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© 2018 PlanetRetail RNG – Not for Redistribution

Retail 2025: Retail ReinventedDoing Business in Bentonville

October 2018

© 2018 PlanetRetail RNG – Not for Redistribution2

PlanetRetail RNG is a go to market intelligence and advisory business exclusively focused on equipping our partners for future growth in an ecommerce driven retail landscape.

PlanetRetail RNG is a part of Ascential.

2015

2016

2017

2018

Strategy Consulting

Digital Shelf

Market Share

& Traffic

Price + Promo

New Solutions


The goal – Why everyone is here today

Identify what you need to

do today to compete and

stay ahead

Have a clear vision to build

capabilities now to be &

remain a leader in 2025

Build a sustainable strategy that prepares your business to 2025+


New Set of Assumptions about the future

Impact on Strategic Decisions

External Drivers Are Shaping The Retail Future

Economy

Society

Technology

Industry

Policy

Future Retail Landscape Outlook

Source: PlanetRetail RNG


GENERATIONAL

DISTINCTIONSSHIFT TO EXPERIENCES HEALTH & WELLNESS

NEW HOLIDAYS /

CULTURAL CALENDARSGENERATION C

FEWER NET NEW STORES DEATH OF SUBURBIAIMPROVED B2B2C

CAPABILITIESCLICK & COLLECT GROWTH CONVENIENCE REDEFINED

MARKETPLACES & DIGITAL

ECOSYSTEM EXPANSION

BORDERLESS COMMERCE MOBILE / VOICE ADOPTION ONLINE-TO-OFFLINE (O2O)

INTEGRATION

GROWTH OF 3RD PARTY

DELIVERY NETWORKS

Drivers of Change Disrupt Future Commercial Operating Context

Category Growth

Channel Shifts

Digital Influence



Ecomm Forecast to Account for 23% of Total Global Chain Retail Sales / GMV by 2020E

North America

2010 2020E Bps

Store Based 93% 83% -1,013

Ecommerce 7% 17% +1,013

Europe

2010 2020E Bps

Store Based 95% 87% -754

Ecommerce 5% 13% +754 Asia / Pacific

2010 2020E Bps

Store Based 94% 56% -3,759

Ecommerce 6% 44% +3,759

Middle East & Africa

2010 2020E Bps


Ecommerce 1% 6% +503

Latin America

2010 2020E Bps


Ecommerce 2% 9% +617

Global Chain Retail Sales / GMV

Source: RNG Database USD Constant 2017; Store Based includes TV Home Shopping & Direct Selling


In US, Historical Growth Vehicles Challenged – Ecomm, Discount & Club Outperform

Source: RNG database USD cst 2018


Retailers Are Building Massive Digital Ecosystems



M&A and Non-Traditional partnerships will fuel innovation

Source: PlanetRetail RNG; Ocado


What Comes to Mind When You Think of the Store of the Future?



1. Further demand for digitally integrated small box, proximity formats

2. Discount disruption reshaping landscape & pressuring profitability

3. Store bases deleveraging & continued store network rationalization

4. Marketplace ecosystem widening & global marketplace consolidation

5. Increasingly integrated O2O retail landscape

6. Store Based Retailers Shift to Analytics, Marketing & Technology Companies with Stores




PlanetRetail RNG’s Four Winning Strategies



Role of the store has to evolve away from being transaction based to be a seamless shopping experience

• Exclusives

• Focus on fresh/natural

• ‘Made in Store’

• Partnerships

• Assortment rationalization

• Click & collect

• Digital engagement

• Fulfillment / O2O

• Checkout-less stores

• Agile & flexible

• Community role

• Social and meeting hub

• Foodservice

• Sharing economy

• Localized

• Events

• Inspiration

• Education

• Store within a store

• Service

• SolutionsExperiential Social

CuratedFrictionless

All underpinned & transformed by technology



5 Priority ecommerce & digital ecosystem capabilities

FLYWHEEL STRATEGY

PROFITABILITY MANAGEMENT

WINNING WITH 3P MARKETPLACES

UBIQUITOUS COMMERCE

AdvancedMarket Leadership

FundamentalsMarket Survival

LEVEL 1

LEVEL 2

LEVEL 3

SEAMLESS O2O

LEVEL 4

LEVEL 5



Four Characteristics of a Seamless Supply Chain


• Organize: Labour reallocation & optimisation

• Plan & Forecast: Data-driven optimisation; IT &

Systems Leadership

• Manage & Warehouse: Automated Warehousing

• Transport & Distribute: Platform, Asset-Light

Distribution; Autonomous delivery network

Automated

• Organize: Silo-less Organisation – Supply Chain

Integration, Fulfilment as a service

• Plan & Forecast: Retailer & Brand Systems

Integration

• Manage & Warehouse: Store-based fulfilment;

Seamless Single Inventory View; Flexible Capacity

Warehouse; Inventory Deployment Cross-

Channels

• Transport & Distribute: Cross-border facilitation;

Q1 distribution network; Seamless fulfilment

Agile

• Organize: Upskilling talent for the new fulfilment

models

• Plan & Forecast: Planning for Shorter Time

Horizons; Real-time inventory planning

• Manage & Warehouse: Touchpoint reduction

• Transport & Distribute: Third party fulfilment

networks

Real-Time• Organize: Ownership of Broader Role in End-to-End

Planning

• Plan & Forecast: Advanced Supply Chain

Analytics

• Manage & Warehouse: OOS Management to

enable promiseable inventory

• Transport & Distribute: On-time, in-full deliveries;

Seamless Customer Returns Management

Promiseable


Future Consumer Journey Will Be Seamless, Frictionless & Content Driven

Optimized for EFFICIENCYEnable consumers to shop

frequently & quickly

Optimized for CUSTOMER ENGAGEMENT

Blurring entertainment, ecommerce, online, offline

SEARCH-based consumer journey

CONTENT-led discovery

TRANSACTIONALEXPERIENTIAL journey exploration,

discovery & frictionless

Pre-purchase, purchase & post-purchase

SEPARATE

Discovery & purchase SEAMLESSLY

INTEGRATED & on-going

TODAY FUTURE

Source: BCG, Alibaba Group


Omnichannel Keys to Success

Customer development and engagement / collaboration

Insights, systems and analytics

Organizational structure and design

Brand Offer Business Model /

Channel Strategy

Supply Chain Demand GenerationRevenue Growth

Management

1

2 3 4 5 6

7

8



More ways to grow your business

with PlanetRetail RNG

Want to learn more? Please contact Thomas Nolan at [email protected] or Hannah Donoghue at [email protected]

Deeper insight

For a complete view of Walmart & Sam’s Club’s most important initiatives and growth outlook, visit RetailNetGroup.com.

Custom solutions

Our advisory team can help you navigate key challenges, build out your go-to-market plan, benchmark your performance versus peers & turn research into action.

Walmart Bootcamp

Actionable, tailored insights to maximize your growth on Walmart. That’s our promise to you. Our two-part Walmart Boot Camp will help you to unlock demand and fix leaks to accelerate growth and transform your business on Walmart.

http://[email protected]


planetretailnetgroup.com

Researched and published by Planet Retail Limited

Company No: 3994702 (England & Wales)-Registered Office: c/o Ascential plc, The Prow, 1 Wilder Walk, London W1B 5AP

Terms of use and copyright conditions: Content provided within this documentation which is the Intellectual Property (IP) of Planet Retail is copyrighted. All

rights reserved and no part of this publication as it relates to Planet Retail’s IP may be reproduced, stored in a retrieval system or transmitted in any form without

the prior permission of the publishers. We have taken every precaution to ensure that details provided in this document are accurate. The publishers are not

liable for any omissions, errors or incorrect insertions, nor for any interpretations made from the document.

Thank youQuestions?

Hannah Donoghue

VP Global Advisory

[email protected]

Thomas Nolan

Account Executive

[email protected]

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