Channel Integration: How Circuit City and Sears Built the IT Infrastructure for Buy Online, Pick Up In Store

By Meridith Levinson

PAGE 2

"It’s not something we offer at the moment, and it’s not something we’re planning to offer any time soon," says Karina Sokolovskaya, spokeswoman for New York City-based J.Crew. IT and e-commerce executives at Victoria’s Secret had no comment.

Other retailers and analysts say that companies such as J.Crew and Victoria’s Secret are taking longer to integrate their channels because they’re starting from scratch. They don’t have the infrastructure in place that lets them transfer sales from one store to another, nor do they have an area in their stores where they can set aside items that customers have reserved online.

"If they set up their websites separately, it may be hard for them to make it work from a back-end, accounting point of view," says Sally McKenzie, Eddie Bauer’s vice president of e-commerce.

Ultimately, the explanation for why so few retailers offer the full "buy online, pick up in store" capability is because the level of integration required to make that work is awfully hard to achieve. The few pioneering companies that have succeeded have done so by patching their information systems together, leveraging robust POS systems, implementing a real-time inventory system, and building on existing processes and in-store infrastructure. Giving consumers the flexibility to shop online and return or pick up items in stores is helping beleaguered Sears struggle out of its financial tailspin. It’s helping Circuit City keep the cash rolling in at a time when the company’s profits are threatened by sharp decreases in the price of consumer electronics. And while Eddie Bauer does not offer in-store pickup, simply letting customers return Web orders to stores is helping the company increase customer loyalty in the apparel market where competition is as stiff as starched denim.

While my father may be pessimistic about the fate of Lands’ End, he might come to appreciate the convenience of being able to return his worn loafers to the Sears near him, rather than having to pack them up and ship them off to Wisconsin.

Circuit City Where the Web Is Just Another Store

The seamless integration of Web and store operations hinges on having the right technology, the right infrastructure, the right processes and, above all, the right mind-set.

In 1998, Circuit City, the $12.8 billion consumer electronics retailer, put Web-enabled kiosks in its stores to allow customers to build customized PCs. Surprisingly, 50 percent of the people who purchased PCs through these kiosks wanted to pick them up in the store rather than have them delivered to their home.


Loading...
Applications MarketSpace
Practical Approaches for Securing Web Applications
Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle. Learn more »
An Executive's Guide to Web Application Security
Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business. Learn more »
Web Application Vulnerabilities
Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal. Learn more »
Using ERP To Gain Competitive Advantage in a Tough Economy
For midsize enterprises, now is the perfect time to invest in a significant IT expansion - despite the economic climate. Learn more »
Why BI is Ripe For Businesses of Any Size
Oracle's range of offerings to mid-size and emerging companies reflects its vision that BI and EPM solutions can be embraced by companies of all sizes. Learn more »
Oracle Accelerate
Ovum has been following Oracle's Accelerate program over the last couple of years because they thought it is a smart strategy for penetrating the upper mid-market. Learn more »
The New Age of ERP
Not only can small and mid-sized companies reap the renowned ERP benefits of greater agility, increased business visibility and measurable ROI. Learn more »
 
SPONSORED LINKS
 

CRM Built for IT: The Executive Guide to Selecting CRM that Meets IT Needs

ROI of Application Delivery Controllers

White Paper: 4 Customer Service Myths

White Paper: Improve Agility with Operational Responsiveness

Removing the Barriers to IT Governance: How On-Demand Software Changes the Game

Cloud Computing--Latest Buzzword or a Glimpse of the Future?

A Balanced Approach to an Application Development Platform

Adobe® LiveCycle®solutions for intuitive user experience

10 Ways Excel Drives More Value from Your SAP Investment

What's New in SOA Suite 11g?

Unleash the Power of Java with Oracle JRockit Real Time

SOA Best Practices and Design Patterns

Application Grid: Ideal Platform for IT Consolidation

Ready to virtualize tier one applications? Check your virtualization maturity.

Learn how to provide complete Business Service Management.

Increase ROI of Your Application Portfolio

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

See how AT&T can help protect your network.

Streamline IT Costs. Boost Performance with WAN Optimization.

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

What's Next for Enterprise Resource Planning?

Gartner Magic Quadrant, Application Delivery Controllers 2009

White Paper: Managed Security for a Not-So-Secure World

SharePoint - Unchecked growth of content is unsustainable.

Focus Under Pressure: Why IT Governance Becomes Mission-Critical in a Down Economy

Should Your Email Live In The Cloud? A Comparative Cost Analysis

Adobe® LiveCycle® solutions for business process automation

Architecting Business Intelligence Applications for Change: The Open Solution

Increase UPS efficiency without sacrificing protection.

Unlocking the Mainframe: Modernizing Legacy System to SOA

State of the Data Integration Market

Enhance Customer Loyalty through Higher Responsiveness

Achieving Business Agility with Application Grid

Seven Ways ITIL Can Help You in an Economic Downturn

Four steps to populate your CMDB.

"Enterprise-Proven" is the Prerequisite for Enterprise SaaS Portal Solutions

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Top Five CIO Challenges

Read the RSA report: Security for Business Innovation

64-page prescriptive guide to security, compliance, and IT operations.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

 
 
RESOURCE CENTER