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New Retail Becoming a Reality (CES)

• On June 16, Amazon announced its plan
to acquire Whole Foods for $13.7 billion
in cash.
• Amazon closed the acquisition on
August 28, and Amazon electronics
were available in Whole Foods stores
that same day.
• Amazon reduced prices on some items
by as much as 43% on the day of deal
closing and again on November 15.

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2017 Holiday Wrapup (Planalytics)

US 2017 Holiday Wrap-up season:-
Holiday Wrap-Up: Season Exceeded Expectations Due to a Holiday Surge
2. Consumers Wait for the Best Deals, Which Drives a Last-Minute Rush in Sales
3. Favorable Holiday Calendar: A Full Weekend Before Christmas
4. Holiday 2017 Weather Was an Easy Comparison Versus 2016……

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US 2016 HOLIDAY HOMESTRETCH: Performance to Date Bodes Well for Holiday

•Retailers promoted holiday deals earlier and
at a greater extent than last year
• Amazon, Walmart, Best Buy and Target rolled
out early-bird online specials on November 1
• Retailers expanded their mobile messaging two
weeks before Thanksgiving
The days leading up to Thanksgiving
captured more holiday sales than last year
• Wednesday before Thanksgiving: Sales
increased by 10.4% year over year, according to
First Data
• E-commerce traffic was up 15% the weekend
before Thanksgiving, according to Verizon

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Retail Revolution – Disrupt or Be Disrupted – The Tenant of the Future (ULI)

Many stores are now part of the last-mile solution. In the US, some older malls are being repurposed as warehousing and delivery depots.
• Stores are leveraging sharing-economy technology to serve
as fulfillment centers for local deliveries.
• Malls are being used innovatively as warehouses, delivery
depots and pickup locations for customers.
• In North Randall, Ohio, outside Cleveland, a former mall is
becoming a new Amazon warehouse.

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Retail Revolution – Disrupt or Be Disrupted (XSPECS)

Retail Traffic Is Down
• Retail traffic has continued to struggle, although it has been
showing slight improvement
• According to RetailNext, retail store traffic in July declined by
just 5.5%, its smallest drop since January 2016
• The conversion rate, which represents how many shoppers
became buyers, rose by 0.5% in both June and July, the highest
rate increase in almost a year

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Background on Amazon and Retail

US Retail Bankruptcies Are at Post-recession Peak
• Year to date, 14 retailers have filed for bankruptcy
• That is more than the number of filings over the entire year
in 2016
• Retail bankruptcies are on track to reach their highest level
since 2009, when 18 retailers filed for bankruptcy
• And there are likely more to come

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