The Issues Foot traffic: Worldwide smartphone sales -3.6% YoY in - - PowerPoint PPT Presentation

The Issues

• Foot traffic:
• 3.6% YoY in U.S. (Sept.)
• U.S. Q2 e-commerce sales:

+15.7% YoY (June, estimates)

• Thinking about Holiday

2014, just remember Holiday traffic in 2013 was -14.6% YoY

• Worldwide smartphone sales

is expected to grow 11.5% CAGR from 2014 – 2018

• M-commerce exploding:
• ne-third of Holiday 2013 on

mobile, up from 20% in 2012; but social commerce did NOT as it was flat in 2013 at 2%

Physical Store Traffic is Falling

Sales Traffic Trans. Conv. %Return ATV SPS September

)2.4% )3.6% )3.6% 0.4% )1.1% 1.4% 1.5%

August

)4.0% )7.9% )5.9% 0.4% )1.0% 2.0% 4.2%

July

)4.5% )7.8% )9.5% )0.05% )1.1% 6.7% 3.5%

June

)5.8% )10.8% )12.0% )0.1% )0.8% 7.6% 5.5%

May

)5.7% )8.0% )11.6% )0.2% )0.6% 7.1% 2.6%

@

(%@points) (%@points)

Conquering the Omni-channel Arena !

• 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

The Future of Retail

• Digital information is influencing more than 50% of our

purchases

• Retailers can create value by integrating retail channels

with social media, online, and mobile channels

• Omni-channel shoppers spend 50% more than single

channel shoppers

Big Trends Changing Retail Marketing Today

• Human connections are the only real metric for building

institutional trust

• Better storytelling is the secret weapon for when products

are easily replicated

• The best value from digital tactics comes by educating

instead of trying to have a "dialogue"

The Future of Retail Marketing

• 77% of consumers prefer email for permission-based

promotional messaging

• 39% of retailers used in-store signage to convert

customers to digital

• 44% of retailers do email acquisition at point-of-purchase

Recasting the Retail Store in Today's Omni-channel World

• The majority of consumer shopping time is still spent

in store at 61% per AT Kearney

• Consumers spend more money when shopping in

brick-and-mortar stores

• There are multiple ways to research, verify, and

purchase products

What is Cyber Crime?

• Crime committed using a

computer and the internet to steal a person’s identity or illegal imports or malicious programs

• Cybercrime is nothing but

where the computer used as an object or subject of crime

Types of Cyber attacks, by percentage (source- FBI)

• Financial fraud: 11%
• Sabotage of data/networks: 17%
• Theft of proprietary information: 20%
• System penetration from the outside: 25%
• Denial of service: 27%
• Unauthorized access by insiders: 71%
• Employee abuse of internet privileges: 79%
• Viruses: 85%

Types of Cyber Crime

Cyber Security

• Cyber security will defend us

from critical attacks

• It helps us to browse the safe

website

• Internet security process all the

incoming and outgoing data on

• ur computer

How Do Retailers Compete

12#

US!Customer!Sa-sfac-on!Index!2013# #

0.0%# 2.0%# 4.0%# 6.0%# 8.0%# 10.0%# 12.0%# Amazon# Kohl's# Macy's# Walmart#

COMPANY! SCORE! Amazon# 88# Nordstrom# 83# Kohl’s# 81# Dollar#Central# 80# JC#Penney# 79# Target# 77# Macy’s# 76# Walmart# 71# FY!13!(ended!January!2014)!EBIT!Margins# #

Source:(SPCapitalIQ(

FY14#P/E# 122.0X# 13.6X# 13.0X# 15.2X# FY15#P/E# 67.3X# 12.3X# 11.3X# 14.3X#

Industry P/Es

13#

Average!P/E! Current!Fiscal! Year! Median!P/E! Current!Fiscal! Year! Average!P/E! Next!Fiscal!Year! Median!P/E! Next!Fiscal!Year! Apparel,!Accessories!and! Footwear!Brands! 29.0! 18.5! 23.8! 16.2! Convenience,!Discount,! Drug!Stores! 20.1! 18.5! 17.5! 15.9! EWCommerce! 48.6! 39.6! 33.0! 30.7! Major!Dept!Store! 18.6! 13.6! 14.1! 12.3! RetailWApparel/Shoe! 24.5! 19.4! 18.1! 16.6!

Q & A