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Dan O'Connor - RetailNet Group Retail Industry Overview
1. www.retailnetgroup.comKnow Tomorrow Today
Summary Points
1. 2025 retail will be very different… Mobile is just part of the explanation
2. 2025 value chain be re-structured
– Stores will remain about 75% of retail by 2030.. A few wild cards..
– Digital retailers and marketplaces are share takers and generally do not drive increased
consumption (in the aggregate)
– Digital Retail Growth Leaders are the 1P/3P Marketplaces... Amazon, Ali, JD.com etc.
– Only a few SBR.com will compete at scale (WMT.com)
3. Digital intermediaries (non-retailers) may drive/control “click2buy”
4. Now - Economics - Digital Retail not profitable for broad-line retailers with fast
turning, intensely distributed goods – esp. those selling temperature controlled
product
5. Now - Brick & mortar challenge is realigning asset base.. Very inflexible, long term