Finding Retail Growth - A View from the Corner Office

© 2016 Demandware. All product and company names and logos are trademarks™ or registered® trademarks of their respective holders.

Finding Retail Growth:A View From The Corner Office

© 2016 Demandware. All product and company names and logos are trademarks™ or registered® trademarks of their respective holders.2

Research Company

• Founded in 1946• Global network of analysts and editors• Rigorous editorial standards and independence


Research Overview

3

• Objective was to understand industry dynamics and determine how retail executives plan to compete, grow, and transform

• Focused on understanding which dynamics matter most and addresses how retailers are planning to grow over the next three years

• Determined that high-performing retailers have a different way to grow – combining retail’s oldest strategies with its newest tools


Research Methodology

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Survey Respondents Report based on survey and interviews


Retail Growth is a Zero-Sum Game

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60’s 80’s 00’s70’s 90’s 10’s

Tota

l Ret

ail R

even

ue

Department Stores

Cataloguers

Specialty Retailers

Supercenters

Fast Fashion

Digital and Marketplaces

Democratization of Retail

Not based on data from the Economist Intelligence Unit


Which Dynamics Matter Most?

6

$

Security RisksIncreased Globalization

Changing Consumer Shopping Behavior

Rise of Marketplaces

#1 #1 #3 #4

Data from a survey conducted by the Economist Intelligence Unit, 2015.


Ready to Compete?

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Very or extremely prepared:

Somewhat or less prepared:

Tech Savvy Employees

76%

33%

Globalization

56%

42%



Growth Requires Organizational Change

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Making Operations

More Efficient

Product Development and

Manufacturing

Consolidating Functions

Digital Functions

Org

aniz

atio

nal C

hang

eO

pera

tiona

l Cha

nge



High-Performers

High-performers are a group of respondents who rank themselves better than peers on three key metrics: same-store sales growth, margin and inventory turn rates

9Data from a survey conducted by the Economist Intelligence Unit, 2015.


The Old Differentiators Still Hold True

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“The age-old Holy Trinity of retail still rings true.” - Len Schlesinger, Former Vice Chairman of Limited Brands

#1

#2 #3Seamless Service

Value for Money

Product Excellence



High-Performers See More Opportunity

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High Performers 69%

43%

Tech Savvy Employees

64%

44%

Globalization

52%

35%Lower Performers

Marketplaces

$



Growth Initiatives Align With Opportunities

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Geographic Expansion Strategic Partnerships

#1 #2 #3

New Stores & Formats




13


#1 #2 #3





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#1 #2 #3





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#1 #2 #3




Operationalizing Technology to Grow

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Specialized and Digitized Stores

$

Marketplaces

82% of high performers plan to increase technology spend versus 56% of lower performers



The Roadmap Puts the Customer at Center

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Remember the basics

Put customer at the center

Operationalize technology

Align priorities with opportunities

Find opportunities in threats

The Economist Intelligence Unit report sponsored by Demandware.

Finding Retail Growth - A View from the Corner Office

Retail

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