2.  Culture  Amazement  Trends & Challenges  Member Support  International Overview

3.  Ace Owns Helpful  Passion for People  Relevant Differentiation  Productive Paranoia  David vs Goliath  Community Culture It’s about VALUES, not just

4.  Paradox of Capitalism Greedy vs Benevolent Master vs Servant  Never lose sight of who it is you’re serving The bigger the heart, the better equipped the business

5. Amazement 101

6. “Ace has found a way to operationalize helpful….”  Employee-centric culture  Focus on the “5 P’s”  People, Product, Pricing, Place, Promotion 52 Tools for Customer Amazement:  Know the value of your customers  Play to your strengths  Focus on the customer, not the money  Own your mile  Satisfaction is a rating, loyalty is an emotion Service is not just a word, it’s their mantra

7. Service The Helpful Place isn’t just a slogan; it’s our Culture!

8. Trends & Challenges

9. +  Niche retailing works  Shift from Wall St. to Main St.  Small businesses like buying from small businesses  Convenience and Personalization – time famine  Solving problems vs just selling products  Service still matters! -  Differentiate or die to digital!  Role of omni-channel marketing  Rising labor costs in China and at home  Proliferation of cross channel marketing  Consolidation and increasing competition Trends & Challenges Do self audits and SWOT yourself!

10.  Play to our strengths – Own Helpful!  Adapt to needs of omni-channel and online sales  Maintain relevant differentiation with respect to products and the in-store experience  Focus on unit-level economics  Private label and controlled brands  Leverage social media to convey “solutions”  Increase national advertising  Help retailers GROW Toolbox

11. Member Support

12.  Wholesale  Be the Best Wholesaler – controlled label programs  Supply Chain Excellence – SAP  Retail  Program library for flexibility and adaptability  Peer grouping with Retail Group Leaders  Field Support and Platinum Retailing  Marketing  Ace Brand Place  Business to Business  Be the Supply Place  Service  Helpful 101 and 201  Ace Center for Excellence

13. International

14. Wholesale Retail New Business Existing Retailers New Markets Greenfields Brand Leadership Retail Execution Local Support Global Sourcing Regional Distribution Supply Chain Excellence

15. BBe global act local – adapt store model OOver 650 locations across 65 countries 66 offices with 150 staff dedicated to international MMaster licensing program LLeverage Ace skill and scale in sourcing, merchandising, retail execution, and marketing PProduct regionalization through RDC’s 44 different product channels to optimize margins RRegional offices for local in-market support SShanghai sourcing office dedicated to int’l retailers

16. RDC’s Dubai, Panama, and Shanghai

17. Globally Trusted Locally Embraced