Capital Markets Day Arndale Store, Manchester 29 September 2016 1 - PowerPoint PPT Presentation

Capital Markets Day – Arndale Store, Manchester 29 September 2016 1

Welcome 2

Agenda.  Welcome  Introduction Euan Sutherland, Chief Executive Officer  Multi-channel Strategy Jon Wragg, E-commerce & Wholesale Director  Next Generation Store Nick Tatum, Global Retail Director  Financial Opportunity Nick Wharton, Chief Financial Officer  Summary Euan Sutherland  Q&A  Store Tour 3

Introduction - Euan Sutherland 4

Creating a Global Lifestyle Brand. Objectives for today  Multiple sequenced global growth opportunities  Customer insight led offer development Arndale Objectives:  Multi-channel emphasis in everything we do  Update brand delivery in-store  Next Generation Store enhances brand & LFL  Showcase the breadth  Enhanced infrastructure and experienced of the range management team  Improve sales density through flexible fixturisation  Reduce the capital cost of new and refurbished stores  Reduce operating costs 5

Introductions. Jon Wragg, E-commerce & Wholesale Director Joined SuperGroup April 2014  Asda - Multi-Channel Director - Commercial Director  George at Asda - Business Development Director  Shop Direct Nick Tatum, Global Retail Director Joined SuperGroup November 2015  Tesco - Food: Change & Operations Director - Bakery: Category Director - Produce: Commercial Operations Director 6

Our Purpose Helping People Feel Amazing. 7

Our Brand 8

Our Ambition. 9

Our Plan. Creating a Global Lifestyle Brand Embed Our brand values for long term sustainable growth Enable Investment in people, systems & infrastructure Extend Achieving growth potential in key categories Execute Growth opportunities in new markets and online Emphasis today on extend and execute strategies 10

2015 Customer Findings Further Validated in 2016. 1 2 3 The brand remains There are opportunities Superdry has broad relevant in its core to better communicate democratic appeal, and UK market the breadth of our product a consistent brand range and to grow our perception centred on womenswear business cool and quality 11

Sequenced Global Growth Over Time. Core estate LFL drivers  Product innovation  Extend brand to more life stages and occasions  Design to Customer process benefit  Next generation store China JV  Owned stores  Franchised stores Global E-commerce  E-commerce Execute UK  Shop window on brand  Largest customer footprint  Continued investment E-commerce EU USA expansion USA  Owned stores China  Wholesale  European Expansion E-commerce  Owned stores  Franchised stores  Wholesale 12

Growth Strategies Tailored to Each Market. Bespoke route to market strategies optimise returns and minimise risk • Owned stores - Primary catchments • Franchise stores Example Considerations - Developing markets • Market size/development - Secondary catchments Six vertical • Operational complexity Individual routes to • • Brand awareness Owned websites Market customer give • Partner availability Strategy significant • • Local legislation Partner websites offer flexibility • Market economics (eg; space) - Access different customers • Capital requirements - Build brand awareness (Incl lease flexibility) • Department stores • Multi-brand Independents 13

Multi-channel Strategy Jon Wragg 14

Our E-commerce Objective Make It Inspiring And Easy For People Across The Planet To Buy Superdry Products, And Deliver An Amazing End To End Experience 15

Our Philosophy Order Anywhere Any Device Any Payment Method Delivered Anywhere 16

Market Overview. On-line fastest growing route to customer in core and developing markets 30% Apparel Online Participation UK 25% US Germany 20% France Belgium 15% Netherlands 10% Italy Spain 5% Sweden c.16% CAGR c.12% CAGR Denmark 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Verdict. CAGR = growth in markets where SGP participates 17

Multi Channel Customers Are Increasingly Valuable. Multichannel customers spend more often than single channel customers, are more Brand loyal and are much more valuable Single Channel Multichannel Shopper Shopper Frequency Index 100 250 (250) Share of Wallet Index 100 224 (188) Value Index 100 284 (254) 18 Source: Kantar World Panel – Calendar Year Data 2015 (2014)

E-commerce Growth Profile. E-commerce growth supported by consistent investment in customer journey Milestones Responsive Site Enhanced Retail Stock m.Com Fulfillment Cloud Hosting Consolidation First EU Sites Alternative Partner iKiosk Global Cloud Payment Types Programme Hosting 25.0% 120,000 Sales Participation Revenue £000’s 100,000 20.0% 80,000 15.0% 60,000 10.0% 40,000 5.0% 20,000 0.0% 0 FY12 FY13 FY14 FY15 FY16 Revenue £000's Ecom % of Total Retail 19

Customer Led Development Principles. Progress reflects the accumulation of many marginal gains Deliver on the Know Them, Make it Constantly Promise and Anticipate their Compelling Innovate Create Needs and Easy Advocates Customer Acquisition Amazing Customer Customer & Product Experience Promise Retention 20

Customer Acquisition & Retention. Constantly adapting to the new opportunities for customer acquisition Case Study – Paid Search Before Now Future Text based search Localised search Image based search ‘Exact match’ criteria Real time store stock check Google shopping Creates store footfall Twice market average ROI 21

Customer Acquisition & Retention. Social Media Eric Decker Instagram Endorsement 22

Amazing Product. Changes in creative style materially increase Product Views and Sales +64% +39% +122% 23

Customer Experience. SessionCam technology identifies multiple opportunities to improve customer experience Case Study – 3 Clicks To Buy Add To Bag Sign In Hit Buy Now 24

Customer Experience. 20 truly localised sites serving priority markets True Localisation  Free Delivery  Local Returns  Local (and contextual) Language  Local Domain  Legally Compliant Locally  Local Currency  Local Payment Methods  Local Marketing  Mobile Optimised 25

Customer Experience. Fully responsive technology implemented throughout the site, Home page relaunch  SEO optimised  Brand and content rich  User generated content 26

Customer Promise. Sector leading delivery proposition as key point of difference Customer experience underpinned by strong cyber security profile 27

Future Growth. Business to Business E-commerce Detailed Development Path to Maintain E-commerce Enhanced social media focus Next Day delivery to Europe Leadership and Growth Expanded range including Extended Partner Programme Wholesale Targeted customer rewards New Site Ramp Up Reserve & Collect Eg; E-wallet Underlying Market Growth GROWTH DRIVERS Underlying Market Growth Underlying Market Growth FY 17 FY 18 FY 19 Multichannel Customer New Product Information New Order Management System ENABLERS Relationship Management System Fully Responsive Delivery from European DC Delivery from US DC Site Cognitive Apps introduced Consolidated Stock Pool 24/7 Customer Service 28

Store Concept Nick T atum 29

UK Store Estate: Next Generation. Objectives:  Update brand delivery in-store  Showcase the breadth of the range  Improve sales density through flexible fixturisation  Reduce the capital cost of new and refurbished stores  Reduce operating costs Iterative & disciplined approach:  Customer research led  Store of concepts not concept store  Further trials scheduled  Cost engineering opportunity 30

Arndale Store Overview. Large store with representative operational metrics Store opened April 2012 (No subsequent refit) Trading footprint 12,900 sq.ft. UK Portfolio Ranking 7 th Trading footprint 8 th Customers per annum Performance metrics  Customer satisfaction 66 th  Sales density 78 th  Innovation category sales 32 nd  Customer conversion 35 th  Average basket value 30 th  Average basket size 39 th 31

Arndale Store - Concept.  Increased option density  Expanded circulation space  Enhanced music and multi-media experience  Layout emphasises inspiration and enhances category clarity 32

Arndale Store - Before. 33

Arndale Store - Concept. 34

Arndale Front of Store Innovation. Wider store opening encourages visit and High impact mannequins create front of store interest showcases breadth of offer 35

Arndale Core Development ‘Power displays’ illustrates category ownership in key product segments Polo Shirts / Denim / Graphic T-shirts 36

Arndale Womenswear Innovation Womenswear collection displays illustrate complete ‘look’. Product adjacency encourages purchase. Flexed colour pallet introduced Accessory browsing proposition adjacent to female changing 37

Arndale Menswear Innovation Superdry Sport credibility enhanced by Dedicated premium shop-in-shop with distinct look and feel dedicated space and action mannequins 38