COMMERCE EVERYWHERE IN RETAIL A EUROPEAN FOCUS

RETAILERS ARE LETTING THEIR CUSTOMERS LIVE REAL-TIME

ANYTIME CONTEXTUAL EXPERIENCES WHETHER ONLINE

OR OFFLINE EVERYWHERE

INNOVATION IS ON THE RISE:IN 2019, INNOVATION-RELATED

ACTIVITIES WILL ACCOUNT FOR A SIGNIFICANT SHARE OF IT BUDGETS

Source: IDC's Retail Innovation Survey

INNOVATION AND CX PERSONALIZATION ARE AMONG THE TOP 3 BUSINESS PRIORITIES

Source: IDC European Vertical Markets Survey, 2018–2019

EUROPEAN RETAILERS' TOP PRIORITY FOR DISTRIBUTION MODEL POINTS TO MARKETPLACE

RELATIONSHIPSSource: IDC’s 2018 Retail Innovation Survey

RETAILERS' TOP 3 INFORMATIONPRIORITIES ON SECURITY ARE DATALOSS PREVENTION, COMPLIANCE TONEW REGULATIONS, AND IDENTITY

AND ACCESS MANAGEMENTSource: IDC European Vertical Markets Survey, 2018–2019

It's all about Commerce Everywhere

EcosystemPartner

network is atop priority

for business model

innovation

Customer experience

35% use AI for CX personalization

InnovationBy 2020, 32%

attempt disruptive

innovations

Digital supply chain

74% view IoT asa key enabler forthe supply chain

of the future

Apparel and Accessory Stores

Drug Stores

Eating and Drinking Establishments

Food Stores

General Merchandising Stores

Home Furnishings and Equipment Stores

Miscellaneous Retail

Source: IDC European Vertical Markets Survey, 2018–2019

LOB CONTROL AND INFLUENCE INCREASES OVER TIME

IDC European Vertical Markets Survey, 2018–2019

38%Controlledby IT dept.,influenced

by LOB

30%Entirely

controlledby IT dept.

32%Entirely

controlled byLOB dept.

35% U.K. 47%

CEE

40% Netherlands

+ Nordics

IT BUDGET

48% General

merchandise

40% Eating and drinking

37% Eating and

drinking

42%Food and grocery

26%Italy and Spain

28%Germany

28%Netherlands+ Nordics

50%Innovation

60% Germany

71%Consumerelectronics

55%Italy and Spain

49%Food and grocery

42%International expansion

50% U.K.

49%eCommerce

43%CX personalized

It’s all about Commerce Everywhere

36%Maintain/run

existing systems

23%Innovations

25%Upgrade existing systems

16%Regulatory compliance

SUPPLY CHAIN TRANSFORMATION IS ABOUT EFFICIENCY AND

RESILIENCY TO DISRUPTION

59% expect to be disrupted within

the next year

50% of future revenue

growth

France

Germany

Spain & Italy

U.K.

Nordics & Netherlands

Central andEastern Europe

COUNTRIES

SEGMENTS

DEMOGRAPHICS

E�ciency and e�ectiveness – do the things we do today in the supply chain better

Be resilient to market disruption - have a supply chain that can quickly adapt to disruptions in the marketplace (fast follow)

Be the disruptor - supply chain supports new business models or dramatically reimagined ones (leader, bleeding edge)

Horizon 1

Horizon 2

Horizon 3

60% say it’s about e�ciency (driving the ROI)

AREAS OF INTERVENTION

Marketplacerelationships >

AI INVESTMENTS ARE TOP PRIORITY FOR EUROPEAN RETAILERS

INNOVATION ACCELERATORS

48% Germany

48% Italy and

Spain

Source: IDC European Vertical Markets Survey, 2018–2019

41% France

46% Italy and

Spain

42% France

32%Identity

and access management

38%Implementing compliance to

new regulations (e.g., GDPR,

PSD2)

42%Data

loss/leakage prevention

The results of this survey are published in the European Retail Digital Transformation Strategies program, which examines the impact of digital transformation on European retailers' business, technology, and organizational areas. Specific coverage is given to provide valuable insights into the European retail industry, with a specific focus on digital transformation strategies applied by retail companies to improve the omni-channel customer experience.

IDC EMEA

@IDCInsightsEMEA

www.idc-ri.com

FOR FURTHER INFORMATION CONTACT:

Ornella Urso Research Analyst, IDC Retail Insights

Andrea SangalliResearch Director, IDC Retail Insights

27% Robotics

30% 3D

printing

34% AI

35% AR/VR

60%Europe

Source:

IDC Retail Insights' 2019 Western Europe Retail Trends: Results from the European Vertical Markets Survey, 2018–2019

IDC Retail Insights: European Retail Digital Transformation Strategies