Executive Breakfast 10 February 2016

2 Retail’s BIG Show, 2016 Planet Retail’s Take: ‘Digital Stores Come of Age’ February 2016

3 1.Introduction: The Main Theme 2.Planet Retail’s Take: ‘Digital Stores Come of Age’ 3.Digital Stores: Behind the Scenes 4.Digital Stores: Connected Customer Experiences 5.What’s In Store? 6.Planet Retail’s Recommendations Contents Retail’s BIG Show 2016: Planet Retail’s Take All images ©Planet Retail Ltd unless otherwise stated. Miya Knights Technology Research Director, Planet

4 The Main Theme

5 What and Where?  The NRF’s Retail BIG Show  Jacob K. Javits Convention Center, New York Who?  Over 33,000 retail IT attendees Why?  100s of retail keynote and BIG !deas exhibitor sessions  575+ solution exhibitors over 840,000 sq. ft., occupying six city blocks Digital disruption and its impact on retail put the focus back on to the store Retail must reinvent itself for the digital age 1. Introduction: The Main Theme Retail’s BIG Show, New York, January 2016

6 Finding practical solutions to industry challenges 1. Introduction: The Main Theme Retail’s BIG Show, New York, January 2016 Shift of retail sales & reconfiguration of space, range, fulfilment and digital options Changing retail landscape: Shift towards digital Channel & format shifts Disruptive competition Internationalisation Personalisation What matters in retail doesn’t change Paul Coby, John Lewis CIO

7 Digital Stores Come of Age

8 Mobile, personalisation and fulfilment feature in-store Online vs. Offline: the battle is over  184% sales growth over five years (to 2019)  Compared to 38% store growth The store will remain dominant  90% of transactions still take place in the store Channel blurring  Digital influenced 49% of store sales in  Rise of ‘click & collect’ or ‘drive-thrus’ Connecting physical with digital 2. Planet Retail’s Take: ‘Digital Stores Come of Age’ Retail’s BIG Show, New York, January 2016 © Samsung Source: 1 Navigating the New Digital Divide, Deloitte Digital (May 2015)

9 Behind the Scenes

10 New EPOS and MPOS devices  Modular or convertible for fixed or mobile checkout; Extra-large tablet screens and transparent displays  For interchangeable interactive marketing and clienteling; Integrated wireless systems  Video analytics, Wi-Fi, and Bluetooth devices; and,  Bluetooth & NFC electronic shelf labels (ESLs). Mobile, digital, & wireless showcase Retail IT-ready stores Retail’s BIG Show, New York, January 2016 © Intel

11 Using RFID triggers, a mirror display also acts as a digital fitting room personal shopping assistant. Item-level RFID tagging protects high-value fresh goods, and streamlines waste and inventory management. Extended inventory & shopper use cases emerge Track and Trace RFID evolves 3. Digital Stores: Behind the Scenes Retail’s BIG Show, New York, January 2016 © Checkpoint Systems © Samsung © Digimarc Corporation GS1 and ‘hidden’ packaging barcodes provider partner for checkout speed and information accuracy.

12 3. Digital Stores: Behind the Scenes Retail’s BIG Show, New York, January 2016 © Zebra Technologies New enterprise handheld rugged designs reduce strain and add all-touch, graphics based interfaces. ‘Hyper-awareness’ of customers, partners, and suppliers touted as next phase in mobility ecosystem development. Smart devices communicate with products, smart lighting and signage via indoor location APIs. Hardware providers major on enterprise benefits Enterprise mobility fights back © Cisco: Project Flare “ Our futuristic store encourages shoppers to interact with products and displays for a blended physical and digital experience.” Julija Bainiaksina Co-Founder, The Dandy Lab

13 Connected Customer Experiences

14 4. Digital Stores: Connected Customer Experiences Retail’s BIG Show, New York, January 2016 New wearable clienteling apps allow associates to engage with customers without cumbersome devices. Accessories extend life of legacy kit or give consumer tech enterprise-grade functionality. Focus on enabling store mobile technologies Empowering store associates © Aptos / True Religion © Scandit of shoppers accessing the internet via mobile use it for shopping activities 2 51% 2 Planet Retail Shopology base n=90,000, Period covered: November 2014 to October 2015

15 $ 4. Digital Stores: Connected Customer Experiences Retail’s BIG Show, New York, January 2016 New beacon integration development enables a wider variety of use cases. Wayfinding, wish lists, product information, customer reviews and queue jumping add value to push mobile apps. Live customer profile and purchase history dashboard lets associates update in-store screens for maximum relevance. Beacons, RFID, and clienteling bring online in-store Mobile app development The M&S Sparks loyalty scheme rewards online & store interaction © Scala 22% of shoppers received loyalty scheme offers via their mobile 2

16 4. Digital Stores: Connected Customer Experiences Retail’s BIG Show, New York, January 2016 Integrate digital shopping journeys with checkout Mobile payments are here to stay 14% of shoppers have used a mobile wallet as a payment method of shoppers’ choice of retailer is influenced by acceptance of alternative payments 2 40%

17 What’s In Store?

18 5. Planet Retail’s View Ahead to 2017 Source: Planet Retail, Technology Predictions report, December 2016 Apps Price Range Availability Promotions Innovation Cost $ $ $ Apps Sales Planning Inventory Fulfilment Warehousing Cost $ $ $ $ Apps Virtual assistants Self-healing networks Personalisation Cost $ $ $ $ $ Apps Loyalty Mobile POS Self-scanning Promotions Geo-location Cost $ $ Apps Footfall Shrinkage Fulfilment Promotions Traceability Cost $ $ $ $ Mobile Payment 6-12 months Big Data & Predictive Analytics months Internet of Things months Robotics 24 months Artificial Intelligence 5 years

19 Planet Retail’s recommendations

20 5. Planet Retail’s View Ahead to 2017 Retail’s BIG Show, New York, January 2016 High MediumLow Technology Value to consumers Value to brands Value to retailers Maturity of technology Ease of implementation Cost effectiveness Retail sectors/ Formats Mobile Assistant (for employees) Fashion, dept. stores, electronics Mobile POS Big box, fashion, dept. stores Location based services/indoor navigation Big box, fashion stores Mobile PaymentAll Mobility (control & analytics) All Use digital shopping convergence to create connected customer touch points

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Discussion Topic 1: Connected Stores – Implications for Customer ID and Security

Discussion Topic 2: How big will mobile be? Investment big bets!