1. CHFA Market Insights Program
Bringing data together for the Canadian natural health food industry
Gerald to start
© 2016 SPS Commerce

2. Solution Summary OVERVIEW
SPS Commerce and CHFA will combine data from all retailer members to create web-based reporting with a total view of the Canadian natural health industry
Retailer partners who participate by contributing their sales data will receive access to the reporting free of charge.
Retailers will see their own store’s sales, as well as a “masked” view of competitor’s sales to ensure sensitive data is not visible to competitors.
Retailers will also receive ongoing support and training for the solution free of charge
Industry view
We are creating an industry view of the independent health food sector in Canada
This is the first time anyone within the industry has access to reliable, consistent data
Access to Retailer and Suppliers
Retailers access the solution free of charge
Suppliers will be charged a nominal fee (TBD)
Safe, Secure Access
Data is protected in a secure data centre
There are security protocols assigned to each role in order to maintain privacy.
The protocols for each role ensure we maintain retailer confidentiality.
As an example, Retailer A would have access to only the appropriate data; sales of Retailer As stores and the sales of the benchmark. Competitor stores will not be able to see Retailer As data
These are the same security protocols that banks use for their data
Ongoing Support and Training
We are invested in ensuring you are successful in using the data, and we provide you with ongoing training sessions and a dedicated support team
© 2016 SPS Commerce

3. BENEFITS & OPPORTUNITIES
Benefits to You
BENEFITS & OPPORTUNITIES
For the first time you’ll be able to see the national market for the health food industry
Compare your stores performance against similar stores
Identify products sold at other stores that could contribute to your bottom line
Isolate categories that are underdeveloped that represent sales opportunities
Spot trends that are emerging in the national and regional marketplace
One standard view of the products in the industry
Get timely and relevant insights at the click of a button
The data within the solution benefits retailers and suppliers
For the first time, retailers will be able to see how your business compares to the competition!
Compare your store’s performance to the performance of the competition nationally, or within the same region, for the same categories!
View how segments are trending in key areas! Have the data to truly verify if all trends start in the west and move east
This is an assortment-focused solution. As a retailer, you will be able to see what’s selling in the market vs your store
As a manufacturer you will be able to see which retailers aren’t taking advantage of your best selling products
Data is updated every Thursday morning. Week end date is Sunday
Sign up now to view your individual store performance; which stores are outperforming the other
© 2016 SPS Commerce

4. Deliverables DELIVERABLES Online access to category based reports
Web based interactive insights and dashboards
Market data available on a weekly basis
Quickly and easily build automated presentations to review your business and market trend
Access to training and support via phone, or screen share
Unlimited user licenses
© 2016 SPS Commerce

5. Program Reporting Gerald’s last slide:
Assortment and Summary
Pricing and Distribution
Store
Distribution
Sales Summary
Stores Not Selling
Store
Cluster
SKU Rank
Pricing Trends
EXECUTIVE
Assortment Mix
Store
Performance
Gerald’s last slide:
The solution contains 8 very flexible reports
These reports focus on 3 core areas: Assortment and Summary, Store, and Pricing and Distribution
© 2016 SPS Commerce

6. Powerful data integration
SPS Commerce
Data is integrated from CHFA members across Canada
SPS Commerce and CHFA partnering to define one consistent product hierarchy for the industry
SPS Commerce classifies new items into the hierarchy each week
System updated across all retailers once per week
Data available to retailers and vendors, but with visibility restrictions
© 2016 SPS Commerce

7. Data security World Class Data Centre Role Based Security
A secure raised floor environment in Toronto with no access to the building without the appropriate credentials and passing biometric tests.
All of your data is stored securely behind multiple firewalls
Data is protected in transit via SFTP
Access to data is encrypted via HTTPS
All data is backed up for recovery purposes
Role Based Security
Each user will have unique credentials and an assigned role
Roles restrict access to specific reports and data elements
Data visibility rules setup so that:
Vendors only see categories they sell in
Competitive stores are masked for retailers
© 2016 SPS Commerce

8. Data Requirements Summary of Dollars and Units by Day/Store/Product
Including store name and location
Information to help identify the product and how you classify it
Simple Data File Format
Text based data files – comma separated values, tab or pipe delimited
Column headings included in the file
Delivered Once Per Week by Monday 6PM
Reflect sales from Monday through Sunday
Consistency is key, automate if possible
Data Delivered Securely by SFTP
Upload data via SFTP
Through an SFTP client, web upload, or batch script
Compress Before Transfer To Save Your Time and Bandwidth
Zip and Gzip formats supported
© 2016 SPS Commerce

9. Data validation Incoming data is validated in several ways
Source File Structure
Files need to be the same structure each week
Files need to be complete
Data Gaps
Checks for missing days or stores
Historic Expectations
Data volume close to historical averages and trends
Validation issues may mean
Reaching out to you for clarification / confirmation
You need to provide an updated and accurate data
Repeated or severe issues may mean
Your stores hidden from the reports until data is fixed
© 2016 SPS Commerce

10. CHFA Market Insights Solution Overview
Andrea’s part starts here
© 2016 SPS Commerce

11. Sku rank Overview Benefits
Optimize the assortment with the best performing SKUs by viewing relative performance within the category at any required level or timeframe.
Leveraging Velocity Grouping Methodology, which combines critical elements of item performance into one single metric, determining a SKUs worth to the category.
Benefits
Identify key products with low distribution
Understand high / low margin products
Locate low performers to delist / replace
© 2016 SPS Commerce

12. Sales summary Overview Benefits
Explore sales performance of your business at any level of the product hierarchy over various time frames – in order to understand key trends.
This report tends to be a starting point for business analysis that will help guide users to other reports in the solution to drill-down to the areas of greatest opportunity.
Benefits
Gain an overview of the key areas of the business in one place
Quickly see the performance of the top businesses
Drill through the report to any level of the hierarchy
Understand key areas of threat and opportunity
© 2016 SPS Commerce

13. Assortment mix Overview Benefits
Allows user to understand if the various levels of the category sub-segments have an appropriate distribution of skus to support improved sales and performance
Benefits
Which sub-segments are growing or declining where profit is not keeping pace?
See what sub-segments have the highest growth
Understand sku distribution and change along with sales and sales change
© 2016 SPS Commerce

14. Stores not selling Overview Benefits
Identify stores that are not selling key items across the business and understand the consequence of low penetration.
Locate assortment opportunities at store level whilst leveraging Velocity Grouping Methodology to review only ‘A’ items within the assortment, or all items
Benefits
Identify distribution and listing opportunities
Understand potential financial gains
Quantify sales opportunity of listing top performing SKUs sold by your competitors
© 2016 SPS Commerce

15. Store cluster Overview Benefits
View indexed measurements on various store groups compared to others to build the right strategies to drive improved performance.
Benefits
Shows development and performance relative to wider regional or national market
Drill to your store level information within the same report
Your stores can be compared in a number of ways across the X and Y axis
© 2016 SPS Commerce

16. Store performance Overview Benefits
Rapidly identify which of your stores are under and over performing within the enterprise and also within their cluster.
Understand where ‘low hanging fruit’ opportunities are, and focus on stores that need performance improvement.
Benefits
Quickly understand your store’s performance relative to competitive market
Identify your strong and weak performing stores at any level of the hierarchy
© 2016 SPS Commerce

17. Pricing trends Overview Benefits
What price points are driving the most effective promotions?
Benefits
Compare impact to benchmark product hierarchy to see what really drives incremental organization sales
Understand pricing trends over time and optimize price for delivering sales goals
© 2016 SPS Commerce

18. Pricing trends Overview Benefits
Allows user to understand the level of top performing item penetration in each sub-segment of the category and what stores or retailers are missing key items.
Benefits
Shows opportunity in listings for top performing “A” items compared to previous timeframe
Link to which of your stores are not selling the key items
© 2016 SPS Commerce

19. For More information Contact: Cindy Xu
CHFA Project Manager
Ext 223
© 2016 SPS Commerce