Jeff BerrySenior Director,

Research and Development

THE FUTURE OF CANADIAN RETAIL

COMBINING YESTERDAY’S RULES WITHTODAY’S TRENDS FOR RETAIL SUCCESS

July 10, 2013

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 3

Methodology

• 20 Minute long online survey• April 2013• 1,127 Canadians• Representative sample• Age• Gender• Region

FUTURE SUCCESSBY LEARNING

FROM THE PAST

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Change has been exponential

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The Four Principles

THE CUSTOMER IS QUEEN

RETAIL LIVES IN

THE DETAIL

LOCATION, LOCATION, LOCATION

THE 4 P’S OF

MARKETING

1

4 3

2

THE CUSTOMERIS QUEEN

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CROWD SOURCING

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RE-COMMERCE

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P2P (PEER-TO-PEER)

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CROWD-FUNDING

RETAIL LIVESIN THE DETAIL

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RETAIL LIVES IN THE DETAIL

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 14All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

RETAIL LIVES IN THE DETAIL

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 15All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

RETAIL LIVES IN THE DETAIL

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 16All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

RETAIL LIVES IN THE DETAIL

63%expect to receive personalized offers based on their previous

purchasing behaviour, personal information and preferences

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 17All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

RETAIL LIVES IN THE DETAIL

54%would like to receive a

personalized offer upon entering the store on a smartphone or tablet or through an associate

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 18All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

RETAIL LIVES IN THE DETAIL

53%are willing to share personal

information for customized offers, discounts and services

THE 4 P’S OFMARKETING

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 20All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

THE 4 P’S OF MARKETING

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 21All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

THE 4 P’S OF MARKETING

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 22All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

THE 4 P’S OF MARKETING

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 23All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

THE 4 P’S OF MARKETING

LOCATION,LOCATION, LOCATION

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 25All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

LOCATION, LOCATION, LOCATION

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 26All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

LOCATION, LOCATION, LOCATION

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 27All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

CROSS-BORDER

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 28All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

CROSS-BORDER

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 29All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

SHOWROOMING

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SHOWROOMING

CHANGING FOR A CUSTOMER-CENTRIC

FUTURE

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 32All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

LEVERAGE CUSTOMER-SPECIFIC DATA

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 33All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

CREATE SEAMLESS OMNI-CHANNEL SHOPPING

Retailers must seamlessly integrate the offline and online worlds and provide a positive

experience to consumers

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EMBRACE IN-STORE TECHNOLOGY

70%Want technology

enabled associates

54%Scan while shopping and pay

quickly anywhere

54%Want personalized offers when

they enter the store

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited. 35All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.

GIVE CUSTOMERS CONTROL

Engaging customers in creating their own brand interaction

and experience

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GIVE CUSTOMERS CONTROL

Retailers will seek help from their key customers in designing the

shopping experience, suggesting merchandise, and perhaps even

tweaking pricing.

FORGING THEFUTURE OF RETAIL

QUESTIONS?

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THANK YOU

All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.