1. Store Customisation By Miloš Ryba Senior Retail Analyst Planet Retail Ltd | September 2011 How to adjust your store to the consumers

2. 2  We are: The leading Global Retail Analysis firm since 1995.  We analyse: 9,000 retail operations across 211 retail markets.  We serve:  14 of Top 20 Consumer Goods companies  15 of Top 20 Retailers  9 of Top 20 Retail Technology Vendors  We deliver: Critical insights that create competitive advantage. About Planet Retail

3. 3 Contents 1.Schwarz Group 2.Delhaize Group - Cross learning 3.Carrefour - Interviewing 4.Tesco - Loyalty card data 5.Conclusions

4. 4 1 Schwarz Group

5. 5 Schwarz Group’s Lidl – tested a few new concepts.  New soft discount concepts tested in Germany, UK and the Czech Republic.  Sales area - 700 to 1,000 square metres; (1,300 sq m).  Move into convenience:  locations in city centres;  fresh bakery and instore oven;  butcher’s counter; and  expansion of fruit and veg.  Convenience concept from the UK failed. Schwarz Group 1

6. 6 2 Delhaize Group - Cross learning

7. 7 Delhaize Group is master in cross-learning between banners and country operations.  Red Market discount supermarket launched in 2009 in Belgium.  Leanings from Delhaize’s US operations:  Food Lion – lower gondola end  Hannaford – self check out  Bottom Dollar – limited non food  Bloom – self scanners  Rolled out in Belgium and expanded into Greece, Romania. Cross learning 2

8. 8 Walmart UK using a matrix system.  Walmart is taking learning from its Latin American operations.  Asda supermarkets using its “8 box matrix system”.  Through interviewing Asda identified locations with higher consumer demand for non food products. Cross learning 2

9. 9 3 Carrefour - Interviewing

10. 10 Carrefour planet concept. Interviewing 3  Move from ‘everything under one roof’ to becoming the ‘specialist for everyone’.  However, Carrefour still offers a vast array of non-food items which can be ordered online.  Carrefour interviewed 50,000 households.

11. 11 4 Tesco - Loyalty card data

12. 12 Tesco the master in store tailoring in the UK  Tesco Clubcard, the most sophisticated loyalty scheme, allows Tesco to customise its store to local consumers.  Tailored hypermarkets located in ethnic neighbourhoods like Brixton in London.  Expansion of Polish food ranges in the UK to more than 250 product lines.  Store tailoring is still not common in Tesco’s CE operations, but it is a par to the strategy. Loyalty card data 4

13. 13 Tesco’s store opening process in Central Europe  Tesco looking for a region, city, town:  Number of cars  Income  Unemployment  Affluence of the region Loyalty card data 4  Revenue estimation  Identification of a store format  Cost of development and equipment  ROCE, final decision

14. 14 Walmart paid a high price for lack of information about its consumers  Walmart, EDLP retailer, does not operate any loyalty scheme.  Walmart delisted products in 2008 as part of its rationalisation initiative.  Walmart is adding back 9,000 SKUs – which is 11% of its assortment – that were originally removed.  Lack of granularity in shopper data makes it challenging to tailor merchandising to the local demographic. Loyalty card data 4

15. 15 5 Conclusions

16. 16 Cross learning among banners and countries can make your business more successful Data from loyalty cards is a critical source for a format expansion and store tailoring Tailored store openings take time of which could take advantage your competitor Conclusions 5

17. 17 Miloš Ryba Senior Retail Analyst Planet Retail Ltd T: +44 (0)207 728 4962 F: +44 (0)207 728 4999 milos.ryba@planetretail.net Contact milosCEEretail

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