Castorama (Kingfisher Group) implements omnichannel strategy based on Magento Enterprise
Castorama Polska is the leader in the DIY / home improvement category in Central Europe. The company is a part of the international Kingfisher Group, which has almost 1,200 stores in 10 European countries. The brand includes 75 stores in 56 cities in Poland. The project of implementation of the omnichannel strategy based on the Magento Enterprise Edition platform was one of the biggest challenges of Magento Enterprise in Central Europe. It allowed Castorama to achieve the leader position of a DIY category in the online channel.
We cooperate with Castorama Polska since 2014. Before launching the new platform, the Castorama website operated on a simple CMS system and did not allow online transactions. Our main goal was to change the system from the information function to the sales. The project consists of a comprehensive project, implementation, development and maintenance of the e-commerce system.
Omnichannel is a consequence of the development of technology, the growing number of smartphones and online stores. It is also an answer to changing shopping habits - people simply have less time. Omnichannel, which meets these needs, is, however, a challenge for many large retail chains operating in the traditional model.
Michał Russak, Head of Digital, Castorama Polska
The system has been completely redesigned to include high performance with a large number of warehouses with tens of thousands of products.
I took us 6,000 working days and a team of a dozen or so people to complete the project, from the moment of conceptual work to the launch of a production-optimized system.
The platform updates the difference of all stock levels and prices with external systems every 20 minutes.
Magento is integrated with 15 other systems, among others with SAP, the Product Information Management system, cash register systems, pricing systems, a mobile application (as a data bus for applications), warehouse systems in stores.
Magento is optimized to handle constantly growing heavy traffic. There are currently over 27 million pageviews per month.
75,000 SKUs with different prices and inventory levels in 74 warehouses are over 5.4 million product pages, which are updated daily (full reindexation of the system in the morning)
The implementation of the new e-commerce platform is part of the consistently implemented development policy of Castorama Polska to transform sales into the omnichannel model. Our work on omnichannel solutions included:
- development of an online and offline price unification system and efficient updating of inventory procedure, to synchronize data every 20 minutes,
- efficient presentation of the range of thousands of products with the ability to check the current price of the product and its availability in a brick and mortal store,
- adaptation of the e-commerce solution to mobile devices,
implementation of the click & collect sales model, which takes into account differences in prices depending on the location,
- launching a full e-commerce model with the delivery of oversize size products.
Click & Collect
One of the function of the implementation of the Castorama.pl platform was the possibility to place an order and pick it up at the nearest store. This function turned out to be very popular and is used as delivery method for 70% of all transactions.
Implementation of such a business model (many warehouses, Clic nad Collect and shipment from a specific store) allows for the maximum reduction of time shipping and handling – currently the time of shipping and handling is about 1 hour.
The shipping service covers the whole country for courier (boxes and pallets) shipments, as well as internal transport. The price depends on the distance from the store. The biggest advantage is that we ship all DIY products that are offered in Castorama. No entity in the Castorama category offers such a service, i.e. transporting all products, including have construction, chemistry, throughout the country for online orders.
Michał Russak, Head of Digital, Castorama Polska
An advanced system of shipping oversized goods
The most important and final stage of the implementation of the sales platform for Castorama was the opportunity for customers to order online with home delivery. Thanks to this service, Castorama is the first DIY / home improvement network in Poland that guarantees internet access to purchase and delivery of over 50,000. products, including construction materials, paints and chemistry.
Challenges related to launching the “order with delivery” service
- 72 brick and mortal stores, which are also warehouses,
- 5 delivery zones for each store (different mileage and price)
- 2 types of Castorama transport (heavy / light, different tonnage and volume)
- service finding the optimal route for delivery
- creating appropriate levels of access and users administering the supply zones with car load capacity
- calculation of the cost of delivery during checkout process
- Magento and DPD integration, dedicated algorithm, each store is a separate point of shipping
E-commerce solution adapted to mobile devices
We faced the challenge of designing the interface, which would be consistent with the newly developed visual standards of the corporate id, and, on the other hand, flexible in terms of platform development for the coming years.
We have determined that the most effective way is to create a Responsive Web Design version of the website for computers and tablets and a separate “light” template adapted to mobile devices.
The implementation directly converted into the increase of popularity of the site on mobile devices. Since the launch of the new website, mobile traffic on Castorama services has increased by over 400 percent.
E-commerce solutions that improve sales and shopping experience
An advanced CMS for digitizing catalogs and newsletters
allowing in a simple and intuitive way to create advanced multimedia catalogs online (also in RWD technology) with the possibility of a direct purchases.
The ecommerce Big Data solution
allowing to present product recommendations, based on the analysis of data from offline sales receipts. In Castorama, we analyzed millions receipts and thanks to this, product recommendations helped raise the value of the average basket by 30 Euro.
Google Search Appliance
providing users with not only quick and accurate search results, but also an effective marketing tool for e-merchandising
Currently, as part of the development of the omnichannel model, Castorama has integrated all sales channels – on-line, telephone and landline. Customers can place orders, call the store, modify orders via Internet and remotely decide on the place of delivery. Customers fully control the purchase process until receiving the shipment.