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When retail IT is executed with best practicesand templates tailored to specific store requirements, it can make all the differencein creating continual revenue streamsthrough optimizing the customer experiencein new facilities.

IT and Retail Store Growth —Best Practices that Promote Revenue

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Executive SummaryIf a new store is not open on schedule, it does not generate revenue — it’s that simple.

Opening on schedule and on budget is the responsibility of many teams — facilities,hiring and training, inventory stocking and much more. But today, a large componentin opening a new store or refreshing technology in existing locations is tightly focusedon IT resources and IT leadership.

IT must deliver the right equipment, configured correctly, at exactly the right time for installation, testing and employee training. If any of these tasks falls behind scheduleor are unsuccessful, there will be an impact on revenue and a loss of connectionwith the customer.

The adage that states “you never get a second chance to make a good first impression”is nowhere more true than in retail. One poor customer experience can close the dooron not only a single purchase, but also a potential future revenue stream.

When retail IT is executed with best practices and templates tailored to specific store requirements, it can make all the difference in creating continual revenue streams through optimizing the customer experience in new facilities. Retail store systems must be reliable, installed and operable on schedule and consistent in performance.If networks, computers and applications are not working in harmony, the store’s revenue is reduced or halted entirely.

With the complexity of opening one retail store understood and fully documentedby the IT organization, what happens when the business wants to open 10 locationsin different geographic locations concurrently?

This paper will examine the critical IT requirements of retail openings and refreshing existing stores, and how the process can be coordinated and managed successfullyand consistently.

If business requirements call for 500 refreshes in three months, could your existing company resources complete more than five stores per night and be ready to open on schedule in the morning?

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The Challenge for IT — Technology and LogisticsManaging the technical logistics of opening new retail locations is a complex undertaking. Retail stores have become reliant on IT infrastructure, essentially becoming technology departments in their own right, combining:

• Servers • Computers • Point-of-sale (POS) terminals• High-speed network connectivity • Wireless networks • Network hubs and routers• Printers

In addition, today’s retail technology is likely to encompass more leading-edge devices:

• Tablets• Customer kiosk terminals• Smartphones• Digital signage powered by software applications• Radio Frequency Identification (RFID) equipment for creating tags and locating inventory

Each of these devices presents its own challenges for IT resources in the tasks required to open a new retail outlet:

• Procurement — each component must be acquired from the designated supplier. This will usually mean purchases from a broad selection of vendors, with the assurance that you source the correct model of each item (models are constantly changing) to ensure compatibility with other devices.• Loading software — operating system software, vendor software, and applications software must each be loaded on the devices as required.• Perform software upgrades and configuration for each device. Components are not always delivered with the latest software releases and updates required to support the retail store applications.• Each item being installed must be configured first, tested second and any trouble shooting completed before the device ever reaches the store. • Install every component in the new retail store, including cabling requirements.• Retest installed components thoroughly before signoff that the store is ready for business. This is typically on a very short time schedule due to the planned store opening date.• Training cannot be over-emphasized. Quality training and documentation will add greatly to a smooth startup and continuing efficiency.

End-to-end, this process can consume a great deal of IT resources and technicians’ time, which may include travel expenses and will also reduce time available for other tasks that can benefit the business and the IT infrastructure.

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Much more than the technical environment for the new store is at stake in the installation process.

• IT applications software must also be installed and tested on each necessary computer and wireless device. • Backup procedures must be tested and validated.• Performance testing and confirmation to verify reliability must be accomplished.• Employees must be trained on both the equipment and the applications.• Procedures for operation and problem resolution must be documented and communicated effectively to store management and all employees. This includes business processes for opening the store, managing sales transactions, and close of business.

Store Requirements — Putting it All TogetherRevenue requires customer sales. When a customer can enter a new store and find the items they’re interested in quickly and easily, they are more likely to complete the sale. Employees that have technology at their fingertips to help customers locate items and suggest additional associated items or accessories can increase sales and further complement the customer experience.

Properly implemented technology forms the basis for customer satisfaction and consistent service. Failures in systems and functionality will quickly distance the customer from the retail store and may lose the customer indefinitely. Customers expect to be treated as the number one reason the retailer exists. They enter the store giving you the opportunity to help them enjoy their shopping experience.

Regardless of how thoroughly and professionally the new infrastructure is implemented, there will be problems at the start and for a period of time as employees become acclimated to the systems and devices. In order to provide the highest level of customer experience and satisfaction, employees must be able to resolve any technical or application issues very quicklyand efficiently.

Support services that have the expertiseand familiarity with the store systemsend-to-end must be available so a singlecall to a specialized team with customerservice as their goal resolves an issue. Help desks that transfer messages amongmany departments or a variety of contactsare not acceptable when revenue is impacted and customer satisfaction is at stake.

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Each retail location is essentially an IT department in its own right, with all the vulnerabilities presented by communications infrastructure, POS devices and printers. Printers are running on your network and as such are potential points of entry for security breaches. Many printers also retain information in memory or on internal hard drives that are subject to hacking attempts. Proper installation including secure passwords and firewalls are precautions often overlooked on some retail store devices, including printers. Adding locations increases vulnerabilities. Consideration fora secure infrastructure must be a factor in every new implementation or update.

1 “Fairway Failure Shows Danger of Overpromising Before the IPO.” Accessed October 2, 2016. http://www.bloomberg.com/news/articles/2016-05-06/fairway-failure-shows-danger-of-overpromising-before-the-ipo2 Srinivasan, Sridhar, Narayanan, and Sihi, “Effects of Opening and Closing on Chain Retailer Performance.” Accessed October 1, 2016. http://sites.utexas.edu/raji-srinivasan/files/2013/02/Effects-of-opening.pdf

Pacing expansion of retail growth is a critical point. A recent expansion strategy by a specialty gourmet grocer¹ coincided with their IPO offering that promised potential investors there would be an additional 300 stores opening — a 2,400 percent growth. While the IPO itself was a distracting factor for management,the failure to achieve the guaranteed number of openings was attributed in largepart to their inability to execute the growth strategy with their available resources. The result — a drop in stock price followed by an eventual filing for bankruptcy.

Execution risk is an important consideration for retail store openings. Management can benefit greatly by transferring thisrisk factor to experts in the logistics of acquisition, installation, testing, and training. This allows corporate decision-makers to focus at the ten-thousand feet level, and transition a portion of the risk to those best suited to manage it.

One study prepared for the Journal of Retailing² further suggests that retailers’ performance on opening and closing retail stores reflects on consumers’ and investors’ view of overall company performance, even having an impact on stock price.

Failing to meet the customer’s expectations may mean you only get that chance once.

Customers also want to feel secure in their purchases. With growing concern for criminal activity in the form of cyberthieves and identity theft, retail clients want theassurance that their transactions are secure and private. Compliance with the Payment Card Industry Data Security Standard (PCI-DSS) is critical to secure business transactions and to provide confidence to your customers that their in-store and online purchases are private.

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New Store Openings and Technology RefreshJust as complex, if not more, as opening a new store is refreshing the technology utilized at an existing location. This may include replacing the entire IT infrastructure with upgraded technology or integrating new devices into the existing infrastructure to meet demands for endless aisle capabilities. New equipment needs to be purchased, installed, configured and tested. In addition, obsolete equipment must be removed and repurposed for other use, or disposedof properly and responsibly.

Training for employees must also be completed, all with minimal or no disruption to business operation and therevenue stream.

In SummaryRetail stores require technology to keep customers engaged and to provide the services they expect. Those retailers that provide service levels in their stores and online that impress consumers will reap the benefits, and those that do not will falter or may even disappear over time.

Initiating and executing retail store technology installations and upgrades requires careful planning, scheduling and detailed technical knowledge of equipment, vendors and software requirements. Any miscommunication or deviations can cause schedules to slip and may result in stores not opening on time, causing lost sales.

The consequences of downtime in retail are extremely high. With the complexity and timing considerations requiredfor implementing installations and upgrades, combined with the many resource constraints, there can be an incredibly high burden on IT departments and individuals.

IT resources are essential to opening new stores or refreshing technology at existing stores. Efficient startup and refresh projects can generate a strategic advantage when partnering with a technology company knowledgeable and experienced in managing retail implementations. Such a collaboration with businesses that specialize in these activities can benefit retail enterprises in several ways:

• Reduced drain on internal IT resources.• Confidence that the right equipment and configurations are procured.• Project management in scheduling, installation, testing and training.• Speed of implementation — opening many stores at the same time with minimal internal impact.• IT resources can focus on more critical strategic initiatives that benefit the business.• Qualified and experienced technicians provide in-store and remote support for new employees and devices.• Secure system delivery — experience in retail environments and the associated vulnerabilities can be addressed at every point of exposure. This provides peace of mind for both the business and the customer.• Risk mitigation — using certified teams of IT retail specialists assures a successful implementation to maximize store revenue.

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CompuCom – the Retail Growth IT SolutionCompuCom powers your retail store implementations and upgrades with more than 6,000 qualified and certified technicians that support thousands of retail locations throughout the US and Canada. We provide 7/24/365 service desk support for POS, network, back office, security and mobile devices.

IT teams have many business-critical initiatives in process at any given time. Demands on these key resources for store upgrades or openings can detract from attention to other high-priority projects. CompuCom can be the difference in successful management of multiple demands for technology expertise, alleviating in-house IT teams from these time-consuming tasks.

CompuCom provides a standardized and tested formula for retail store openings and remodels that works to maximize system availability and revenue opportunity. Our teams work continually to earn the respect and confidence of every client to make sure that your IT infrastructure instills the highest levels of satisfaction for your customers.

Our success stories include expert management of large retail refresh projects that include in excess of 40 stores per night, every night, over a 90-day period.

This level of consistent accomplishment can only be achieved through CompuCom’shigh level of expertise in technology and retail, combined with our network ofqualified technicians.

This makes CompuCom uniquely qualified to manage the logistics of acquisition, coordination, installation and testing of retail store openings and refreshes without disruption or risk to store operations.

Contact CompuCom today to discover how our time-proven methodology and technical retail expertise can improve the speed and reliability of opening and refreshing yourretail locations.

More than 6,000 qualified and certified technicians that support thousands of retail locations throughout the US and Canada.

RESOURCES:http://compucom.com/industries/retailhttps://www.forrester.com/report/Brief+Retailers+Must+Embrace+InStore+Technologies+To+Differentiate/-/E-RES127938https://www.gartner.com/doc/3013223/top-retail-business-technology-trendshttp://www.tableau.com/sites/default/files/media/slideshare_sixtrendsretailbi_final2_0.pdf?ref=lp&signin=be024f919a6929bec53364e69718d015http://www.bloomberg.com/news/articles/2016-05-06/fairway-failure-shows-danger-of-overpromising-before-the-ipohttps://www.entrepreneur.com/article/234094http://sites.utexas.edu/raji-srinivasan/files/2013/02/Effects-of-opening.pdf

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ABOUT COMPUCOMCompuCom Systems, Inc., a global company headquartered in Plano, Texas, provides IT managed services, infrastructure solutions, consulting and products to Fortune 1000 companies committed to enhancing their end users’ experience. Founded in 1987, privately held CompuCom employs approximately 11,500 associates. For more information, visit www.compucom.com.

©2016 CompuCom Systems, Inc. All rights reserved. CompuCom, Solution Café and ClientLink are registered trademarks of CompuCom Systems, Inc. All other trademarks and product names mentioned herein are the property of their respective owners in the United States, Canada and/or other countries. The information contained herein is subject to change without notice.