Ottawa Real Estate Forum

October 8, 2015

Retail Trends & Innovation

Retail Landscape

Competition in the luxury market

Outlet retailers coming to Canada

Benefits of the weak CAD dollar Emergence of vertical and mixed-use

developments

State of Online Retail

93% of Canadians are online shoppers

70% are recent shoppers who have made a purchase in the past 3 months

% of Online Shoppers

% of Online Cross-Border Shoppers

74%

56% 68%

48% 73%

57%

68%

49%

Most likely to purchase online

Consumers under 44 Females

Shopping Behaviour in Major Cities

Canada Vancouver GTA Montreal

% Online Shoppers 70% 76% 82% 69%

% Online Cross-Border Shoppers 52% 60% 67% 52%

State of Online Retail

Delivery Preferences

47%

37%

16% Buy online,

deliver home

Buy in-store,

take home

immediately

Other

Top Purchase Influencers

19%

24%

35%

0% 10% 20% 30% 40%

Review sites

Retailer websites & flyers

Online ratings and reviews

Consumer Spend

Online expenditure increased in all categories in

Quarter 2, except for Health & Beauty Products

Top Satisfaction Rates by Category

66%

66%

70%

74%

80%

0% 50% 100%

Kitchenware…

Footwear

Appliances

Electronics

Entertainment

$106 $88 $116

$53

$149

Kitchenware

& Homeware

Key Trends in Retail Innovation

Key Trends in Innovation

Curated Collections

Hyper Local Online Offline

Mashup

Customization Experiential Retailing 2.0

Retailvention Technology

Intervention

5

Curated Collections

The heart of successful retailing rests in creating a coherent and compelling assortment

Customers have access to goods from a much broader and global variety of providers

Retailers are under pressure to deliver a clear and meaningful offer

6

6

Trunk Club, USA

7

Customization

Retailing and manufacturing now offer increasingly customizable options to meet high customer expectations

Customization in retailing is reaching critical mass

8

8

BIRCHBOX, USA

BIRCHBOX, USA

Experiential Retailing

Retailers must rethink the role of the store

Showcase merchandise in a way that boldly delivers an experience

Gain more relevancy to consumers:

• Social gathering places

• Centres for knowledge, learning, and information

• Places of recreation, relaxation

11

11

Hedonism, UK

12

Hedonism, UK 13

Hyper Local Power in truly being local

and eco-friendly

Having the right products sourced from the local community resonates with many trends and influences consumers:

- Freshness

- Sustainability

- Supporting local community

- Safety

- Consumer interest in understanding the products they consume 14

14

Au Bout du Champ, France

15

16

Au Bout du Champ, France

Online Offline Mashup

Seamlessly blending the online and offline retail experience

Allowing customers to shop where and how they want

Online tools are being adopted for in-store use

Bringing the immediacy of online into the brick and mortar world

17

17

Argos, UK

18

19

Argos, UK

Retailvention

New models challenge the very nature of what retailing can be

Retailvention poses high-impact questions:

- How do you think about an existing business in a completely different way, shattering the tried and true methods of distribution and selling?

- How do you build and take a business directly to the customer, by-passing traditional selling channels?

20

20

21

Bilder & deClercq, The Netherlands

22 Bilder & de Clercq, The Netherlands

Technology Intervention

Technology itself is not innovation

What technology enables customers to do provides true innovation

Arms consumers with more choice, more access, and more information than ever before:

- 24 hour access to goods

- Access to more detailed information; customized offers

- Seamless checkouts

- Real-time visibility into inventory 23

23

TeamLabHanger, Japan

24

For a free copy of Retail Innovations 10

Visit: www.jcwg.com

Or scan:

Lisa Hutcheson J.C. Williams Group 90 Richmond St. E., Suite 100

Toronto, ON

T 416.921.4181

M 416.986.3035 lhutcheson@jcwg.com

Twitter: @_lisahutcheson

www.jcwg.com