SCO 2.0 Chicago December 11, 2018 Key Industry Metrics Snapshot - - PowerPoint PPT Presentation
SCO 2.0 Chicago December 11, 2018 Key Industry Metrics Snapshot 2016 2017 % Change Store Count 154,535 154,958 FLAT Inside Sales $233.0B $237.0B 1.7% Fuel Sales $316.8B $364.1B 14.9% Total Sales $549.9B $601.1B 9.3% Pretax
Snapshot 2016 2017 % Change Store Count 154,535 154,958 FLAT Inside Sales $233.0B $237.0B 1.7% Fuel Sales $316.8B $364.1B 14.9% Total Sales $549.9B $601.1B 9.3% Pretax Profit $10.2B $10.4B 1.6% Credit Card Fees $9.5B $10.1B 5.8% Employees 2.50M 2.48M (0.8)% Fuel Margin (cpg) 20.09¢ 22.02 9.6% Net of CC Fees 14.93¢ 16.57 11.0%
Source: NACS Nielsen, TDLinx & EIA
120 years 70 years 40 years 6 years
(so far)
Entire societies, not just products, transformed
“The evolution in consumer demand, combined with transformative technological innovations, will continue to drive fundamental changes. The boundaries of “retailer” and “manufacturer” will continue to blur, as companies evolve to meet their customers’ needs. These forces will cause the retail and consumer packaged goods (CPG) landscape to change more in the next 10 years than it has in the past 40 years.”
“Shaping the Future of Retail for Consumer Industries”, World Economic Forum, January 2017
Conexxus will lead our industry through these changes
Platform: Moore’s Law, quantum, smaller, gigabit wireless Computer Sciences: Artificial Intelligence > Machine Learning > Deep Learning Materials Sciences: nano, atomic reformulation Data I/O: digital 5 senses, natural language Mechanization: robotics, autonomy, precision movement Big Challenges: scarcity, energy, environment, progress, conflict
Evolutionary Approach: Incremental Improvements Revolutionary Approach: Industrial Revolution
Disruptors enter here
Today Tomorrow Fuel provider Energy provider Commodity driven business Service driven business Limited interaction with consumers (< 4 mins) Best in class shopper experience – destination that delivers convenience in products, food and services Offers & promotions = One size fits all Tailored & personalized experiences and services Limited assortment (coffee, tobacco…) Hyper localized assortment Location focused Omni channel, frictionless options
Many individual technologies mature… …converging to create new systems that reduce friction
From This: IR 4.0 Raw To This: IR 4.0 Relevant
Foundational
“ERP” “Rest of world” - IoT
Machine learning Deep learning * “Everything discovered & known” * 24/7 scenario testing Machine does…
Prescriptive
AI processing * Disparate data flows: IoT * Relational discovery * IT as a service Machine advises human
Predictive
Big Data * Multiple adjacent data flows * Big math * Big processing * Enter Cloud Machine informs human
Insightful
History as future * Report views * Test of intuition Odds making
Descriptive
Gut Feel * Rollup Data * Rearview * Human Bias
Intuitive
Psychic Pizza
Improvement Loop Improvement Loop
Near future I
Yesterday Management & Movement Reports
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Reduce Friction: 46.1% Add Value: 28.2%
0% 10% 20% 30% 40% 50% 60% 70% 80% Voice Search Send Text Shop @ Store Shop on Mobile Chatbot Shop Online
When Consumers Prefer AI
0% 10% 20% 30% 40% 50% 60% 70% 80% F
T a k e
t / M e a l G r
e r i e s T r a n s p
t a t i
B
Top AI Shopping Experiences
Source: PWC “Global Consumer Insights Survey 2018” , N=22,000
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Race for the platform: be pervasive, assist, know, dominate
Who really owns the consumer relationship of the future?
are
– “Free”, ubiquitous & frictionless – Brings order to increasing complexity – Foundation of “the new convenience”
– Happening with, or without us – New “3rd parties” in relationship, what is our priority? – Reduction of irrational/uninformed choices – Reduction of immediate consumption? – Personal assistants are corruptible
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– Expert volunteers, shaping the industry
– Data exchange, security, payments
– Emerging tech/trends; identifying & educating
– Open standards, innovation & competition
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Conexxus thanks our 2018 Annual Diamond Sponsors!
www.conexxus.org gtaylor@conexxus.org +1 512 508 3469 https://twitter.com/Conexxusonline https://www.linkedin.com/company/10478530/