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6 INNOVATION IS CENTRAL TO OUR MISSION AND SET OF VALUES. WE STRIVE TO CONTINUOUSLY ENCOURAGE OUR PEOPLE TO STRENGTHEN OUR INNOVATION CULTURE THROUGH AN ACTIVE PARTICIPATION. THIS BOOK IS A CELEBRATION OF THEIR CURIOSITY, CREATIVITY, ENTHUSIASM, INITIATIVE, RESILIENCE AND CUSTOMER-ORIENTATION THAT ARE KEY INGREDIENTS TO OUR SUCCESS.

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8 01 Contributing to the future of retail p Taking innovation live p Ecosystem p Challenges p Facts and numbers p Projects p.32

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11 RETAIL BOOK OF INNOVATION 15 CONTRIBUTING TO THE FUTURE OF RETAIL INNOVATION IS PATENT THROUGHOUT ALL OUR BUSINESS FUNCTIONS AND ACTIVITIES, IN WHICH WE KEEP GENERATING, EXPERIMENTING AND IMPLEMENTING NEW IDEAS AND S 10

12 CONTRIBUTING TO THE FUTURE OF RETAIL Luís Filipe Reis PRESIDENT OF FINOV CHIEF CORPORATE CENTRE OFFICER Acknowledged as a top priority in SONAE, innovation is patent throughout all our business functions and activities, in which we keep generating, experimenting and implementing new ideas and solutions that, in turn, allow us to excel in the development of competitive businesses that create value for all stakeholders. One of the most prominent and verifiable signs of the importance we give to innovation is the financial magnitude of our investment in research. development and innovation. This indicator exhibits a two-digit average annual growth rate since 2005, significantly higher than, for instance, the one observable on the group of the world biggest companies in terms of R&D+i spending. To ensure the success of our innovation endeavours, we rely on the active participation of an increasing number of our people, representing different areas and levels of the organisation, on the facilitation and acceleration of the innovation flux by a dedicated internal team and on the collaboration of an international open innovation network, involving already more than 150 partners in dozens of countries. Every initiative pictured in this book reflects the attention, commitment, dedication and talent of a project team that resiliently pursued a novelty capable of remarkably improve our customers' shopping and/or consumption experience as well as our competitive strength as a retail player. Each one of these is both an hymn to our conception of innovation and a stimulus to keep delivering results worthy of portray in the years to come. 11

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15 RETAIL BOOK OF INNOVATION 15 TAKING INNOVATION LIVE Creating innovation is inherent to our corporate mindset. Three stages can be identified: starting with a vision of what it could be, increasingly leveraged on both early clues about what the future may hold and insights around customers needs and preferences, followed by progress towards the vision through an empirical test, and learn approach that ultimately leads to the implementation phase. The participation of our colleagues in this innovation flow is of paramount importance to us and, accordingly, we have settings, links and initiatives in place to foster the acquisition, development and retention of internal practitioners and to ensure their contribution. We are equally as driven concerning the external dimension of our innovation ecosystem, where we enrich and consolidate an already fairly prolific, eclectic, and international network of partners representing the scientific, technological, business, entrepreneurial and customer spaces. These aspects allow us to cover the entire virtuous cycle, converting knowledge into economic value. CREATING INNOVATION IS INHERENT TO OUR CORPORATE MINDSET. 14

16 TAKING INNOVATION LIVE Nuno Lopes Gama HEAD OF INNOVATION & FUTURE TECH All this activity implies, on the one hand, a considerable human and financial investment. On the other hand, it also ensures we stay on track to become stronger and faster and that we reach new heights in our business performance (a triad we codenamed Business Olympics ) and leads to positive externalities and reactions, namely increasing external interest in knowing more about our model and practice and willingness to partner with us, in several 2015 events such as: official visit from Carlos Moedas, the European Commissioner for Research, Science and Innovation, and José Carlos Caldeira, the President of the Portuguese Innovation Agency; invitations to speak at prestigious events highlighting innovation within the retail industry such as at the World Retail Congress, the Shopper Marketing AECOC (Asociación Española de Codificación Comercial) or the European Parliament s Round Table about the Data-Driven Retail Sector, to name just a few; requests to evaluate the merit of projects of young scientists, designers and entrepreneurs, as part of the jury panel at awards and contests; the interest shown by important international business and institutional players to have a more intimate level of cooperation with us concerning innovation, translating into joint participation in think tanks, study tours, data and knowledge sharing, immersion experiences, and the award of consortia projects. As we develop hundreds of notable innovation initiatives each year, it is always an arduous (and sometimes bitter) job selecting the few to be spotlighted in a yearly book. However, as we are very confident that the impact, uniqueness and/or symbolism of the ones that succeed more than justifies their selection, we invite you to peruse the results of our collective determination to take life-improving innovation live. 15

17 RETAIL BOOK OF INNOVATION 15 INNOVATION AT SONAE DECENTRALIZED MODEL WITH CENTRAL FACILITATION/ACCELERATION EXTERNAL INTERNAL Governments Institutions Associations Agencies Schools Tech Transfer Units Science & Tech Partners Providers R&D Labs FINOV SONAE CAPITAL SONAE MC SONAE INDÚSTRIA SONAE SR SONAE SIERRA SONAE RP NOS SONAE FS SONAE IM Venture Capital RETAIL INNOVATION UNIT Incubators Accelerators Entrepreneurship Players Startups Scaleups Our Actors Innovation Committee Customers Retail Players Retailers Other Units Our People Suppliers B2B B2C 16

18 TAKING INNOVATION LIVE INNOVATION COMMITTEE Adelino Miranda Cost Control Manager, Asset Protection, Sonae MC Ana Cristina Fonseca Head of Human Resources, Sonae Ana Silva Innovation Specialist, Innovation & Future Tech, Sonae António Pinheiro Financial Controller, Sonae RP Ana Catarina Martins Project Management & Continuous Improvement, Sonae SR Bruno Mourão IT Strategy & Enterprise Architecture, Experimentation and Strategic Partnerships Lead, Business Information Technology, Sonae MC Bruno Pereira Senior Graphic Designer, Store Concept, Sonae MC Carlos Silva Operations Director, Sonae MC Catarina Fernandes Head of Communications, Brand & Corporate Responsibility, Sonae Cristina Braga da Cruz Head of Product Development, Non-Food, Sonae MC Daniela Mendes Innovation Analyst, Innovation & Future Tech, Sonae Diana Pinto Innovation Specialist, Innovation & Future Tech, Sonae Duarte Nuno Rocha International and Non-Food Quality Director, Sonae MC Fátima Valinhas Head of Store Concept, Sonae MC Filipa Ferreira Human Resources Business Partner, Sonae MC Gina Casal Supply Chain Business Intelligence & Development in Electronics, Sonae SR Hugo Alexandre Project Manager Officer, Worten Portugal, Sonae SR Henrique Oliveira Controlling, Maxmat Ilda Campos Program Manager, Business Information Technology, Sonae MC João Nuno Guerra Business Development Project Manager, Well s, Sonae MC João Pedro Nunes Senior Business Analyst & Advisor, Planning and Management Control, Sonae Liliane Coutinho Marketing Central Purchasing Manager at Marketing Department, Sonae MC Lourdes Miguel Improving Our Work at Sales Department, Worten Spain, Sonae SR Manuel Guedes Pimenta Business Partner, Business Information Technology, Sonae MC Manuel Lessa Head of Business Intelligence and Development, Zippy, Sonae SR Manuela Oliveira Head of Business Partners, Business Information Technology, Sonae MC Manuela Reis Head of Area, Control, Quality and Development, Administrative Services, Sonae Margarida Côrte-Real Project Manager & Continuous Improvement, Administrative Services, Sonae Marlos Silva Area Manager Innovation & Future Tech, Sonae Nelson Pereira Commercial Development Director, Sonae MC Nuno Gama Head of Innovation & Future Tech, Sonae Norberto Amaral Future Tech Specialist, Innovation & Future Tech, Sonae Nuno Almeida Head of Business, Bagga, Sonae MC Osvaldino Vieira Senior Project Manager, Equipment and Construction, Sonae MC Paula Correia da Rosa Business Development Director, Well s, Sonae MC Paula Filipa Gomes IT Project Manager, Business Information Technology, Sonae MC Pedro Cupertino de Miranda Risk Manager, Risk Management, Sonae Pedro Gonçalves Business Partner, Business Information Technology, Sonae MC Pedro Santos Head of E-commerce & Mobile, Sonae MC Rafael Dias Business Development Director, Food Commercial Department, Sonae MC Ricardo Fernandes Area Manager of Customer Service, Sport Zone, Sonae SR Rui Braz Head of Development, Logistics, Sonae MC Tânia Calçada Area Manager Future Tech, Innovation & Future Tech, Sonae Tiago Costa Oliveira Innovation Specialist, Innovation & Future Tech, Sonae Tiago Ferreira de Oliveira Brand & Project Manager, Non-Food, Sonae MC Tiago Lagarto Innovation Specialist, Innovation & Future Tech, Sonae 17

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21 RETAIL BOOK OF INNOVATION 15 M E E E M M M D M ECOSYSTEM M E E D M S D E S SCIENCE &TECH PARTNERS M S M D S D E E E At SONAE we are proud of working with a growing collaborative ecosystem that acts as a powerful innovation multiplier. Our network of innovation partners includes academia, R&D entities, startups, incubators and accelerators, and other organisations, namely international retailers. From applied research to the co-design and development of products or services, our joint innovation initiatives cover a wide variety of topics and challenges. By combining our knowledge, competencies and technologies, we are able to increase the go-to-market pace of new research and technology while enhancing business agility and driving innovation in the retail industry. >150 PARTNERS 25 COUNTRIES 4 CONTINENTS SKILLS: ENTREPRENEURSHIP PARTNERS RETAIL PLAYERS E M E E E M M E M M T T M M E E S S E S E E M E E E M E M M M M M M M E T M E E E E S E T E M M M M E M E M S E M T M T E E E S SCIENCE E ENGINEERING D ARTS & DESIGN T TECHNOLOGY M MATHEMATICS M MANAGEMENT 20

22 ECOSYSTEM M E E E E M M M M The University of Porto is strongly committed to S M E M E E E M M the creation of knowledge-based economic value. In the context of the web of business partnerships we have, SONAE is a key partner because of its challenging attitude towards M E S M D M M M M innovation as a major source of competitive advantage. M E Carlos Brito Pro-Rector of the University of Porto for Innovation and Entrepreneurship M S S S T E E E M M E M E M M M M E M M E E M At Porto Business School we strive to be an innovative front-runner business school, an ambition aligned with the model of our School as a platform for engagement bridging the academic and corporate worlds. The relationship between Porto Business School and SONAE has been a source of mutual inspiration and a catalyst for innovation and excellence. As a learning organization, SONAE has generated a large amount of new business insights and has been a pioneer in adopting new methodologies for knowledge transfer. T M M E M E M E E Patrícia Teixeira Lopes Associate Dean Porto Business School Muzzley is dedicated to helping consumers D M M M E M M M E create and enjoy a smarter home by leveraging the rapidly growing Internet of Things (IoT) device ecosystem. In partnership with WORTEN we're pioneering the education of consumers T S E M about the benefits of this exciting new product category. SONAE's innovative retail offerings are key to educating the consumer and our vision of a smarter home for all. 21 Jon Castor Chairman of the Board Muzzley

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25 RETAIL BOOK OF INNOVATION 15 S The European retail sector comprises 5.5 million companies, employs 29 million people and represents 11% of the EU s GDP. As in any other economic sector, innovation is a key element for retail competitiveness, challenging its future while demanding the rapid adaptation of services and value propositions for customers through continuous innovation within the entire value chain, from producers to customers. Sonae, as a global actor of this sector, is actively working with the European Commission and other international entities and retailers in order to stimulate the introduction of new innovations and business models within the retail sector. The Global Innovation Index shows Portugal in the 30 th place among 141 countries. Sonae, as the largest national private investor in R&D+i with global reach, is strongly committed in increasing its investment with relevant impact in the country s economy through the promotion of knowledge transfer between universities and companies and strengthening a private Venture Capital Sector that helps entrepreneurs and startups within the retail sector to flourish with a global perspective. 24

26 S Economic and Social Impact At Sonae we pioneer when bringing R&D+i activities to the core of our businesses, producing at the same time relevant economic and social impact. In 2015, at regional, national and European level we have worked to bring awareness of such activities within the retail sector to policy makers and public bodies. Strenghtening the Retail Value Chain In 2015, we have played an active role in the knowledge economy developing an increasing number of innovations very often resulting from partnerships both within and outside of the supply chain (co-creation and/or open innovation), in addition to welcoming new players to the retail chain such as universities and tech-based start-ups. International Research & Development and Innovation In 2015 we also created international partnerships that led to European R&D+i projects within fields such as Ambient Assisted Living and the Horizon 2020 Program, contributing to demonstrate the growing specialisation of retail activities and its knowledge capital. 25

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29 RETAIL BOOK OF INNOVATION 15 FACTS AND NUMBERS Employees involved FTEs Investment in R&D+i M x ,392 x % Average annual growth: 14.5% M COTEC Innovation Scoring 2013:

30 FACTS AND NUMBERS Our own brand products How much do they represent? Innovation in our own brand products How much does it represent (last 24 months)? Innovation in our retail store formats How much does it represent (last 36 months)? 38% Sales total SONAE MC and SR 44% of own brands references SONAE MC and SR 20% Sales total SONAE MC and SR 29

31 RETAIL BOOK OF INNOVATION 15 FACTS AND NUMBERS 100% NATIONAL MEAT CONCEPT AND PACKAGING DESIGN Gold Medal at the Vertex Awards CONTEMPORAL SELECTION OF WINES: - The best of the region at Uva d Ouro - Bronze medal at the International Wine Challenge - Excellent at Uva d Ouro - Silver medal at the International Wine Challenge - Commended at the Decanter World Wine Awards - Bronze at the International Wine & Spirits Competition EXTERNAL CURED HAMS CONCEPT AND PACKAGING Bronze Medal at Vertex Awards FESTA CONTINENTE Silver Medal at the Marketing Awards from Meios & Publicidade GAP - AUTOMATIC GENERATION OF PLANOGRAMS Finalist at the Wagner Prize for Excellence in Operations Research Practice 30

32 FACTS AND NUMBERS GOING TO CONTINENTE MAKES IT WORTH YOUR WHILE Finalist at World Retail Awards 2015 POTATOES CONCEPT AND PACKAGING Silver Medal at the Vertex Awards 2015 and Silver Award at the Pentawards 2015 RECOGNITION YÄMMI APP Best site/mobile App at the ACEPI Award ZIPPY Best Fashion Brand at Marketeer Awards 2015 ZIPPY NEW STORE CONCEPT Gold Medal at the Innovation Category from POPAI Awards UK & Ireland 31

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35 RETAIL BOOK OF INNOVATION 15 PROJECTS OVERVIEW Team members Illustrations, step by step that show how we developed our project from ideation to implementation. 34

36 PROJECTS Subholding Division Brand PROJECT NAME AWARD HIGHER FASTER Project Qualification Description of the challenges that we were trying to solve with this project, solution implemented and results obtained. STRONGER Project description with details and relevant information. 35

37 RETAIL BOOK OF INNOVATION 15 TEAM Helena Sousa Catarina Simões Ana Filipa Gonçalves Ana Patrícia Lagarinhos João Freitas Fernandes FLAVOR CURED HAMS PORTUGAL REGIONAL TRADITION IDEATION EXPERIMENTATION IMPLEMENTATION 36

38 PROJECTS CURED HAMS - CONCEPT AND PACKAGING HONOURABLE MENTION AT SONAE MC INNOVATION AWARDS 2015 The need to offer a new value proposition to this market segment, where all products appeared to be very similar. The development of a unique and original concept for our full range of cured hams. Sales increase, when compared to last year +23% HIGHER With the development of this new concept for our full range of cured hams, we ensured that each of the three ranges had distinguishing segments: the basic range, Continente Classic Tastes, and two superior ranges of Continente Selection products for special occasions: Tastes of Portugal and Tastes of the World. 37

39 RETAIL BOOK OF INNOVATION 15 TEAM Ricardo Aragão Elisa Carvalho Pedro Caldas WAVES ZIPPERLESS COMFORT SURF IDEATION EXPERIMENTATION IMPLEMENTATION 38

40 PROJECTS Sports & Fashion Division DEEPLY ZIPPERLESS SUIT WINNER AT SONAE INNOVATION AWARDS SPORTS & FASHION DIVISION 2015 The need to create a flexible, lighter and more comfortable wetsuit. A new product with an upgrade in its technical characteristics. Percentage of sales in its range 70% HIGHER Reduction in the production time -15% FASTER Reduction in the production cost -9,4% STRONGER The Deeply Zipperless Wetsuit was created under the Stimulating Creative Thinking initiative, which we often hold with our team of surf and body board athletes. A great wetsuit is a fundamental item for any serious surfer, so we faced the challenge of creating a flexible, lighter and more comfortable wetsuit that went through three rounds of tests before reaching the final marketed product. 39

41 RETAIL BOOK OF INNOVATION 15 TEAM Rodrigo António Charro IMPROVE FISH DISTRIBUTION HANDLING SAFETY LOGISTICS IDEATION EXPERIMENTATION IMPLEMENTATION 40

42 PROJECTS ICE TRANSPORTATION SYSTEM HONOURABLE MENTION AT CHAIRMAN S AWARD 2015 Significant risk of serious accidents causing physical injury when handling ice in the Fish Distribution Centre. A vacuum system made up of a vacuum hose and pump which transports ice from the production chamber to a deposit site that is used to fill the containers. Reduction of time taken to load and distribute an ice vat -50% FASTER Daily time reduction -2h15m At the Fish Distribution Centre over 3100 tonnes of ice are handled annually. The operation consists of filling large plastic containers manually from the storage chamber, involving a significant risk of accidents and physical injury. To solve the problem, we created a safe and clean system to vacuum ice safely and ensure ergonomically safe handling techniques. Accidents and musculoskeletal complaints when carrying out the task Zero STRONGER 41

43 RETAIL BOOK OF INNOVATION 15 TEAM Osvaldino Vieira Luís Lopes Fátima Valinhas Amaro Amaral Paulo Teixeira Miguel Cardoso Jorge Liz STORE CONVENIENCE CONSTRUCTION MATERIALS IDEATION EXPERIMENTATION IMPLEMENTATION 42

44 PROJECTS LOW COST CONTINENTE BOM DIA HONOURABLE MENTION AT SONAE MC INNOVATION AWARDS 2015 Due to our superstore legacy, we did not have a competitive business model in place for smaller, yet highly resilient supermarkets. A new and stronger supermarket value proposition that allowed us to establish ourselves even in the smallest villages. Higher EBITDA when compared to the other model stores +2% HIGHER Reduction of construction time -16,7% FASTER Reduction of cost per m 2-16% Protecting market share is one of our main goals and with this new and strong value proposition we expect to open at least 50 more supermarkets. We shifted the previous mindset and questioned all aspects, so as to improve different features like in-store communication and customer service. Fewer FTEs than a standard Continente Bom Dia supermarket -40% STRONGER 43

45 RETAIL BOOK OF INNOVATION 15 TEAM Rafael Rosas Anabela Oliveira João Paulo Marçal TEEN INTERACTIVITY mp4 headphones GPS DESIGN IDEATION EXPERIMENTATION 44 IMPLEMENTATION

46 PROJECTS NOTE! INNOVATION IN BACKPACKS HONOURABLE MENTION AT SONAE MC INNOVATION AWARDS 2015 The short life cycle of backpacks leads to customers purchasing new backpacks every year and this is a great opportunity for Note!. Following international trends, Note! offered a range of backpacks with more than ten innovative options at a price range between 25 and 30. Percentage of sales in Note s range of backpacks 15% HIGHER The new range of Note! backpacks ten options includes distinctive features such as being reversible, 2 in 1 solutions and speakers which are incorporated into the backpack and can be used with other models. The value is reinforced through bundling free MP4 players, headphones, GPS trackers, watches, and special pens to be used in the customisation of the backpacks. Furthermore, these backpacks offer a ten year product warranty. 45

47 RETAIL BOOK OF INNOVATION 15 TEAM Tiago Proença Marina Dias Ricardo Pacheco ANALYTICS PRICE SALES SOFTWARE IDEATION EXPERIMENTATION IMPLEMENTATION 46

48 PROJECTS Electronics Division PRICE RESTRUCTURING HONOURABLE MENTION AT CHAIRMAN S AWARD 2015 In a context of increasing dynamism and complexity, the challenge was to efficiently manage automatically the main pricing processes, using arrays of multidimensional decision, but easily customisable. A project with four important topics: shopping analysis, visibility classification of each product in the shopping basket, discontinued campaign management and reporting. Fewer FTEs in Central, Store and Online Shopping Fewer FTEs in Basket Builder STRONGER It is now possible to make decisions based on multidimensional arrays with thousands of lines of information and integrate market information automatically - without having information about the SKU / EAN - and balance the representation of each product segment in the shopping basket. We can have prices in accordance with the reality in store, analysing eight different variables. Close to 390 pivot tables are updated daily. Fewer FTEs in Stock Off promotions

49 RETAIL BOOK OF INNOVATION 15 TEAM Pedro Pereira Rui Santos Hugo Neves Filipe Silva Lurdes Miguel Daniel Riba CUSTOMER SATISFACTION MOBILITY FAST TABLET SALES IDEATION EXPERIMENTATION IMPLEMENTATION 48

50 PROJECTS Electronics Division SALES ASSISTANT WINNER AT SONAE INNOVATION AWARDS ELECTRONICS DIVISION 2015 It is difficult to control the sales process in a predictable and planned manner. The Sales Assistant enables the beginning, the execution and the conclusion of the sales process to be carried out using a tablet or web page. Reduction in time invested in Home Delivery processes -63% FASTER The Sales Assistant is an application customised to the needs of stores and customers. It allows collaborative interaction between the shop assistant and the customer (by providing detailed information about the products or services available) and increases the range of products available, without the constraints of physical space ensuring higher levels of customer satisfaction. 49

51 RETAIL BOOK OF INNOVATION 15 TEAM Luis Martins Jorge Liz Miguel Camanho Sérgio Lapela SHORTAGE EFFICIENCY PLANOGRAM BUGGY IDEATION EXPERIMENTATION IMPLEMENTATION 50

52 PROJECTS SHOPVIEW WINNER AT SONAE MC INNOVATION AWARDS 2015 Retailers get extra revenue from suppliers, who wish to put their products in highly relevant location in stores. However, monitoring shelves has always been an expensive, inefficient and manual process for retailers, requiring stock clerks to monitor shelves throughout the day. A buggy with cameras takes pictures of the shelves and compares them with the planogram, allowing companies to confirm that it is being followed in the stores. Reduction of time taken to monitor stock in a store, when compared with human auditing Yearly savings per store -90% 5 million euros FASTER STRONGER ShopView can be used to continuously and automatically monitor the presence, misplacement, and in particular, the lack of products in supermarket shelves. This allows retailers to reduce the number of out-of-stock products, missing pricing labels and confirm that their products are displayed according to negotiations with suppliers. 51

53 RETAIL BOOK OF INNOVATION 15 TEAM Filipa Bello Ricardo Barros Sara Fontes Miguel Gomes Ana Raquel Oliveira Miguel Moreira MOMS FUN KIDS INTERACTION IDEATION EXPERIMENTATION IMPLEMENTATION 52

54 PROJECTS Sports & Fashion Division ZIPPY NEW STORE CONCEPT WINNER AT SONAE INNOVATION AWARDS SPORTS & FASHION DIVISION 2015 The opening of the 38 th store in Portugal, in the year Zippy celebrates its 10 th birthday, marks a new stage in the life of the brand with a more interactive store environment that reinforces the brand positioning. The new store concept is based on a strategy of providing an easier and more enjoyable shopping experience, through the introduction of new technologies and interactive screens. Customers satisfied 86% HIGHER Zippy has introduced a new store concept based on using distinguished elements that improve the buying experience, making it more enjoyable for children and parents. This experience includes passing through secret tunnels that only children are aware of, filling their own balloons and playing in a digital playground with other children. 53

55 RETAIL BOOK OF INNOVATION 15 TEAM Ana Patrícia Lagarinhos, Ana Catarina Ferreira, Luís Machado Ferreira, Sara Ribeiro Lemos, Sofia Veiga Macedo, Sónia Filipa Gonçalves. 100% NATIONAL MEAT CONCEPT & PACKAGING DESIGN The need to clearly promote the recognition and sale of Portuguese meat on the store shelves. Concept and packaging development for 100% national meat with an attractive image, highlighting its Portuguese origins in a creative way. Percentage of sales of packaged beef, four weeks after launch 17% HIGHER Percentage of sales of packaged pork, four weeks after launch 7% In fresh products, one of the most valued characteristics are its origin. From our customers perspective, a Portuguese product is usually associated with higher quality. In this context, we developed a product which effectively communicates 100% national meat, with an eye-catching image, which the consumer would immediately identify as Portuguese. 54

56 PROJECTS Electronics Division TEAM Enrique Arteaga B2B Spain has over 3 million small and medium-sized companies and this reality was an opportunity to increase store sales and brand awareness. Creation of sales channels for small and medium-sized companies from each of our stores. Increase in overall sales +2% HIGHER Designing new internal processes aimed at targeting business-to-business customers, who demand integrated solutions, a high quality of service, tight deadlines, and competitive prices. We developed specific training and sales tools designed to provide solutions, as well as new systems of professional sales commissions, thus prioritising the volume and profitability of operations. 55

57 RETAIL BOOK OF INNOVATION 15 TEAM João Viana Ferreira BAGGA - NEW STORE CONCEPT Increased competition A new brand name for the Cafeteria Customers say that in the cafeteria market space. business unit that aims to meet the stores are better 96% the needs of contemporary than before consumers. Increase of like-for-like food sales in rebranded stores +20% HIGHER Bagga includes different complementary concepts: coffee shop, pastry shop and bakery offering a practical and ideal option to have a quick and easy breakfast, an afternoon snack or a light meal. This concept aims to be convenient, offer selective products and a highly personalised service in a new environment. Increase of like-for-like food sales for overall cafeteria stores +6% 56

58 PROJECTS TEAM Cristina Manuela Sousa, Maria João Barbosa CAR PARK WITH A SYSTEM FOR COLOUR RECOGNITION One of the most difficult tasks for customers in supermarkets is to find their car in the parking lot. This is even more difficult for those customers who are colour blind. ColorADD is a system to help people who are colour blind to identify colours through a series of shapes. First supermarket to have such a system all over the world First HIGHER It is hard to imagine a world without colour but 350 million people around the world cannot distinguish all colours. ColorADD is an identification system used to help people who are colour blind to identify colours by a series of icons. Continente Modelo of Quarteira was the first hypermarket in the world to have this system, in line with our social responsibility programme as it helps everyone who wants to visit our stores. 57

59 RETAIL BOOK OF INNOVATION 15 TEAM Pedro Miguel Pinto, Vanessa Silva Pacheco CLICK&GO AT GALP SERVICE STATIONS Establishing an innovative network of deliveries to customers workplaces or a convenient drop-off point, using the increasing role of digital media in daily life. A new service that delivers online orders to different collection points right up to the customer s car without the customer incurring any delivery costs. Increase in purchase frequency after accessing the service (Galp Pickup Points) +47% HIGHER Click&Go was developed with the objective of combining deliveries by giving all customers, who are working, not at home, or simply do not have time in their routine to go to a Continente store, a chance to collect their purchases in a practical and simple manner on the way home. 58

60 PROJECTS TEAM Mayumi Thais Delgado COLORADD IN TRAFFIC LIGHT NUTRITIONAL LABELLING In a society where obesity, diabetes and high blood pressure are prevalent, it is important to develop solutions for people who suffer from these conditions. ColorADD is a code that helps people who are colour blind to recognise colours. It consists of geometric shapes representing colours and combinations of colours. Food products that have now this scheme in place More than HIGHER This concept has been implemented in most of the Continente s own brand food products with the traffic light nutritional labelling system in place. Coloradd allows customers to recognise colours and to select foods with more green symbols and yellow symbols rather than red symbols, helping them to choose better food. 59

61 RETAIL BOOK OF INNOVATION 15 TEAM Sofia Batista Forte CONCURSÃO - CELEBRATING CONTINENTE S 30 TH ANNIVERSARY Continente is marking the store s 30 th birthday and it is an occasion to celebrate. There was an opportunity to develop a creative project and show Continente's innovative character. Concursão is a contest that led tothe award of a weekly store prize, a weekly national prize and the brand of the week that takes place if the winner s transaction has a product that belongs to the brand of the week. Net sales increase compared to the previous year Number of customers increase compared to the previous year +225% +237% HIGHER Based on Continente marking its 30 th anniversary, we launched a competition with the award of a weekly store prize, with the prize of 300 in credit on the loyalty card, the award of a weekly national prize with in a credit card and the brand of the week that takes place if the winner s transaction has a product that belongs to the brand of the week. At the end of the contest, we had winners and over 3.5 million euros in awards. 60

62 PROJECTS TEAM Isabel Barros, Filipa Ferreira, Catarina Cruz, Ana Rita André CONTACTO PROGRAMME - SONAE FUTURE QUEST 2015 Attract, identify and select young talented finalists of a master s or bachelor s degree (or recent graduates) to do an internship within Sonae Companies. An innovation competition run by Sonae Companies, challenging final year university students and recent graduates to discover their potential, imagine and create disruptive ideas for Sonae s Future Businesses. Final year and recently graduated students Users on the Contacto online network More than HIGHER All candidates who were eligible to apply created their Self-MighT and revealed their All MighT - a 3D Figure that represents their potential as recognised by the people who know them best. They also had to submit a futuristic idea for one of the Sonae Companies. Submissions Students selected in the first phase More than STRONGER 61

63 RETAIL BOOK OF INNOVATION 15 TEAM Tomás Lince Fernandes CONTEMPORAL SELECTION OF WINES Development of several wines with the signature of the most prestigious Portuguese winemakers. Wine design and blend by some of the most prestigious winemakers in each main wine producing region. Awards received in national and international wine competitions 21 HIGHER The Contemporal Selection wines were developed in partnership with some of the most prestigious Portuguese winemakers. They were selected to design wines for the main producing Portuguese regions. Wines try to fulfil the main characteristics (colour, grape varieties and flavour) and blends of each region (Douro, Minho, Lisboa, Peninsula de Setubal and Alentejo). The labels design express a hand drawing with an object associated to each region traditional, typical and well-known landscapes. 62

64 PROJECTS TEAM Ana Borges Salgado, Nadia Reis, Vanda Quintão, Helena Marques Martins, Ivone Carla Silva, Vitor Lemos Martins CONTINENTE MISSION Continente has a responsibility to lead by example and to raise the awareness of our customers, partners and suppliers of an increasingly healthy and sustainable lifestyle. Continente Mission brings together all of our initiatives for social responsibility. Amount raised for maternal and child health projects (Mission Continente Smile) More than Institutions supported (Community) 660 HIGHER From a strategic point of view, Continente Mission aims to place communities at the centre of its activities. Through the Continente stores and with the help of our colleagues and partners, we are committed to mobilising civil society towards a common goal: to help those in need and bring about changes in behaviour for a better and more sustainable world. Volunteers Sonae (Food Collection in partnership with the Portuguese Red Cross) Tonnes of collected products

65 RETAIL BOOK OF INNOVATION 15 TEAM Pedro Cupertino Miranda, Ângelo Rafael Simões, Rui Pedro Teixeira CRISIS MANAGEMENT TOOL Crisis manuals to manage incidents were developed and remained for long periods without being updated which made them obsolete. On top of this, the process was based on the exchange of documents and making phones calls between the crisis management team. An online platform with bi-directional communication between the crisis manager and the rest of the team that allows the management of contingency actions. Management of crisis with a high level of success 3 crisis HIGHER The Risk Management Department helps business areas to develop business continuity plans to manage incidents. To solve these situations efficiently, an online platform was created to promote communication between the crisis manager and the team. 64

66 PROJECTS TEAM Rui Alves Lourenço DELIVERY SMS Reduce cases whereby the customer is not available to receive Continente orders made at the online store, resulting in non-delivery or delay in the follow-up of deliveries. A free service that provides customers with an outstanding service, texting customers to notify them of a 30 minute delivery slot and thus decreasing backlog deliveries. Service levels in 2015 Reduction of backlog deliveries An average of 93.4% -50% HIGHER STRONGER Although customers select a two hour delivery slot, the SMS service increases convenience by texting customers the 30 minute time slot in which the delivery will actually be made. This free service provides customers with an outstanding service. Additionally, it provides efficiency by decreasing backlog deliveries, and acting as an important barrier to competitors. Deliveries made on time (within 30 minute delivery slot) 97% 65

67 RETAIL BOOK OF INNOVATION 15 TEAM Marta Azevedo DRL QUICK TALKS Sonae s Labour Relations Team provides training to a large number of people, who are widely dispersed geographically, implying costs and loss of time with travelling. A new system of one hour training sessions in a videoconference room where everyone can participate, regardless of their location. Cost reduction -100% STRONGER DRL Quick Talks is a new training session system, which lasts for one hour and anyone who is interested can participate because sessions take place in rooms that have videoconferencing equipment. 66

68 PROJECTS TEAM Guilherme Manuel Oliveira, Ines Bayer Lopes, Branca Costa, Cristina Teixeira, Rita Matos, Luis Marques, Mónica Moás ELEVATED STRUCTURE FOR PALLETS The need to combine the stacking of products and the presentation of the assembled product for furniture, which are sold disassembled in boxes. An iron tube structure adapted tobe fixed onto pallets, providing an area (top pallet) to expose products and an area (bottom pallet) to place products. Sales increase +15% HIGHER One of the problems affecting the mobility and adaptation capability of our promotional spaces was the structures that held the products. This project consisted of applying a metal structure onto the pallets, making it possible to organise the stock at the bottom, as well as providing room for attractive visual merchandise on top, whilst also maintaining the simple and organised layout. 67

69 RETAIL BOOK OF INNOVATION 15 TEAM Jorge Gonçalves, Luis Filipe Homet, Ricardo Ferreira Silva ENA'S REPLENISHMENT PROCESS The previous product ordering parameters generated excess stock in stores. A new algorithm and management solution was developed to redefine ordering parameters, with the aim of covering the sales needs, plus the minimum stock, to assure attractive shelves. Increase of potential recovered sales Value of food stock +4.5 million /year -4.6 HIGHER Value of food products out-of-stock -4% STRONGER ENA s Replenishment Process is a new approach for the redefinition of ordering parameters, with the aim of covering the sales needs, plus the minimum stock to assure attractive shelves, improve replenishing efficiency and reduce out-of-stocks and returns to the store s backroom. This new methodology is the opposite of the current ordering point definition. Value of non-food stock -8% 68

70 PROJECTS TEAM Tomás Ribeiro, José Breda, Rui Rocha, Ana Vilaça, Pedro Sotto Mayor ENERGIA3 PLAN 28 até FEV. Para aderir ligue ou vá a galp.continente.pt The disruptive character of the first partnership between Continente and EDP and its results required new collaboration with leading energy operators to launch a new campaign. An integrated discount scheme that revolutionised access to fuel, electricity and natural gas. Increase of average ticket per month Increase of average frequency of transaction +3% +17% HIGHER The energy3 plan allows Continente card users to benefit from discounts, up to 50% in electricity and natural gas, 10% on bottled gas and 12 cents per litre on fuel. The value of the discounts is accumulated on the Continente card. This campaign is another step towards our drive to place the Continente card at the centre of a network of benefits that cover the needs of Portuguese families. Increase of average spending (between December 2014 and December 2015) +20% 69

71 RETAIL BOOK OF INNOVATION 15 TEAM Cristiana Cardoso Pereira FAST LOADING Multi-article boxes in distribution centres have a shipping label with a serial shipping container code (SSCC) that must be read during the loading and dispatch process. A solution to automatically read all the shipping labels on pallets, based on a data matrix code on each shipping label with SSCC information. Reduction of reading time compared to reading shipping labels manually -74% FASTER Reduction of errors -17% STRONGER This new process makes it possible to run a pallet only once through the readers to capture and decode the data matrix bar codes. A warning system in case of discrepancies and a photographic archive were implemented. This process is supported by new image technology and by the data matrix code printed on the shipping label, increasing productivity and the quality of the loading and dispatch process. Cost reduction per year

72 PROJECTS TEAM Nádia Reis, Tiago Soeiro FESTA CONTINENTE Continente has been building a strong relationship with Portuguese families and the results required the introduction of new initiatives based on Continente s core business - food retail. Festa Continente is our own brand theme park, offering visitors a unique experience with all of the national products on display, for their full enjoyment. Financial impact Cost reduction 31 million Approx. 30% HIGHER Visitors 1.1 million STRONGER Continente has been developing various initiatives with historical relevance and with a high level of impact. Portuguese families are the reason for our existence, so this year we went further and dedicated an entire new event to them. For this purpose, we held a big event in Lisbon on the 27 th June and in Oporto on the 19 th September. Events throughout the country 15 71

73 RETAIL BOOK OF INNOVATION 15 TEAM Isabel Barros, Ana Regina Caldas, Maria João Dias FLEX - TÚ ELIGES IN SPAIN To implement a flexible compensation plan, according to the most widely-used compensation policy in Spanish companies, which ensure more value for compensation packages. A voluntary compensation system in which individuals decide how to receive their compensation. They choose how much to receive in monetary salary and as benefits provided by Sonae, offering tax efficiency and/or economic savings. Colleagues covered by the plan Increase of the number of choices (comparing December 2014 with December 2015) % HIGHER Average savings (tax efficiency) per colleague 500 STRONGER In 2014, Sonae decided to implement its own Flexible Remuneration Plan, allowing each colleague to choose which benefits best matches his/her personal and family needs, permitting significant tax savings. The website Flex Tú Eliges allows colleagues to choose their benefits easily and with all the information and details needed. 72

74 PROJECTS TEAM Rui Barros, Francisco Morais, Joana Barros, Maria João Castelão, Raquel Abreu FLOWER SHOP To promote the recognition and visibility of Continente s flower business. Florists located near the entrance of Continente stores, characterised by their architectural simplicity and their open and inviting layout. Sales increase compared to % HIGHER The new concept for Continente s florists promotes the business and improves our customers shopping experience. The main area of the shop is finished in dark grey tiles with wooden panels to highlight the colour and attractiveness of the flowers. The space is inviting and open and the design communicates information about the flowers with inspirational messages. 73

75 RETAIL BOOK OF INNOVATION 15 Sports & Fashion Division TEAM Mónica Pimentel, Sandra Barros Silva, Fernando Fernandes, Miguel Ferreira Dias, Miguel Rodrigues Dias, Pedro Fernandes, Manuel Gomes GAMA - GROWING ADVANTAGE THROUGH THE MANAGEMENT OF ASSORTMENT The need for a standard assortment definition methodology that allows brand mix based on optimisation of marginal profitability. A standard methodology for assortment structure definition and allocation to stores in Sport Zone. Reduction of the lead time of the assortment definition process -50% FASTER Average increase of margin per meter 10% STRONGER The project was carried out in four phases, involving the development of a methodology for assortment definition, the pilot stage for three different segments (Running, Cycling and Swimming), the preparation of the roll-out stage and the development of tools and a process manual to support Sport Zone's team. The methodology was reflected in a support tool that facilitates the process of assortment definition and review. 74

76 PROJECTS TEAM Jorge Liz, Hélder Matos, Miguel Camanho, Sérgio Lapela GAP - AUTOMATIC GENERATION OF PLANOGRAMS Planograms are created manually, with high dependency on space managers experience, and lacking performance evaluation. A new tool to help space managers decide the best allocation of products on the shelves, through the automatic creation of planograms. Time reduction in the process -50% FASTER GAP helps space managers decide the best allocation of products on the shelves. It creates store-specific, totally customised, planograms automatically, in a matter of seconds. GAP can incorporate different types of merchandising rules that can be changed quickly, allowing different strategies to be tested or to shape planograms according to the current practice. Nowadays, 23 space managers use GAP on a daily basis. 75

77 RETAIL BOOK OF INNOVATION 15 TEAM Daniela Coutinho, Fernando Luís Albino, Osvaldo José Santo, Tiago Silva Macário GEMBA ORGANISATION FOR LISTED ITEMS (OGIL) Difficulties of mizusumashi in storage: disruptions in the store, preparation of returns, customer orders and articles with an expiring validity. A method to assist back office organisation that allows the identification at any time of the location of all the items that are in storage, using only a PC. Reduction of the time needed to prepare products that are empty on the self -73,5% FASTER OGIL is a process improvement project that seems to solve the main difficulties of "mizu" in the stores' backroom storage, for example disruptions in the store, preparing returns, customer orders and articles with an expiring validity. OGIL is a method designed to assist back office organisation that allows the identification at any time of the location of all the items that are in storage, using only a PC. 76

78 PROJECTS TEAM Tânia Lucas GLUTEN-FREE RANGE OF ÁREA VIVA PRODUCTS The need to develop a Gluten-Free Range of products in order to respond to an increase in demand. A wide range of products that satisfy the increasing consumer demand for a healthier lifestyle. Percentage of sales within the the dietary category of Área Viva 10% HIGHER We created a gluten-free range of products at Área Viva: chocolate chip biscuits, madeleine cakes, breadcrumbs, bread with corn flour, bread with rice flour, croissants and baguettes. We thus offer a bigger variety of products to our customers with this special need. 77

79 RETAIL BOOK OF INNOVATION 15 TEAM Rodrigo Maria Mendonça, Pedro Bruno, Ana Catarina Jorge, Ana Isabel Carvalho, Ana Paula Nogueira, Helena Martins GREEK YOGHURT The need to develop a Greek yoghurt recipe, with the texture and characteristics of ice cream flavours. The Greek yoghurt Gelataria Continente combines the best of two worlds: Greek yoghurt texture and flavour with the softness of ice cream. Percentage of sales in all own brands Greek yoghurt range 35% HIGHER These yoghurts combine the Greek yoghurt texture with the softness of ice cream and they are presented in four packs with the flavours of apple/cinnamon, lemon, vanilla and stracciatella. The packs were initially developed with dual flavors. However, this product was so important to our customers that we decided homogenise the offer with a new product and packaging. 78

80 PROJECTS TEAM Marina Ribeiro Silva IMPROVED PICKING EFFICIENCY IN THE ELECTRONICS DIVISION The need to increase productivity in the picking process of smaller products, decrease picking errors and reduce the time of the picking by line (PBL) circuit. A Put-to-Light (PTL) station with 268 picking positions on three levels in a smaller area. Cost reduction per year Reduction in picking mistakes % STRONGER In order to increase productivity and decrease picking mistakes, we implemented a Put-to-Light station with 268 picking positions on three levels in a smaller area, located in the old part of a picking by line circuit operation. This PTL equipment allowed the capacity of the operation to be increased and it also reduced the complexity of the preparation required to go to store. Increase of productivity +100% 79

81 RETAIL BOOK OF INNOVATION 15 TEAM Alexandre Garrett, Filipe Silva IMPROVING OUR BUDGET Excessive time invested in the budgeting process of Sonae s businesses. Process analysis in order to reduce the time invested in the procedural part and promote our colleagues involvement in discussing the actions that will be developed in the upcoming year. Reduction of the budgeting process time at Sonae MC - from five to four weeks -20% FASTER Budget definition is one of the most relevant but also one of the most difficult processes in the organisation. The project analysed the process with the objective of reducing the time necessary for its development, but mostly focused on the colleagues involved in discussing the actions, strategic or tactical that will be developed in the upcoming year. 80

82 PROJECTS TEAM Alda Sofia Gomes Silva, Hugo Miguel Alves, João Carlos Telo, Sara Bettencourt Teixeira KASA CATALOGUE WEBPAGES High quality photos in the Kasa catalogue was the perfect opportunity to try new ways of showcasing home catalogue products. A webpage with a focus on quality photographs, a clean design, and pleasant navigation. Visitors in 2015 Increase of number of visitors, when compared to 2014 More than % HIGHER The Kasa catalogue webpages were designed with a focus on quality photographs, a clean design and pleasant navigation that is more suitable to sell these kinds of products. On the homepage the users can interact with the photos, add products to the cart and see all the products side by side in two colours. Page views in 2015 Minutes navigating on the page in 2015 More than An average of 3:30 81

83 RETAIL BOOK OF INNOVATION 15 TEAM João Pedro Nunes, André Barbado LIVE STREAMING OF SONAE SHOTS EVENTS Increase the reach of Sonae Shots sessions beyond the live audience, and amplify knowledge sharing on key subjects for Sonae teams. Give our colleagues who could not attend the event the opportunity to also have live interaction with guest speakers. Increase of attendance in sessions +40% HIGHER Live streaming with a specialist in a given subject, giving a debate between our teams and the speakers. Additionally, we now give our colleagues who could not be present the opportunity to also have live interaction with our speakers, based on a platform that allows access to all Sonae business. 82