Multi-Format Retail POS Replacement: Anglia Regional Cooperative Society UK
Although their grocery and convenience stores, department chain and furniture outlets were all part of the same group, they were operating as trading silos and not making the most of the opportunities that a wider group offered. Having decided to change this, Anglia Regional Cooperative Society then looked to MATRA to deliver them a single, consistent POS infrastructure that would support all of their stores, offer cross trading capability, re-use their old tills, and help them press ahead with their ambitious multi-channel strategy.
Client
Started almost 130 years ago, the Anglia Regional Cooperative Society (ARCS) has grown to become the sixth largest in the country. Its diverse portfolio of stores now sell over £300m of goods in a year and provide employment for over 3,700 employees.
Its food stores serve the community through a combination of 'Local' convenience, 'Rainbow' Supermarkets and petrol filling stations. In all cases, they deliver quality products at exceptional value. The 'Westgate' department stores are conveniently located in town and provide a wide range of products with a strong emphasis on service. The furniture and electrical stores provide specialist ranges and services for their respective markets.
Brief
Although each chain within the ARCS group was successful in its own right, it was clear that significant advancement could be made by utilising the multi-format strength of the group. With the right levels of integration, ARCS would be able to deliver greater capability than their larger rivals in each sector could provide.
A cornerstone in their strategy was to have a consistent approach to selling that would allow them to run group wide schemes and initiatives. There were some significant challenges to be faced though as for years each chain had operated its own POS solution and processes. To make things more complex, the Westgate chain was running IBM 4690 hardware which, although very old, was still working perfectly. A wholesale replacement couldn't be justified. This meant that the chosen system had to be able to make use of the old IBM tills whilst still delivering all of the modern functional requirements.
MATRA's FREEDOM solution was the obvious answer, offering proven multi-format, multi-channel capability and a unique ability to integrate with old systems such as the IBM 4690.
“The capability that FREEDOM has brought to the business has really opened our eyes in terms of what is possible. We've been able to deploy the system with minimal impact and are already experimenting with initiatives that would have been impossible a few years ago.”
Mr Lance Woollard - IT Executive Anglia Regional Cooperative Society
Solution
The first installations of FREEDOM were in the 'Local' convenience stores. During this project, the MATRA and ARCS project teams worked together to ensure that the live system would cause only positive disruption. This meant that central AS400 environment had to be seamlessly integrated with the new Microsoft based FREEDOM software and that all additional AS400 applications had to be available in the store on the new platform.
With the convenience stores successfully rolling out, attention turned to the larger Rainbow stores and once again the teams worked together to refine the in-store processes and the central integration. Once again, roll-out was very successful, with great feedback from in-store staff and the operational people in the food group.
Finally, attention turned to the Westgate chain and the old IBM tills. The key to these was MATRA's unique ability to drive 4690 tills as thin clients across the old IBM network. Westgate adopted a policy of replacing a few old tills in each store to provide resilience in case of network failure, but the rest were left untouched. FREEDOM thus provides all functionality across all of the tills. If a till dies, then it is simply swapped for a modern one - leading to a gradual till replacement programme that spreads the cost over many years and maximises the return on the ageing technology.
The entire ARCS estate is now fully rolled out and they are busy trialing new initiatives such as self-checkout, loyalty and group wide promotions.
Outcomes
The FREEDOM solution has had a dramatic effect on the way that ARCS operates. The enthusiasm for the possibilities that started in the IT department has become infectious and people from every area of the group have become caught up. From a few years ago, where each chain operated in relative isolation, they are now actively seeking ways to utilise the new infrastructure and have seen how easy it is to bring new ideas and third party solutions into the mix. This of course is having a very positive effect on the business.
There have been more tangible benefits too. Training times have been slashed to a fraction of previous systems. With only one solution to support, the IT department can devote more time to growing the business by supporting new initiatives and making further improvements to streamline processes and lower costs.
The customer offer has also improved, with faster transaction throughput, fewer mistakes at the till and a growing range of promotions that is set to expand still further this year with the introduction of MATRA's FREEDOM Shopper component.
Simon Towner, Operations Director at MATRA stated,
“We have watched ARCS change from a business that quietly got on with retailing, to one that now feels it has something to shout about. The new found confidence and clear ambition to grow and succeed is fantastic to see and we feel honoured to have played a small part in it.”
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