Denmark’s leading retailer, Dansk Supermarked, is aiming to become the market’s leading e-commerce player by 2016.
The retailer, which operates 1,300 stores across Denmark, Sweden, Germany and Poland under the Netto, Fotex and Bilka brands, has selected global technology and consulting firm, Infosys, to transform its online business.
According to Jørgen Klüwer, COO of Dansk Supermarked’s hypermarket chain, Bilka, the project will scale the current e-commerce business in non-food and make it more cross channel by integrating its online and offline offers.
“We want to be present in several channels and have a consistent value proposition across those channels,” said Klüwer.
That means a customer who searches online, or goes into a store to feel a product, or orders on a mobile, will experience the same service and pricing, he said.
Dansk Supermarked plans to develop its non-food e-commerce business through its existing online operation, bilka.dk.
It already offers 10,000 skus online but that will be expanded dramatically, according to Klüwer.
Currently non-food accounts for 50% of sales at Bilka hypermarkets in categories including electronics, DIY, sport and leisure, furniture and clothing.
The online developments will provide shoppers with access to a much wider range, said Klüwer. In-store, for example, there may be 50 TV sets on display but a further 200 will be available online. In-store kiosks have already been introduced in Bilka stores to showcase the wider range.
The new platform is scheduled to go live in six to eight months time. It is based on Hybris software and will be integrated with the retailer’s SAP back end systems to ensure customers receive the same service whether online, offline or on a mobile.
According to Klüwer, the user experience will be best in class. As well as a wider range, it will include recommendations, for example.
Order fulfillment will be focused on home delivery initially, said Klüwer; but the aim was to offer different delivery options including pick up at store facilities. “Speed is a competitive driver,” he said.
Online retailing is relatively underdeveloped in Denmark, accounting for 12% of the total retail market. However, in some categories there is a dramatic shift towards online sales, said Klüwer, and Bilka’s online sales in certain non-food sectors exceed 10%.
“If you are only running offline stores in hardware and electronics, for example, and experience recession, there will be no growth in consumption or a decline. But, if sales are shifting to 25% going online, as a pure offline retailer you will lose out.”