Striking a New Balance in the Store

1. JDA Store Operations Suite Striking a New Balance in the Store

2. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Sales Outlet Service Center Showroom Fulfillment Center And Associates Must Perform New Tasks that Require New Skills… The Role of the Store in the Omni- Channel Journey Continues to Expand

3. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL While Regulations Continue to Expand…. Pressure on Stores in All Verticals Continues to Increase Larger Menus More Promos Wider Variety Less Time

4. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Store Payroll Budgets Keep Shrinking 72% Source: Integrated Solutions for Retail of store managers indicate that their labor budget has stayed the same or decreased in the past year

5. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL And Controlling Costs is Ever More Challenging 40%Source: DC Velocity understand the cost of picking orders from the backroom 29%Source: DC Velocity understand the cost of picking orders from the front of the store

6. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL C-Stores Feel the Pain of Expanding Costs As Well $204B Source: NACS C-store sales in 2013 (all-time high) 14%Source: NACS decrease in profit vs. 2012 19%more employees Source: NACS

7. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Store Managers are Struggling to Find the Right Balance • Corporate Marketing • Merchandising Activities • Promotional Sets • Daily Maintenance • Food Prep • Order Fulfillment • Guest-Facing Activities

9. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Experiences Matter to Customers in Every Vertical 4XSource: Multi-Unit Franchisee QSR return rates are higherwhen customer satisfaction rates are higher

10. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL The Problem? Disconnected, Dysfunctional Tools that Don’t Scale Schedules don’t account for skills, productivity, tasks, and availability; require heavy manual intervention Inaccurate forecasts, by (at best) daily intervals, often developed by different tools for sales vs. labor Disconnected and often outdated task management systems can’t handle new roles, new urgency Makeshift in-store fulfillment processes are disruptive to both shoppers & staff and fail to scale Patchwork inventory tools and processes cause problems in every corner of the store Disjointed and dysfunctional fresh item/recipe management tools make planning difficult

11. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Hence, Many Are Struggling… “My stores can’t keep up with shifting customer demands.” “How much is it costing me to fulfill orders from the store?” “On-time fill rates for store orders are low; customers are frustrated.” “How can my managers spend less time scheduling and more time managing?” “Balancing in-store shoppers with outside the store orders and corporate tasks is a nightmare.” “Keeping promotional items replenished on busy days is nearly impossible.”

12. The JDA Solution

13. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL To achieve maximum benefit, we have combined these solutions to deliver integrated, cross-functional schedules, tasks, inventory, fulfillment and communications throughout the entire store

14. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL The Store Operations Solution Enterprise Store Operations In-Store Picking Task Management Workforce Management EXECUTION JDA Cloud Reduce Risk Support Business Agility Capabilities Adapt to New Conditions Achieve and Sustain ROI JDA Services Unparalleled Experience Industry and Technology Expertise Speed-to-Value Continuous Improvement JDA Store Operations Space Planning | Distributed Order Management | Demand | Mobility

15. Examples of the Problems We Solve Just A Few Highlights

16. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Self-Service Scheduling Schedules Include Availability Mobile Shift Bid/Swap Empowered Associates More Mgr. Time on Floor AFTER SOP Inflexible Schedules No Self-Service Options Managers Backfilling High Shortage Rates BEFORE SOP More Overtime | Bad Experiences | Understaffed Stores Higher Filled Shifts | Winning Experiences Short notice shift fill rates increase by 30% Managers save 45 minutes per short notice shift

17. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Self-Service Scheduling Schedules Include Availability Mobile Shift Bid/Swap Empowered Associates More Mgr. Time on Floor AFTER SOP Inflexible Schedules No Self-Service Options Managers Backfilling High Shortage Rates BEFORE SOP More Overtime | Bad Experiences | Understaffed Stores Short notice shift fill rates increase by 30% Managers save 45 minutes per short notice shift

18. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Advanced Scheduling Account for Demand Inside/Outside Store Incorporate Promotion Plans Assess return on labor investments Identify Trends/Opportunities Store Benchmarking AFTER SOP Inaccurate Schedules Schedules Misaligned to Demand Service Demand is Missed High Cost of Labor Lots of Manual Intervention BEFORE SOP Under/Overstaffed | More Overtime | Bad Experiences Higher Return on Labor | Better Experiences | Higher Sales Increase store manager time on floor by 50% 88% reduction in overtime spend Labor as % of sales improved 170 basis points “Using JDA, we brought together the KPI’s that we use to monitor and drive our business into a single easy to use interface. We have also gained new insights into key corporate strategies”

19. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Advanced Scheduling Account for Demand Inside/Outside Store Incorporate Promotion Plans Assess return on labor investments Identify Trends/Opportunities Store Benchmarking AFTER SOP Inaccurate Schedules Schedules Misaligned to Demand Service Demand is Missed High Cost of Labor Lots of Manual Intervention BEFORE SOP Under/Overstaffed | More Overtime | Bad Experiences “Using JDA, we brought together the KPI’s that we use to monitor and drive our business into a single easy to use interface. We have also gained new insights into key corporate strategies”

20. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Mobile Task Management Planograms Integrated with Task Immediate Communications Chain-wide Visibility Mobile Execution AFTER SOP Floor Sets Determined in Silos Unreliable Communications Limited Visibility Sporadic Compliance BEFORE SOP Underutilized Space | Missed Opportunities | Bad Experiences Timely Compliance | Maximized Revenue | Better Experiences 6.7% reduction in hours invested 29% reduction in premium labor costs Improved Dept Mgr Coverage on key days Sat: 8% | Sun 12% improvement

21. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Mobile Task Management Planograms Integrated with Task Immediate Communications Chain-wide Visibility Mobile Execution AFTER SOP Floor Sets Determined in Silos Unreliable Communications Limited Visibility Sporadic Compliance BEFORE SOP Underutilized Space | Missed Opportunities | Bad Experiences Timely Compliance | Maximized Revenue | Better Experiences

22. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: In-Store Fulfillment Cobbled-Together Processes Guesswork Staffing Last-Minute Scrambling Orders Not Staged BEFORE SOP Best Practices In-Store Picking Staff/Skills Aligned to Demand Tasks Assigned & Prioritized Dashboard Status AFTER SOP Long Lines | Bad Experiences | Margins Eroded Higher Productivity | Winning Experiences | Higher Margins Fill 275,000 orders/week from stores Over 850M order lines/year

23. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: In-Store Fulfillment Cobbled-Together Processes Guesswork Staffing Last-Minute Scrambling Orders Not Staged BEFORE SOP Best Practices In-Store Picking Staff/Skills Aligned to Demand Tasks Assigned & Prioritized Dashboard Status AFTER SOP Long Lines | Bad Experiences | Margins Eroded Higher Productivity | Winning Experiences | Higher Margins

24. Why JDA Our Unique Selling Proposition

25. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL JDA: “All In” Inside the Omni-Channel Store High Value Functionality • High Adoption • Greater Productivity JDA solutions have a singular focus that is unique in the industry: helping retail managers successfully execute every facet of the operations of the retail store as the centerpiece of the omni-channel journey. ONLY

26. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Optimizing the Store from Front to Back Budgeting and Scheduling Space Management Workforce Management Task Management Store Fulfillment ONLY Efficiency • Responsiveness • Productivity

27. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Putting an End to Impossible Choices PROFIT EXPERIENCE OUTSIDE THE STORE INSIDE THE STORE • Consolidated sales and labor forecasts to 15-minute increments • Productivity tracking and analysis • Optimize every square foot (front/back) for maximum opportunity • Efficient and effective picking • Schedules align to sales & service demand • Every task is prioritized, tracked and reported via manager dashboards • Integrated mobile platform ensures agility and responsiveness wherever needs arise • Picking routes minimize shopper disruption ONLY vs

28. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Guided by the Industry’s Most Experienced Professionals 200 31 40,000 1,300,000Employees Retailers Countries Stores Image courtesy: alpha To learn more about JDA’s Store Planning Suite, please visit http://www.jda.com/solutions/store-operations/