Evan Schuman's StorefrontBacktalk

Deals like the Amazon-Tivo arrangement will present context-relevant ads to appear right alongside—or embedded within—various entertainment and information shows. For advertisers, this is merely the next logical step following obvious product placement in entertainment shows. ("Gosh, Grandma, what a large Apple logo you have!") For retailers, though, it's a way of getting that profitable E-Commerce site somewhere other than on a PC or on a smartphone. Read more...

The data from several unrelated retail sensor projects—all of which track consumers electronically during their shopping experience—will be hitting IT desks soon, as no fewer than three such efforts are going to be announced by September.

Retail marketers are notorious for arranging for a ton of data to be collected, only to have the task of making sense of it fall on IT. In this case, marketers and their love of dollars and sensors have outdone themselves, with today’s CRM data of what consumers actually purchase becoming a rounding error when compared with the sensor data tracking every move and every potential move. Read more.…

As part of an extensive recent retail sensor trial, technicians noticed a strange phenomena, one where testing equipment seemed to make every grocery store examined appear to be a massive nursery.

The Nielsen-deployed aisle sensors were using thermal measuring, using a customer’s body heat to indicate a person, which was intended to count the number of people in an aisle at any one point. But the devices registered an awfully large numbers of babies sitting in the shopping cart seats, according to Peter Hoyt, executive director of In-Store Marketing, a company coordinating that trial. It turns out that they were interpreting fresh-roasted hot chickens—which were emitting significant body heat and were sitting in the baby seat—as newborns. The devices were then reprogrammed and the attack of the chicken babies was quickly halted. (We deserve brownie points for having resisted saying that the test results were foul.)…

This is called the hazard of being too smart. Nothing is more frustrating to a really smart person (so my smart friends tell me) than to do something incredibly clever and then have to explain it to dumb people. That's the situation many retailers find themselves in when it comes to developing highly customized or integrated data security packages; they're frustrated that they have to prove the effectiveness of the package to their PCI assessor or merchant bank, who just doesn't seem to understand why the retailer didn't just "buy a package." Read more...

A Dutch court has given the go-ahead for a university to publish research about security flaws in the RFID chips used in as many as 2 billion smart cards, despite resistance from a semiconductor company, according to a story in Computerworld.

NXP Semiconductors manufactures the MiFare Classic RFID chip, which is used in government buildings and to board public transportation systems. They had filed a lawsuit in Court Arnhem in The Netherlands against Radboud University Nijmegen in an attempt to stop the university from publishing a paper that reportedly reveals flaws in that chip. That paper is scheduled to be unveiled in October at the ESORICS security conference in Malaga, Spain.…

Such is the case with the announcement Monday (July 21) that Wal-Mart is standardizing on an Oracle business intelligence package—Oracle's Business Intelligence Suite Enterprise Edition Plus (Oracle BI Suite EE Plus) to be precise. Read more...

But the specific tactics being considered—and detailed in a Web site for the group officially dubbed the Information Grand Voyage Project—includes searching history of game programs, blog postings, surreptitiously captured video segments from TVs and computers, tracking Wi-Fi locations and using an RFID reader connected to a cell phone to identify a consumer's activities "based on data captured by mobile device camera." Read more...

"How many smart people are out there who are simply not reserving inventory" for all channels, asked Forrester Principal Analyst George Lawrie. "You never know where demand is going to crystallize." He cited morale—not to mention inventory—problems caused by "reserving inventory for stores that could have been sold by the catalog or online channel." Read more...

So this issue's Reach Of The Week goes to IT analyst firm IDC and its report released Wednesday (July 16) that its survey of 250 execs "found that there is a growing level of commitment" to supporting green programs. So far so good, but let's look a little closer at these IDC figures. Read more...

A handful of Stop & Shop stores have been using in-store location tracking–coupled with basket content–to narrowly target ads to customers using handheld shopping devices, the chain confirmed in a statement issued Thursday (July 17). Some 92 of the chain’s 360 stores are participating in the trial.

“If a customer is walking down the health and beauty aisle, it can trigger an offer for a new brand of shampoo,” said Michele Deziel, the senior VP of marketing at Modiv Media, which is working with Stop & Shop on the trial, along with Microsoft.…

Consumers older than 50 are rapidly growing fond of the Web, with such users checking news, for example, more frequently than those younger than 20 as well as participating in online communities more. But the new university study found that instant messaging and video downloads were “still tools for young users. Only 9 percent of users 50+ said IM was important or very important compared with 48 percent of users younger than 20.”

“The perception is that Americans over 50 only dabble on the Internet, but we are finding that they are increasingly spending time online becoming involved in robust Internet activities, such as online communities,” said Jeffrey I. Cole, director of the Center for the Digital Future at the USC Annenberg School for Communication. “In specific areas, there is often little difference in use of online technology between older users and some of the youngest users.”…

But Homa's key point is that most retailers handle security backwards: Don't pour everything into protecting the front door. Assume they'll get through and have a plan to control them once they're inside. Read more...

The assumption of some anonymity on E-Commerce sites can be critical. Let's look at a scenario for Amazon.com. One of its most critical value-adds is customer comments—both good and bad—about its products. What if a consumer—employed in the consumer appliance world—purchased a toaster that was absolutely horrible? Read more...

But several major cellphone carriers are preparing to bundle the 2-D barcode software with phones as they ship. Will that make a difference? Read more...

The first move has to be to take a serious look at your data. Think of it like a residential move. How much of that accumulated stuff do you really need anymore? How much are you honestly going to be leveraging and using? The less you keep, the less you have to protect and manage. And the less you keep, the easier it will be to outsource. Read more...

No sooner had IT concocted a system to try and automatically detect an under-age shopper than someone has crafted a remarkably low-tech way to fool it. How low-tech? How about a picture ripped out of a magazine?

This delightful story from Pink Tentacle shows how the Japanese cigarette-machine RFID-leveraging face-recognition system is completely fooled by the magazine photo. “The face-recognition machines rely on cameras that scan the purchaser’s face for wrinkles, sagging skin and other signs of age. Facial characteristics are compared with a database of more than 100,000 people, and if the purchaser is thought to be well over 20 years old (the legal age), the sale is approved,” the story said.…

Will consumers ever deploy counter-top barcode scanners and a Web site to have groceries delivered to them automatically? A company called Ikan.net is hoping they will.

The system combines a Web-connected barcode scanner, which scans every product before it’s thrown out or recycled, and then adds it to a shopping list. The list then is shared with either a grocery retailer directly or a grocery delivery service like Peapod, which does the delivery of the empty items. This nicely done New York Times story shows the efforts of its writer to use the system.…

The PCI Security Council is branching out a little, with an attempt to bring unattended payment terminals (UPTs) under its jurisdiction. As kiosks get more sophisticated and start taking cash, credit cards, mobile transactions and other payment methods, the UPT security risk is sharply increasing.

The council has also launched a testing program for Hardware Security Modules (HSMs). “PIN entry devices go well beyond the typical POS terminals we are all familiar with and we are continually expanding into more and more areas,” said Bob Russo, general manager, PCI Security Standards Council. “Any device that processes personal identification numbers is an important link in the transaction chain.” …

The first outage on June 20 was an internal glitch with the retailer's delivery processing system, forcing the chain to take down its site because it couldn't fulfill the orders. But the site itself wasn't the problem. Read more...

On Tuesday (July 8), the tenth day of the problematic performance and a "our website and call center are running slowly as we fine-tune the improvements" apology replacing JCrew's homepage, JCrew spokesperson Margot Brunelle-Fooshee said the problems are still slowing things down and the associated disclaimer "will probably be up until Friday" (July 11).Read more...

J.C. Penney customers are twice as likely to say they are highly satisfied with their in-store shopping experience if they are working with store employees who are accessing the company’s Web site while standing next to them. That according to an Internet Retailer story quoting Kevin Gebhardt, the chain’s director of multi-channel coordination and implementation.

It’s been almost two years since the chain connected all 35,000 of its point-of-sale systems to the Web, giving associates in its nearly 1,100 stores access to the retailer’s e-commerce site, JCP.com, the story said. “J.C. Penney also has tested placing Web-enabled kiosks in stores so that customers can access JCP.com on their own, but decided against deploying them,” Gebhardt said. He added that “the retailer is focusing on helping employees provide better service rather than on self-service technologies, with the exception of kiosks that customers use for accessing online gift registries.” …