E-commerce Despite the debate about online sales cannibalising store turnover, only 3% of respondents thought this would happen to a large extent. The majority, 61%, didn't think this will be a problem, while 21% thought store sales would be hit "marginally". Doug Duffin, senior retail consultant at Cap Gemini, explains how Sainsbury should be making the most of new technologies The opening of the UK's largest food picking centre in London puts Sainsbury in a strong position. Its main challenge will be harnessing the opportunities new selling channels provide. This will require a focused e-business approach integrating new technology to underpin existing brand strengths. It must ensure back office systems are integrated with new channels to provide a rapid, customer focused approach to fulfilment. The key will be applying the most successful aspects of the London operation to new centres. Sainsbury will also need to exploit the vast selling opportunities offered by WAP phones and digital interactive TV. This will require a rethink of the traditional loyalty scheme ­ cards may no longer be needed by all channels. In the business to business arena, Sainsbury must maximise the advantages gained from the EQOS trading platform with suppliers. It must use this experience to leverage the benefits it will gain from the new internet based trading exchange. By ensuring that buying, merchandising and replenishment systems are ready for this new opportunity, Sainsbury will continue to reap rewards in this area. Consumers are demanding better service and product knowledge from retail staff. The Hands-Off SABRE' project (SABRE is the Sainsbury's instore system) is already looking at automating systems so store personnel can focus their time on customer service. Sainsbury must capitalise on this and new handheld devices to give staff detailed product information at their fingertips. Ultimately, the key will be to think and act faster than ever. This will apply to the integration of existing systems as much as to the adoption of new channels to market. The strategy must be led at board level and driven by business issues rather than technological innovation, with all e-business trials supported by a clear business case and payback model. {{COVER FEATURE }}

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