Gondola presentation oct 2015-v7 am

October 2015

Tony D‘Onofrio

The Disruptive Future of Retail

© 2015 Tyco. All Rights Reserved.

Agenda

2

The Disruptive Future of RetailYou are the Leaders to Shape It

• Global Retail Market Data

• Global Retail Dynamics

• The Future of Retail

3© 2015 Tyco. All Rights Reserved. Company Confidential.

The Global Retail Market in 2019

Source: Euromonitor


Global Retail Market Data

Store CountRetail Market Growth Sales Volume

Source: Euromonitor


GR

DI

Cou

ntry

A

ttrac

tiven

ess

Tyco ConfidentialSource: AT Kearney 2015 Global Retail Development Index


2015 Global Retail Development Index

Source: AT Kearney 2015 Global Retail Development Index


Brazil $353B, 2.0%

Retailing in LATAM: $1.1T, 2.1% CAGR

Source: Euromonitor

Market Size in USD$ ; CAGR 2014-2019

Mexico $230B, 2.2%

Argentina $114B*, 2.3%

Colombia $72B, 3.4%

Chile $57B, 2.4%

Uruguay $14B, 1.4%

Peru $33B , 5.3%

Venezuela $70B*, 0.3%

Ecuador $21B, 4.2%

Bolivia $7B, 2.5%

* retail size inflated due to high inflation rates and currency devaluation

© 2015 Tyco. All Rights Reserved. 8

Global Retail Dynamics

9© 2015 Tyco. All Rights Reserved. Company Confidential.© 2015 Tyco. All Rights Reserved. Company Confidential. 9

Top Retail TrendsMultichannel consumers more profitable than single channel*

shoppers to refrain purchasing from store if desired brand not available*

*Sources: RIS 2015 Shopper Experience Study; RSR 2015 Omnichannel Report; RSR 2015 Mobile Study

retailers believe consumers are using mobile as part their shopping experience*

50%

69%

90%


Relevancy of the StoreEducate & Empower in-store employees using technology

#1

Brick & mortar stores account retailer revenues* 85%

Sources: PSFK and RSR Research; RSR 2015 Store Report

opportunity improving in-store experience*


The Consumer Power

What Consumers

Want

How are Retailers Addressing it?


Retailer Priorities

Increased Revenues

Higher Conversion Rates/ higher in

store traffic

Stronger Margins

Lower shrinkage

Labor Optimization

Actionable Business Intelligence

Higher Market Basket

Better Inventory Turnover

Protect Assets


Retailer Losses

/ 13 /

Shrinkage Inventory Distortion

Returns

Return$642.6

Overstock$471.9

Out-of-Stocks$634.1

Source: Global Theft Retail Barometer, IHL Group


How much are retailers losing?

$285bDue to

bad processe

s

$220bDue to

bad forecastin

g

$285bDue to

bad processes

$85bGot better

price elsewhere

$63bInconsiste

nt sizing

$74bPrice

mismatch online

$223bDue to data

disconnect

$162bDefective/ poor

quality merchandi

ze

$85bEmployee

theft

$77bShoplifting

Source: Global Theft Retail Barometer, IHL Group


TheFuture

Of RETAIL


Technology Driving Shifts in Retail Power


Evol

ving

Tec

hnol

ogy

Syst

ems

Impa

ctin

g R

etai

l


Bubbles of Future Retail Opportunities

SCREEN TIME(Per Day)

30 Country Millward Brown study of 16-45 year olds

Source: Transparency Research

Deloitte Digital

Frost & Sullivan

Frost & Sullivan

Global Theft Barometer

IHL GroupIHL Group

$1.5 TrillionMobile & Digital

Influence on in-storesales in 2014, up

from $334B in 2012

$5,409MillionRetail RFID Market

By 2020, up from$542M in 2013

$5.8 BillionGlobal Wearables

Tech market by 2018,Up from $750M in 2012

$162 BillionGlobal Retail Shrink

$4.3 TrillionGlobal Online

Retail SalesBy 2025, up from

$0.55T in 2011$1.1 Trillion

Global Inventory Distortion$634 Billion From

Out-Of-Stocks

63%Global Retailers

Maintaining / ExpandingGlobal Source Tagging

Phones147

minutes

TVs113

minutes

PCs108

minutes


Store Reinvented - The Future of the Store

“Retailers reported

16.5% YOY improvement in KPI’s related to sales, customer engagement and satisfaction as a result of empowered sales associates”

Source: EKN Modern Labor for Omnichannel Success Report


GLOBAL RETAILERS

LATAM RETAILERS

Source: Deloitte 2015 Global Powers of Retailing

1

2

3

4

85

6

7

9

10

Retail Brands


Global Source Tagging & The Future of RetailFuture Plans of Using Source Tagging Across Regions Future Plans of Using Source Tagging Across Product Categories

The Future of Retail• Less Store Labor / Improved Customer Experience• Interactive Retail Stores with Employees as Brand Ambassadors• Item Level Intelligence Driven by Source Tagging / Out of Stocks FOCUS• A Focus on “Value” Integration• A Sustainable Retail Future


Technology Will Continue to Disrupt the Store


Tony D’OnofrioEmail: [email protected]

Phone: +41 791 508 208

Thank You


APPENDIX

Top Global Apparel Brands Top LATAM Apparel Brands

Source: 2015 BrandZ Top Global Apparel Brands and Top LATAM Apparel Brands

Brand Value for top 100

Brand Value top 50

12

3

4 5

$3.3T 14

% growth last decade

growth YOY

126%

$132B up vs. LY2%