Bon-Ton IT Investments, Inventory And E-commerce: Improving Customer Experience

By Megan Zielinski, contributing writer

This spring, Bon-Ton will deploy new features that will provide a better shopping experience for in-store and e-commerce customers.

In efforts to drive sales growth, the retail company will introduce “Let Us Find It” software, syncing POS systems with store inventory. This new in-store feature is expected to be Bon-Ton’s largest opportunity in increasing growth in sales, second to e-commerce. After success with RFID technology in fall of 2013, the company will expand its use throughout the store.

In November of last year, Bon-Ton experimented the use of RFID in 32 store locations for the shoe department. With the convenience of near field connected phones or in-store tablets, customers were able to quickly acquire information on desired shoes, including color selections, sizes, product availability, and online purchasing options. The retailer worked closely with Thinaire to develop a platform and Smartrac for the tagging of merchandise. Customers simply scan the tag on the display shoe to their phone, Thinaire software delivers specific product details to the customer based on their location, including purchasing options on Bon-Ton’s e-commerce site if product is not available in-store. The store provides the same services through Google Nexus tablets for customers that cannot connect by phone.

Mark Donovan, Thinaire’s chief operating officer states, “As the levels of smartphone use continue to rise at meteoric rates, providing meaningful engagement experiences that enhance the brick-and-mortar shopper experience is key to a retailer's success.” (RFID Journal) (RFID Journal 2) Bon-Ton has experienced sale increases and customer satisfaction with the development of this informative system, resulting in extending its use in other departments this year.

After viewing outcomes of the company’s new merchandise software from the previous year, Bon-Ton will be emphasizing more on best-selling items and popular departments, including ladies footwear, outerwear, and plus-size active wear. By adding inventory to areas of strong sales, this will increase future store productivity and inventory investments. The addition of more private brand merchandise, including Ralph Lauren and Michael Kors and COACH are expected to drive sales in-store as well as through e-commerce. “We expect e-commerce growth to continue to outpace the total company as we enhance our assortment and customer engagement on this side,” says Brendan Hoffman, CEO and President of Bon-Ton. (Seeking Alpha)

With 5 percent of overall sales coming from online in fourth quarter 2013, the company is experiencing continual e-commerce growth. (Seeking Alpha) To better satisfy e-commerce customers, the company announced the early 2015 opening of new fulfillment center in Columbus, OH, providing expanded inventory and shipping space and improved operational efficiency. The 743,000-square-foot location will oversee e-commerce functions currently taking place at four smaller locations. (Lancaster Online) “We’re very excited about the new fulfillment center in the Columbus area that we announced last week. In response to the rapid growth in our e-commerce business, we’re taking this step to ensure extraordinary service to our customers,” said Hoffman. (Seeking Alpha)

Minimizing Communication Challenges Through Strong Levels Of Customer Support At Bon-Ton