Truition Success Story Comet

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					 >     Truition Success Story: Comet




                                                    A LEADER IN ELECTRONICS RETAILING                            THE CHALLENGES OF A RETAIL GIANT

                                                    With more than 250 retail shops, 2,726,900                   As with any retailer of its size, efficient
                                                    sq ft of selling space and 10,000 employees,                 management of inventory represents a
                                                    Comet is the 2nd largest electrical retailer in              significant and ongoing challenge for Comet.
                                                    the United Kingdom. From its humble                          With a continual inflow of new products
COMPANY:                                            beginnings in 1933 as "Comet Battery Stores                  coming into Comet warehouses and retail
Comet, the 2nd largest electrical retailer in       Limited" Comet has become the electronics                    outlets each day, rapid inventory turnover is
the United Kingdom.                                 retailer of choice in the U.K. by providing its              critical to the success of the organization.
                                                    customers with the most up-to-date home                      Excess white goods and electronics demand
CHALLENGE:                                          electronics at "Every Day Low Prices".                       considerable inventory space, both at high
Improve Asset Recovery, Reduce                                                                                   street and warehouse locations.
Warehouse Overhead and Support Retail               After 72 years in business, Comet's                          Consequently, the ability to quickly and
Sales of New Product.                               commitment to low prices continues to this                   efficiently move this inventory into the hands
                                                    day, as the retailer keeps on top of the                     of consumers is highly desirable.
SOLUTIONS:                                          electronics retailing market by checking an
Truition’s CMS Auction, a dynamic,                  average of 34,000 competitor prices each
scaleable, online auction solution.                 week to ensure that its low prices are                       VALUE OF ONLINE AUCTIONS
                                                    maintained and passed on to the consumer.
RESULTS:                                                                                                         The success of comet.co.uk, combined with
Comet Clearance Auctions moves £3.2                 THE MOVE ONLINE                                              an ongoing need to develop new and more
million in clearance products per year, and                                                                      effective asset recovery and inventory
60% of all of Comet’s clearance products are        Comet's determination to stay ahead of the                   management solutions, prompted Comet to
now moved through the Comet Auction site            competition and be on the cutting edge of                    create the first private online auction site
                                                    U.K. retail was evident with the launch of                   from a major UK electrical retailer;
                                                    comet.co.uk, a transactional website and                      clearance-comet.co.uk.
                                                    extension of its brick and mortar enterprise.
                                                    Comet quickly recognized the importance of                   Developed and managed through Truition's
                                                    the Internet as a means of effectively                       industry leading CMS Auction product,
                                                    managing inventory and staying in touch with                 Comet Clearance Auctions has been a
                                                    products and customers throughout the                        resounding success for the retailer. As of
                                                    product life-cycle.                                          2005, Comet Clearance generated more
                                                                                                                 than 20% of Comet's entire online revenues,
                                                    Comet.co.uk offers a range of over 3000                      while providing U.K. consumers with the best
                                                    electrical products available for online                     deals on the latest kitchen appliances, home
                                                    purchase, as well as an additional 250                       entertainment and computing products in an
                                                    multi-media and 1000 white goods products                    exciting online auction environment.
                                                    not available in store. Since its launch,
                                                    comet.co.uk has become the UK's leading                      "We average approximately 1500 new
                                                    electrical website and fourth largest online                 customers to the Comet Clearance Auction
                                                    retailer (source: Neilson Net Ratings).                      site each week," said Tony McApline,
                                                                                                                 Comet's Business Development Manager,
                                                                                                                 Direct Channels. "It is an extremely popular
                                                                                                                 and integral part of our online operations."

                                                                                                                 Comet Clearance offers more than 200 new
                                                                                                                 products each week and gives customers the
                                                                                                                 opportunity to bid on clearance stock such
                                                                                                                 as ex-display, imperfect or discontinued
                                                                                                                 products.




                                                T: 1.866.840.8134   E: sales@truition.com   Website: www.truition.com
 >     Truition Success Story: Comet




                                                                “Truition's location based shipping technology allows us to tell our
                                                                auction customers exactly how long it will take for them to receive their product,
                                                                and exactly how much it will cost them. This is an invaluable service for both
                                                                Comet and its customers.       ”


"At Comet, we like to provide all our customers with the best in product quality and customer service, whether they are
purchasing a new item at one of our retail shops, or a clearance item through an asset recovery channel."


All products purchased from the auction site         In addition, Comet's ability to distribute                   MEASURING SUCCESS
are covered with a one-year's manufacturer's         excess goods online provides considerable
guarantee.                                           high street floor space for high margin and                  Since its inception, Comet Clearance
                                                     new products. Comet Clearance also                           Auctions has been a tremendously
In addition to being an important source of          automates the process of distributing these                  successful asset recovery channel. Per
revenue and providing an exciting and                white goods individually, resulting in higher                year, Comet Clearance Auctions moves £3.2
engaging service for its online customers,           price points per unit sold.                                  million in clearance products, and 60% of all
Comet's Auction site has become an                                                                                of Comet's clearance products are now
extremely effective means of managing                POWERFUL FUNCTIONALITY                                       moved through the Comet Auction site, with
excess inventory. On Comet Clearance,                                                                             the goal to increase this average to 75% or
Comet has the ability to stay in touch with          Comet Clearance Auctions features the                        above in the next year.
both its products and its customers at each          latest and most advanced auction
stage of the product life-cycle, a feature that      technology, including powerful search                        Comet Clearance Auction also enjoys an
appeals to Mr. McAlpine:                             capabilities, auction watch features,                        exceptional 99% sale conversion rate for all
                                                     cross-sell and up-sell capability, e-mail                    products listed. This translates into a
"At Comet, we like to provide all of our             customer support and a dynamic category                      reduction in turnover time and an increase in
customers with the best in product quality           structure that mirrors Comet.co.uk.                          warehouse space available to promote new
and customer service, whether they are                                                                            products which garner larger returns.
purchasing a new item at one of our retail           An added piece of advanced functionality
shops, or a clearance item through an asset          offered through CMS Auction is location                      Through its partnership with Truition, Comet
recovery channel," says McAlpine. "Comet             based shipping. Location-based shipping                      has realized its goals of improving asset
Clearance Auctions allows us to stay in touch        allows each Comet Clearance customer to                      recovery, increasing warehousing efficiency
with our customers during the asset recovery         calculate their shipping rate prior to                       and improving retail sales of new product.
phase, and ensure that they are satisfied            purchase. Shipping rates are based on the                    Comet Clearance is thriving, and shows no
with the products and service they receive."         geographic location of the product and                       signs of letting up.
                                                     customer. This functionality ensures that the
REDUCE COSTS, INCREASE SALES                         customer is presented with full cost visibility,             "To put some perspective on the value of our
                                                     which increases customer satisfaction and                    auction platform, all you have to do is look at
Comet has come to realize significant cost           product cost recovery rates.                                 the headcount required to manage it," adds
benefits through its online auction channel.                                                                      McApline. "Our total headcount requirement
Through traditional channels, Comet can              McAlpine agrees: "Truition's location based                  for Comet Clearance, including warehouse
normally expect ongoing cost recovery rates          shipping technology allows us to tell our                    staff and operations, is six. That's six people
of approximately 30-50%, while the average           auction customers exactly how long it will                   to manage the entire operations for a £3.2
cost recovery for Comet Clearance Auctions           take for them to receive their product, and                  million business."
can be up to and over 95%.                           exactly how much it will cost them. This is
                                                     an invaluable service for both Comet and its
"Cash flow is extremely improved through             customers"
Comet Clearance," says McApline. "We
know that these products will sell within            Truition's CMS Auction also includes
seven days, no question. The only unknown            advanced inventory management                                                               Truition
is the final price they will be sold for."           capabilities. CMS Auction allows Comet to                                 Toll free: 1.866.840.8134
                                                     upload inventory from multiple locations                                     E. sales@truition.com
                                                     through an XML-based automatic integration                               Website: www.truition.com
                                                     with its inventory management system,
                                                     enabling Comet to effectively manage its
                                                     endless flow of inventory.


                                                  T: 1.866.840.8134   E: sales@truition.com   Website: www.truition.com