Re-population R’structure

Revenue Reach

Reshaping

• Average Age

– France 40,4

– Germany 45,3

– Italy 43,2

– Netherlands 41,5

– UK 40,2

• 60+ already 25%

• Limited growth

• Aging population Source: Eurostat 2010

Source: Economist 2013

Re-population

• Number of households is growing by +9% to +13%

• By 2020 40% of the households are consisting of 1

• By 2050 half of all households is a single household

Single Household is the new Normal

2008 2010 2020

– France 34% 34% 37%

– Germany 38% 39% 43%

– Italy 28% 29% 31%

– The Netherlands 36% 37% 40%

– United Kingdom 34% 34% 38% Source: Economist 2013

Re-population

Urbanisation

• Growing big cities, more people, more stores

• Aging & shrinking populations elsewhere

• Urban population

– France 87,8%

– Germany 74,5%

– Italy 69,1%

– Netherlands 84,7%

– UK 80,1%

Source: Eurostat 2010

Source: Economist 2013

Re-population

• New target groups, new approach

• Mass individualisation, self made

• Time pressure, 24/7 economy

Source: vougue.fr

. .

Re-population

• Total Retail sales in Europe seems to be OK

Source: Eurostat, Verdict, National Stat offices and Q&A Research 2013

Revenue

90,0

100,0

110,0

120,0

130,0

140,0

150,0

160,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Retail Development

France

Germany

Netherlands

Spain

Switzerland (in CHF)

United Kingdom (in £)

Retail Development

• Total Retail sales in Europe seems to be OK

• What happens if we take inflation into account?

Source: Eurostat, Verdict, National Stat offices and Q&A Research 2013

Revenue

90,0

100,0

110,0

120,0

130,0

140,0

150,0

160,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Retail Development

France

Germany

Netherlands

Spain

Switzerland (in CHF)

United Kingdom (in £)

CPI EU 27

Retail Development

• Stagflation seems horror scenario

• Reality in Non Food for 5 - 10 years

Source: Eurostat, Verdict, National Stat offices and Q&A Research 2013

Revenue

90,0

100,0

110,0

120,0

130,0

140,0

150,0

160,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Non Food Retail Development

France

Germany

Netherlands

Spain

Switzerland (in CHF)

United Kingdom (in £)

CPI EU 27

Non Food Retail Development

• Unemployment up

• Forecast Growth moderate

• Forecast Retail down

• Price sensitive consumers

• Calculated consumers

• The end of consumertism

Revenue

• The new middle market

• Value retailers

• New business models

• Price is back in marketing mix

Revenue

Everybody is online

– Classic Internet Time: 71 minutes per day +9%

– New Internet Time: 41 minutes per day +46%

Internet-penetration

Source: Spot.nl 2012

Source: Worldbank 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

France

Germany

Netherlands, The

United Kingdom

Belgium

Reach

Instant Internet within reach

– iPad fastest product adaption ever

– iPad is just start of tablet revolution

– WiFi hotspots everywhere

Source: FON 2012

Reach

Source: Morgan Stanley 2012

Mobile internet

– 24% of all e-commerce will be m-comerce by 2016

– 70% of m-commerce will be t-commerce by 2016

– 61% of shoppers would use mobile at POS

Source: eMarketer.com 2013

Source: securedgenetworks.com

Source: eMarketer.com 2013

Source: Sony corp USA 2013

Reach

From “word of mouth” to “word of mouse”

– 1 out of 5 shares store information

– 2 out of 3 reads store information

– 53% makes store selection based on reviews Source: TWA 2012

Source: 540 SEO 2012

Reach

TO

TA

L S

AL

ES

(m

illi

on

s)

2007 2008 2009 2010 2011 2012

50% 48%

47% 45%

42%

38%

Source: Jupiter/Forrester US Online Retail 2007 - 2012

OFFLINE SALES

OFFLINE SALES

INFLUENCED BY

ONLINE

ONLINE SALES

TOTAL ONLINE

IMPACT

Source: Q&A Research 2010

MOA & Infodising

– App’s will replace the browser

– 46% is not able to properly search online

– Infobesitas is the new disease

– Pre-selection is the power of retail

Source: Wired.com 2010

Source: FAZ 2012

Reach

E-commerce

– CAGR from 2010 towards 2015 still double digit

– Physical retailers are picking up in second wave

Source: Forrester 2011

€0

€5.000

€10.000

€15.000

€20.000

€25.000

€30.000

€35.000

€40.000

€45.000

€50.000

2009 2010 2011 2012 2013 2014 2015

Online Retailsales & Online Shoppenetration

UK Germany France Netherlands Italy Spain

72%

66%

59%

70% 34% 34%

Reach Online retail sales & online shop penetration (in millions)

• Consumer is Crosschannel

• From TOMA to TOIA

• Fewer visitors, more customers

• SoLoMo: Social, Local, Mobile

Reach

More meters

Source: Verdict, Q&A Research 2013

Reshaping

0,0

50.000,0

100.000,0

150.000,0

200.000,0

250.000,0

300.000,0

350.000,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Development shopping square meters (millions) in France, Germany, Netherlands, Switzerland and UK

Grocery retailers Non-Grocery Retailers

More Sales

0,0

50,0

100,0

150,0

200,0

250,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Development sales index France, Germany, Netherlands, Switzerland and UK

Grocery retailers Non-Grocery retailersSource: Verdict, Q&A Research 2013

Reshaping

Decreasing floor productivity Non Food Retail

Source: Verdict, Q&A Research 2013

90,0

100,0

110,0

120,0

130,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Development floorproductivity index France, Germany, Netherlands, Switzerland and UK

CPI EU 27

Grocery retailers

Non-Grocery Retailers

Reshaping

Decreasing floor productivity online impact

Source: Verdict, Q&A Research 2013

90,0

100,0

110,0

120,0

130,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Development floorproductivity index France, Germany, Netherlands, Switzerland and UK

CPI EU 27

Grocery retailers

Non-Grocery Retailers

Reshaping

• Sales density is tending to go down

• So from Sales per SQM to Customer Value

• Fewer sales square meters, new retail formats

Reshaping

R’structure

• Cross channel

• Rationalisation of

the square meters

• Store as touch point

• Customer value versus Sales per square meter

• From transaction conversion to decision conversion

• Showroom, Click & Collect, Experience

R’structure

• Great customer service

• Demand driven retail

• NPS as indicator for trust

• Customer satisfaction

• Know your customer needs

R’structure

• Customer X-channel

• Customer value

• Customer experience

• Customer service

• Customer satisfaction

R’structure