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What is Driving Retail in 2016

Use of Data Analytics
Accenture: “While companies understand the value of big data analytics, they have yet to
figure out the best way to use it to improve their overall business.”
Embedding big data analytics in operations leads to a 4.25x improvement in order-to-cycle delivery
times, and a 2.6x improvement in supply chain efficiency of 10% or greater.

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Retail Landscape Overview (Global Supply Chain Innovation Summit)

Urban Outfitters acquired the Vetri Family group of
restaurants in 2015
• Club Monaco collaborated Café Myriade to open an in-store
coffee shop in Montreal
Food &
Beverage
In-Store
Technology
• Rebecca Minkoff offers interactive mirrors as well as virtual
reality headsets in stores
• Tommy Hilfiger stores have virtual reality headsets that allow
visitors to experience runway shows

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Retail Update

Obesity affects 1/3 of Americans; the
number of overweight women in the UK
increased from 49% to 57% between 1993
and 2013
• Beauty norms are changing—“real people”
models
• E-commerce and social media
• Plus-size wearers crave fashionable clothing

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5 Ways Amazon Is Shaking Up Retail

“The growth of online retailers, especially
Amazon, has made shopping trips less
appealing. Just as mall traffic has decreased
(Fung Business Intelligence Centre estimates
that the average American now visits a mall
three to four times a year, as opposed to five to
six times a few years ago), visits to big-box
retailers are also dropping.”

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What Is Driving Retail in 2016 (US and Europe)

BRICK & MORTAR RETAILERS CONTINUE TO EXPERIENCE TRAFFIC DECLINES-
• US mall traffic has declined for 37 consecutive
months and continues to be challenging
• Feb. 2016 store traffic dropped by 6.6% YoY
• Malls have seen an average drop in traffic of 9.3%
YoY
• High-end malls appear less affected
– GGP traffic up 2% in 2015
– Simon traffic up 1.5% in 2015
– Taubman traffic up in 2015

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Golden Seeds Presentation

• Fung Global Retail & Technology advises retailers, real estate developers and tech companies on projects situated at the intersection of retail,
tech and/or fashion
• Our team offers a robust knowledge bank and significant experience in the retail, fashion and tech fields. We are involved in many areas of the
business and believe this allows us to offer a unique perspective by focusing on the future and where the sector is heading

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Retailment Driven Trends

Alchemist Accelerator is an accelerator exclusively for startups whose revenue comes from enterprises, not consumers.
CoCoon is a coworking space where entrepreneurs, creative talent, successful leaders and investors meet,
collaborate and deliver results together. Member companies get access to networking opportunities, work space, a photography studio and mentors.
Entrepreneurs Roundtable Accelerator (ERA) provides participant companies with an intensive four-month
program, with the goal of helping early-stage companies progress rapidly into exciting, viable businesses.

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The Future of Digital Retail

• Anticipating future trends and developments
• Plan for future value and avoid obsolescence
– What problem are you trying to solve?
– How will the solution be used?
– How robust does it need to be?
• Ensure flexibility to manage changing formats and deployment patterns

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