of the client’s insight into customer purchases and competitive analytics. The Precision Pricing methodology, which includes micro-segmentation and deep price sensitivity analyses, allows the client to optimize pricing using a variety of factors such as category strategy, price sensitivity, store environment and brand mix. The program delivered an increase of .7 percent in market share between 2004 and 2007, after four years of market erosion, and had the potential to add more than €150 million EBIT in France alone.

“We were far from world-class in managing supply chain, so we did something about it. The first thing we did was hire Accenture and they’ve done a wonderful job.”

– CEO, Staples

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Accenture Customer Innovation Network

The Accenture Customer Innovation Network invests in research and development with Accenture Technology Labs and collaborates with leaders in innovation and technology to launch new ideas, new ways of doing business and emerging technologies for tomorrow’s consumer. Through a network of physical, virtual and onsite locations, we leverage state-of-the-art tools and technologies to help our clients develop solutions to any business challenge. At our three locations in Chicago, Milan and Shanghai, we host workshops where clients join us for an interactive, retail-focused and tailored experience—one that challenges companies to think and act differently, that is from a consumer’s perspective—to achieve dramatic results.

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Integrated Channels to Customer Retailers are looking to accelerate growth in new areas, including digital channels and global markets. Accenture provides solutions that enable retailers to penetrate new channels and markets quickly and cost-effectively, leveraging Software as a Service and cloud and business services solutions.

Our comprehensive set of integrated systems, tools and services help retailers create a unified experience for the customer across multiple channels. More than 125,000 technology resources use our industry knowledge and deep understanding of emerging technologies to identify new business and technology trends and deliver solutions that help retailers:• Implement systems and processes

to coordinate and leverage multiple customer channels.

• Integrate retail systems and supporting infrastructure.

• Improve operational performance across all channels.

• Increase revenues in existing markets.• Identify and enter global markets.

Large Big-box RetailerAccenture is currently working with this large big-box retailer to enable its eCommerce channel to grow dramatically, from both an architectural and a process perspective. We helped establish their Mobile Commerce strategy and prioritized a plan and implementation road map for their consumers, their store associates and all the enterprise associates. We are helping this company establish their next generation Stores Application and Technical Architectures, enabling them to provide an integrated channel experience.

Large European Specialty RetailerAccenture is working with this leading international retailer that specializes in providing products and services designed to satisfy the needs of the new mother and her child. Accenture is helping design and implement the new store channel operational model and solution including: customer data, loyalty, promotion, storefront/back-office operation and loss prevention management. Accenture helped establish the retailer’s international eCommerce strategy and solution. We are also building the new integration architecture to challenge the traditional sales operation and enable multichannel integration between stores and eCommerce.

Speed to CustomerTo win in what is arguably the toughest environment the industry has ever faced, retailers need to sharpen their ability to innovate—offering products and assortments that stand out from the crowd—and to do so much faster and more efficiently than competitors. Leading companies are simultaneously addressing being right, being fast and being efficient through a combination of fast innovation, integrated planning and agile supply chain management best-practice capabilities supported by strong analytics.

Through a full suite of supply chain and merchandise planning applications, skilled people and business process outsourcing opportunities, we accelerate our clients’ abilities to build a nimble supply chain that gets products to customers at speed. By improving and shortening the value chain, retailers can:• Capture client-led insights, including

desires, trends and habits. • Collaborate with suppliers (brand

and private label) to bring innovative products to customers faster.

• Forecast better to deliver products on demand.

• Integrate supply and demand, drive efficiency and reduce costs.

• Execute with greater agility and customer-centric precision.

• Shorten the decision cycles that lead to innovation.

International Home Products RetailerAccenture worked with this international home products retailer to implement supply chain analytics to complement JDA Demand and Fulfillment software to help drive improved forecast accuracy and inventory optimization. Accenture also conducted an independent audit/review of JDA implementation, including functional, technical and organizational aspects, to help identify opportunities to optimize functionality, lower maintenance and/or upgrade costs, and streamline processes in order to develop a roadmap for the company. Accenture plays an ongoing support and advisory role to their JDA delivery organization, including supporting execution of the road map.

Accenture ranked No. 6 in the Software & Services category of Forbes’ Global 2000 list.

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Retail ERP As the retail marketplace grows across geographies and mediums, what worked 50—even five—years ago may not work now. In the past, retailers have bolted on technology to solve a specific merchandising or pricing problem. Today’s retailer must assess the broader picture and replace or upgrade the core technology infrastructure that underpins the entire retail enterprise.

Accenture is a proven large-scale systems integrator, and we also bring an understanding of the niche services retailers need to deliver more efficiently and effectively. We are confident in our differentiated capabilities and willing to engage in performance-based deals, in outsourcing engagements at scale or in multi-year managed services deals.

Through our global ERP services, clients:

• Build the ERP foundation to support additional capabilities, such as inventory management, pricing, warehouse management and back-office functions including finance and HR.

• Strengthen core and back-office applications to meet the needs of an evolving marketplace.

• Gain greater visibility into the supply chain.

• Scale as product assortment expands.

Global Asian Apparel RetailerAccenture has been working with this global Asian apparel retailer to implement Oracle Retail 13 and Oracle Exadata. This implementation is part of a larger- scale program to upgrade its existing technology platform to more readily support global growth. Accenture is also helping this company implement a new global operating model across multiple business functions, including finance and accounting, manufacturing/ production, sales/inventory management and IT/systems architecture.

“Through the program we want to bring science to retail management, create a new management mindset to differentiate Grupo Pão de Açúcar’s performance from that of local competitors and make our company’s standards comparable to world-class standards.”

- Program Lead, Grupo Pão de Açúcar

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Accenture is a Leader in SAP and Oracle

• SAP Retail Factory with more than 450 dedicated resources

• Partnering with SAP on the largest SAP Retail implementation in the world

• 30-year relationship partnering with SAP• 1,100+ Oracle Retail (formally Retek) skilled

practitioners globally• 250+ Oracle Retail projects• 20-year relationship partnering with Oracle • The first to implement all core versions of

Oracle Retail since 1995• Retail Oracle Factory with more than 500

dedicated resources

IT Services and Transformation Accenture helps retail clients tackle both core and transformative IT challenges. We have deep experience delivering time- and cost-saving solutions across systems integration, application and infrastructure outsourcing. Further, we help our clients look at technology anew, seeing it as an enabler of transformation and an innovation driver. We focus our IT transformation services on reshaping the direction of IT to maximize shareholder value, drive business value and enable operational excellence for both for the near and the long term. By running IT like a business and delivering technology solutions aligned with business objectives, we help our clients effectively address their organizational challenges related to processes, technology and culture.

In addition, we help retail and manufacturing companies use infrastructure outsourcing to increase efficiency, lower costs and enhance competitive differentiation. Accenture also offers application development, maintenance and infrastructure management to help create measurable value for clients, enabling them to better focus on their core business:

• Clients benefit from our alliance relationships with technology leaders including Oracle, SAP and Microsoft as well as key industry-specific software providers.

• Our Accenture Technology Labs align emerging technology trends with business opportunities to help move the industry.

• Gartner positioned Accenture in the Leaders Quadrant for Offshore Application Services in Europe and North America.

• Meta Group ranks Accenture No. 1 in data warehousing and business intelligence.

Accenture Retail Technology Alliances

Accenture Retail teams with progressive partners to demonstrate the benefits that can be realized with new products and technologies. Through this powerful alliance network, we provide our clients specialized skills and tailored solutions to reduce cost and achieve best practice performance.

Among the more than 80 alliances we have established is a set of strategic global alliance relationships that includes: • IBM, including Websphere Commerce and

Sterling Commerce• JDA• Microsoft• Oracle, including ATG• Predictix• Salesforce.com• SAP

We ranked No. 2 in the Information Technology Services category of Fortune magazine’s “World’s Most Admired Companies” list.

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12 Accenture Retail Overview Brochure | 12

Business Process Outsourcing Services Through a wide range of business process outsourcing (BPO) services, Accenture has added value to retail companies all over the world. We work alongside our clients to develop co-sourcing, shared services and BPO initiatives that free up capital, drive revenue and enable customer-centric innovation. Our standardized BPO services include finance and accounting, human resources, learning and procurement. We helped shape the industry as the first to offer many BPO services on a global scale.

Supply Chain: Accenture’s Supply Chain Management solutions help companies achieve supply chain excellence and prepare for the new economic realities by enabling them to respond to near-term cost pressures. We work with retail clients on inventory planning, forecasting and replenishment to deliver analytics and execution in a long-term service delivery model. We transact more than $3.5 billion in managed inventory and handle 5,000 clients’ suppliers across dozens of manufacturing plants and hundreds of warehouse facilities.

Procurement: Using deep sourcing expertise and an industrialized global delivery model, we work with retailers to drive out cost in procurement and procurement processes. Accenture processes more than 18 million purchase orders/invoices annually, manages more than 31,000 suppliers and transacts more than $38 billion annually.

Commercial: Accenture Analytics and Marketing Services helps clients simplify their operating model by freeing up sales, marketing, design and other areas from repetitive execution, planning and analytics activities through reliable, cost-efficient and predictable shared services. We service more than 400 global brands and deliver more than 100 virtual stores.

Finance and Accounting (F&A): Accenture offers customized delivery, management and continual improvement of financial processes to transform the finance function, reduce costs and create additional business value for our customers. Accenture is positioned in the Leaders Quadrant of Gartner’s “Magic Quadrant for Comprehensive Finance and Accounting BPO” and has more than 9,000 people providing services to clients in more than 150 countries and in 38 different languages.

Human Resources: Developing talent and helping new employees reach competence quickly is vitally important in the retail industry, where annual employee turnover rates can exceed 100 percent. Being able to continually improve individual and collective skills, knowledge and behaviors will become more critical in the years ahead. By developing better talent management capabilities—including new talent sourcing strategies that can fill talent gaps and provide a continual source of innovation and experience—retailers have a greater opportunity to drive high performance by becoming talent-powered organizations.

“To implement the globally unified, company-wide management concept adopted by Fast Retailing, we needed a provider possessing not only a detailed knowledge of the industry, but also advanced delivery capabilities in the management accounting field, from planning and design to system integration and operation. Without support from Accenture, we would probably not have been able to get this project off the ground so quickly and reliably.”

– Group Executive Director, Fast Retailing

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Accenture is a Leader in BPO

• 20 years experience in BPO

• 412 BPO clients

• 150 countries serving client operations

• 50+ delivery locations

• 39 languages supported

• 38,500 BPO professionals

• Ranked No. 1 in the International Association of Outsourcing Professionals’ (IAOP) Global Outsourcing 100 list of the world’s top outsourcing service providers for the fourth year in a row

• Won Best Global Services and Best Business Transformation in the 2011 Outsourcing Excellence Awards

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Accenture delivers the people, the technology and the business acumen to keep you ahead of the pack. Our clients benefit from our global resources, industry innovation and continual pursuit of game-changing ideas that are shaping the future of retail.

Global Reach Conquer new markets with the help of a global partner who has a local presence and can mobilize resources in more than 120 countries. Our geographic diversity enables us to bring you the knowledge and experience of 146,000 people working in 50 Global Delivery Centers around the world. The business of retail is around the clock, so we deliver 24/7 expertise and scalable resources to ensure the continuity of your critical operations.

The Accenture Global Delivery Network Enables Fast, Efficient, World-class Delivery

Innovation You think big and so do we. Accenture has a legacy of technology innovation and implementation, including our research and development capabilities, on which we spend approximately US$400 million annually. By investing heavily in proprietary enabling solutions, patents and skills for retail, we are always equipped to help you anticipate and fulfill the needs of the digital consumer.

Scalability As the business of retail ebbs and flows with peak seasons, fluctuating customer demand and new product launches, our resources can flex along with you. We bring the people, skills and solutions that get you through all the peaks and valleys.

NantesDalian

Mauritius (2)

Argentina (3)

WilmingtonPittsburgh

TorontoChicagoCincinnati

AtlantaHouston

San Antonio

TampaMonterrey

Mexico City

Cayuse (Pendleton)

Murray Hill

Montreal

BPO Delivery Center Locations not exhaustive; (#) Indicates centers in more than one city

Brazil (4)

Centurion/Johannesburg

Casablanca

Spain (7) Italy (5)Bucharest

TverRiga

WarsawNewcastle

London

Heidelberg

Netherlands (2)

LodzBratislava

Prague

BusanShanghai

Guangzhou

Chengdu

Manila

Cebu

DelhiKolkata

HyderabadChennaiBangalore

Mumbai Pune

Reliability We deliver projects on time and on budget, and we are able to accelerate timelines to meet pressures such as new product launches and market fluctuations. Accenture is also vendor-agnostic, investing in reliable technology solutions so you never face a system crash during the holiday season or miss a sales opportunity due to a lack of integrated customer data.

Delivering a World of Advantages

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Accenture Retail Center of Excellence

The Accenture Retail Center of Excellence in India combines people, processes, tools and assets to create industry-specific solutions and services for our clients, regardless of location and time. Our more than 2,100 professionals in Bangalore, Delhi and Mumbai foster industry and functional innovations for information technology and business process outsourcing services.

Our key technology capabilities offered through the center include:• Business Insight• Enterprise Integration• Enterprise Solutions• Content Management• Web-centric Technologies• Client/Server• Host-centric Technologies• Database Systems• Operating Systems• Software Life Cycle Tools• Technology Certifications

Accenture Global Retail Industry Process Model Developed by retail practitioners and thought leaders

from around the world, Accenture’s Global Retail

Process Model leverages experience from thousands

of Accenture projects to create value for clients. The

model accelerates the unmasking of hidden process

overlaps or gaps within a client’s business operations,

exposes best practices buried in the organization,

differentiates between core and non-core process

essentials and highlights actionable process

improvement opportunities.

Helping Retailers Around the World Execute with Innovation and Differentiation Retailers who know and anticipate what their customers want can maximize profits, outperform their competitors and ultimately achieve high performance.

Accenture is committed to helping retailers overcome the challenges of today’s digital consumer uprising, mercurial customer sentiment and new competitors entering at all channels. We have deep industry experience across key capabilities and technologies, and our industry assets and global delivery capabilities ensure timely and cost-effective retail solutions.

By delivering industry innovation and insight into tomorrow’s best technologies, we are helping retailers transform themselves into more customer-centric, integrated organizations that can lead the future of retail.

Copyright © 2012 Accenture All rights reserved.

Accenture, its Signature, and High Performance Delivered are trademarks of Accenture.

For more information on building a retail enterprise of the future, please contact:

Janet L. Hoffman Global Retail Industry Managing Director janet.l.hoffman@accenture.com

Michael Yee Asia Pacific Retail Managing Director michael.yee@accenture.com

Juan Manuel Rebollo Europe/Latin America Retail Managing Director juan.manuel.rebollo@accenture.com

Dave Richards North America Retail Managing Director david.t.richards@accenture.com

About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 244,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.