BEYOND BOUNDARIES 2014 Business Partner Conference BEYOND BOUNDARIES 2014 Business Partner Conference Budapest, Hungary The Future Of Retail Tony D’Onofrio Vice President, Global Accounts / Source Tagging
1. BEYOND BOUNDARIES 2014 Business Partner Conference BEYOND
BOUNDARIES 2014 Business Partner Conference Budapest, Hungary The
Future Of Retail Tony DOnofrio Vice President, Global Accounts /
Source Tagging
2. BEYOND BOUNDARIES 2014 Business Partner Conference The
Headlines Era of Uncertainty EMEA Growth Drivers MEA, CEE, Russia
Retail is Transforming Globally Retail channel control Decision
makers, including LP Faster ROI requirements Technology is a Key
Driver Sources: Deloitte, AT Kearney, The Economist, Euromonitor,
IMF, PwC, Kantar, Planet Retail 2014 2018 2014 CAGR % 2018 CAGR %
Global 3.6 4.1 4.7 5.0 N.America 2.6 3.1 2.6 3.2 LATAM 3.1 3.7 7.6
4.9 Asia Pacific 5.0 5.7 7.8 6.9 W. Europe 1.3 1.9 0.0 1.8 MEA 3.6
4.4 9.7 9.8 CEE 2.7 3.7 7.2 7.6 Scandinavia 1.3 1.8 3.7 2.3 China
7.3 7.0 13.8 10.3 Russia 3.0 3.5 11.3 9.4 Brazil 2.5 3.5 7.1 5.3
India 5.1 6.7 7.5 6.2 GDP % Retail Growth % Tyco Confidential
3. BEYOND BOUNDARIES 2014 Business Partner Conference CEE, MEA,
Scandinavia Growth Retail Growth ME and CEE Outpace World GDP
Growth ME Outpaces World Online Retail Sales CEE & Russia Keep
Pace with Global Growth (15%) Scandinavia May Have Peaked Sources:
Deloitte, AT Kearney, The Economist, Euromonitor, IMF, PwC, Kantar,
Planet Retail Tyco Confidential
4. BEYOND BOUNDARIES 2014 Business Partner Conference The 10
Hottest Countries in Global Retail Source: AT Kearney, 2013 Global
Retail Development Index (GRDI) Brazil 3rd Consecutive Year as No.1
Tyco Confidential
5. BEYOND BOUNDARIES 2014 Business Partner Conference GRDI
Country Attractiveness Turkey Up Seven Spots Highest ranking since
2003 Georgia, Armenia, Kazakhstan Improving United Arab Emirates
Gross Leasable Area Increasing 14% in 2015 Saudi Arabia Highest
Consumer Confidence Level in Region Tyco Confidential
6. BEYOND BOUNDARIES 2014 Business Partner Conference 2nd Half
2013 3.6 million square meters added 69% of activity in CEE Largest
projects pipeline is in Russia European Shopping Center Development
/ 6 Source: Cushman & Wakefield, 2014 Tyco Confidential
7. BEYOND BOUNDARIES 2014 Business Partner Conference Q4/2013
Highest Expansion since Q4/2007 European Shopping Center
Development Source: Cushman & Wakefield, 2014 Tyco
Confidential
8. BEYOND BOUNDARIES 2014 Business Partner Conference BEYOND
BOUNDARIES 2014 Business Partner Conference Budapest, Hungary
Technology Transforming Retail
9. BEYOND BOUNDARIES 2014 Business Partner ConferenceTechnology
drives a shift in retail power Manufacturer Pre 1970 1970 - 2010
2010+ Retailer Consumer Tyco Confidential
10. BEYOND BOUNDARIES 2014 Business Partner Conference Evolving
Technology Ecosystems .. Adoption Pace Global Trends 2030 National
Research Council Source: Tradedoubler, 2014 Source: AT Kearney,
2013 Tyco Confidential
11. BEYOND BOUNDARIES 2014 Business Partner Conference $11.8
Trillion $23 Trillion $18.7 Trillion $11.25 Trillion $4.3 Trillion
$0.55 Trillion Online Sales Non-Online Sales 5% 95% 19% 81% 2011
2025 United States $1.32 Trillion 24% 18% China $1.30 Trillion
United Kingdom $0.21 Trillion Germany $0.09 Trillion Japan $0.17
Trillion 25% 15% 10% Frost & Sullivan : Bricks & Clicks
Next Generation Retailing, 2013 Online Retail Sales to Reach $4.3T
by 2025 Tyco Confidential
12. BEYOND BOUNDARIES 2014 Business Partner Conference Good
News The Bad News: NOT BUSINESS AS USUAL Data from Economist
Intelligence Unit 2012 Data from McKinsey 1. THE FUNDAMENTALS 2.
CUSTOMER EXPERIENCE What does it all mean for Global Retail? 1
BILLION people will Enter global Consumer class y 2025 600 Million
Of them will live in Emerging Markets Tyco Confidential
13. BEYOND BOUNDARIES 2014 Business Partner Conference1.
Fundamental Shrink Control $100+ Billion Challenge Tyco
Confidential
14. BEYOND BOUNDARIES 2014 Business Partner Conference 2.
Customer Experience Interactive Store Tyco Confidential
16. BEYOND BOUNDARIES 2014 Business Partner Conference Mobility
Empowering shoppers & sales associates The Customer Experience
Engaging and satisfying experience through all brand touch points
Omni-channel Retailing Enabling the customer to shop anywhere,
anytime, anyhow Redefining the Role of the Store Optimizing the
supply chain (which includes the store) The New Power Brokers in
Retail Welcome to the C-Suite Technology drives Retail Mega-trends
Tyco Confidential
17. BEYOND BOUNDARIES 2014 Business Partner Conference Thank
You! Tony DOnofrio Email: [email protected] Phone: +41 791 508
208
18. BEYOND BOUNDARIES 2014 Business Partner Conference BEYOND
BOUNDARIES 2014 Business Partner Conference Budapest, Hungary BACK
UP
19. BEYOND BOUNDARIES 2014 Business Partner Conference Global
Market Data Sources: Deloitte, AT Kearney, The Economist,
Euromonitor, IMF, PwC, Kantar, Planet Retail
20. BEYOND BOUNDARIES 2014 Business Partner Conference The Next
Top 10 Global Countries to Consider Source: AT Kearney, 2013 Global
Retail Development Index (GRDI)
21. BEYOND BOUNDARIES 2014 Business Partner Conference Online
Sales vs GDP CAGR Observation: The Middle East 2018 online retail
growth forecast of 23.7% and GDP growth forecast of 4.4%, places it
in a quadrant all alone among the group of selected economies.
Eastern Europe and Russia have online retail growth rates that keep
pace with that of the world, growing at 14.7% and 14.6%
respectively. Sources: Deloitte, AT Kearney, The Economist,
Euromonitor, IMF, PwC, Kantar, Planet Retail
22. BEYOND BOUNDARIES 2014 Business Partner Conference
Observation: The Middle East 2018 overall retail (9.8%)and online
growth (23.7%), place it in a quadrant all alone among the group of
selected economies. Eastern Europe and Russia are on the right side
of the chart as well, though they occupy the lower right quadrant.
Growth in Scandinavia slows down during the 2015 - 2018 period -
retail and online retail growth appear to have already peaked.
Online Sales vs Retail Growth CAGR Sources: Deloitte, AT Kearney,
The Economist, Euromonitor, IMF, PwC, Kantar, Planet Retail
23. BEYOND BOUNDARIES 2014 Business Partner Conference Global
Retail Development Index Source: AT Kearney, 2013 Global Retail
Development Index (GRDI)
