David Jones has signed a multi-million dollar deal with IBM that will see the tecnology giant create a new multi-channel retail systems platform for the department store.
The IBM Smarter Commerce Solution will allow consumers to browse and buy, pick-up and return items through the channel of their choice, including their mobile phones, online or at a physical store, via an integrated system that will link purchasing, marketing, sales, fulfillment processes and inventory management.
Once complete, David Jones will also become the first major Australian retailer to provide customers with a true cross-channel shopping experience.
As part of the contract, IBM will also develop and integrate David Jones' online web design, its application development, social media promotions, analytics and reporting, as well as back end capabilities for order and inventory management and fulfilment.
According to IBM, the first phase of the solution will be rolled out in the second half of calendar 2012 as part of a stepped approach, with the following phase going live in 2013.
David Jones CEO Paul Zahra said the move to team with IBM represents a serious commitment by the company to become a multi-channel retailer with seamless operations throughout.
“Our appointment of IBM to deliver an end-to-end MCR platform, in addition to our increased investment in technology including a new POS system is indicative of our new strategic focus and commitment to transforming our business into a fully integrated multi-channel retailer,” he said.
David Jones new group executive of retail services Antony Karp added that he is confident the partnership with IBM will yield the desired result.
“IMB has a proven international track record of delivering successful end-to-end MCR platforms for department stores. Having seen the success of the systems IBM has implemented for international department stores, we are confident that we have partnered with the best possible entity to enable us to commence our transformation intio a fully integrated multi-channel retailer on par with the world's best,” he said.
The value of the project is undisclosed, but David Jones confirmed that the IBM arrangement and the company's investment in the technology and information systems will be funded from its capital expenditure throughout the roll out of its MCR strategy.