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PART 8 Comprehensive Case Achieving Excellence in Retailing E-commerce business. This has also fundamentally changed how store associates need to think about their customers Introduction Retailers are also getting smarter about when, where, and The 2016 A. T. Keamey Achieving Excellence in Retail Opera- how they test their new concepts in stores. In our 2013 survey tions (AERO) study uncovers both the good and the bad in this we found that 19 percent of retailers had an active pilot pro- new era of store operations. The good a clear and consistent gram today, the number is above 30 percent. This year's survey trend of "smarter retail Survey responses from executives at finds some retailers are well down the path to a store operations more than 100 global retailers reveal that companies are align- toolset to be successful ing store operations strategies and metries to the new omnichan JOHN LEWIS CASE STUDY John Lewis, a 150-year-old U.K. nel environment and are investing heavily in providing support department store, found a smarter way to manage technology and Pilots and trials are evolving more rapidly and more fulfillment ultimately provide a differentiated service offering to consumers. options are quickly becoming available across all retail sectors. The success started with several pilot programs. I used online The bad: AERO points to the many challenges retailers technologies to pilot an "omnichannel store that offered the full face in effectively adopting these smarter strategies and metries. assortment of John Lewis products in a smaller format. Itsapp Although technology is the number one retail investment today. gave consumers access to 250,000 products, product reviews, there's limited visibility on the return on investment Amid the price matches, wish lists, and videos. In-store iPads and compue noise of technology investment and omnichannel integration ers gave consumers access to thousands of products not currently store associates are often overlooked as crucial conduits for in the store, along with fulfillment options to a home or a store improved store performance. And importantly, the study points And a click-and-collect program allowed customers to buy a to a misalignment between consumer expectations and retailer range of products from John Lewis and other subsidiary brands offerings, with retailers investing in services that customers from clothing to homewares, online and then collect in ose trip may not want, need, or expect, particularly in terms of fulfill- John Lewis offering has proved successful Today, one- ment, in-store technology, and social engagement. In seeking third of sales are from online purchases, worth roughly 515 to be all things to all people are retailers driving unnecessary billion, with growth in the channel of 25 percent. Its click cost and complexity in their operations? and collect orders have reached 6 million per year, a 17-fold The 2016 AERO study probes these key trends in retail increase from 350.000 in 2008, its first year. today, offers insightful case studies, and shares our thoughts on potential solutions By understanding the new rules of the Aligning Consumer Expectations and Retailer Offerings game, improved retail operations can be a path to success in Despite the wave of exciting activity to support omnichannel this new retailera. many bets that retailers are placing in store operations aren't A Smarter Way to Manage Retail Operations necessarily bringing desired results. Our study points to mis alignment between retail offerings and consumer expectations Omnichannel has ushered in the next wave of growth in retail As retailers take leaps forward toward omsichannel nirvana." But defining what it exactly is depends on who you're talking consumers are only demanding small steps to. Is it uniform messaging across channels? Seamless fulfill- While we expect expectations to shift as more options ment across channels? Consistent pricing across channels? All become available and known, the findings point to the need for of the above! Regardless of how it is defined, any retailer will simply getting this basic capability night, more than a third of tell you that its impact on retail operations has been incredible respondents say their company falls short The AERO findings point to major changes already in For example, we've also seen the race to near immedi- place in stores to support omnichannel. Eighty-six percent of ate shipping times-from next day to same-day to one-hour retailers have aligned store strategies and metries to support an shipping. Despite this focus more than three-quarters of con omnichannel environment. Store associates are being trained sumers surveyed say they merely expect two days or more for on cross-platform engagement, incentivized to sell through shipping. Consumers say they are more interested in retailers E-commerce channels, and rewarded for in-store fulfillment fulfilling their promises-getting products when they were told Training on consumer engagement, education, and sales is evolving as retail leaders rethink their stores' role into they would rather than on getting the product immediately See Figure 1. showrooms, mini-distribution centers, education centers, and These issues have dramatic implications on retail opera the like. Goce are the days when a store's success was based tions the need for new capabilities, skill sets, and tools, and solely on the revenue generated within the four walls, with store for workflow and incentives to meet omnichannel cxpectations profit and incentive structures refined to include its surrounding The missed opportunity is when a retailer's offering and the investments needed to produce it are far separated from con- tomer expectations. What consumers value should underpin Based on materiala Joel Aldes, Dean Hillier, Pierre Alexandre Koch omnichannel investments in store operations and not merely Adam Pressman, Ryan Fisher, and John Rabenhorst 2016 Achieving Excellence in Retail Operations (AERO Study-Retail Operation a retailer's omnichannel vision. This will help avoid unner People Are Sullthe Ben ATK 2016. pp 1-8 essary cost and complexity, and ultimately reduce consumer Reprinted by permission confusion 516 PARTS. PUTTING IT ALL TOGETHER FIGURE 1 As the Race to Faster Shipping Times Heats Up. Most Customers Are Happy with Two-Day Shipping Sonny A T Kemey, 2016 Reprinted by permission. In general, what do you believe to be an acceptable E-commerce order shipping time for a non-urgent purchase? of respondents 100% Sarne day 12% 1 day When you make an E-commerce purchase, which is more important to you regarding delivery! S of respondents 2 days 21% 37 3 days 4 days 5 days More than 5 dum shipping Deliver during promised window Technology: Hopes and frustrations consumers actually expect and what retailers are offering on This year's study finds once again that retailers are investing social media. More than 60 percent of retailers say they still heavily in technology, yet are still struggling with figuring out focus on mining social media to generate value. Two-thirds of its value. Technology is the number one area of investment consumers, on the other hand, say they are not engaging with according to respondents in our 2016 study, with nearly every retailers on social media at all; for those that do, the primary respondent saying they will invest in it. Yet nearly 60 percent reason is to get a coupon or a discount. See Figure 3. surveyed say their company struggles with executing and me Is this another case of misalignment between the retailer's suring its return on investment. These results are slightly better offering and consumer expectations? Consider that more than than the findings in 2013. yet still quite low. See Figure 2. 85 percent of consumers say that social-media interactions do So what's going on here? Why are retailers continuing year not lead to store visits, and when asked to rank a number of after year to toss money at technology in an effort to chase after touch points with retailers, consumers runked social media the the next big thing in retail, yet coming up short? least valuable out of 13 listed. Store location, product selection, We believe the answer lies with the focus of these invest and store cleanliness topped the list. ments. Ninety percent or so of retail sales still happen within This does not mean that retailers should stop investing so the four walls of a physical store. Yet almost none of the invest much time and effort in social media. Rather, they must refocus ments we see today are about helping store associates do their on doing it right. Retailers that have pulled ahead of the pack jobs better. Instead, most focus on consumer-facing technology. when it comes to social media engagement and the value they're even though 80 percent of consumers say they experience poor generating from it are interacting with customers online and service when directly interacting with in-store technology. Just creating a sense of community because there is a poor service experience today doesn't mean to stop trying. Focusing investments on tools and informa- WARBY PARKER CASE STUDY Warby Parker's eyeglass cus- tion that enable the employee to better engage with customers tomers are more highly engaged on social media than those and meet true customer needs will remain valuable. There is of typical retailers. Its strong social mission makes it popular an opportunity to close the information gap regarding in-store with the younger population. The company also maintains a customer interactions (such as preferences based on in-store Consistent, recognizable look across eyewear. Web site content. activities), but that will require a greater sense of trust and will and store experience ingness to share information than we have today, It succeeds in its social mission by regularly promot The retailers that are investing in technology are success ing unique and exclusive events that are apt to be shared on fully using it to help store associates. It helps ease the burden social media. It encourages interfacing with social media over of execution also, as associates are incentivized to learn, adopt. the "try-co" period. Its Pwarbyhometryon hashtag gives the and implement new technology solutions to boost productivity. company an "expert opinion of what its customers think of sales, and potentially their own commissions their eyewear Social Currency Store Associates: The Unsung Heroes of Retail Another focus area in the age of omnichannel is social media. So much focus today is on the consumer of the future, on new and the value rotailers can generate from getting it right and exciting technologies, and on social media engagement, but The 2016 survey, however, reveals a gulf between what the the AERO findings show that the real heroes of store operations FIGURE 2 Retailers Are Making Technology Investments across Nearly Every Major Area of Store Operations Source: A T Kearney, 2016 Reprinted by permission Please indicate your current investment outlook with regard to the following technology over the next two years: Xof respondenis Inventory management 45% 33% 78% Mobile app development x 30% 72% Customer checkout 27% 70% Labor scheduling 41% 26% 67% Location awareness technology 27% SIX Handheld checkout 251 49% In-store kiosks 20% 16% 44% Digital signage 20% 42% Already invested Handheld merchandise tools 23% 15% 38% Investing soon Digital price tags x 15 are in-store associates, and they are often being overlooked. Customers say that experience and service have the greatest impact on productivity. Yet we consistently find that store asso ciates get little investment focus. Nearly one-half of retailer respondents said employee training programs could be "significantly improved." More than 70 percent of retailers expect spans of control to widen in the immediate future. And nearly all express concem regard- ing their workforce's ability to adapt to a new omnichannel environment. In our opinion, it's not that retailers have had store associates with poor skill sets, but rather that they have not had the right focus on what it takes to properly support in-store staff. Store associates are the most important assets retailers have: they are central to the future of any store. Investments should focus on the core fundamentals of what it takes to sup- port store associates: training, incentives, career progression. and corporate support to meet expectations. Interestingly, about three-quarters of retailers plan to invest in more training and % of consumers highly satisfied of consumers who say digital media leads to store visits The top five reasons consumers use social media with retailers 100% FIGURE 3 For Customers, Social Media Do Not Drive Store Visits, But Is Instead Used for Discounts Source: A. T. Kearney, 2016 Reprinted by permission To get a discount 40 10% Unsure Store location Product selection Store cleanliness Register walt times 41% To support a recaller like 39% Staff knowledge 3. To receive regular updates Store layout 36% 85 No To research products Inventory depth 32 Loyalty program 32 5. To participate In contest Social media 518 PART 8 . PUTTING IT ALL TOGETHER labor; but right now, the workforce needs more support to do its retailers globally can improve their operations. This year's study most critical task: deliver superior customer service captured more than 100 responses from senior retail executives in the Americas. Europe and Asia Pacific, offering a view of Driving to "Smarter" Retail emerging global best practices in store operations. It covers mul With the omnichannel age here, retailers are rapidly evolving tiple sectors, including apparel, health and personal care, mass store operations capabilities to support. How do you know if market and hypermarket, electronics, food and grocery, and cash your retail organization is ready to realize its full value? and carry Do you have a defined business strategy linking metrics Besides the retailer perspective, this year's study also across channels and store formats? brings in the consumer view. We surveyed nearly 800 North Do you use learning stores and pilces for trying out change American consumers across demographic backgrounds, and programs to understand the impact of your omnichannel their responses provide a clear view of the consumer's opin- investments? ion of store operations. In the study, we compare and contrast How well are you measuring the return on investment retailer perspectives with those of consumers, identifying what (ROI) for your retail technology expenditures is truly important to today's retail environment. Are your online order delivery service levels aligned to The study is based on A. T. Kearney's Store Operations effectively deliver to your customer when promised? Framework see Figure 4. This framework, which was also used How can you drive more value for you and your customers to pioneer the 2010 study, evaluates operations across setting from social media? strategic direction, delivering core value, optimizing expenses. How are you investing in your in-store associates to set and driving lasting change them up for success? The truth is, many retailers are starting to answer these Questions questions affirmatively. New strategies are seeking to meet com- 1. What overall conclusions do you draw from this case? sumer expectations, new metrics are more properly measuring Explain your answer. and incentivizing store staff, and focused and more frequent 2. What is the biggest disconnect between retailers and their store pilots are getting answers faster customers today? How could this be fixed? However, in their chase for omnichannel nirvana," retail- 3. What could other retailers learn from John Lewis and ers need to get better at the basics of omnichanse a dedicated Warby Parker? focus on what the customer wants and needs, support to ensure 4. Describe the findings shown in Figure 1. Are you surprised that investments improve store performance, clear reviews about by the results? What are the implications of these findings for retailers? return on investment , and an understanding of how in-store associates can be supported. Retail remains a people business 5. Describe the findings shown in Figure 2. Are retailers doing Getting that part right remains a critical ingredient for success. well in their technology investments? Explain your answer. 6. Describe the findings shown in Figure 3. Are you surprised Research Methodology by the results? Why or why not? What are the implications of these findings for retailers? ABOUT THE STUDY A. T. Kearney's Achieving Excellence 7. Comment on the methodology used for the AERO study. in Retail Operations (AERO) study provides insighes into how Discuss how you would improve it. Voke of the customer FIGURE 4 A. T. Kearney's Store Operations Framework Forms the Basis for the AERO Study Source: A T. Kesmey, 2016 Reprinted by permission Chawal HD Drive store value Deliver core store value Store bien pluwing Merchandising and supply chain nterfaces Store operations Field leadership Change management and communications Real estate Megde management Operating expense control . Store technology Enhance store value PART 8 Comprehensive Case Achieving Excellence in Retailing E-commerce business. This has also fundamentally changed how store associates need to think about their customers Introduction Retailers are also getting smarter about when, where, and The 2016 A. T. Keamey Achieving Excellence in Retail Opera- how they test their new concepts in stores. In our 2013 survey tions (AERO) study uncovers both the good and the bad in this we found that 19 percent of retailers had an active pilot pro- new era of store operations. The good a clear and consistent gram today, the number is above 30 percent. This year's survey trend of "smarter retail Survey responses from executives at finds some retailers are well down the path to a store operations more than 100 global retailers reveal that companies are align- toolset to be successful ing store operations strategies and metries to the new omnichan JOHN LEWIS CASE STUDY John Lewis, a 150-year-old U.K. nel environment and are investing heavily in providing support department store, found a smarter way to manage technology and Pilots and trials are evolving more rapidly and more fulfillment ultimately provide a differentiated service offering to consumers. options are quickly becoming available across all retail sectors. The success started with several pilot programs. I used online The bad: AERO points to the many challenges retailers technologies to pilot an "omnichannel store that offered the full face in effectively adopting these smarter strategies and metries. assortment of John Lewis products in a smaller format. Itsapp Although technology is the number one retail investment today. gave consumers access to 250,000 products, product reviews, there's limited visibility on the return on investment Amid the price matches, wish lists, and videos. In-store iPads and compue noise of technology investment and omnichannel integration ers gave consumers access to thousands of products not currently store associates are often overlooked as crucial conduits for in the store, along with fulfillment options to a home or a store improved store performance. And importantly, the study points And a click-and-collect program allowed customers to buy a to a misalignment between consumer expectations and retailer range of products from John Lewis and other subsidiary brands offerings, with retailers investing in services that customers from clothing to homewares, online and then collect in ose trip may not want, need, or expect, particularly in terms of fulfill- John Lewis offering has proved successful Today, one- ment, in-store technology, and social engagement. In seeking third of sales are from online purchases, worth roughly 515 to be all things to all people are retailers driving unnecessary billion, with growth in the channel of 25 percent. Its click cost and complexity in their operations? and collect orders have reached 6 million per year, a 17-fold The 2016 AERO study probes these key trends in retail increase from 350.000 in 2008, its first year. today, offers insightful case studies, and shares our thoughts on potential solutions By understanding the new rules of the Aligning Consumer Expectations and Retailer Offerings game, improved retail operations can be a path to success in Despite the wave of exciting activity to support omnichannel this new retailera. many bets that retailers are placing in store operations aren't A Smarter Way to Manage Retail Operations necessarily bringing desired results. Our study points to mis alignment between retail offerings and consumer expectations Omnichannel has ushered in the next wave of growth in retail As retailers take leaps forward toward omsichannel nirvana." But defining what it exactly is depends on who you're talking consumers are only demanding small steps to. Is it uniform messaging across channels? Seamless fulfill- While we expect expectations to shift as more options ment across channels? Consistent pricing across channels? All become available and known, the findings point to the need for of the above! Regardless of how it is defined, any retailer will simply getting this basic capability night, more than a third of tell you that its impact on retail operations has been incredible respondents say their company falls short The AERO findings point to major changes already in For example, we've also seen the race to near immedi- place in stores to support omnichannel. Eighty-six percent of ate shipping times-from next day to same-day to one-hour retailers have aligned store strategies and metries to support an shipping. Despite this focus more than three-quarters of con omnichannel environment. Store associates are being trained sumers surveyed say they merely expect two days or more for on cross-platform engagement, incentivized to sell through shipping. Consumers say they are more interested in retailers E-commerce channels, and rewarded for in-store fulfillment fulfilling their promises-getting products when they were told Training on consumer engagement, education, and sales is evolving as retail leaders rethink their stores' role into they would rather than on getting the product immediately See Figure 1. showrooms, mini-distribution centers, education centers, and These issues have dramatic implications on retail opera the like. Goce are the days when a store's success was based tions the need for new capabilities, skill sets, and tools, and solely on the revenue generated within the four walls, with store for workflow and incentives to meet omnichannel cxpectations profit and incentive structures refined to include its surrounding The missed opportunity is when a retailer's offering and the investments needed to produce it are far separated from con- tomer expectations. What consumers value should underpin Based on materiala Joel Aldes, Dean Hillier, Pierre Alexandre Koch omnichannel investments in store operations and not merely Adam Pressman, Ryan Fisher, and John Rabenhorst 2016 Achieving Excellence in Retail Operations (AERO Study-Retail Operation a retailer's omnichannel vision. This will help avoid unner People Are Sullthe Ben ATK 2016. pp 1-8 essary cost and complexity, and ultimately reduce consumer Reprinted by permission confusion 516 PARTS. PUTTING IT ALL TOGETHER FIGURE 1 As the Race to Faster Shipping Times Heats Up. Most Customers Are Happy with Two-Day Shipping Sonny A T Kemey, 2016 Reprinted by permission. In general, what do you believe to be an acceptable E-commerce order shipping time for a non-urgent purchase? of respondents 100% Sarne day 12% 1 day When you make an E-commerce purchase, which is more important to you regarding delivery! S of respondents 2 days 21% 37 3 days 4 days 5 days More than 5 dum shipping Deliver during promised window Technology: Hopes and frustrations consumers actually expect and what retailers are offering on This year's study finds once again that retailers are investing social media. More than 60 percent of retailers say they still heavily in technology, yet are still struggling with figuring out focus on mining social media to generate value. Two-thirds of its value. Technology is the number one area of investment consumers, on the other hand, say they are not engaging with according to respondents in our 2016 study, with nearly every retailers on social media at all; for those that do, the primary respondent saying they will invest in it. Yet nearly 60 percent reason is to get a coupon or a discount. See Figure 3. surveyed say their company struggles with executing and me Is this another case of misalignment between the retailer's suring its return on investment. These results are slightly better offering and consumer expectations? Consider that more than than the findings in 2013. yet still quite low. See Figure 2. 85 percent of consumers say that social-media interactions do So what's going on here? Why are retailers continuing year not lead to store visits, and when asked to rank a number of after year to toss money at technology in an effort to chase after touch points with retailers, consumers runked social media the the next big thing in retail, yet coming up short? least valuable out of 13 listed. Store location, product selection, We believe the answer lies with the focus of these invest and store cleanliness topped the list. ments. Ninety percent or so of retail sales still happen within This does not mean that retailers should stop investing so the four walls of a physical store. Yet almost none of the invest much time and effort in social media. Rather, they must refocus ments we see today are about helping store associates do their on doing it right. Retailers that have pulled ahead of the pack jobs better. Instead, most focus on consumer-facing technology. when it comes to social media engagement and the value they're even though 80 percent of consumers say they experience poor generating from it are interacting with customers online and service when directly interacting with in-store technology. Just creating a sense of community because there is a poor service experience today doesn't mean to stop trying. Focusing investments on tools and informa- WARBY PARKER CASE STUDY Warby Parker's eyeglass cus- tion that enable the employee to better engage with customers tomers are more highly engaged on social media than those and meet true customer needs will remain valuable. There is of typical retailers. Its strong social mission makes it popular an opportunity to close the information gap regarding in-store with the younger population. The company also maintains a customer interactions (such as preferences based on in-store Consistent, recognizable look across eyewear. Web site content. activities), but that will require a greater sense of trust and will and store experience ingness to share information than we have today, It succeeds in its social mission by regularly promot The retailers that are investing in technology are success ing unique and exclusive events that are apt to be shared on fully using it to help store associates. It helps ease the burden social media. It encourages interfacing with social media over of execution also, as associates are incentivized to learn, adopt. the "try-co" period. Its Pwarbyhometryon hashtag gives the and implement new technology solutions to boost productivity. company an "expert opinion of what its customers think of sales, and potentially their own commissions their eyewear Social Currency Store Associates: The Unsung Heroes of Retail Another focus area in the age of omnichannel is social media. So much focus today is on the consumer of the future, on new and the value rotailers can generate from getting it right and exciting technologies, and on social media engagement, but The 2016 survey, however, reveals a gulf between what the the AERO findings show that the real heroes of store operations FIGURE 2 Retailers Are Making Technology Investments across Nearly Every Major Area of Store Operations Source: A T Kearney, 2016 Reprinted by permission Please indicate your current investment outlook with regard to the following technology over the next two years: Xof respondenis Inventory management 45% 33% 78% Mobile app development x 30% 72% Customer checkout 27% 70% Labor scheduling 41% 26% 67% Location awareness technology 27% SIX Handheld checkout 251 49% In-store kiosks 20% 16% 44% Digital signage 20% 42% Already invested Handheld merchandise tools 23% 15% 38% Investing soon Digital price tags x 15 are in-store associates, and they are often being overlooked. Customers say that experience and service have the greatest impact on productivity. Yet we consistently find that store asso ciates get little investment focus. Nearly one-half of retailer respondents said employee training programs could be "significantly improved." More than 70 percent of retailers expect spans of control to widen in the immediate future. And nearly all express concem regard- ing their workforce's ability to adapt to a new omnichannel environment. In our opinion, it's not that retailers have had store associates with poor skill sets, but rather that they have not had the right focus on what it takes to properly support in-store staff. Store associates are the most important assets retailers have: they are central to the future of any store. Investments should focus on the core fundamentals of what it takes to sup- port store associates: training, incentives, career progression. and corporate support to meet expectations. Interestingly, about three-quarters of retailers plan to invest in more training and % of consumers highly satisfied of consumers who say digital media leads to store visits The top five reasons consumers use social media with retailers 100% FIGURE 3 For Customers, Social Media Do Not Drive Store Visits, But Is Instead Used for Discounts Source: A. T. Kearney, 2016 Reprinted by permission To get a discount 40 10% Unsure Store location Product selection Store cleanliness Register walt times 41% To support a recaller like 39% Staff knowledge 3. To receive regular updates Store layout 36% 85 No To research products Inventory depth 32 Loyalty program 32 5. To participate In contest Social media 518 PART 8 . PUTTING IT ALL TOGETHER labor; but right now, the workforce needs more support to do its retailers globally can improve their operations. This year's study most critical task: deliver superior customer service captured more than 100 responses from senior retail executives in the Americas. Europe and Asia Pacific, offering a view of Driving to "Smarter" Retail emerging global best practices in store operations. It covers mul With the omnichannel age here, retailers are rapidly evolving tiple sectors, including apparel, health and personal care, mass store operations capabilities to support. How do you know if market and hypermarket, electronics, food and grocery, and cash your retail organization is ready to realize its full value? and carry Do you have a defined business strategy linking metrics Besides the retailer perspective, this year's study also across channels and store formats? brings in the consumer view. We surveyed nearly 800 North Do you use learning stores and pilces for trying out change American consumers across demographic backgrounds, and programs to understand the impact of your omnichannel their responses provide a clear view of the consumer's opin- investments? ion of store operations. In the study, we compare and contrast How well are you measuring the return on investment retailer perspectives with those of consumers, identifying what (ROI) for your retail technology expenditures is truly important to today's retail environment. Are your online order delivery service levels aligned to The study is based on A. T. Kearney's Store Operations effectively deliver to your customer when promised? Framework see Figure 4. This framework, which was also used How can you drive more value for you and your customers to pioneer the 2010 study, evaluates operations across setting from social media? strategic direction, delivering core value, optimizing expenses. How are you investing in your in-store associates to set and driving lasting change them up for success? The truth is, many retailers are starting to answer these Questions questions affirmatively. New strategies are seeking to meet com- 1. What overall conclusions do you draw from this case? sumer expectations, new metrics are more properly measuring Explain your answer. and incentivizing store staff, and focused and more frequent 2. What is the biggest disconnect between retailers and their store pilots are getting answers faster customers today? How could this be fixed? However, in their chase for omnichannel nirvana," retail- 3. What could other retailers learn from John Lewis and ers need to get better at the basics of omnichanse a dedicated Warby Parker? focus on what the customer wants and needs, support to ensure 4. Describe the findings shown in Figure 1. Are you surprised that investments improve store performance, clear reviews about by the results? What are the implications of these findings for retailers? return on investment , and an understanding of how in-store associates can be supported. Retail remains a people business 5. Describe the findings shown in Figure 2. Are retailers doing Getting that part right remains a critical ingredient for success. well in their technology investments? Explain your answer. 6. Describe the findings shown in Figure 3. Are you surprised Research Methodology by the results? Why or why not? What are the implications of these findings for retailers? ABOUT THE STUDY A. T. Kearney's Achieving Excellence 7. Comment on the methodology used for the AERO study. in Retail Operations (AERO) study provides insighes into how Discuss how you would improve it. Voke of the customer FIGURE 4 A. T. Kearney's Store Operations Framework Forms the Basis for the AERO Study Source: A T. Kesmey, 2016 Reprinted by permission Chawal HD Drive store value Deliver core store value Store bien pluwing Merchandising and supply chain nterfaces Store operations Field leadership Change management and communications Real estate Megde management Operating expense control . Store technology Enhance store value