Presenting the highlights of the CEO Survey assessing ‘Supply Chain’s Critical Role in an All-Channel World’.
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CEO Viewpoint: Supply Chains Critical Role in an All-Channel
World Final Presentation 2014
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Presentation Overview Presenting the highlights of the CEO Survey
assessing Supply Chains Critical Role in an All-Channel World.
Approach and Respondent Profile1 Challenges & Priorities for
Growth 2 Evolution of the Retail Operating Model3 Innovations in
the Retail Operating Model 4
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Key
Takeaways INSIGHTS FINDINGS Transformation to omni-channel is a
major challenge for CEOs Top priorities for growth: Expansion into
new markets & regions, opening more stores, and expanding
through M&As Top risks that keep CEOs awake at night:
Increasing competitive threats Margin erosion and cost reduction
Attracting and retaining customers 50% of CEOs say supply chain is
a strategic differentiator. However, on average, CEOs ranked supply
chain investment at the bottom of the stack Germany is the most
confident of regions followed by South Africa and USA 65% of retail
execs who consider supply chain a top priority are very confident
about revenue growth over the next 3 years
Approach and Respondent Profile
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Our
Approach and Respondent Profile The aim of this study was to
provide key insights from CEOs on their business priorities and the
role supply chain plays in evolving businesses to be nimble,
flexible and agile to address market realities and the Millennial
generation of shoppers. of CEOs who are very confident of revenue
growth over the next 3 years. This is 52% for EMEA, 56% for Asia
and 54% for the Americas. 54% of participants were from top 1000
retailers including 27 of the top 250 53% responses were achieved
in PwCs global retail CEO study. 409 CEOs from targeted via an
online panel. 8 markets retail executives were interviewed by
Forbes Insights. 18 Russia 28 USA 155 China 56 Canada 23 UK 68
Germany 47 South Africa 11 Australia 21
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Some Big
Name Participants Highlighting the global reach of the study with
some of the known big name retailers who participated in this
study. USA Food Lion Mary Kay, Inc. Levi Strauss Target Corporation
Macys Defence Commissary Agency UPS Store Canada The Medicine
Shoppe Mainly Mac PM Industries UK ASOS Lauren Conrad Topshop Mace
China Walmart Carrefour Swarovski Australia Rainfresh Nilfisk
Alto
Challenges and Priorities for Growth
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL Soaring energy or raw
materials was sighted as being extremely likely to occur at 57%.
However, organizations believe this will affect their organizations
to a less extent. Natural disaster disrupting a major trading
manufacturing hub Lack of stability in capital markets Exchange
rate volatility Reputational damage to our brand The rise of the
multiple channel environment (multi/omni/all) Increases in
unexpected regulatory requirements Likelinesstooccur 57% 34% 25%
14% 43% 53% 41% Soaring energy or raw material costs 57% Increasing
competitiveness with emerging markets 56% Military tensions
affecting access to natural resources 28% Business continuity
issues with trading partners 27% Q2.1 : In your opinion, how likely
do you think the following external threats are to occur? Base
range: 399-405 Extentofaffectonorganization Increases in unexpected
regulatory requirements Increasing competitiveness with emerging
markets Natural disaster disrupting a major trading manufacturing
hub Military tensions affecting access to natural resources Lack of
stability in capital markets Exchange rate volatility Reputational
damage to our brand The rise of the multiple channel environment
(multi/omni/all) Soaring energy or raw material costs Business
continuity issues with trading partners 29% 22% 21% 32% 34% 31% 36%
35% 27% 26% Q2.2: In your opinion, if the following external
threats happened in the next 12 months, to what extent would your
organization be affected? Base range: 333 to 387 37% of the top 250
see the rise of the multiple channel environment as likely to occur
External Threats
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Technology, diversification, and maintaining status quo are all
being explored to mitigate potential external threats and will
affect their organizations to a less extent. Opportunities to
prepare for the external threats Multi-channel is more disruptive
but improving our use of technology will help prepare for the
challenge. Canada, NA Q2.3: Please share your thoughts about what
you consider are the best opportunities for your organization to
prepare for these external threats. Base: 348 only asked to those
who indicated the thread was likely to occur Produce more goods in
the USA vs. other countries. USA, Top 251-1000 Specialized
departments with experienced individuals will mitigate our risk,
such as our supply chain. USA, Top 251-1000
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Keep on
the same path we are on and 'hopefully' ride any unexpected
outcomes. Situation too unpredictable to forecast. UK, Outside Top
1000 Technology, diversification, and maintaining status quo are
all being explored to mitigate potential external threats and will
affect their organizations to a less extent. Opportunities to
prepare for the external threats We will seek local talent in
specific markets. We have invested heavily in systems that
facilitate cross-channel deployment and execution. USA, Top
251-1000 Q2.3: Please share your thoughts about what you consider
are the best opportunities for your organization to prepare for
these external threats. Base: 348 only asked to those who indicated
the thread was likely to occur We should look at diversifying our
labour base and outsource some of our processes to cheaper options
abroad. South Africa, Outside Top 1000
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Technology, diversification, and maintaining status quo are all
being explored to mitigate potential external threats and will
affect their organizations to a less extent. Opportunities to
prepare for the external threats We are delaying any new
expenditures with more than 3 year payback and looking for
acquisition opportunities. USA, Outside Top 1000 Q2.3: Please share
your thoughts about what you consider are the best opportunities
for your organization to prepare for these external threats. Base:
348 only asked to those who indicated the thread was likely to
occur Stay private and re-invest in the company. USA, NA Leverage
future alternative resource providers, self capitalization, and
diversification. USA, Top 251-1000
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL Internal Challenges
Declining customer base losing market share has been identified as
having the greatest effect on organizations, however, they are less
likely to occur compared to other challenges. Lagging research and
development and innovation Declining customer base Losing market
share Data security threats Inability to finance growth Operational
capacity Human capital strategy Workforce management - Talent
shortages 57% 21% 18% 17% 24% 25% 23% Competitive Threats 41% Cost
reduction margin control 39% Failing to keep pace with
technological advancements 20% Failing to meet customer
expectations across all channels (multi/omni/all) 19% Q3.1: In your
opinion, how likely do you think the following internal challenges
are to occur in your organization? Base range: 400 to 407 Data
security threats Lagging research and development and innovation
Operational capacity Human capital strategy Workforce management -
Talent shortages Declining customer base Losing market share Cost
reduction margin control Inability to finance growth Failing to
keep pace with technological advancements Competitive Threats
Failing to meet customer expectations across all channels
(multi/omni/all) 27% 25% 25% 29% 32% 28% 37% 32% 27% 26% Q3.2 In
your opinion, if the following internal challenges occurred in the
next 12 months, to what extent would your organization be Affected?
Base range: 401 to 405 41% of the top 250 retailers see data
security threats greatly affecting their organization 11% of the
top 250 retailers see human capital strategy workforce management -
talent shortages as greatly affecting their organization
Likelinesstooccur Extentofaffectonorganization
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Investing in employees and their development is a common theme in
tackling potential internal challenges. Opportunities to prepare
for the internal challenges Increase automation and invest in other
efficiency improvement areas. USA, Outside Top 1000 Q3.3 Please
share your thoughts about what you consider are the best
opportunities for your organization to prepare for these
challenges. Base: 278 only asked to those who indicated the thread
was likely to occur. Increase minimum wage; optimize health care
benefits focusing on preventative care. USA, Top 251-1000
Competition is probably going to happen but keeping up and
exceeding expectations of our ranks of customers will keep us in
the lead. USA, Outside Top 1000
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Opportunities to prepare for the internal challenges To make sure
we are currently investing in those employees working for us today
and tapping into their passions, their talents and performance.
USA, Outside Top 1000 We continue to engage government to be able
to import specialised talent where required. South Africa, Outside
Top 1000 Our industry is changing rapidly. Continuous improvement
in sourcing and technology is on-going. Canada, NA Investing in
employees and their development is a common theme in tackling
potential internal challenges. :Q3.3 Please share your thoughts
about what you consider are the best opportunities for your
organization to prepare for these challenges. Base: 278 only asked
to those who indicated the thread was likely to occur.
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Opportunities to prepare for the internal challenges Our
opportunity to prepare is directly related to our ability to
control and reduce our cost of operation. USA, Outside Top 1000
In-house training and development strategy, strengthening, internal
career path mapping and development. UK, NA Keeping pricing
competitive in the open market of our products to mitigate threats.
Canada, Outside Top 1000 Investing in employees and their
development is a common theme in tackling potential internal
challenges. Q3.3 Please share your thoughts about what you consider
are the best opportunities for your organization to prepare for
these challenges. Base: 278 only asked to those who indicated the
thread was likely to occur
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL Business priorities
and capability improvements Expansion into new regions/markets came
out top in terms of the Top Rank. Timescales 48% 52% 39% 41% 32%
46% 47% 41% 51% 42% 43% 39% 27% 28% 45% 35% 33% 39% 12 Months 3
Years Q4.1: Please consider the business priorities for your
organization and rank the top 3 from the following list. Base:
range: 58-209 Q4.2: Where are you prioritizing capability
improvements for your organization (a) in the next 12 months and
(b) in the next 3 years? Base range: 108 to 200 65% of Top 250
retailers are prioritizing expansion into new markets in the next
12 months Expansion into new regions / markets Expansion by opening
new stores Expansion through mergers and acquisition, joint
ventures or strategic alliances Investing in new product technology
Up skilling your employees /Attracting and retaining talent
Spending capital on creating new customer experiences Decrease our
market footprint to focus on core offerings Accelerating time to
market and responsiveness Build manufacturing and distribution
capacity / supply chain 99 60 57 54 42 34 24 22 11
Evolution of the Retail Operating Model
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL It dilutes attention
from shareholder metrics and shareholder concerns 6% Priority of
supply chain management 40 20 60 80 100 % 23% top priority 51% high
priority, but not the top priority 19% medium priority 6% low
priority Over half of respondents believe Supply Chain Management
is a high priority, but not the top priority for their
organization. The main reason for this is that 30% indicated it is
in better shape than other areas of the business. Not a top
priority because *3% Otherr *3% Unsure *2% Preferred not to respond
30% of Top 250 see it as a top priority Its in better shape than
other areas of our business 30% It would require too much change
across our business i.e. retraining staff, upgrading our technology
19% Lack of financial resources available to invest in this area
10% Behaviour / attitude / lack of board sponsorship 13% It is too
tactical 14%
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL Supply chain maturity
levels Three-fifths of participating retailers describe their
organization as being a level one or two for supply chain maturity.
Level 1. Functional Focus Retailer has discrete supply chain
processes and data flows. Resources are managed at department level
and performance managed at functional level. Retailer has a
companywide process and data model which is continuously measured
at the company, process and diagnostic levels. Level 2. Internal
Integration Retailer has strategic partners throughout the global
supply chain who collaborate to an action plan, enforce common
process and data sharing and manage performance. Level 3. External
Integration Retailer has technology-enabled solutions that support
a collaborative supply chain strategy resulting in real-time
planning, decision- making and execution of their supply chain that
responds to customer needs. Level 4. Cross-enterprise collaboration
and optimization Top 250: 15% Top 251 to 1000: 25% Outside top
1000: 24% Top 250: 33% Top 251 to 1000: 46% Outside top 1000: 29%
Top 250: 7% Top 251 to 1000: 8% Outside top 1000: 19% Top 250: 33%
Top 251 to 1000: 18% Outside top 1000: 15% Q7: Which of the
following best describes your organization in relation to its
supply chain management today? Base: 404, Note: Unsure and Prefer
not to respond was 10% 17%23% 37% 13%
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL Leveraging supply
chain operations Half of retailers believe supply chain is a
strategic capability to be a low-cost provider, is a competitive
advantage in sourcing products, and is a strategic capability to
drive customer service. Top 250: 38% Top 251 to 1000: 58% Outside
top 1000: 44% Top 250: 38% Top 251 to 1000: 58% Outside top 1000:
45% Top 250: 63% Top 251 to 1000: 55% Outside top 1000: 41% Top
250: 42% Top 251 to 1000: 37% Outside top 1000: 32% Q8: How do you
leverage supply chain operations across your organization? Base:
117 to 189 50% It is a strategic capability to be a low-cost
provider Top 250: 33% Top 251 to 1000: 34% Outside top 1000: 30%
80% of Chinese retailers 50% It is a competitive advantage in
sourcing required products 50% It is a strategic capability to
drive customer service 34% It is a strategic and competitive
differentiator for flexibility 31% It drives product quality 61% of
Cross Enterprise Collaboration and Optimization retailers
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL The role of supply
chain Only 15% of retailers strongly agree that their supply chain
is sufficiently resilient to any possible external threat. Top 250:
22% Top 251 to 1000: 19% Outside top 1000: 12% Top 250: 22% Top 251
to 1000: 30% Outside top 1000: 20% Top 250: 33% Top 251 to 1000:
29% Outside top 1000: 25% Top 250: 22% Top 251 to 1000: 35% Outside
top 1000: 13% Q10.1 Please consider each of the following
statements and indicate your personnel level of agreement with each
one Note: Results presented are those retailers who selected
strongly agree Base: 407 to 409 Increasing product breadth and
assortment is critical for continued revenue growth Our supply
chain is sufficiently resilient to any possible external
disruptions Our supply chain operation is a competitive
differentiator in the market for our company Investing heavily in
supply chain management solutions is a critical area of our
financial investment for the next five years 15% 25% 26% 24%
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Areas
supporting multi-channel operations 45% of respondents consider
Planning to greatly support their multiple-channel operationsand
will affect their organizations to a less extent. Production 43%
30% Manufacturing 38% 29% Planning 42% 45% Sourcing 43% 39%
Merchandising 41% 37% Logistics 37% 43% Store Operations 39% 32%
Some extent Great extent Levelofextent 68% of Chinese retailers
believe Merchandising supports supply chain to a great extent 54%
of Chinese retailers believe Store Operations supports supply chain
to a great extent Q9: To what extent, if at all, do each of the
following areas support your multiple-channel (multi/omni/all)
operations? Base range: 403-406
Innovations in the Retail Operating Model
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL Maximizing product
availability came out top in terms of the Top Rank, as well as
through the composite scoring. Q12.1: Please consider the business
priorities for your organization and rank the top 3 from the
following list. Base range: 168-261 Improving how we use
merchandising, positioning Increasing consumer choice through
combined in-store and online selling Offering different prices to
different customer segments Effectively leverage promotions to
maximize margins Ability to customize and personalize the shopping
experience 114 103 86 43 29 28 Most important actions to gain a
competitive advantage
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Capability of organizations to currently deliver Maximizing product
availability, range and assortment across all channels scores well
with 29% of respondents strongly agreeing that they have the
capabilities to deliver this. Q9: To what extent, if at all, do
each of the following areas support your multiple-channel
(multi/omni/all) operations? Base range: 403-406 4 6 5 13 7 7 1 1 1
1 20 19 21 17 20 18 43 42 39 49 45 45 24 26 21 24 23 28 Ability to
customize and personalize the shopping experience Effectively
leverage promotions to maximise margins Offer different prices to
different consumer segments Increasing consumer choice through
combined in-store and online selling Improving how we use
merchandising, etc. to offer the ultimate in store experience
Maximising product availability, range and assortment across all
channels Disagree Strongly Disagree Neither agree nor disagree
Agree Strongly agree 1 Unsure Prefer not to respond 2 3 2 2 2 2 3 2
2 3 2 2
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright
2014 JDA Software Group, Inc. - CONFIDENTIAL Retailing in 2020
Respondents believe The use of Big Data is extremely likely to
occur by 2020 and that this will have a great impact on their
organization. The pressure for cash flow, combined with the need
for speed, will cause many retailers to consider on-shoring versus
off-shoring to fulfil customer expectations) Shoppers will
aggregate buying power into buying groups, and retailers will
respond with teams dedicated to managing them and be able to employ
short-term promotions for purchase advantage or resale Benchmarks
of global formats will spread more rapidly, and retailers will
adapt global best practices swiftly to meet the needs of their
markets Technology-enabled transparency will provide shoppers with
understanding of everything from product origin to brand legitimacy
Technology-enabled, customer-centric transparency will allow
seamless checkout Retailers will enter into pricing dialogues with
customers in the future Shoppers will experience retailers as a
single brand consistently across all points of contact 57% 40% 39%
37% 45% 48% 49% 44% The use of Big Data mining will mean that
retailers will be better prepared to have pricing dialogues with
their best shoppers 52% The pressure for cash flow, combined with
the need for speed, will cause many retailers to consider
on-shoring versus off-shoring to fulfil customer expectations)
Shoppers will aggregate buying power into buying groups, and
retailers will respond with teams dedicated to managing them and be
able to employ short-term promotions for Purchase advantage or
resale Benchmarks of global formats will spread more rapidly, and
retailers will adapt global best practices swiftly to meet the
needs of their markets Technology-enabled transparency will provide
shoppers with understanding of everything from product origin to
brand legitimacy Technology-enabled, customer-centric transparency
will allow seamless checkout Retailers will enter into pricing
dialogues with customers in the future Shoppers will experience
retailers as a single brand consistently across all points of
contact 57% 30% 26% 25% 26% 29% 31% 26% The use of Big Data mining
will mean that retailers will be better prepared to have pricing
dialogues with their best shoppers 32% Q14.2: In your opinion, if
the following occurred by 2020, to what extent would your
organization be affected? Base range: 325-339 Q14.1: Please
consider each of the following statements about the potential
future state of retailing, indicating your view on how likely each
are to occur by 2020. Base range: 401 to 406 Likelinesstooccur
Extentofaffectonorganization
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Opportunities to prepare for the future state of retailing Get
smart on Big Data and what it can do to give customers the
appearance of customization without actually doing it. USA, Top 250
Q14.3: Please share your thoughts about what you consider are the
best opportunities for your organization to prepare for these
future opportunities. Base: 322 only asked to those who indicated
the thread was likely to occur Tracking customer purchases through
data mining. USA, Outside Top 1000 Better educate employees,
understanding policies. USA, Outside Top 1000 Using
shopper/customer data and investing in technology are key ways to
prepare organizations for the future.
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Opportunities to prepare for the future state of retailing These
changes are inevitable in Retail and those who embrace the changes
forthcoming, as our company is, are positioned to thrive. USA,
Outside Top 1000 Having a powerful brand. Ensuring our brand
message is consistent across omni- channels. USA, Top 251-1000 We
have to expose ourselves to overseas competitors. USA, Top 250
Using shopper/customer data and investing in technology are key
ways to prepare organizations for the future. Q14.3: Please share
your thoughts about what you consider are the best opportunities
for your organization to prepare for these future opportunities.
Base: 322 only asked to those who indicated the thread was likely
to occur
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Using
shopper/customer data and investing in technology are key ways to
prepare organizations for the future. Opportunities to prepare for
the future state of retailing Technology and Big Data analytics
will play a huge part of our business strategy. USA, Top 251-1000
We must be willing to invest in the cutting-edge technology that
will allow us to deliver the best possible shopping experience.
USA, Top 251-1000 Continued quest for new and appropriate
interactions with clients. USA, Outside Top 1000 Q14.3: Please
share your thoughts about what you consider are the best
opportunities for your organization to prepare for these future
opportunities. Base: 322 only asked to those who indicated the
thread was likely to occur
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL CEOs
anticipate by 2020 the shoppers and the shopping experience will
be... Shopper expectations in 2020 The shopping experience will be
totally transparent. USA, Outside Top 1000 Demand for higher
quality at a lower price point, available from whichever platform
they choose to make use of. Australia, Outside Top 1000 Speed to
market will dominate. Australia, NA Q15.1: How do you expect that
shopper expectations will change for your business by 2020? Q15.2:
What role will retail operations play in supporting that? Base: 352
- 357
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Technology, diversification, and maintaining status quo are all
being explored to mitigate potential external threats and will
affect their organizations to a less extent. Shopper expectations
in 2020 Synchronize sales between online and offline. Innovative
payment methods and one-stop shopping China, Top 251-1000 Retail
sales staff will become highly educated in not only the product,
but also best practices in counselling their customers. USA,
Outside Top 1000 Be able to adjust quickly. USA, Outside Top 1000
Q15.1: How do you expect that shopper expectations will change for
your business by 2020? Q15.2: What role will retail operations play
in supporting that? Base: 352 - 357
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Technology, diversification, and maintaining status quo are all
being explored to mitigate potential external threats and will
affect their organizations to a less extent. Shopper expectations
in 2020 The shopper will expect more service. USA, Top 251-1000
Quick online shopping, brick-and-mortar pickup, in-store mobile
check out. USA, NA Consumers will have the ultimate power. USA, Top
251-1000 Q15.1: How do you expect that shopper expectations will
change for your business by 2020? Q15.2: What role will retail
operations play in supporting that? Base: 352 - 357
Thank you
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Profiling the retailers Views were provided by more than 400 CEOs
of large retail organizations across 8 countries. Australia Canada
China Germany Russia South Africa UK US TOTAL Total Responses 21 23
56 47 28 11 68 155 409 Retail Sub-sector: Apparel 0 0 0 3 1 1 4 11
20 Category Specialist 4 7 4 8 4 3 27 29 86 Clubs 1 1 1 1 1 0 1 6
12 Convenience 2 1 0 0 1 2 3 7 16 Department 1 0 32 1 1 0 3 9 47
Discounter 1 0 0 2 1 0 0 6 10 Drug 0 1 0 1 0 0 1 1 4 Mass 2 1 2 14
5 0 3 14 41 Non-Store Retail 3 8 2 6 10 0 10 14 53 Supercenter 0 1
10 2 3 0 2 11 29 Supermarket 1 1 5 1 0 4 3 10 25 Other 5 2 0 6 0 1
0 22 36 Q18: Please select which of the following best describes
your business. Base: 409 Note: Unsure, Prefer not to respond and
Not answered 30.
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL 0 10 20
30 40 50 Sub-sector breakdown Category Specialists represent more
than one fifth of all responding retailers. % Sub-sector Q18:
Please select which of the following best describes your business.
Base: 409 2% Wholesalers 1% Car dealerships 1% Cosmetics 1%
Hardware 1% Footwear 21 13 11 10 7 6 5 4 3 3 1 2 7 7
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Revenue
profile (USD) Nearly one fifth of responding retailers had revenues
exceeding $1 billion. Q20: Which of the following best describes
the annual worldwide revenue of your entire organization in US
Dollars? Base: 409 Australia Canada China Germany Russia South
Africa UK US TOTAL Total Responses 21 23 56 47 28 11 68 155 409
Annual Revenue: More than $5B 0 2 1 2 3 0 3 16 27 > $1B to $5B 0
0 6 6 0 0 10 27 49 > $500M to $1B 5 2 6 1 2 0 2 15 33 > $250M
to $500M 0 2 37 18 17 2 6 24 106 > $100M to $250M 4 8 3 7 3 2 13
26 66 Less than $100M 8 8 3 9 3 5 19 37 92 Note: Prefer not to
respond and Not answered 36 Top 250 7% 251-1000 46% Outside Top
1000 38% Retailer tiers $50 million- $100 million 6% $15 million -
$50 million 6% $5 million $15 million 10% Less than $5 million 0%
Note: Prefer not to respond and Not answered 9% 22 16 26 8 12 7
More than $5 billion $1 billion -$5 billion $500 million-$1 billion
$250 million- $500 million $100 million- $250 million Under $100
million
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Retailers years in business Q17: How long has your organization
been in business? Base: 405 Nearly one-quarter of the participating
retailers have been in business for over 30 years. This is most
prevalent with the Top 250 where two-thirds have been in business
for over 30 years. Under 10 Years 23% 11 to 20 Years 35% 21-30
Years 19% 30+ Years 23% Of the Top 251- 1000 retailers 49% have
been in business for 11-20 years. Of the Top 250 retailers 67% have
been in business for more than 30 years.
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Confidence in revenue growth Q1: How confident are you about your
organizations prospects for revenue growthduring the next 12
months? during the next 3 years? Base range: *Canada 23, USA 149 to
151, UK 66 to 68, Germany, 45 to 46, *South Africa 10 to 11,
*Russia 28, China 55 to 56, *Australia 21 Retailers in Germany are
the most confident of revenue growth over the next 12 months while
retailers in South Africa and USA are the most confident over the
next 3 years in terms of those who are very confident. of the Top
250 retailers are very confident of revenue growth over 3 years.
13%* 17%* Canada 30% 47% United Kingdom 27%* 60%* South Africa 43%
50% Russia 38% 57% Australia 12 Months 3 Years 69% 44%* 60% USA
54%* 58%* Germany 38%* 55% China
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Reporting structures Q11.1: Within your corporate structure, who do
your organizations supply chain executives report to? Note:
Question is please select all that apply Base: 408 Three-quarters
of retailers indicated that the Supply Chain Executive reports
directly to the CEO. COO Other CFO CIO 21% CEO 74% 3% CIO 13% 3%
Supply Chain Executive of the Top 250 retailers are very confident
of revenue growth over 3 years. 69% of German retailers report
directly to the CEO 96% of the Top 250 retailers report directly to
the CEO 39%