1. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 The evolution of food shopping Joseph Robinson – Conlumino

2. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Agenda The backdrop Shopping trends Market dynamics Implications Agenda

3. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 The backdrop

4. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 GDP growth patterns, year-on-year change (%) The backdrop Economic growth 2009 -5.0+1.4 RecessionRecoveryNormality 201020112012201320142015 +0.8-0.3+1.4+2.1+2.4 Double dipRecovery

5. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Total retail consumer expenditure growth The backdrop Retail growth 1.6% 1.1% 0.9% 2.2% 3.1% 20102011201220132014 3.4% 2015

6. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Forecast sector growth rates for 2012 The backdrop Sector level growth Home -0.5% Food3.2% Beauty 3.3% Electricals -5.1% Books -2.3% Fashion 2.9% DIY -3.7% Furniture -7.4% Music & video -6.0% Eating out1.9% Toys-1.3% Gifts1.4%

7. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Growth in food: inflation versus volume Volume growth (%) Inflation growth (%) The backdrop Food: inflation vs. volume

8. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 The backdrop Summary Still in a period of change Consumers remain under pressure Retail still in the mire Inflation easing in food

9. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Evolving shopping trends

10. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Single occupancy householdsWorking from home 1971: 18% 1991: 27% 2011: 29% 2011: 1.3m home workers 3.7m occasional home workers Convenient meal solutions ‘top-up’ shopping Locality Online convenience Evolving shopping trends Lifestyle trends

11. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Online Evolving shopping trends Total online spending Online spending and growth rates 2010-2020 £bn % Online retail expenditure (£bn) Growth rate (%)

12. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Shopping online Internet spend, penetration by sector for 2010 vs. 2015 Evolving shopping trends Online spending by sector

13. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Evolving shopping trends M-commerce Reach valueInfluence valueSales value £49bn£1.83bn£1.06bn £207bn£39.66bn£14.19bn The value of mobile to retail

14. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Lifestyle factors influencing behaviour Rising online penetration M-commerce is next battleground Evolving shopping trends Summary

15. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Evolving market dynamics

16. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Evolving market dynamics Prioritisation Household expenditure on food 2007 Pre-recession 2012 After-recession £5,092£5,840 44.7%49.6% (£11,393)(£11,772)

17. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Evolving market dynamics Promiscuity 2007 Pre-recession 2012 After-recession £2,037£1,428 £5,092£5,840 Total spend and average number of stores used for food shopping

18. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Evolving market dynamics Promiscuity

19. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 one 28.2% 51.2% two 55.4% 42.8% three 12.3% 5.8% four 3.7% 0.2% five+ 0.4% 0.0% 2012 2002 2012 2002 The number of store types used for food shopping Evolving market dynamics Piecemeal

20. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Retailers Piecemeal: Evolving market dynamics Piecemeal

21. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 I am thinking much more about the food I’m buying Buying more expensive foods to substitute eating out Switching to retailer own brands to save money Buying cheaper brands and foodstuffs Cutting back on the amount of food I buy to save money 69.3% 54.3% 44.9% 31.1% 17.1% Evolving market dynamics Polarisation

22. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Retailers Polarisation: trading up Evolving market dynamics Polarisation

23. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Retailers Evolving value expectations Evolving market dynamics Polarisation

24. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Retailers Evolving value expectations Evolving market dynamics Flexibility

25. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Food representing higher share of budget Consumers shopping around more Value expectations are evolving More different types of stores being used Evolving market dynamics Summary Transactions becoming more disparate

26. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Implications

27. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Convenience is key One size does not fit all Implications Implications for packaging

28. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Packaging for an online world Packaging as wider marketing tool Implications Implications for packaging

29. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Implications Implications for packaging Packaging to communicate brand values

30. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 Convenience is key One size does not fit all Packaging for an online world Packaging as wider marking tool Implications Summary Packaging to promote brand values

31. The evolution of food shopping Conlumino hello@conlumino.com | 020 7936 6663 www.conlumino.com @conlumino.com