CompUSA and TigerDirect Expand Retail 2.0 Innovation
Retailer develops new Internet-enabled kiosks for AMD and WDJanuary 11, 2011 By Jeff O'Heir
Systemax, the parent company of CompUSA, TigerDirect and Circuit City, showcased new in-store kiosks for AMD and WD that are designed to take the company's Retail 2.0 strategy to the next level.
Gilbert Fiorentino, Systemax's chief executive of Technology Product Group, rolled out the Retail 2.0 concept two years ago at CES and has since been deploying elements of it throughout all CompUSA and TigerDirect stores. Retail 2.0 is a sales and marketing strategy that marries online technology and tools to in-store merchandising displays. The displays are designed to give consumers the rich-media information they need to choose the right products and to deliver stocking, supply-chain, sell-through and analytical information to the retailer's sales floor and corporate offices.
The new kiosks build upon those capabilities by offering richer information and tools to the consumer, retailer and manufactures. While the two kiosks have a different look, they accomplish similar tasks.
AMD, for example, approached Systemax to create a kiosk that would help the processor maker increase its sales into the PC system builder market. By clicking different sections of the kiosk's touch screen, shoppers can receive recommendations as to which processors, components and accessories are most compatible with the system they are trying to build or upgrade. The kiosk is designed to help shoppers of all tech levels, from novice to expert.
At the end of the session, the kiosk can print out a list of suggested components and prices, which the consumer pass along to a sales person for help. (CompUSA and TigerDirect will also add the components to the system for free.) Since the kiosk is tied into the store's main system, it can immediately tell the associate what components are in stock or the closest store that has them.
"All the information is localized so we can leverage it all in real time," said Lonny Paul, vice president of marketing and strategic initiatives at Systemax, at 2011 CES.
Those improvements to Retail 2.0 have helped increase the "buy up" of AMD processors and related components because consumers can readily see the additional benefits and features of the more expensive products, Paul said.
The Retail 2.0 back-end system has also been enhanced to improve merchandising and sales' analytics. Store managers, for example, can tell how many times a product has been lifted from a display, which helps retailers and manufacturers optimize product positioning and forecasting.