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Retail is changing. [DATE]

3  Council re-introductions  Review of program objectives  Innovation is necessity for success  Sustainability updates To discuss today

Council introductions What is your role? What 3-5 changes to your role did you identify in the first workshop? 4

Introduction to the Year-Long Council Program Using futures as an innovation tool

This program was developed by RILA, our trade association 6

Workshops on one another will build over the year 7 WorkshopWorkshop objective 1. Sustainability Megatrends Changing Retail Define the most major changes occurring in retail and your function 2. Innovation is RequiredIdentify innovations relevant to your function 3. Making it WorkDevelop a plan to begin implementing 4. Taking Innovation to Your Departments Provide tools and action plans to promote this process in your departments Outcome: Capacity for our organizations to prepare and adapt to changes in the industry TODAY

Last workshop we discussed: 22 trends driving change in retail  Retail everywhere  Augmented reality  Distributed manufacturing  Advancements in biotechnology  Self- and community reliance  Rise of the sharing economy  Empowered consumers  Circular economy  Shifting demographics  Urbanization in the U.S.  Global economic shifts  New approaches to health and wellbeing  The ubiquity of data  Radical transparency  Decline in ecosystem services  Water insecurity  Resource scarcity  Time poverty  Geopolitical instability  Energy transformation  Education revolution  Coping with climate change

9  Building new business models  Transferring learnings faster  Defining new metrics of success  Re-envisioning happy/healthy lifestyles

Trends Driving Change in Retail Innovation is a necessity

Exercise Identifying innovations

Group exercise 1.(5 min) Split into teams of two; review your assigned scenario 2.(10 min) In teams, think about your company in that future world. Post a SWOT analysis 3.(10 min) As full Council, cluster common post-it notes together. Name those clusters 4.(10 min) Collectively agree on the top 5 clusters that the company should start addressing now 5.(5 min) Individually, answer the question: What two ideas, processes, or innovations should my team pursue to address the top 5 clusters? 6.Report your ideas to the group 12

Sustainability updates [Include any updates from the sustainability team] 13

All good ideas are terrible. Until people realize they are obvious. If you're not willing to live through the terrible stage, you'll never get to the obvious part. - Seth Godin “ ”

Closing Thoughts or Questions? 15