LS Retail Newsletter - January 2011 by Bjorn Jonsson

THE LS RETAIL

NewsLETTER JANUARY 2011

DAA

LS Retail at the center of airport shopping for Dublin Airport Authority Hard Rock CafĂŠ Germany selects LS Retail NAV Product News:

New releases on NAV, AX and .NET

Array of customer news from APAC

Become a sponsor at the LS Retail Partner Conference 2011

LS Retail is a Global Supplier of Software Solutions and Services for the Retail and Hospitality Industry

LS RETAIL NEWSLETTER - JANUARY 2011

DESIGN AND LAYOUT: DAGSVERK.IS

IN THIS ISSUE YOU FIND: LS Retail at the center of airport shopping for Dublin Airport Authority

Hard Rock Café Germany selects LS Retail NAV from Qurius Germany

LS Retail in the Cloud

Ask Electronics selects LS Retail from K3 UK to facilitate tax free shopping 5 New Employees

LS Retail Partner Conference 2011

Become a sponsor or exhibitor at the LS Retail Partner Conference 2011

Product News

• LS Retail NAV

• LS Retail .NET

• LS Retail for AX

Fillgap: “Profitability Never Goes out Style”

News from Asia

• Tectura Asia - Retail Centre of Excellence grows!

• Electronic Retailer MediaMart Corporation first

LS Retail Special Order user • Trung Nguyen Coffee maintains top of market position

with LS Retail Hospitality • Tien Phong Service Retail Corporation sees LS Retail

as the key to their success

• MH Concepts hearts LS Retail

• Eu Yan Sang go live in record time

LS RETAIL NEWSLETTER - JANUARY 2011

LS Retail ehf. · Hofdatun 2 · 105 Reykjavik Tel: 354 414 5700 · Fax: 354 571 2728 www.LSRetail.com · info@LSRetail.com

K3 Retail and DAA’s ‘The Loop’ make shopping even more of a pleasure at Dublin, Cork and Shannon

LS Retail at the centre of airport shopping for Dublin Airport Authority The Dublin Airport Authority (DAA) has selected LS Retail from K3 Retail, the UK’s leading provider of retail solutions based on Microsoft technology, as part of a six year deal, to replace the existing systems in DAA’s three airports at Dublin, Cork and Shannon. K3 Retail has already successfully delivered Phase One of this IT overhaul across all airports which includes the implementation of new touch screen POS including customer facing screens giving better visibility of promotions and pricing on offer, as well as a fully managed service for Chip & Pin. Phase Two, scheduled for spring 2011, will see K3 Retail replace DAA’s back office system to deliver improved head office, financial, buying and merchandise management. K3 Retail solutions will also drive DAA’s supply chain with new warehouse management systems. In addition, the new solution will be underpinned by Business Intelligence tools, to enable DAA to drive better decision making across its operations. With Dublin Airport’s new passenger Terminal 2 opening in November, DAA is expanding its retail offer to continue to deliver prices that are up to 40% cheaper than High Street stores and excellent customer service. K3 were the best fit Anthony Kenny, Head of Commercial Business Development, at DAA, said: “To deliver our new retail vision and support the growth and expansion of our airports we needed to move away from our legacy systems and look for a total management solution that will support all channels of the business. We went to tender and quickly discovered few vendors were able to offer the ‘one stop shop’ solution we required. K3 were the best fit for us and they are proven as the experts in retail.” Kenny continued: “Queuing times have already been cut as the new system allows the scanning of boarding cards and automated Shop & Collect information gathering. Customers are also more comfortable making credit card transactions with the improved security of Chip & PIN functionality. ” DAA is committed to improving its customers’ shopping experiences and delivering superior customer service. The recent rebrand of the airport shopping areas across all three airports as ‘The Loop’, focuses on value, quality and excellent customer service including a price promise to never be beaten by downtown prices.

“To deliver our new retail vision and support the growth and expansion of our airports we needed to move away from our legacy systems and look for a total management solution that will support all channels of the business. We went to tender and quickly discovered few vendors were able to offer the ‘one stop shop’ solution we required. K3 were the best fit for us and they are proven as the experts in retail.” Anthony Kenny, Head of Commercial Business Development, at DAA

John Little, Sales & Marketing Director at K3 Retail, said: “DAA is passionate about giving its customers a shopping experience they won’t forget. We are delighted to be working with them on such an exciting and innovative major initiative. The response from customers and users alike has been really positive and we look forward to Phase Two now.” About DAA The Dublin Airport Authority (DAA) is an airport management company with more than 3100 employees and a turnover of €547 million. Headquartered at Dublin Airport, the DAA’s principal activities include airport management, operation and development, domestic and international airport retail management, and airport investment. The company’s domestic operations include the running of Dublin, Cork and Shannon airports. Under the 2004 State Airports Act, which came into effect in October 2004, the DAA assumed responsibility for all the assets, liabilities and contracts of the former Aer Rianta.

The DAA is currently completing a major capital investment program at Dublin Airport which has seen the construction of a second passenger terminal, two new boarding gate piers, new aircraft taxi-ways and parking stands, improvements to the road network and a major utilities upgrade. About K3 Retail K3 Retail deliver multi channel solutions that enable retailers to create joined up shopping experiences for their customers whether they choose to buy on-line, direct or in-store. Their ability to translate thought leadership and multi channel experience into innovative and effective retail solutions has benefited customers including: Agent Provocateur, American Golf, Beales Department Stores, Booths Supermarkets, Carpetright, Clinton Cards, Dobbies Garden Centres, Dreams, Gamestation, GameStop, Give, Jigsaw, Kiddicare, Ryman’s, Smyths Toys, SpaceNK, and The White Company. Further info at www.theretailpeople.com

LS RETAIL NEWSLETTER - JANUARY 2011

The LS Retail Partner Conference is the premier LS Retail event where Partners, LS Retail and Microsoft come together. The agenda will include technical workshops on all products as well as more Sales and Marketing oriented topics.

Reykjavík, Iceland from 24-27 May

LS Retail Partner Conference 2011 spurting geysers

boiling mud pools

glaciers and waterfalls when the sun dips down to the horizon

Highlights for 2011 • Meet LS Retail and see our new 1750 m2 offices with stunning mountain and sea views

• LS Retail for AX – new modules including Commission, Meal and Recipe Management

• Spectacular conference surroundings in HARPA, the new Reykjavík Concert Hall and Conference Centre, a landmark in the redevelopment of Reykjavik’s historic harbor and waterfront area

• LS Retail Solution Selling – explore how the 9 block Vision Processing model can increase your LS Retail license sales

• Roadmaps and upcoming versions, scheduled products, modules and functionality 2011-2013 • Complement Microsoft Retail AX for Retail with the LS Retail for AX modules and different licensing offerings Intensive Workshops • LS Retail NAV – latest features including Franchise and Forecourt Management, Web Integration and LS POS (based on .NET) integration • LS Hospitality – latest features including graphical table management • LS Retail Intelligent Marketing – matchless customer intelligence based loyalty and automatic marketing solution for retailers • LS POS Solutions – LS POS as a standalone or as third party POS for other ERP solutions

LS RETAIL NEWSLETTER - JANUARY 2011

• Reduce costs of fraud in your customers´ stores with LS Retail Fraud Detection • Roster planning and staff overview with LS Retail Staff Management • The new dashboard in the LS Data Director makes it easier to monitor and control data exchange ISV Expo World class solution expo from LS Retail Partners and ISVs LS Retail honoring partners Platinum, Gold and Special awards for outstanding achievements and commitment Exciting after hours program Including bathing in the Blue Lagoon and a unique dining experiences in the LAVA Restaurant, and latest 4th floor HARPA restaurant with dramatic views of both Reykjavik harbor and the surrounding city Sightseeing trips, such as a volcanic super jeep tour, can be scheduled upon request

Our last conference sold out fast. We encourage you to take advantage of the early bird discount rate until 1 February and secure your seats. Please register at: www.LSRetail.com/pc2011.aspx

Velkomin til Íslands! The LS Retail Team

Exhibitor opportunities at the LS Retail Partner Conference 2011 Would you like to be a sponsor or exhibitor at the 12th annual and prestigious LS Retail Partner Conference to be held in Reykjavik, Iceland, 24-27 May 2011? We have set a special time aside in our agenda, on Thursday, 26 May between 16:20 and 18:00 for an Expo and Cocktail Reception as the final touch to the main conference day at our Worldwide Partner Conference. This session would take place at the Reykjavik Concert Hall and Conference Centre, which will officially open 13 May 2011. It is a great opportunity for you to showcase your products to certified LS Retail Partners, Microsoft, as well as to the LS Retail Team.

“Enjoyed the entire conference and felt it was a lot of good information. Good interactions with other partners. Really appreciated the new marketing material and updated information”

Value for Sponsors and Exhibitors Conference Goals • To expand and consolidate a network of Microsoft Dynamics NAV and AX partners with retail competencies • Increase retail competencies and competitiveness of the partners through information about the retail business and how LS Retail solutions addresses the needs of the industry • Enable partners to own retail sub-verticals • Expand the product offerings of the partners through 3rd party ISV products • Increase international cooperation between partners • Increase overall competitiveness of Retail solutions based on NAV and AX Participants • 100 representatives from NAV partners and 50 representatives from AX partners

Sponsors and Exhibitors • Sponsors and exhibitors will experience a focused audience that is very open to products, services and concepts, which will increase their competitiveness and business in the retail vertical. • This is probably only the 4th largest international Dynamics partner event in the world (after Convergence, WPC and Directions), but is it the only one with a 100% retail focus and where partners share a common interest. Main Sponsorship – 5.000 € We are very flexible concerning the content of a main sponsor package. Our initial suggestion includes: • Name and logo on LS Retail homepage, invitation, and program • Inclusion of material on conference USB stick • 1 Page advert in program

• The agenda will include topics for Sales and Marketing managers, Technical Consultants and Developers

• 2 full conference passes

• 3rd party ISVs – typically NAV and AX ISV selling CfMD solutions, which can be integrated with LS Retail

• Posters in main conference hall

• Participants from all over Europe, Russia, Middle East, APAC, USA, Mexico and Canada

• 2 booths on the Expo • 1 breakout sessions in program Exhibitor – 2500 € • Name and logo on LS Retail homepage and program • 1 full conference pass

What did you think about the conference?

• 1 booth on the Expo

– 2010 CONFERENCE SURVEY RESULTS:

• 75% found it very beneficial • 95% thought the agenda was good or excellent

LS RETAIL NEWSLETTER - JANUARY 2011

Hard Rock Café Germany selects LS Retail NAV from Qurius Germany Hard Rock has become a truly global phenomenon Since opening its first restaurant in London in 1971, the Hard Rock Café chain has become a global phenomenon, with 168 locations in more than 52 countries now. Each location combines rock-music memorabilia, classic American food and a commitment to widespread humanitarian causes. In recent years, Hard Rock Café has expanded beyond its food-service operations into entertainment by launching a line of Hard Rock Café merchandise and a record label, as well as hotels, casinos and live music venues. Hard Rock Cafe Germany is located in three cities: Hard Rock Cafe Cologne opened on April 28, 2003, whereas Hard Rock Cafe Munich was established on February 25, 2002 and Hard Rock Cafe Berlin on April 26, 2010.

„What they needed was an end to end Retail and Hospitality solution, which is reliable, and resilient, and can fulfil their needs now and in the future.“ Sven Kappe from Qurius Germany

In the summer of 2010, Hard Rock Café Hamburg decided on LS Retail NAV and LS Hospitality from Qurius, an LS Retail partner in Germany. In the middle of the touristic part of Hamburg Harbour the new franchisee started to reconstruct the location in the historical “Landungsbrücken Hamburg”. The project includes about 15 POS in the restaurant and 3 POS in the retail store. The opening of the store is planned for the

end of December while the restaurant will have its Grand Opening in March 2011. “To stay competitive, Hard Rock wanted to take advantage of their strong brand image, combined with consistently high food quality and excellent customer service to attract more customers from the nearby region,” says Sven Kappe from Qurius Germany. For further information, please contact: info@LSRetail.com

LS Retail in the Cloud LS Retail is also entering a new world in another sense – we are heading for the “Clouds”. SaaSplaza and LS Retail offer a complete Microsoft Dynamics NAV based retail solution for the retail and hospitality industries – LS Retail as a Service. The Major benefits of LS Retail as a Service are: • Minimize risk of software acquisition • Minimal investment in standard solution trial • No upfront license costs • Reduced capital binding • Predictable costs • Flexibility to adjust IT use to short term fluctuations in business • No need to purchase software for peak business (Christmas, New Year, Valentines, Sales) Download the LS Retail as a Service brochure from www.LSRetail.com.

LS RETAIL NEWSLETTER - JANUARY 2011

Ask Electronics selects LS Retail from K3 UK to facilitate tax free shopping

Automated Solution informing visiting customers in the UK about Tax-Free savings The solution can detect a credit card registered outside of the EU and triggers the POS to produce a refund form highlighting the amount of VAT the customer has saved, allowing the customers to claim their refund at the airport. It is implemented in partnership with Premier Tax Free, specialists in tax free shopping Sudhir Patel, Director of ASK Electronics, said: “We felt we needed an automated system in place that would improve the shopping experience for our customers. Previously, when tourists purchased goods from the store, the amount saved on tax was handwritten on their receipt by a member of staff after the transaction had been made. With the new system, the POS automatically triggers a VAT claim form to be produced highlighting the VAT the customer is entitled to receive when returning to the airport.”

About Ask Electronics

Patel continued: “With the Olympic games fast approaching, we anticipate an increase in tourists visiting our stores to purchase electrical goods. It is vital to have systems in place that will cope with increased transactions and inform customers better.”

www.askdirect.co.uk

John Little, Sales Director at K3, said: “Ask Electronics is taking a crucial step in preparation for the 2012 Olympic games. The retailers that are going to enjoy increased revenue on the back of the Olympics are those who are already getting their systems in place to make shopping even easier for overseas visitors.”

Ask Electronics is a leading multi-channel retailer of consumer electronics in the UK. We provide the latest and best selection in consumer electronics ranged from the top brands. Ask has been established in the West End of London since 1983 and operate from four stores. At Ask, we aim to provide the widest selection of consumer electronics widest electronics with unmatched customer service.

Whether your travels take you to Europe, the Americas, the Middle East or Asia Pacific, rest assured that Premier Tax Free will look after you and your tourist tax refund. Premier Tax Free is one of world’s largest Tax Refund companies with tax free shopping operations in over 19 countries. Chosen for their efficient processing of tourist tax refunds and friendly customer service, they are the privileged partner of 75,000 retail outlets across the globe. Premier Tax Free is part of Fintrax Group Holdings, a company specializing in: • Credit Card Processing

About Premier Tax Free Specialists in Tax Free Shopping, Premier Tax Free provide international shoppers with an easy and fast solution to recover sales tax (Value Added Tax) throughout the world. With over 24 years’ experience in Tax Free Shopping, Premier Tax Free work with the world’s most prestigious Retailers and Merchants to make the tourists’ shopping experience abroad both tax free and hassle free!

• Tax Free Shopping • Dynamic Currency Conversion • Multi-Currency Check Payments • Payment Software Development • Data Processing www.premiertaxfree.com

New employees New CEO at LS Retail LS Retail is pleased to announce the recruitment of a new CEO. His name is Magnús Norðdahl, CEO of the hardware and infrastructure provider EJS in Iceland. Previously he has been director of services at Nýherji, CEO of Aco-Tæknival and CEO of Tech Data in Norway. Magnús has over 25 years of management and operational experience in the IT industry and holds a masters degree in electrical engineering from the University of California.

He is married to María Másdóttir and they have 3 children. Magnús formally took over the position as CEO of LS Retail on 1 December 2010. Aðalbjörg Karlsdóttir joined LS Retail on December 1st as a tester in the NAV team. Aðalbjörg has a B.A. in Psychology from the University of Iceland and has worked for Nikita (the fashion retailer/ manufacturer) for a few years so she knows fashion processes as well as LS Retail.

LS RETAIL NEWSLETTER - JANUARY 2011

LS Retail NAV 6.2

LS Retail NAV as you have never seen it before! We have upgraded the already very rich retail functionality in our LS Retail NAV and created the superior retail-oriented software in the market. True: Our solution is an end-to-end retail solution and enables retailers to do what they do best: Serve the customer. Almost everything else is taken care of by LS Retail NAV 6.2. We are proud to present the latest version of LS Retail NAV – LS Retail NAV 6.2 - with four new granules: 1. Web integration 2. Franchise Management 3. Forecourt 4. Stock Ledger Reporting LS Retail Web Integration As we are all aware, web stores are becoming a necessity in today’s retail world. However, the struggle to make the web store solution reliable and fast is still an issue within many operations. Well - not any more with LS Retail Web Integration. Together with Digital Vantage Point we have developed Specific Data tables which prepare combinations of possible price requirements prior to web shopping. For instance, all current price combinations for a certain item - taking into account all current promotions, combinations of promotions and loyalty information combined with current promotions - are prepared in separate data tables. This enables a web store application to be fast, accurate, reliable and even personal – depending on integrated loyalty information provided by a web shopper during shopping. And that´s just one feature! The system can also display all active offers available for the chosen item, or the chosen item in combination with specific loyalty info (special web promo-code, coupon number, Loyalty Card ID.). In this way the system actually acts as an additional sales person – offering additional purchase options to a web-customer while she/he is shopping in a web store. All potential price differences between a web store and actual stores are avoided. This is 8

LS RETAIL NEWSLETTER - JANUARY 2011

very important for the web store checkout procedure. When the user is ready for checkout, the web store sends the total basket info to LS Retail NAV using web services provided by LS Retail NAV 6.2. LS Retail NAV then calculates the current active price with the same business logic as the base system POS (promo priorities etc.). Information is returned to the web store application – so the customer gets real data in real time.

And that´s just one feature! The system can also display all active offers available for the chosen item, or the chosen item in combination with specific loyalty info (special web promo-code, coupon number, Loyalty Card ID.).

The minimum configuration required in order to take advantage of the new Web Integration is: LS Retail Base + LS Retail Web Integration. Both are available with Dynamics NAV Business Essential (BE) licenses.

One of the first obstacles in a franchise business is item consolidation. It is common that ER and EE are not using the same item data; therefore it needs to be connected. Usually, the ER controls the items that are part of a franchise agreement and distributes them to the EE. We have developed a new item transfer table to help solve this issue. By using the already existing Item Import Functionality (part of the LS Retail Replenishment) this has become an easy task. Items can be distributed to different EEs or groups of EEs. Actually, the Franchise Management granule can be used also for communication between different legal entities (not necessarily just franchise agreement types).

LS Retail Franchise Management Many retailers have or are connected with franchising operations of some kind. This new granule offers specific functionality needed for cooperation within a franchise business. Communication between franchiser (owner; ER) and franchisee (EE) is essential in this kind of business relations, and we have created special tools just for this purpose.

The communication between ER and EE is taken care of by the LS Data Director, the communication tool available with the LS Retail Base granule. All necessary documents (purchase orders, sales orders, purchase return orders and sales return orders) are transferred with the Data Director, which makes the process as automatic as possible. No need here for other communication tools. There are two methods of Order Processing possible in the Franchise Management module: Push and Pull model. Both are supported with appropriate documents and automatic posting into the system at both ends (EE and ER). Depending on the agreed business module, the returns could be handled as well. For both methods, different ways of distribution can be used of course: direct delivery from the suppliers, delivery from the central (ER) warehouse and / or combinations. There is an important difference between this granule and standard Dynamics NAV Intercompany Posting: no need for Advanced Management (AM) NAV licenses which is yet another advantage of this new module.

LS NAV POS is now ready for use in a petrol service station as: 1. A classic retail POS for selling items

LS Forecourt LS Retail has been focusing on the so called forecourt business (commonly known as gas stations/service stations) lately. We have integrated forecourt specifics in our standard solution. With this step we have enabled many oil companies who run their own service stations a perfectly integrated combination: Service station, retail store and hospitality within one solution! And of course all are fully integrated into ERP systems (Dynamics NAV or any other). There are two major pains identified in the forecourt business: Wet Stock Management and Pump Control Integration. Together with our colleagues from DOMS and Dresser Wayne we have addressed both of them and integrated this unique functionality in the latest version. Following is some of the functionality addressed in LS Retail NAV 6.2.: • pump control • integration to POS • pump menus • tank gauge information • tank gauge transaction remediation • price changes • tender restrictions on payment

2. A forecourt POS selling fuel, connected to pump controllers – actually controlling them 3. A hospitality POS for selling drinks and food at the counter - part of the service station offer - with support from the back office system of LS Retail NAV.

We have integrated forecourt specifics into our standard solution. With this step we have enabled many oil companies who run their own service stations a perfectly integrated combination: Service station, retail store and hospitality within one solution! The purpose of the Stock Ledger Reporting Framework is as follows: • Complete support for the retail value of an item through different levels of price changes • A new reporting framework with the capabilities of dynamic inventory aggregation into specific transaction types

LS Retail Stock Ledger Reporting The LS Retail Stock Ledger Reporting Framework adds to the standard Dynamics NAV the capabilities to record the retail value of an item, as opposed to the standard system which only keeps track of the cost. In most circumstances Stock Ledger processes will be executed at the Head Office. There can however be cases where Stock Ledger Reporting is required at another level. The architecture of the Stock Ledger Framework can fully accommodate for that, whether the functionality is required at a lower level (store) or at a higher level (consolidated business units).

• To allow customers to report inventory valuation according to the retail and/or cost • Support the costing functionality of the inventory system in the Stock Ledger Reporting In designing the Stock Ledger Framework, all efforts were made to minimize the impact on standard Dynamics NAV functionality and standard LS Retail NAV functionality. LS Retail NAV 6.2 and prices are available for download from the LS Retail Partner Portal. For further information please visit www.LSRetail.com

LS RETAIL NEWSLETTER - JANUARY 2011

LS Retail .NET 2010.1

New line of products for all types of retail operations based on .NET LS Retail has started a new line of products for all types of retail operations. Based on .NET technology the products will be very flexible. Combine that with standard retail functionality and you get a product that could win every retail outlet – one or more locations in the future. Or just combine it with any other ERP out there as the front-end for retailers. Microsoft .NET LS Retail .NET 2011 – which is the official name of this suite of .NET products will be released in January 2011. In short: we are adding basic back office functionality to LS POS. This way, LS Retail .NET becomes a basic self-sufficient software system for handling single stores. LS POS LS POS is a .NET based POS that handles all necessary POS operations in a retail environment and is very open for any specific modifications. It handles discounts, discount combinations known from LS Retail NAV but not quite all the loyalty combinations – yet. On the other hand, all integrations can be prepared for this type of POS – such as connection to mobile phone operators and selling pre-paid account for instance. Just remember: anything than can be triggered at the POS level can be connected to LS POS. There are several additional functionalities included in the new version at the front end level. Hospitality support is ready for table handling, bill splitting, item categorization (lunch, dinner) and item modifications (different toppings). LS Payments integration are EFT localizations for different electronic payment processing companies. This new functionality takes care of communication between LS POS and the acquirer (processing company – such as Mercury). Several of them are already included as standard and more will be available in the next releases. Forecourt manager is the integration with industry computers that handle fuel pumps, outdoor payment terminals and other forecourt related hardware. We have been working very closely together with experts in the field like Dresser Wayne and their Fusion Forecourt Controller and DOMS – integrating their controller PSS 5000 into our standard version. 10

LS RETAIL NEWSLETTER - JANUARY 2011

Store Controller The Store Controller is a lightweight back office system based on .NET. Initially there is a single store controller; later in 2011 our plan is to release a multiple store controller functionality which will be able to handle many store locations. In the first phase, the single store controller takes care of basic back office functionalities for a single store with one or more LS POS. This version covers the following features: • Store & Terminal Setup takes care of setting up everything related to the store and POS terminals such as staff, access rights, tender types, hardware configuration, user profiles and so on. • Item Setup is used for setting up item details. There are no format limitations for importing item details here (flat files, web services, it is your choice). • Purchasing. Basic functionality is included in the single store controller. It enables a store manager to create a purchase order based on the latest information used (such as the last

purchase order / vendor) or simply choose from selection of the item display on the screen. • Inventory Management and Goods Receiving are standard functionalities. Goods’ Receiving is based on purchase orders created. Also, back orders are enabled for goods not delivered – the system allows you to accept the goods delivered at a later date without having to create new purchase order for the missing part. • Hospitality functions are here as well: Table handling, bill splitting, item categorization (lunch, dinner etc.) and item modifications (different toppings available). These functions are also included in front end (LS POS). • Stock Counting covers classic retail functionality that results in positive or negative inventory adjustments, which in the end affect inventory levels. • ERP Connector is used for connecting LS Retail .NET to any other third party ERP system (Oracle, SAP, GP and so on).

It is not needed if you connect it to MS Dynamics. Here comes the beauty of it: If you start as a single store retailer and grow later, it is very easy to substitute the Store Controller with standard Dynamics NAV and so you can really efficiently support the growth. • Reports that are available in the Store Controller module can be very easily customized. They include standard end of day reports, item handling reports, POS reports and more.

We would like to reach out to small retail operations with this line of products. Another alternative is to use them as the best front end for other ERP systems. The pricing will be attractive and we are encouraging our partners to sign up for this adventure with us. We will soon prepare the official conditions (training, localizations and agreements) for signing up and are encouraging all of you to check our web pages, facebook or contact us at: info@LSRetail.com for more information.

LS RETAIL NEWSLETTER - JANUARY 2011

LS Retail for AX

LS Retail for AX add-on modules In December 2010 we released two new LS Retail for AX add-on modules. The following products have now been released: 1. Inventory Optimiser 2. Meal and Recipe Management 3. LS Retail Portal 4. Staff Commission LS Retail Inventory Optimiser for AX Many of you will remember the Inventory Optimiser, no doubt. For several months we have offered it as a unique tool that helps retailers reduce cost by optimizing inventory levels, prevent stock-out situations, reduce workload and increase the visibility of business by special inventory reporting tools. This product has been available on the market together as an LS Retail NAV add-on. Now the same is possible with AX. We have developed the standard interface to AX which enables Inventory Optimiser’s easy integration to Dynamics AX for Retail. In short: Inventory Optimiser for AX retrieves data from Dynamics AX for Retail (sales history, vendor details) and, based on defined workflow rules, generates purchase proposals. They are transferred back to Dynamics AX for Retail which uses them for creating purchase requisitions. And after designated buyers have approved them (by vendor, up to certain value, quantity limits and so on) purchase requisitions are processed within Dynamics AX for Retail. Major advantages of Inventory Optimiser for AX: • Seamless integration with AX • Defining workflow rules (further processing of suggested purchases) • Creating purchase requisition journals • User friendly tracking status of requisition orders • Very effective and simple to use

LS RETAIL NEWSLETTER - JANUARY 2011

LS Meal and Recipe Management With LS Meal and Recipe Management you can manage a catering business or cafeterias by creating and maintaining recipes and planning daily menus. Meal Planning When you plan meals, you create menus that are a collection of dishes and are valid on certain days. For each menu you create day plans in specific restaurants where you assign the actual recipes or items to the menu, set the dish prices and plan how many portions you are going to make. The menus are then updated on the POS. To order the ingredients you need for preparing a menu, you create requisition worksheets for the day plan. You can also create requisition worksheets based on weekly plans.

The Weekly Meal Planner shows the day plan menus for the selected menu and restaurant for one week at a time. Here you can: • Get an overview of the dishes planned • Create day plans and design your weekly menus • Copy the menus set for a day to other days or periods • Print day plan menus showing the recipes behind the dishes for the day, with quantities updated to make up the number of portions planned • Print customer menus with the descriptions of the dishes for the day (they can be multilingual, grouped by submenus and showing nutritional information) • Produce recipes for the day or week • Create requisition for the day or week

The LS Retail Portal processes data and presents lists, statements, reports and other information to assist store managers to track stock levels, check and adjust prices, assess profit and loss for the store, view transactions, maintain journals and manage store personnel privileges. It also informs them about deliveries and notifies them about outstanding issues. All of this comes with a powerful graphic interface and as available from any computer with internet connection.

Recipe Management Recipes can be the central item unit of the restaurant. Recipes are a collection of ingredients and/or other recipes and additional items with quantities that make up one portion. You set up pricing and cost for recipes in the same way as you set up pricing and cost items. With LS Meal and Recipe Management you can effectively manage your recipes. With recipes you can:

letting the program calculate the quantities for one portion • Register the recipe quantities for each ingredient in any unit of measure while the program takes care of calculating the quantity in the recipe base unit of measure (you set up unit comparison with conversion factors that define how one unit is converted to another)

• Use grouping by main ingredient, style and category

• Store and display nutritional information showing the nutrient values of your choice

• Register production time and instructions for cooking

• Copy a recipe and change its size at the same time.

• Register additional items, such as utensils and trays • Use sets of different ingredients temporarily and then go back to the normal recipe by maintaining recipe versions • Register the quantities of the recipe ingredients for a set number of portions,

LS Retail Portal This is another AX feature which focuses on the important role of store managers in retail operations. It provides store managers with a comprehensive set of tools that allows them to run their stores at peak efficiency with more control and reduced risks of failure and mistakes.

By using the LS Retail Portal – built on Enterprise Portal in Dynamics AX for Retail – store managers find it easier to do end-ofday procedures, check store and POS information, edit staff information and privileges, track price changes and item assignments. It is easier to manage retail items in assigned stores or chain of stores, control transfer journals, picking and receiving documents, price change notifications and cues such as open statement cue and POS transaction cue. Of course, reports are included here, too, like: daily cash over / short reports, staff sales reports and counting lists to name just a few. Staff Commission Actually, this is possibly the fanciest module within the LS Retail for AX add-ons. Staff Commission is the tool that helps a retailer to retain the best people. Many retailers want to accurately measure the true performance of the staff, motivate the staff to sell more and increase service to customers. Staff commission acts as an incentive for sales personnel and is used to boost sales, including the sale of promotional goods and to get rid of old stock. It offers reports and analysis that could be transferred to human resources and used as a part of bonus payments for the personnel. The commission can be set up as a percentage (%) of sales revenue, % of margin or % of pre posted or posted discount. The condition for using this tool is setting up sales group hierarchies. There are three options for setting up the commissions: commission percentage, fixed amount commission and sales target bonuses. A certain commission % can be assigned to a sales group as a % for selling chosen items or item group. This % can be further assigned to more sales groups or individual sellers – with a flexible hierarchy rule including seller, local sales manager, regional sales manager and so on. When selling the item (item group), the commission transaction is executed for each of them. It can be easily monitored and analyzed.

LS RETAIL NEWSLETTER - JANUARY 2011

LS Retail for AX Fixed amount commission has an additional advantage. Technically, the commission could be set up even below zero value (that is: margin). This is very useful especially when a retailer needs to get rid of items on stock (for instance electronic items which are technically out of date). Very often it costs more to dispose of them than sell them with no or negative margin. To stimulate the staff to sell these items, an attractive fixed commission could be set up for an item or group of items. Sales target bonuses in combination with the local human resource policy can be set up in the system. It could be the total sales amount (sales revenue), margin or discount for a certain period of time. For instance â&#x20AC;&#x201C; if a sales target (10.000 USD margin) is achieved, the assigned bonus for specific sales group is 10 % of the margin. It is very easy to check the progress of this incentive and the system can also suggests items to be sold to reach the goal. Of course, several sales-specific reports are available for tracking this. The beauty of the Staff Commission for AX is that it can be connected to Mix & Match modules and the commission is activated only by selling a certain combination. For instance, you can set up a commission for selling an electronic item but only if the seller sells a service plan, too. The choice of combinations is endless. The commission can be allocated to any sales group created. This way the seller does not have to worry if his/her ID is not registered at POS level (to accumulate earned commission). The options for hospitality in the context of staff commission should also be considered here.

CUSTOMER IDENTIFIED

RETRIEVE CUSTOMER PROFILE

UPDATE/LOOKUP LOYALTY SYSTEM

MATCH PROMOTION TO CUSTOMERâ&#x20AC;&#x2122;S INTEREST AND NEEDS

ASSEMBLE PROMOTION AND OTHER RESPONSES

LS Retail Intelligent Marketing for AX (Expected release Q3 2011) Intelligent Marketing is an independent tool that reaches beyond classic loyalty schemes. Every retailer nowadays needs a loyalty system and there is an increased demand for something beyond that because retailers must find better ways to address their loyal customers in order not to lose them in an overflow of marketing information. The cost of mass marketing tools such as spam mail, leaflets in mail boxes, loyalty card schemes and so on is often hardly justifiable when their effect is evaluated. So the key questions will have to be answered: How can we retain our most valuable customers? Who are they in the first place? How can we fill the shopping basket with more items? How can we acquire even more loyal

PROFILES

LOYALTY

CAMPAIGN MANAGEMENT

ON-LINE DATA MINING COLLABORATIVE FILTERING RULE ENGINE RECOMMENDATION ENGINE

CUSTOMER RECEIVES RELEVANT PROMOTION, ENCOURAGING HIM TO COMECK SOON AGAIN

customers? How can we efficiently target our loyalty base? How can we measure the effectiveness of our marketing campaigns? How can we know which products should not be part of promotion, because they are actually not price sensitive? We believe our Intelligent Marketing solution is the answer to those questions. We are planning to prepare integration to many other channels in the near future, like: Webstores, social media, mobile phones and email marketing. The first integration on the list is with AX => Intelligent Marketing for AX. Basically speaking, Intelligent Marketing software uses a separate data warehouse for data mining. It uses tools for data aggregation based on defined marketing modules (loyalty groups, dates, customer groups, you name it). The role of Intelligent Marketing for AX is to create a profile within the AX application and therefore enable the user to use a single client and only one familiar application. The customer profile within AX is connected to the discount offer in AX which is transferred and activated at POS level (for instance coupon issued and used immediately after the purchase). The end result could be called also intelligent receipts or targeted personal campaigns at the POS level. This actually creates extra sales options after the initial sale is already closed. With Intelligent Marketing for AX all of this can be managed via only the AX application. Further information at info@LSRetail.com or www.LSRetail.com

LS RETAIL NEWSLETTER - JANUARY 2011

Fillgap organizes a success event for apparel industry Fillgap, an LS Retail Business Partner, recently organized its seminar “Profitability Never Goes out Style” for the apparel industry in Mexico with great success. The Antara Shopping Center, one of the most avant-garde shopping malls in Mexico City, was the ideal environment in which to experience the latest technological solutions to help Mexican organizations optimize their business operation and points of sales. Many highly regarded companies in the apparel industry were represented at the event, such as: Corneliani, Dorothy Gaynor, GNC, Flexi, Fullsand, Hackett London/Pepe Jeans, Daniel Espinosa Jewellery, Levi Strauss and Tanya Moss. The workshop was exclusively created for the attending companies. In fact, Fillgap in alliance with The Friedman Group Mexico, Retail Consulting & Training specifically developed the content in order to add value to the business of event guests. The keynote was given by Laurence Newell, The Friedman Group Mexico Sales Director, who talked about several strategies for increasing productivity in stores and profession-

José Angel Reyes, CEO, Fillgap

al retail sales - for turning “I´m just looking” shoppers into devoted lifelong customers. José Angel Reyes, Fillgap CEO called his presentation “From POS to Business Outcome”, where he mentioned the global challenges facing specialty retail companies such as: limited capital spending, financial and credit restrictions, multi-channels shopping, and more competition, as well as the local challenges such as: Customer focus, product availability, demand management, and so on. Specialty retailers must be prepared to successfully face these challenges and have control of their operations, sales, margins and expenses in order to improve the business outcome through technical solutions. Reyes pointed out the competitive advantages of the Microsoft Dynamics platform when answering the question which technology solution provides centralized access to sales information in real time and automates business critical process.

Laurence Newell, Sales Director, The Friedman Group Mexico

The attendees also tried out the solution to check whether it was really an ideal model to solve the high demands of retail industry. For this, Fillgap created a POS environment to demonstrate the solutions, which was conducted by Federico Orozco, LS Retail Product Manager for Fillgap. For further information, please contact info@LSRetail.com

LS RETAIL NEWSLETTER - JANUARY 2011

News from Asia

Tectura Asia - Retail Centre of Excellence grows! Tectura Asia is certainly ramping up their resources in the region. With the Sydney office of Tectura being the hub of their Asian retail Centre of Excellence – Tectura have poured in enormous resources around retail and LS Retail NAV. Indeed they have added around 50 manyears of senior retail experience within the last months alone – on top of the significant LS Retail skills they already had in house. In this regard they have acquired a NAV practice which was one of the original NAV and LS Retail operations in Australia. This has brought a level of implementation and customization skills which will be unsurpassed in the region. Together with this, Tectura Australia has imported an LS Retail professional, Thomas Nielsen, from one of the USA’s most successful LS NAV partners. He brings with him experience from 40 installations. These efforts are being overseen by an internal retail consultant who has worked with some of the largest specialty retailers in Australia - Brett Ashcroft – Retail Consultant Asia Pacific.

“The key to success in retail is to understand the client’s business” says Ashcroft. “LS Retail NAV is a truly superb product. However, you have to know how to install and support it. We have invested in resources that will make us the best retail group in the region” In addition to LS Retail NAV – Tectura has added a range of retail specific tools to assist in key verticals. These include Business Intelligence (BI), Range Planning and Workflow – all of which assist the retailer to increase efficiencies – in a systematic manner. Tectura supports some great retail brands in the region, including Lagardere who use LS Retail NAV across several brands within airport stores. The volume of transactions in this environment is quite staggering. LS Retail NAV never misses a beat.

“The key to success in retail is to understand the client’s business” Brett Ashcroft – Retail Consultant Asia Pacific

Tectura looks forward to discussing retail with traders in any part of the globe. With offices in over 20 countries including many Asian cities - Tectura is very well placed to assist retailers of all sizes to improve their business – with LS Retail NAV.

Electronic Retailer MediaMart Corporation first LS Retail Special Order user MediaMart joined the electronic retail market early 2008. The company operates multistory electronic centers, selling electronic devices, electronic coolers, household goods, digital technology and hi-tech devices. After nearly one year in operation, the company management realized that their existing MIS system would not help to meet the fast paced growth of the company, with 4 new electronic retail centers to come into operation within the next 2 years. Therefore, in March 2010, MediaMart decided to choose NaviWorld Vietnam as the implementation partner to help replace their existing system with Microsoft Dynamics NAV and LS Retail

LS RETAIL NEWSLETTER - JANUARY 2011

in order to manage both front-office and back-office operations. In Vietnam, Media Mart is the first company to use LS Retail Special Orders for electronic retail businesses, which helps to streamline the POS operations at front-end, and stock handling and logistic operations at the backend. Media Mart also makes full use of the LS Retail flexible scheme for deals and promotions to deploy their various sales campaigns, making the company one of the most competitive player in the market. After 4 months of having the system up and running, MediaMart is now confident that they can open their third store complex of 20,000 square meters within a very short time. For further information, please contact info@ LSRetail.com.

News from Asia

Trung Nguyen Coffee maintains top of market position with LS Retail Hospitality After the implementation of LS Retail system for the first 15 coffee outlets with NaviWorld Vietnam, Trung Nguyen Coffee is now ready to expand the POS network through their in-house IT team. Trung Nguyen Group is a leading Vietnamese coffee manufacturer and distributor. Trung Nguyen Coffee falls under the corporate umbrella of the Trung Nguyen Corporation which owns with over 1,000 coffee shops in Cambodia, China, Germany, Japan, Singapore, Thailand, Ukraine and of course Vietnam. Since March 2009, under the consultancy of NaviWorld Vietnam, Trung Nguyen Coffee has successfully implemented the integrated business system, Microsoft Dynamics NAV – LS Retail (Hospitality featured), for the

first 11 retail outlets in major cities all over the country. The Microsoft Dynamics NAV – LS Retail system is aimed at helping Trung Nguyen Coffee maintain its leading position in the market through operation excellence in the new era of competition. The LS Retail system is perfectly fit for Trung Nguyen Coffee in the way it marvelously integrates business data from different types of coffee outlets. Trung Nguyen owns stores, franchised stores and joint-ventured stores. With efficient knowledge-transition methodology from NaviWorld Vietnam, Trung Nguyen Coffee has now been able to roll out the system to other outlets in the company

POS network using only its own in-house IT resources. All the implemented stores in the Trung Nguyen Coffee network can now accurately share real-time information with increased efficiency and greater financial clarity. Trung Nguyen cashiers now have the ability to take orders and process transactions with handheld devices, reserve tables, split bills, offer customer loyalty programs across all locations, offer attractive deals and promotions with ease. The LS Retail system also provides the company’s management team with the ability to forecast demand, and thus streamline their supplies to meet projected needs in both the short and long run.

Electronic chains in Vietnam select LS Retail Tien Phong Service Retail Corporation in continued list of consumer electronic chains in Vietnam to select Microsoft Dynamics NAV and LS Retail. With the booming of electronic retail businesses in Vietnam, Tien Phong Service Retail Corporation is getting ready to join the market within this year. With the model of multi-story electronic retail centre, aiming at bringing best retail service for their customers, Tien Phong Service Retail Corporation decided that a strong MIS system is the key to their success. In mid-2010, Tien Phong Service Retail Corporation selected Microsoft Dynamics NAV – LS Retail as their strategic business application. The reason why Tien Phong Service Retail

Corporation decided to select Microsoft Dynamics NAV – LS Retail not only lies in the capability for fast system roll-out, but also the open architecture to allow them to flexibly map the business processes and functions from service point-of view which is unique to the electronic retail industry, such as Mix and Match of promotions campaigns, Delivery and Installation scheduling and staffing, Warranty and After Sales Service Management, Vendor Promotion Management. NaviWorld Vietnam is the implementation partner of the system. LS RETAIL NEWSLETTER - JANUARY 2011

News from Asia

MH Concepts hearts LS Retail MH Concepts Holdings Limited was established in Hong Kong in May 2009, and the Shanghai branch was opened in March 2010. It manages a portfolio of International brands in Hong Kong, China and Macau like the New York Designer label, Charlotte Ronson, I Heart Ronson and other brands. The designer Charlotte Ronson was born in London into an artistic family and raised in New York, and followed the tradition by developing her own unique style at an early age. Her collection is edgy, feminine, effortlessly luxurious clothing. ACW Hong Kong has recently rolled out LS Retail NAV to several of the MH Concepts Ltd retail accounts in Hong Kong and China. MH Concepts has taken the full benefits of the retail solution and the services provided by ACW, ranging from achieving end-to-end visibility into customer transactions in real time, enhanced data integrity, to multi-dimensional analysis in order to improve customer satisfaction, and other functionalities. ACW will continue its support and working partnership with MH Concepts through its further expansion in Hong Kong and China. „Due to the integration of the whole retail process, transaction details and cost information can be tracked in real time. MH Concept gains the ability to perform multi-dimensional analysis. With increasing workflow automation, MH Concept can keep business processes consistent and moving smoothly,” says Shirley Tsang from ACW Solutions Ltd.

Eu Yan Sang Singapore Pte Ltd go live in record time with LS Retail NAV Eu Yan Sang Singapore Pte Ltd (EYSS), a traditional Chinese Medicine retailer, went live with 40 stores island-wide in a Big Bang approach with Microsoft Dynamics NAV and LS Retail NAV. Mr Wee Chin Lian, the Project Manager / Deputy General Manager for Finance of EYSS remarked that it was indeed an aggressive approach: “To do it on Friday where the weekends are usually the busiest for our stores, the team efforts from EYSS and CyanSYS are highly commendable and the most important reason why our new ERP and Retail system could be deployed successfully.” CyanSYS Project Manager, Pei Juan adds: “The team effort to prepare such an end-toend Retail Solution go-live over a weekend demands that each team member is responsible and accountable for his part of the tasks 18

LS RETAIL NEWSLETTER - JANUARY 2011

assigned. Without the tireless recurring testing and retesting by users and the great cohesion of EYSS and CyanSYS project members, we would not be able to have pulled this off inside 5 months.” The entire end-to-end project was delivered one month ahead of schedule and certainly on budget. It is crucial that the team continues to support, monitor and fine tune the software in order to achieve stability in the shortest possible timeframe. In this project, the total go-live solution for Eu Yan Sang included the Financials suite including Fixed Assets / Cash Management, LS

Retail NAV including sales orders and deliveries, purchase orders, warehouse and delivery management, store operations, POS cashiers functionality and CRM loyalty rewards. For further information, please contact info@LSRetail.com

LS Retail Grand Opening At the beginning of September 2010, LS Retail invited partners, friends and other special guests to attend the Grand Opening of the new office in Reykjavik. Many of the visitors attended an Executive Briefing earlier the same day as the party was held. It was a real pleasure for LS Retail to welcome a number of visitors from Partner Companies abroad, former colleagues, and other familiar faces from near and far. The President of Iceland honored us with his presence and addressed the gathering. The spirit was very positive and informal throughout this eventful day. The office was decorated and the LS Retail staff wore outfits to match the decorations.

LS RETAIL NEWSLETTER - JANUARY 2011

Global supplier of Software Solutions and Services for the Retail Industry Did you know that LS Retail is also a global supplier of Services for Retailers using or planning to use Microsoft Dynamics NAV or AX? Through the offices in Iceland, Germany, Singapore and USA, we deliver a variety of services to Microsoft Dynamics partners and customers.

Type of Services provided to Microsoft Dynamics Partners and Customers: • Presales • RFI, RFP

• Analysis • Consulting

• Customization, Implementation and Deployment • Design and Setup of POS • System Setup and Performance Optimization • Retail Training

LS Retail Quick Facts • Retail solutions around the world for over 15 years • LS Retail is sold and supported by more than 120 certified partners in over 60 countries • All LS Retail partners are certified and have undertaken advanced training • 1st. real POS solution within Microsoft Dynamics NAV • Microsoft acquired the LS Retail solution for Microsoft Dynamics AX in 2009

LS RETAIL NEWSLETTER - JANUARY 2011