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3 Bloom Concept Store–Shopping should be simple Retail News Perspectives in Food Retailing Technology (USA) How can technology and store design help simplify the shoppers experience in a supermarket? In 2004, Food Lion, one of the top-10 food retailers in the US, opened five new concept stores called Bloom aimed at making shopping easy. The Bloom concept was led by a team of nine Food Lion innovators who searched all over the world for best practices to meet their core mission of building an ultra-convenient supermarket that is hassle-free for the shopper. The Bloom team developed some fresh, customer- focused ideas and sought out the best technology partners to help bring their vision to life. One such technology, the Personal Scanner from Symbol ® , allows customers to scan items as they shop so that checkout is quick and easy. One challenge with implementing the Personal Scanner in the US is that most retailers do not have the ability to print barcodes for fresh fruits and vegetables. Bloom selected a very shopper friendly and PC based touch screen solution from METTLER TOLEDO to help solve this problem. This solution, called UC- CW, lets shoppers simply identify a fresh item on the touch screen and print a barcode label to be scanned by the Personal Scanner. The new touch screen scales have additional ben- efits as well, Susie McIntosh-Hinson, leader of the technology decisions for the Bloom concept said, “In addition to facilitating the use of Personal Scanner, customers like the ability of weighing and knowing exactly how much their produce will cost prior to reaching the checkout. For those on a lim- ited income, this removes the risk of embarrass- ment at checkout. For others, they like having all information at the point of purchase decision - this leaves them in control to choose. Other benefits include increased speed of the overall checkout process as the produce is already weighed.” So far, customer response to the new technology has been very positive in all five Bloom locations, McIntosh- Hinson added. Bloom evaluated a number of suppliers for the weighing and labeling solution and chose METTLER TOLEDO because, said McIntosh-Hinson, “... the self serve scale evaluation centered around the ease of use from a customer perspective and also the flexibility of the application and Bloom to evolve as we made refinements to further remove the hassles from the shopping experience.” The METTLER TOLEDO UC Touch Screen weighing so- lution is one of several customer self service solu- tions available at Bloom - all focused at working together to aid and assist the customer with their shopping experience.

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Page 1: Retail News VOL3 - Mettler Toledo€¦ · Retail News 3 METTLER TOLEDO 2 Published By: Mettler-Toledo, Inc. 1900 Polaris Parkway Columbus, Ohio 43240 TEL. (800) 883-2171 (614) 438-4511

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Bloom Concept Store–Shopping should be simple

Retail NewsPerspectives in Food Retailing Technology

(USA) How can technology and store design help simplify the shoppers experience in

a supermarket? In 2004, Food Lion, one of the top-10 food retailers in the US, opened

five new concept stores called Bloom aimed at making shopping easy.

The Bloom concept was led by a team of nine Food Lion innovators who searched all over the world for best practices to meet their core mission of building an ultra-convenient supermarket that is hassle-free for the shopper.

The Bloom team developed some fresh, customer-focused ideas and sought out the best technology partners to help bring their vision to life. One such technology, the Personal Scanner from Symbol®, allows customers to scan items as they shop so that checkout is quick and easy. One challenge with implementing the Personal Scanner in the US is that most retailers do not have the ability to print barcodes for fresh fruits and vegetables. Bloom selected a very shopper friendly and PC based touch screen solution from METTLER TOLEDO to help solve this problem. This solution, called UC-CW, lets shoppers simply identify a fresh item on the touch screen and print a barcode label to be scanned by the Personal Scanner.

The new touch screen scales have additional ben-efits as well, Susie McIntosh-Hinson, leader of the technology decisions for the Bloom concept said, “In addition to facilitating the use of Personal

Scanner, customers like the ability of weighing and knowing exactly how much their produce will cost prior to reaching the checkout. For those on a lim-ited income, this removes the risk of embarrass-ment at checkout. For others, they like having all information at the point of purchase decision - this leaves them in control to choose. Other benefits include increased speed of the overall checkout process as the produce is already weighed.” So far, customer response to the new technology has been very positive in all five Bloom locations, McIntosh-Hinson added.

Bloom evaluated a number of suppliers for the weighing and labeling solution and chose METTLER TOLEDO because, said McIntosh-Hinson, “... the self serve scale evaluation centered around the ease of use from a customer perspective and also the flexibility of the application and Bloom to evolve as we made refinements to further remove the hassles from the shopping experience.” The METTLER TOLEDO UC Touch Screen weighing so-lution is one of several customer self service solu-tions available at Bloom - all focused at working together to aid and assist the customer with their shopping experience.

Page 2: Retail News VOL3 - Mettler Toledo€¦ · Retail News 3 METTLER TOLEDO 2 Published By: Mettler-Toledo, Inc. 1900 Polaris Parkway Columbus, Ohio 43240 TEL. (800) 883-2171 (614) 438-4511

METTLER TOLEDORetail News 3

2

Published By: Mettler-Toledo, Inc.1900 Polaris ParkwayColumbus, Ohio 43240TEL. (800) 883-2171 (614) 438-4511FAX (614) 438-4900

Editor:Brian Hipsher

Production Layout/Design:Del Graf

Direct comments to:[email protected]@mt.com

Retail News Volume 3Jan, 2005©Mettler-Toledo, Inc. 2005

ContentsRetail News 3

Penny Markets adds Checkout Weighing

Setting the Stage for Future Innovations

Retail IT Solutions in China: Value Matters

Innovative Solutions Create Expert Employees ...

SWEET SUCCESS for Woolworths ...

LCBO Rolls Out SofTechnics’ GeM2020 Suite

For more information visit:www.mt.com

Penny Market in Czech Republic adds Checkout Weighing

Penny Market is a member of the larger REWE Group chain of retail stores. Penny Market stocks the traditional product range of food items that sell at particularly good-value prices. On shop floors measuring 700 square meters, Penny demon-strates its competence in the area of fresh fruit and vegetables, bread and baked goods, sausage and cold meats, cheese, milk and dairy products as well as fresh meat from the self-service counter.

In the autumn of 2003 Penny Market in the Czech Republic expressed interest in checkout scales compatible with the PSC Magellan Scanner. An initial pilot using a METTLER TOLEDO 6kg scale proved successful, however, it was discovered that weighing items at higher capacities like melons and other heavier items was important. The tech-nical challenge was to keep high resolution weigh-

(Czech Republic) Emerging markets dis-

cover the value of high resolution and

capacity checkout scales for selling fresh

products.

ing and to be able to expand the capacity range to allow for larger items.

Penny Market evaluated many competitive prod-ucts and found that the new METTLER TOLEDO Dura checkout scale provided a superior techni-cal solution and offered the most value to Penny. The METTLER TOLEDO Dura checkout scale is extremely tough and resistant to spills. It has two weighing intervals that allows high resolution weighing up to 6kg then additional weighing capac-ity up to 15kg at a slightly lower resolution.

The customer was so happy with the Dura solu-tion that the original idea of updating 50 stores was revised to include all 150 outlets in the Czech Republic for a total of 655 scale units.

Dura Scanner/Scale

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Setting the Stage for Future Innovations

But during the last 30 years, shoppers have de-manded more and more information to help with their choices, and new technologies have emerged allowing more data to be present at the point of decision. From nutritional information to recipes to traceability history to promotional content - what was once a simple transaction now requires a sophisticated network of systems to support the information needs of stakeholders in fresh goods retailing.

Managing fresh goods is no simple task. Fresh products are perishable – they have a defined life. When they are not sold during that life, they become an expense. Retailers constantly look for ways to become more efficient by reducing waste and automating processes. Retailers also want to maximize their sales with appealing merchandis-ing and marketing techniques.

“Retailers need to manage vast quantities of in-formation and METTLER TOLEDO is one link in a chain of solution providers. Because we cannot be the major player in all areas, we partner. By finding the right partners we can deliver the best solutions and superior value to our customers,” said Tudor Andronic, Europe Retail Software & Integration Leader. METTLER TOLEDO has a strategic focus to build partnerships with complementary solution providers like IBM, NCR, and Microdata as well as backbone data integrators like Pironet. These new partnerships are strengthening the METTLER TOLEDO position as an “open” solution provider for retailers interested in fully integrated solu-tions.

The practice of setting food prices by weight goes back many, many years. Not long

ago, people were happy to pay a fair price based on the results of a simple, mechanical

scale.

The UC product line provides an excellent hard-ware and software platform for the development of exciting solutions for retailers. Software services and maintenance contracts based on this platform make it easy for retailers to keep up with solution enhancements, thus “future-proofing” their in-vestment. Because the UC uses an open platform, METTLER TOLEDO and its partners are able to craft and deliver solutions quickly and efficiently. “We believe, as it is for the general software indus-try, that we need to create an environment where we can leverage the value of our partners in con-cert with our solutions,” said Tim Haynes, Head of the Retail Division. Such an open approach makes possible higher-value innovations that, for exam-ple, could combine product recognition software with self service weighing, kiosk deli ordering soft-ware with order fulfillment at the deli counter, and inventory management software with the overall fresh goods management solution.

The METTLER TOLEDO retail business vision is to transform from simple weighing, to a blend of hardware, software and service solutions to solve the customers’ business issues. “We recognize that software is the value-driver for solutions to our customers,” said Tim Haynes, “and we are chang-ing the way we do business to fully realize the op-portunity to lead in the development of software solutions, and to develop strong partnerships with other IT companies and retailers.” These fresh so-lutions will benefit METTLER TOLEDO customers by driving higher retail sales and by improving their profitability in fresh departments of the store.

Photo Claude Lepaire-Paris

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Retail IT Solutions in China: Value Matters

Poor control of inventory and supply: there was insufficient information at the customer’s site to review the stock and delivery schedule from vendors, which resulted in occasional product out-of-stock situations during busy hours.

Poor information transparency: Management had poor visibility of real time business opera-tions and results.

To solve these problems, METTLER TOLEDO rec-ommended a new product for Asia called the i-15 scale - a price computing scale with network func-tions and weighing data management.

METTLER TOLEDO won the business and received an order from the customer for 89 units of the i-15 scale. Can you imagine 89 network scales in a single retail store? Shanghai First Food Store was

The Shanghai First Food Store is located along the top commercial street in China on Nanjing East Road in Shanghai. Established 40 years ago, Shanghai First Food Store is the largest food store in China. This unique store has over 10,000 food categories, 150 sales counters, and 600 store as-sociates. In 2003, the store reached annual sales revenue of 320 million renminbi (about $39 mil-lion USD).

After meeting with the system integrator, the retail-er’s IT manager and Finance manager, METTLER TOLEDO determined the customer faced the fol-lowing issues:

Low efficiency of the operation: Since they used a non-networked price computing scale, it took a lot of time and manpower to check inventory and transactions every month.

(China) Improving store efficiency, inventory management, and information visibility

helped METTLER TOLEDO create a valuable solution for a premier retail account in

China.

“Can you imagine 89 network scales in a single retail store?”

very impressed with the competence of METTLER TOLEDO in product and software development. Mr. Fu, the IT manager from Shanghai First Food Store said: “METTLER TOLEDO really provided a different solution by helping us improve our op-erational processes. We are very pleased to see the nice return from our investment. It also creates the opportunity for us to develop more business.”

“Today, in our market, we feel very positive to help our customers improve their operational ef-ficiency by offering such solutions.”, said Liu Yun of METTLER TOLEDO in China, “We realized in order to ensure the proper usage of the scale at the customer’s site, a special team was needed to offer our special services. The METTLER TOLEDO team quickly responded to the customers wishes to modify our product and software.”

Street View of the Shanghai First Food Store

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In conclusion, the Shanghai First Food Store made significant improvements in both their manage-ment and day-to-day sales operations by imple-menting the i-15 solution within their information system. The following changes will certainly benefit the customer. But just as important, store employ-ees can now work more efficiently than before.

Simplified operation for store clerks. Now, store clerks do not have to check or memo-rize hundreds of commodities’ prices. The i-15 scale has all this information in memory, so operators only need to simply press the PLU on the keypad to handle transactions. This also shortened the training time for new clerks.

The i-15 scale keeps data synchronized be-tween all scales in the network and the back-room database.

The operational process at the counters was improved, particularly for product returns, dis-counting, and price updates.

Daily reports of sales, inventory, returns, etc, are done automatically and saves a lot of man-power.

Second, the i-15 solution improved management capabilities by providing real time data for analy-sis, decision making and marketing promotions.

The solution also provided the capability to find and fix problems in a more effective way.

In the end, the critical factors to achieve this METTLER TOLEDO success were listening careful-ly to the customer’s business problems, creating value added solutions, embracing teamwork and responding quickly to the customers’ requests.

An amazing selection of items greet customers as they shop in the busy store

Customers served using the Mettler Toledo i-15

Page 6: Retail News VOL3 - Mettler Toledo€¦ · Retail News 3 METTLER TOLEDO 2 Published By: Mettler-Toledo, Inc. 1900 Polaris Parkway Columbus, Ohio 43240 TEL. (800) 883-2171 (614) 438-4511

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“We can no longer manage to impart increasing quantities

of knowledge by traditional means.”

Innovative Solutions Create Expert Employees and Improve Transaction Speed

With 1500 stores, SPAR Austria is the largest pri-vate employer in the country. It enjoys the fastest growth in the industry, and the highest established levels of customer satisfaction. Away from the big cities, SPAR has now realized the future of the supermarket. The small town of Mattighofen lies about 30 kilometers from the SPAR head office in Salzburg, and offers representative conditions for the “leading store”, or simply the “most modern EUROSPAR in Austria”.

Training via the scales: Efficiency increased

The chairman of the board at SPAR, Hans K. Reisch, sums up the decisive unique selling point of his stores as follows, “For years now, we have been backing fascinating fresh produce depart-ments with expert advice.” To support this expert knowledge, the range of training available for

(Austria) SPAR Austria demonstrates the future of the supermarket at a EUROSPAR in

Mattighofen. Highlighted are scales with optical recognition in the self-service area and

staff training via the display of the UC scales from METTLER TOLEDO.

By Fritz Gempel and Dobbin Lange, METTLER TOLEDO Germany.

staff is impressive. However, what troubled Josef Hintermaier, head of delicatessen at SPAR, was the low efficiency of training because staff needed to travel great distances to attend seminars. With part-time staff, the benefits of training were even lower. His conclusion: “We can no longer manage to impart increasing quantities of knowledge by traditional means.”

In a joint project with METTLER TOLEDO, SPAR has now realized Josef Hintermaier’s vision that “infor-mation is simply always available.” By information, the SPAR manager means specialist knowledge of fresh produce and the training for friendly and hy-gienically impeccable selling. What has come out of the joint project, according to Josef Hintermaier and Herbert G. Stindl, sales director for METTLER TOLEDO Austria, is “as revolutionary as the intro-duction of the barcode once was.”

Touch screens offer more than a keyboard

In technical terms, the development is based on the METTLER TOLEDO UC generation of scales which offer “Unlimited Connectivity”. For the end customer, these unlimited possibilities are indi-cated by a futuristically styled, special steel hous-ing and a high-luminosity screen. For the user, the main focus is on the touch-sensitive screen. The three main functions of the UC-Touch for SPAR are: 1. Selling, 2. Information/training and 3. Pre-packing. Stored in the information system, subdi-vided into 19 training areas, are several hundred HTML-programmed pages with text, photos and videos. Josef Hintermaier describes how the sales assistants respond to it in practice: “For example, an assistant does not know how this large piece of mountain cheese should be correctly portioned and cut up. Via the training area, she is then shown

SPAR Headquarters in Salzburg, Austria – Where the future is becoming reality.

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Retail News 3

in words and pictures exactly how to do it correctly.” The combination of text, images and video lends a liveliness that has led to a high level of acceptance of the new training medium behind the counter.

PLUs are history

A further innovation is the alphabetic keyboard for searching for items. Here, the operator types in the first two letters of the item, and within the first work step will find the correct item data with a hit accuracy of 85% - a fantastic figure con-sidering there are more than 1000 delicatessen items. And for SPAR, item data is not limited to price information, but also comprehensive data such as details of origin, preparation instruc-tions or suggestions for additional sales. This speeds transaction time and allows operators to provide expert advice and information about prod-

ucts.

The department button also represents important progress in the flexible classification of employ-ees in sales. Whereas before, the PLUs (Product Look-Ups) for a particular department were always stored on the serving scales, now all of the items for all departments in the store are available. Now operators can provide cross-departmental expert advice at any time.

A Scale with Vision

The forward-looking innovations that SPAR has realized with METTLER TOLEDO in Mattighofen also apply to the self-service departments. The UC-Touch scales with camera functions are being used for the first time in Austria. Here, a built-in camera on the self-service scale records the goods and within a fraction of a second the system com-

pares the data supplied by the camera with product characteristics stored in a database, on the basis of shape, color, size and surface structure. If a prod-uct cannot be classified with 100% certainty, the UC then offers the customer suggestions to choose from on a touch screen. It’s quite clear: these high-tech scales not only tell apples from pears, for customers in Mattighofen they also make shop-ping a real pleasure. Such automatic fruit and vegetable identification improves the shopping experience and increases shopper throughput and efficiency.

The “eye” of the scale detects automatically whether apples or pears are being weighed.

The sales assistant no longer needs to memorize PLUs

Page 8: Retail News VOL3 - Mettler Toledo€¦ · Retail News 3 METTLER TOLEDO 2 Published By: Mettler-Toledo, Inc. 1900 Polaris Parkway Columbus, Ohio 43240 TEL. (800) 883-2171 (614) 438-4511

METTLER TOLEDORetail News 3

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“The scale is a huge benefit to all our customers...”

SWEET SUCCESS for Woolworths and METTLER TOLEDO

Founded in the UK in 1909, with its first store opening in Liverpool, Woolworths Plc is a lead-ing high street retailer. Offering customers’ value for money on a wide product range including the core categories of entertainment, confectionary, toys, children’s clothing, stationary and home, the 803 main retail outlets, together with the 21 out of town stores, provide consumers with a tempting array of goods.

To improve its focus on core customers, Woolworth’s has developed a new store concept. It now has 27 10/10 stores, with 60 opening by the end of the financial year. In the new stores each product category is clearly signed in specific zones. The company has worked very hard to create a log-ical layout and boost sales, so confectionery, drinks

(UK) The installation of new retail scales has improved processes and aided compli-

ance at Woolworth’s new concept stores.

and the famous pic ‘n’ mix now sit at the front left of the store, merging naturally into gifts and then greetings cards.

To coincide with this new 10/10 concept, Woolworth’s required a small price computing scale for weighing sweets, as David Cantwell, Fixtures and Consumables Buying Manager, explains. “We were looking for a scale which complies with all the current legislation as well as looking stylish. We required the scales for weighing pic ‘n’ mix selec-tions, one of our core products.”

To meet the company’s specific requirements, METTLER TOLEDO suggested the new Mini-Tiger retail scales would be the ideal solution. The com-pact and portable unit offers robust construction

– ideal for harsh retail environments. Flexible and accurate, the scale has numerous features includ-ing price calculation at the scale, optional battery operation and a stainless steel tray. In addition the clear LED display ensures customers can read the screen without difficulty.

David concludes: “The scale is a huge benefit to all our customers as the clean crisp displays helps all users –especially those who may have problems with their sight. The scale is also very easy for our colleagues to use and re-program. After the suc-cessful trial in our pilot 10/10 concept store in Kingston … the Mini-Tiger scales are now part of our evolving specification.”

Page 9: Retail News VOL3 - Mettler Toledo€¦ · Retail News 3 METTLER TOLEDO 2 Published By: Mettler-Toledo, Inc. 1900 Polaris Parkway Columbus, Ohio 43240 TEL. (800) 883-2171 (614) 438-4511

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LCBO Rolls Out SofTechnics’ GeM2020 Suite

inventory decisions, balance stock, improve ROI and optimize store performance

SofTechnics’ GeM2020® is a full-featured, retail in-store application suite providing wireless mo-bile inventory and pricing management. The sys-tem is modular allowing the retailer to customize applications to meet the specific needs of any in-dividual operation. Retailers can pick and choose application modules and their sequence of imple-mentation. In addition, the suite provides solution flexibility, application conformity, with configurable integration resulting in a quicker implementation and ROI.

“The LCBO’s investment in the GeM2020® stock management solution supports our con-tinued commitment to provide accurate inven-tory information to better serve our customers,

The SofTechnics Division of Mettler-Toledo, Inc., a leading provider of integrated retail enterprise software solutions, announced that LCBO, one of the world’s largest distributors of beverage alcohol, is rolling out SofTechnics’ GeM2020® In-Store Inventory Management applications. LCBO has an established Ontario-wide market and operates over 600 stores in the Province of Ontario, Canada.

The LCBO is an agency of the Province of Ontario, and reports to the Minister of Economic Development and Trade. It exists to provide Ontario consumers with excellent product selection and service, and to be a leader in promoting respon-sible use of beverage alcohol.

The LCBO has elected to roll out SofTechnics’ GeM2020® to take them into the future of stock management; providing accurate product infor-mation, improved customer services to maximize

(Canada) Liquor Control Board of Ontario (LCBO) Rolls Out SofTechnics’ GeM2020

Suite of Inventory Management Applications.

and provide our associates with valuable tools to achieve inventory optimization,” said Roy Ecker, Senior Vice President, Retail. “We were attracted to SofTechnics because of their experience in imple-menting wireless systems for large retail opera-tions.

“SofTechnics’ commitment to the retail industry has been to deliver full-function, parameter-driven applications with ease of implementation, integra-tion, and a quick return on our customer’s in-vestment. We are pleased that The LCBO selected us, and demonstrated their confidence by imple-menting our GeM2020® Store Receiving, Physical Inventory, Cycle Count, Transfers, Replenishment and Perpetual Inventory modules,” said Guy Dille, Global Business Unit Leader, Retail Software & Integration for Mettler-Toledo, Inc.

An LCBO Store

LCBO Headquarters, Ontario

Scanning Inventory

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METTLER TOLEDO Retail ContactsAustralia TEL. 61 3 9644 5710

Austria TEL. 43 1 604 19 80

Belgium TEL. 32 2 334 02 11

Canada TEL. 1 416 485 0070

China TEL. 86 519 664 20 40

Czech Republic TEL. 420 2 72 123 150

Croatia TEL. 385 1 29 58 137

France TEL. 33 01 30 97 17 17

Hungary TEL. 36 1 288 40 40

Germany TEL. 49 641 50 70

Italy TEL. 39 0233 3321

Latin America and Caribbean TEL. 41 1 944 22 11

Mexico TEL. 52 55 5547 1634

Netherlands TEL. 31 344 638340

Poland TEL. 48 22 545 06 80

Russia Tel. 95 921 92 11

Slovakia TEL. 421 2 43427496

Slovenia TEL. 386 1 5308 058

Spain TEL. 34 93 223 76 00

SE Asia Tel. 65 6890 00 11

Switzerland TEL. 41 1 944 45 45

USA TEL. 1 800 883 2171 TEL. 1 614 438 4511

United Kingdom TEL. 44 116 235 7070

All other countries TEL. 41 1 944 22 11

SofTechnics, USA TEL. 1 330 665 1698

Exact Equipment, USA TEL. 1 215 295 2000

RT1142.0E

For more information visit:www.mt.com

METTLER TOLEDO is a registered trademark of

Mettler-Toledo, Inc.

Symbol is a registered trademark of Symbol

Technologies, Inc.

Traceability Made Easy

From compact countertop prepack labeling, to integration with automatic wrapping systems, the Etica line provides a flexible product platform built for the future. Etica’s intuitive user interface makes it easy for operators to use the equipment, greatly reducing training time. The entire range of solutions also uses leading edge PC technology and software standards, making it easy to meet Ali Supermarket’s application and connectivity re-quirements into the future.

In the past, Ali Supermarket relied on two vendors to supply prepack solutions. From the beginning, METTLER TOLEDO engineers and a local sales team worked closely with Ali Supermarket to craft a solution which met their needs. Ali Supermarket

Ali Supermarket, a chain of 60 large supermarkets headquartered in Padova, Italy, recently equipped its stores with a new line of prepack weighing and labeling equipment from METTLER TOLEDO. Ali Supermarket is recognized by their customers as a high quality specialist in providing fresh foods – focusing on meats, fruits and vegetables.

Because of new EU traceability requirements, a concern for simple user interfaces, and a desire to work with a professional and organized company, Ali Supermarkets needed to find a new prepack weighing and labeling solution.

The new Etica prepack line from METTLER TOLEDO offers a range of solutions that meet Ali Supermarket’s needs now, and for the future.

(Italy) New EU requirements are forcing some retailers to evalutate their processes and

equipment to meet EU Regulation 178/2002: Article 18 “Traceability” effective January

1, 2005.

was very impressed with the local METTLER TOLEDO team in Italy and their ability respond quickly and professionally. After a competitive se-lection process, Ali Supermarkets chose METTLER TOLEDO as the single solution provider for their stores.

Etica 2300 Prepack System from METTLER TOLEDO®