News

From the Editor’s Desk

BY Marianne Wilson

Welcome to the new and improved Chain Store Age! We’ve changed the size of our magazine (yes, the pages are bigger — it’s not your imagination), and updated the style and size of our type fonts with the goal of making CSA more reader-friendly and allowing us to incorporate more visuals going forward. We’ve also introduced a new logo, one that better reflects retailing’s omnichannel environment.

Our print redesign is part of a larger update of CSA’s brand identity that is reflected in our digital products as well. Our website is now incorporating more video — including, most recently, a terrific series of interviews with the nation’s leading real estate developers that were conducted at the annual RECon show in Las Vegas — along with such regular features as Store of the Week and Hot Concepts.

CSA’s e-newsletters have been revamped, with enhanced coverage and more photos. The daily has a new name, CSA DayBreaker, and the mix of news has been expanded to include technology coverage. Given the huge impact technology is having on every single aspect of the retail experience, we felt it crucial to incorporate technology into our daily news coverage. More than ever, DayBreaker is a must-read for busy retail executives who want to stay on top of the news and ahead of the competition. (And speaking of technology, veteran retail tech reporter Dan Berthiaume has joined our staff as a senior editor. Don’t miss his TechBytes column online and his expanded tech coverage in print.)

Our real estate newsletter, SiteTalk, has been renamed OnSite, and our store planning & design, construction and facilities newsletter, SpecsTalk, is now called StoreSpaces. New, exciting features have been added to both. We’ve also changed the name of the corresponding sections in the magazine to reflect their digital counterparts.

We hope you like the changes, both to the magazine and our online products. As always, your feedback is very welcome!

It’s hard to believe, but we’ve hit the mid-year point already! I thought it would be interesting to take a quick look back and see what articles initiated the most interest among our online readers. Here are chainstoreage.com’s 10 most viewed stories of the year to date:

①Johnson out as CEO of J.C. Penney; Ullman back

②Retail Store of the Year: And the winners are…

③Top 10 Most Innovative Companies in Retail ④13 Hot Trends for 2013

⑤Macy’s to close six locations, open nine others

⑥Walmart in line to open 500 Neighborhood Market stores by fiscal 2016

⑦Reinventing Retail: Hointer, Seattle

⑧Dick’s to open 40 stores in 2013 and debut Field & Stream format

❾Five Below to open 60 stores in 2013 and expand into Texas

⑩The J.C. Penney Debacle: Five Lessons Learned

It’s not surprising that J.C. Penney bookends the list. From Ron Johnson’s exit to Mike Ullman’s swift return, the company remains the biggest and most fascinating story in retail. It will be interesting to see how the next six months play out. So here’s a request for more feedback: After all that’s happened so far, how do you think Penney fare going forward?

[email protected]

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OPERATIONS

Dunkin’ Donuts prepares gluten-free bakery items

BY Dan Berthiaume

Canton, Mass. – Dunkin’ Donuts plans to start offering gluten-free bakery items by the end of this year. Participating U.S. Dunkin’ Donuts restaurants will have the option to offer certified gluten-free bakery products, including a new gluten-free cinnamon sugar donut and a gluten-free blueberry muffin. Both items are certified gluten-free by the Gluten Free Certification Organization, prepared in a dedicated facility and individually packaged. The suggested retail price for the gluten-free cinnamon sugar donut will be $1.89 and $2.39 for the gluten-free blueberry muffin.

“Our culinary and commercialization teams have worked very hard to create these new gluten-free menu items to be just as delicious as all of our product offerings,” said Stan Frankenthaler, executive chef and VP of product information for Dunkin’ Brands in a statement on the Dunkin’ Donuts website. “It took a great deal of experimentation to come up with the correct, unique blend of rice flours and certain starches such as potato and tapioca to replace traditional wheat flour.”

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INVENTORY

Omnichannel: It’s Not Just for the Front End Anymore

BY CSA STAFF

Upon hearing the phrase "omnichannel," most retailers probably envision reaching out to customers across front-end touchpoints, such as store, PC, mobile device and social media. But fulfilling customer needs across those touchpoints does not occur in a vacuum. Tamara J. Saucier, VP industry, retail solutions for cloud-based supply chain collaboration provider GT Nexus, recently took time to explain the impact of the omnichannel revolution on back-end retail operations, and how retailers can adjust their supply chains to maximize the effectiveness of their omnichannel strategies.

Everyone is talking about how an omnichannel approach is revolutionizing retail front-end operations. How is it affecting retail back-end operations?

There has been a lot of focus and investment on engaging consumers, which has changed consumer expectations for delivery and service. Now we are seeing a shift in focus to the back-end supply chain to enable and support those new expectations. The supply chain is at the very heart of profitability and service. The key to enabling omnichannel retail is a supply chain that provides complete visibility into all inventory and investments, including goods that are in holding across all channels, in transit or at consolidation points.

Retailers have to be agile enough to identify all goods throughout the entire supply chain that are available to expedite, reroute or allocate to consumers. And they need to understand the cost and value of these decisions. This is a different paradigm for retail. It is affecting processes, systems and even organizational structures.

How does omnichannel supply chain visibility help retailers meet the needs of the omnichannel consumer?

Knowing where all goods are across the production life cycle is essential to the omnichannel supply chain. Enabling visibility to the lowest level of granularity will allow retailers to be much more responsive to their market.

If a retailer has visibility into its factory floor and shipment pipeline, then they now know which goods are available to expedite, which can be air-shipped to replenish hot selling items, which can be re-routed to different locations, or which could be drop-shipped direct to consumer. Having these options positions retailers to meet fast-changing consumer demand in a way that provides the highest level of service, yet remains wholly transparent to the end customer.

How can omnichannel supply chain visibility help retailers realize the full potential of RFID?

More and more retailers are deploying RFID, but often their vision is set primarily on in-store benefits. There’s room to capture significant ROI by tagging earlier in the supply chain, at source, to improve compliance, visibility and transparency.

Using RFID at the point of manufacture can improve packing accuracy, reduce concealed shortages and eliminate the need for higher volumes of buffer stock. Improved shipment accuracy supports item-level proof of delivery that can translate into new capabilities in available-to-promise commitments.

It also provides a certified chain of custody, which can support authentication for transparency relating to regulatory compliance, CSR and/or counterfeiting.

How can retailers enable their supply chains to be more omnichannel visibility-ready?

Doing more at the source is key. This is where the cost of change is less and the impact to agility is highest. Customization of goods, generation of store-ready merchandise, providing flexible pack strategies, preparing shipments for direct ship or cross dock can all be done at the factory level to not only reduce costs and time, but to make the supply chain more agile and transparent.

Given the diverse sourcing strategies across branded and private label goods, retailers must have a framework or platform to capture a single view of the supply chain. This is a major challenge when there are multiple parties involved in the supply network, each having their own processes, tools and logistics models. Visibility across all sources is critical. It is imperative that the visibility supports execution capabilities. Finding ways to do more at the source and securing actionable inventory intelligence is a major priority for injecting responsiveness into the omnichannel retail supply chain.

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