1. How Do You Plan Inventory in an Omnichannel World? Integrated Merchandising, Planning, and Supply Chain Presentation and Panel Discussion Led by Jamie Lawrence March 1 st, 2016

2. How Do You Plan Inventory in an Omnichannel World? Copyright © 2016 Deloitte Development LLC. All rights reserved. Today’s Landscape Source: Deloitte report “Navigating the New Digital Divide” Digital Influence Growth since 2012 Digital influence continues to increase and shift the ground under the feet of retailers. It reached an estimated 64% in 2015 (up from 49% in 2014) 2

3. How Do You Plan Inventory in an Omnichannel World? Copyright © 2016 Deloitte Development LLC. All rights reserved. Digital Influence varies by category Nearly all categories are seeing higher year over year digital influence The most digitally savvy retailers recognize this “category dynamic” and are increasingly planning and executing their Merchandising, Supply Chain, and Marketing strategies at the Category level Source: Deloitte report “Navigating the New Digital Divide”

4. How Do You Plan Inventory in an Omnichannel World? Copyright © 2016 Deloitte Development LLC. All rights reserved. Capabilities Key Unlock Changing “how we think” by tying Customer insights to assortment, demand, inventory, and fulfillment Operating Model Key Unlock Merging B&M/Ecomm Merch teams and blending Merch and Supply Chain teams cross-functionally Technology Key Unlock Integrating technologies that analyze data, forecast demand, and help holistically plan and manage inventory with a CUSTOMER FOCUS 123 Today’s challenges require a fundamental shift in how Merchants and the Supply Chain integrate across three key dimensions

5. How Do You Plan Inventory in an Omnichannel World? Copyright © 2016 Deloitte Development LLC. All rights reserved. The new world requires changing “how we think” through capabilities that help better understand Customers, predict demand, and maximize inventory New CapabilitiesEnhanced Capabilities Localizing Assortments and Predicting Demand Maximizing Inventory Efficiently Better Understanding Customers

6. How Do You Plan Inventory in an Omnichannel World? Copyright © 2016 Deloitte Development LLC. All rights reserved. Underpinning today’s challenges is opportunity Leading Retailers are leveraging customer footprints to understand preferences – both in product and in fulfillment – to optimize the assortment, forecast demand by node, and optimally position inventory TECHNOLOGY HAS EMPOWERED THE CUSTOMER Find inspiration Browse & research Select & validate Purchase & pay Return & service With more choice as to when, where, and how to buy More information than ever is available about Customers and their preferences at every click and store

7. How Do You Plan Inventory in an Omnichannel World? Copyright © 2016 Deloitte Development LLC. All rights reserved. Today’s Panel JAMIE LAWRENCE Deloitte Merchandising, Planning, and Supply Chain  Jamie helps retailers transform their merchandising to win share in the fundamentally changed retail world  Jamie has 17+ years helping transform merchandising in complex environments  Jamie has particular expertise in assortment planning, analytics, integrated planning, inventory management, and omnichannel operating model and organization design ANU PENMETCHA HBC Digital VP of Omnichannel & Chief of Staff  Anu drives digital strategic planning, digital innovation, omnichannel projects and business ops across four banners – saks, saksoff5th, lordandtaylor and thebay  Anu specializes growing digital businesses and implementing omnichannel strategies  Prior to joining HBC, Anu spent 10+ years working with companies across the world in building their digital business and driving omnichannel growth PAT WALSH CVS Health Senior Director of Omnichannel  Pat is developing the next generation of more convenient ways for customers to access CVS Heath services, where and how they want  Pat brings a unique blend of strategy consulting and operating experiences, and he has helped several large retailers drive omnichannel growth strategies  Pat “grew up” as an apparel merchant and store operator

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