Derek Hughes

180 Degrees, Retail Experts

Global Retail Innovations

COMPANY LOGO

2

The Changing Consumer and

Retail Landscape

3

Think About This…

ComScore

4

And the Biggest Disruptor….

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• More than half of people start their search for online shopping on Amazon now, while only 26%

use search engines like Google as the starting point.

Amazon Gaining Share of Search

Business Insider

38%

48%

52%55%

42%

25%

0% 0%

12%

4% 4% 4%4%

8%

4%

0%

10%

20%

30%

40%

50%

60%

2014 2015 2016

Shopping Search Trends

Amazon Google Retailer Website Other Ebay

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• Deal valued at $13.7 billion

• Amazon:

• How will Amazon leverage Whole Foods bricks and mortar network?

• Whole Foods:

• Significant overlap between the Amazon Prime customer and the Whole Foods core consumer

• Provides greater leverage and buying power

• Serious impact on retail for good:

• Affecting more than just supermarkets—more deals for brick and mortar ahead

• Omnichannel retail is here to stay

• Supermarkets will be under great pressure to reinvent

• What’s Next??

Amazon Buys Whole Foods!

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Openings Are Concentrated: Value is a Driver

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17

19

20

24

30

52

59

60

60

70

90

100

100

100

111

400

650

1,290

0 200 400 600 800 1000 1200 1400

Forever 21 (Riley Rose)

Nordstrom

Macy's Backstage

Bonobos

Costco

Target

Dick's Sporting Goods

Walmart

H&M

Hobby Lobby

Sephora

Ross Stores

Five Below

Ulta

Lidl

TJX

Aldi

Dollar Tree

Dollar General

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Retailers are repositioning stores to be the center of customer experience

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“It’s not about online and offline anymore, it’s digical”

– Scott Galloway, NYU Stern

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Pure-play ecommerce is going away – open stores or

go out of business…

Brick-and-mortar retailers also need to be excellent at

digital

Who has the advantage?

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Unify customer and product data across all outlets to

achieve a 360 degree view of the customer

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The war is before, in and after the store.

Stores are here to stay. But they must be different

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Retailing in a Horizontal World

Trust based on status and power

Trust based on emotions and benevolence

Top down Bottom up

Assertive marketing of signs

Horizontal marketing of proofs

Become a love brand Prove clients how much you love them

YESTERDAY NOW

The new horizontal world is…

…driven by emotionalconnections

…organized by communities

✓ Communities

✓ Customization

✓ Co-creation

✓ Testimonial based trust

✓ Transparency

✓ Hyper-local

✓ Etc.

But how do this when you are NOT one of those"horizontal natives" ?

”“ “ ”

CUSTOMIZATION COMMUNITIES

The world of tomorrow will be led by emotions

and organized by communities

The best proof thatthe brand adapts

itself to the client –not the reverse

”“PEOPLE

Trust your people first if you expect

clients to trust them... And you

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A global Ebeltoft Group report

WHY

• Understand how the "horizontalization" of the world and customer impacts retail models

• Explore how retail brands can adapt to this new reality

HOW

• international benchmarks of relevant initiatives provided by our local members

• global customer research/ 8,300 online interviews in 12 countries

• Ebeltoft’s worldwide expertise, with insights from 16 countries

R E T A I L I N G I N A H O R I Z O N T A L W O R L D :B R A N D C O N T E N T A N D C US T O M E R R E L A T I O N S

A P R I L 2 0 1 7

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• INSERT VISUAL OF THE BOOK ?

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Beyond our horizontal world and new relations with customers,4 Key Factors Driving Retail Innovation

Smart

ShoppingInteraction Emotional Retail Responsibility

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Smart Shopping• Simplicity

• On demand

21Eatsa

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Pick up order – no lines, no cashiers, emailed receipts

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• Fresh Eats Market—Kroger

• 7-11 Korea

• Moby Mart (China)

• DGX

Small Store

Moby Mart, China

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Interaction• Shop & socialize

• Expertise

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Emotional Retail • Discovery

• Passion

Strategy I Internationalisation I Cross Channel I Innovation I Consumer Insights

Electro Mart, South Korea

STARBUCKS ROASTERY: Re-established the Connection to Coffee

in a Willy Wonka-Like Environment

28PK Market: South Korea

29PK Market

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Responsibility• Ethical, honest

• Purpose

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Purity Sells…

33Reformation, U.S.

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The Need for Acceleration

Why McMillan Doolittle?We are objective outsiders who are passionate about retailing

– both as experienced retailers in our partner ranks as well as

over twenty years of consulting experience.

STRATEGY 1st

CONSUMER-CENTRIC

CLIENT FOCUSED, PARTNER DRIVEN

COMMITED TO DEVELOPING INNOVATIVE SOLUTIONS

GROUNDED IN RETAIL EXPERIENCE & THOUGHT LEADERSHIP

It’s clear that retail is undergoing

its biggest transformation in

history ….

The rules of retail are changing

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Utilize Dynamic pricing, linked to all channels

Provide hyper-localized assortments exactly right for the local consumer

Incorporate food/drink experience to encourage lingering and interaction

• DYNAMIC PRICING HOLISTIC CUSTOMER VIEW

HYPERLOCALIZED ASSORTMENT

REASONS TO LINGER

Seamlessly use technology to ease shopping/ checkout, etc…

• SEAMLESS USE OF TECHNOLOGY

KEY TACTICS EMPLOYED BY OMNICHANNEL LEADERS

Merge on-line off-line information—online data, off-line personal interaction

The Ultimate Omnichannel Retailer Will…

Steve Jobs Quote…Deciding what not to do is as important as deciding what to do.

Steve Jobs

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“One area where I think we

are especially distinctive

is failure. I believe we are

the best place in the

world to fail (we have

plenty of practice!), and

failure and invention are

inseparable twins. To

invent you have to

experiment

Jeff Bezos on Invention

(and Failure)

”

A full transformation:

✓ BE SOCIAL✓ TAKE A STAND

✓ AUTHENTICALLY ENGAGE✓ KNOW YOUR CUSTOMER

✓ KEEP IT FRESH

Thank You!!

derek@180.ie