The future of offline and online retail

1. Pre – covid-19 retail challenges2. The Great Accelaration3. Retail Transformation 2021-2025

Optimization

Innovation Innovation Innovation Innovation Innovation

DRIVERS & CATALYSTS IN RETAIL TRANSFORMATION

URBANIZATIONINDUSTRIALIZATION

CAR OWNERSHIPGLOBALIZATIONDIGITALIZATION

LEHMANBROTHER 15/9 2008COVID -19

DRIVERS CATALYSTS

Optimization Optimization Optimization

The transformation pressure increases

Globalization-increased number of options

-Increase price pressure

LehmanBrotherscrisis- focus on ROI

-increased short-termism

Digitalization beginsBooks and home

electronics categories arefirst to be transformed

Digitalization reachescritial mass

The un-storing of retail

Covid 19Shifts in priorityNew behaviours

Discountersincrease theirmarket share

DIGITALSTAY AT HOME

WORK FROM HOME

THE BIGGER GET BIGGER D2C

VALUE FOR MONEY ONLINE/OFFLINE IN HARMONY

VALUE CREATION

ASSORTMENTWIDTH/DEPTH

EASIESTCONVENIENCEImmediate satisfaction

CHEAPESTPRICE FIGHTERS

Low price offerings

BIGGESTDESTINATION

One stop shopping

HOTTESTADDED VALUEExperiences,

service, luxury

THE SEA OF IRRELEVANCE

LOW

LOW

HIGH

HIGH

HALO

• The Big 4 will rule the great seas• ”What Amazon can´t do” is a relevant business strategy• Online will continue to grow• Online will go offline• Discount will continue to grow in all categories• Last mile options will explode• New store formats will evolve• CTH – Close To Home – will be an important marketplace

RETAIL 2021-2025