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Artifical Intelligence in CPG and Why It’s Important

AI is human-like or intelligent behavior
exhibited by computers and machines.
• It is enabled by a computer program or
set of programs that help machines
make autonomous decisions through
cognitive functions similar to those
typically exhibited by human beings,
such as learning, decision making and
problem solving.

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

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

Target +Techstars Retail Accelerator Welcomes Its Second Class

The Target + Techstars retail accelerator program is welcoming its second batch of startups to Target’s headquarters in Minneapolis, MN. After receiving applications from more than 3,000 retail-specific tech startups from across the globe, Target selected 10 finalists to participate in this year’s 13-week program. Deborah Weinswig, Managing Director of FGRT, was in Minneapolis for the program launch and will serve as a mentor to the accelerator participants.

Global Retail Revolution Brings Threats as well as Opportunities

M&A chatter:
• Nordstrom announced it is exploring a “going private” transaction
(June 8, company press release)
• American Eagle Outfitters is reported to be bidding for
Abercrombie & Fitch with private equity firm Cerberus Capital
Management
(May 25, Reuters.com)
• Deckers Brands announced that it is reviewing strategic alternatives
(April 25, company press release)
• The parent company of Jimmy Choo announced that it is reviewing
strategic alternatives for the shoe brand
(April 25, Bloomberg.com)
• BJ’s Wholesale Club put itself up for sale in April
(April 14, New York Post)

New York Fashion Tech Lab (NYFTL) Tech Runway Demo Day 2017

Fung Global Retail & Technology attended the New York Fashion Tech Lab’s (NYFTL’s) Tech Runway Demo Day 2017 in New York City on June 14. The event featured NYFTL’s fourth accelerator class of startups, which consisted of nine women-led companies. The startups’ various areas of focus include creating new ways for customers to shop, new ways for retailers to track engagement and new ways for retailers to communicate and engage with customers.