DRIVE FORMAT, 2013 A drive into the unknown GILDAS AITAMER MAGALI DUBREIL February 2013 Associate Analyst Retail Analyst

Contents The broader picture Picking the right model Challenges Where does Drive go next? How can stores adapt? Conclusions and Implications

1. The broader picture

1. The broader picture As with every change, the emerging Drive format is raising numerous questions for customers, retailers and manufacturers. Who are the Drive users? Does Drive raise legal issues? How do I sell my products there? What’s the real benefit? Are there alternatives to Drives? How can I see how fresh the produce is? What’s the impact on bricks and mortar stores? Do I still need to go instore for top-up shopping? Can it ever be profitable?

1. The broader picture Drive is a new form of click & collect and is sometimes referred to as drive & collect. Definition Drive is a type of click & collect: Where a retailer prepares customer orders placed online; With or without order fee; Shoppers collect the goods at a time of their choosing at a pick-up point with a dedicated car parking area; Orders can be pre-paid online or paid for at the collection point.* At Auchan’s Chronodrive, shoppers need to identify them-selves to pick up their goods. At Ahold’s Albert Heijn in the Netherlands, orders are delivered directly to the trunk. @Ahold * This broader definition varies from the definition used in Planet Retail’s database: Items purchased online but collected later instore. The definition used in this report includes on-site payments.