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2015 Back-to-School Outlook

Consumer purchase mentality—What do we need now? A Just in Time Shopper
Macy’s reacts to this shopping behavior by rolling out same-day delivery to additional stores
Look for traditional shopping seasons to continue to blur
Black Friday style sales in July
Harder for retailers to post sales and earnings gains.
Continued IT investments—Mobile, Click & Collect, Personalization, Omnichannel—all mandatory to maintain share
Most categories hovering in deflationary territory

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Retail Update

Retail Update 2015
April 2015 Total Online Unique Visitors Amazon Sites Captures Over 69% of Online Audience.
Amazon Attracts Millennials, Families and High Income Households.
More Than 50% of Households Have Income <$75,000 and 44% Have Children.

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1Q2015 Recap

Current Retail Business Environment
1. Gas Did Not Stay Below $2 per Gallon
2. April US Retail Sales Flat, Showing Slow Recovery
3. Unemployment at Seven-Year Low; Stores Cut Jobs and More

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China at the Tipping Point

• The China Chain Store & Franchise Association (CCFA) estimates that around 300 new
malls are opened in China each year and that the total number of malls will reach 4,000
by 2015.
• Nine out of the top Ten newly completed malls are in China.
• Malls account for the majority of China’s commercial property supplies:
68.3% (Tier 1 cities) and 61.6% (Tier 2 cities).

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US Holiday 2014 Recap

Consumer & Retailer Behavior
• Driven by early and heavy promotional activity,
some piggybacking on Back-To-School sales and
continuing post-Christmas
• Extended store hours and Click & Collect were popular
promotional strategies employed by retailers in the final
days leading up to Christmas
• Consumer shopping behavior has evolved to reflect the
savvy shopping habits of a value-driven mindset
• The winners are retailers who respond to the consumers’
bottom line, offering continued discounts, price
comparison and coupons

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New and Emerging Technologies Retailers Will Use to Market Their Brands and Products

Retailers
– Walmart: Biggest day of online orders on Cyber Monday;
500 new promotions a day through Friday
– Target: 100,000 items on sale all week
– Amazon: Cyber Monday spreading out to Cyber Week
• Cyber Monday
– e-commerce sales +15.6% YoY (Channel Advisor)
– Online sales +8.5% YoY (IBM)
– Average order value
$124.21, down 3.5% YoY
– Mobile sales +27.6% YoY (IBM)
– Mobile sales = 22 % of total Cyber Monday online sales, +27.6 % YoY

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University of Florida Retailer Seminar

•Retailers want a “single customer interaction platform” but have almost no idea how to get there
• Creating a single brand identity across channels is the most important goals for retailers
• Retailers should designate a single owner of the customer experience journey

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