Look customers in the eyes to lock them in the aisles.

Shopkeepers adopt the hard sell with some tailored software, writes Mark Russell.

IN THE film Minority Report set in 2054, a brewer’s advertising billboard identifies Tom Cruise’s character, John Anderton, through a retinal scanner. As he walks past, the billboard calls out: ”John Anderton! You could use a Guinness right about now.”

Far-fetched? Not according to retailers who believe this type of targeted advertising may well be the future of shopping.

New York company Immersive Labs is already using built-in cameras and facial recognition software in its outdoor billboards to determine the gender and age of passers-by so it can customise the advertisement on display to suit them and prompt sales.

So if a man strolls by on a cold morning, the display might change from an ad for women’s clothing to an advertisement suggesting a cup of coffee at a nearby cafe.

As Australian online shopping – expected to be worth $21.3 billion this financial year and $30.8 billion by 2015-16 – continues to threaten bricks-and-mortar businesses, retailers are using the latest technology, combined with social media, including more shopping apps, to lure customers back into their stores.

German shoemaker adidas is planning to install touch-sensitive display walls in stores from next year. The virtual footwear wall will allow customers to view the company’s entire range of 4000 pairs of shoes. If a customer likes a particular shoe the store will order it in.

Two cameras above the screen will watch shoppers’ reactions to determine which shoes are most popular. And like other companies, adidas is also gathering feedback by encouraging customers to use Facebook and Twitter to review its products.

Brisbane company Yeahpoint believes its MiMirror creation is the missing link between instore shopping and social media that will revolutionise fashion retail.

MiMirror is a touch-screen display with a camera that acts as a mirror and takes up to six photographs of customers in outfits they are considering buying. The shoppers then email the images to friends or post them on Facebook to get a second opinion.

No retailers have installed the technology yet, but the company is confident major stores will buy the device in coming months.

”The factors driving retailers’ decisions for the future are basically that the cost of business continues to increase and competitiveness in the retail environment is being challenged by the online market,” Yeahpoint’s John Anderson says.

”On the flip side, you have the time-poor consumer who wants to have a much more friendly, fun shopping experience.”

Sean Sands, of Monash University’s Australian Centre for Retail Studies, agrees, saying many consumers are bored with traditional retail and the only way to lure them back into stores is to offer the latest technology linked to social media.

A recent report released by the centre found that online shopping was creating tougher in-store customers because they were ”better informed due to the power of the internet”.

Half the population now research their purchases online before setting foot in a store.

Many are also armed with a wide range of shopping apps that can be downloaded on to iPhones, iPod Touches, iPads and other tablets and smartphones, that allow them to hunt for the best deals.

The RedLaser app, for example, allows instore shoppers to scan the barcode of an item to get the price and then checks online to see if it’s cheaper elsewhere.

Supermarket giant Coles’ ShopMate app, which notes specials and lets you cross off your shopping list as you go, has been downloaded 400,000 times.

Rival Woolworths does not have a shopping app but has one to locate missing trolleys.

Woolies’ app-lessness is not likely to last, however, as retailers respond to consumer demand.

Russell Zimmerman, of the Australian Retailers Association, says ”every retailer has to be in the online space in the foreseeable future” or they won’t survive.

According to PayPal, 8 million Australians buy goods using the internet, and one in 10 buy them with their mobile phones.

Google Australia’s head of retail, Ross McDonald, says this increasing use of mobile phones to search for stores and products has become a noticeable trend in the past six months.

Previously, 95 per cent of online traffic for shopping searches was from computers but 16-18 per cent of online inquiries were now from mobile phones. ”What we advise retailers is that it’s not so much about the app but making sure you are visible on a mobile device when someone searches for you,” he says.

Jo Lynch from Myer – which has an iPhone app that lets you peruse and buy goods with a tap of your finger – says the company expects its online business to generate sales of $5 million for 2010-11 and be worth up to six times that in the next few years.

David Jones’ Brett Riddington says the future of shopping is all about multi-channel retailing. ”Many customers will still want to go in-store to physically see the goods after checking them out online, but we need to make that a more entertaining and engaging experience,” he says.

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Retailers Prepare for DataBar technology

There is a new type of barcode being introduced, but when is this happening and what do retailers need to do to prepare for it?

Global standards organisation GS1 has been working on the introduction of its DataBar (which is about half the size of a normal barcode) for several years. The DataBar will exist alongside present barcodes, rather than being a replacement for them.

The new barcode standard was due to become an open global standard in 2010 – meaning that all retailers would have needed equipment that was capable of scanning them by then. However, GS1 has revised this date to 2014 to give retailers more time to adopt appropriate scanning technology.

GS1 UK solutions manager Tim Brown says: “Scanners supplied from 2000 onwards generally can scan the DataBar.” So most major UK retailers will already have scanners at their tills that are compliant with the standard. However, he says retailers should still check, as their systems might require an upgrade or need the functionality turned on.

However, UK retailers are already investigating how they can best use the DataBar because it carries more information than a traditional barcode. Information on batch or serial numbers, expiry dates and price can be encoded in a DataBar.

UPC Bar Code Marks 35th Anniversary

image001This week marks the 35th anniversary of the Universal Product Code (UPC), a milestone that will be celebrated this Wednesday with over 800 attendees at the annual U Connect Conference in Orlando by GS1 US, the developer and administrator of the bar code that now appears on more than 200,000 businesses in the United States.

One of the world’s best-known symbols, the UPC comprises a row of 59 machine-readable black and white bars and 12 human-readable digits. Both the bars and the digits convey the same information: the identity of a specific product and its manufacturer.

Originally developed to help supermarkets speed up the checkout process, the first live use of a UPC took place in a Marsh Supermarkets store in Troy, Ohio, on June 26, 1974, when a cashier scanned a package of Wrigley’s gum. It ushered in extraordinary economic and productivity gains for shoppers, retailers and manufacturers alike, with estimated annual cost savings of $17 billion in the grocery sector alone, according to one study.

“The UPC made the modern retail store possible,” said Rodney McMullen, vice chairman of The Kroger Co., which operates more than 4,000 stores in different formats and under different banners, or names. “It allows us to carry tens of thousands of items in a given store and move shoppers through quickly while offering them many different ways to save money.”

Every UPC incorporates three elements — the brand owner’s GS1 company prefix, the specific item’s reference number, and a check digit, which is calculated by the combination of the preceding numbers and ensures data accuracy. Contrary to one popular myth, however, the ubiquitous bar code does not contain a product’s country of origin.

Neverheless, the UPC is one manifestation of the Global Trade Item Number, a foundational aspect of the GS1 System that enables consistent, standard identification of products and other items in the supply chain globally.
The next generation bar code, GS1 DataBar, can be found increasingly on coupons and loose produce such as apples, pears, and tomatoes. On Jan. 1, 2010, its “sunrise date,” supermarkets will begin scanning and processing the GS1 DataBar, which can be configured in different formats to fit a smaller space or carry additional information, such as “best before” or expiration dates, or lot numbers.

For more information, visit www.GS1US.org.

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