• July 2017

Sources: (1) U.S. Department of Commerce, 2017, (2) Pew Research Online Shopping and Ecommerce Survey, 12/19/16, (3) Retail Dive Survey, 2/22/2017
Retail Landscape – Despite double-digit growth,
ecommerce represents only 10% of US retail sales
Brick-and-Mortar
• $4.4 trillion U.S. sales in 2016 1
• 2.9% growth vs. 2015 ($124B) 1
• ≈90% of total U.S. retail sales 1
• 64% of Americans indicate that, all things being
equal, they prefer buying from physical stores to
buying online 2
E-Commerce
• $395 billion U.S. sales in 2016 1
• 15.6% growth vs. 2015 ($53B) 1
• ≈10% of total U.S. retail sales 1
• 79% of Americans make purchases online. 2
• 67% of millennials and 56% of GenX “prefer to
search and purchase on e-commerce sites rather
than in-store” 3
© Pulse Commerce 2017 - All rights reserved 2

Omnichannel Retail combines the power of online
and offline retail to delight customers
Omnichannel Retail
• Serve customers online, in stores, via contact
centers and much more
• Deliver amazing, consistent experiences
across channels
• Omni-channel capabilities include:
• Click & Collect (Buy Online, Pickup In Store)
• Ship from store
• Research online, purchase in store
• Research in store, order online
• Buy online, return to store
3© Pulse Commerce 2017 - All rights reserved

Customer Benefits - Ship from store improves shipping cost
and speed, 2 factors that heavily influence online purchases
4
Source: Big Commerce, “Omni-Channel Retail in 2017: What Brands Need to Know and Modern Consumer Shopping Habits”
80%
Shipping Cost and
Speed
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Customer Benefits - Click & Collect improves
shipping cost and speed
Click & Collect
Consumers order products online
(click), and collect their merchandise at
a local store.
Customer Benefits
• Cost: $0 shipping cost and price
• Speed: Near Immediate gratification
• Certainty that item is in stock
• Easier returns
• Flexible pickup times
5
Ninety percent of Target’s online orders
are ready to be put into customers’ hands
within two hours.
Source: Pymnts.com, “Target and the Troubles
with Ship from Store,” June 2016
© Pulse Commerce 2017 - All rights reserved

Trends - 86% of customers will choose Click & Collect to save
on shipping – one reason why more retailers are offering it
Customer Expectations
• 86% of consumers would consider
buying online and picking up in
store to save $10 on a $50 item1
• 57.5% have used click & collect2
• Motivating factors2
• 65% claim shipping cost a key
factor
• 29% for convenience
• 23% for easier returns
6
(1) Blackhawk Engagement Solutions Survey, 2015
(2) Ivend Retail “Great Omnichannel Expectations 2016-2017 Shopper Survey Report
(3) Top500Guide.com
Sources:
Retail Trends
• 95 of the top 500 retailers
offered click & collect in 2015
(up from 63 in 2014)3
• Retailers offering click & collect
include:
Saks Fifth Avenue, Nordstrom,
Macy’s, Neiman Marcus,
JCPenney, Sears, Kohl’s., Staples,
Office Depot, Dick’s, Wal-Mart
© Pulse Commerce 2017 - All rights reserved

Retailer Benefits - Click & Collect increases retail
sales by 20% or more
Significant source of revenue
• 30.2% of Sam’s Clubs 2015 online sales
• 22.6% of Kmart’s 2015 online sales
Higher in-store sales
• Typical Macy’s Click & Collect customers spend an additional 25%
• More than 20% of Kohl’s Click & Collect customers buy additional items
7© Pulse Commerce 2017 - All rights reserved

“For John Lewis the service has turned out
to be a godsend. The company has only
about 40 stores, but click and collect allows
customers to pick up any items bought from
the John Lewis website from its sister
company, Waitrose. This adds 300 outlets.”
Source: “Click & Collect -- the New Way to Go Shopping,”
The Telegraph, 1/8/2013
Retailer Benefits - Click and Collect expands distribution
footprint for multi-chain retailers (e.g. John Lewis & Waitrose)
Expand Distribution
Enable item pickup across stores and
even across chains.
8© Pulse Commerce 2017 - All rights reserved

Retailer Challenges - Retailers have not yet perfected
Click & Collect execution and customer experience
9© Pulse Commerce 2017 - All rights reserved
Execution challenges
• Workforce Management
“In the store, you’re asking store labor to
do more services for the customers than
they had to do before”
Wayne Usie SVP of retail, JDA – WSJ,
“Retailers Struggle Getting Goods to
Customers,” Nov 4, 2015
• Inventory Management
• Challenges in ensuring
ecommerce systems have up to
date store inventory.
• Challenges in finding ‘in-stock’
items in stores.
Outcomes
• 57.5% of consumers have taken
advantage of click and collect
options . . .
• But only 31.6% describe in-store
collection, processes as “smooth.”
Ivend Retail “Great Omnichannel Expectations
2016-2017 Shopper Survey Report”

Retailer Changes – Stores must dedicate physical
space to pack up and distribute online orders
Physical space and tools
• Physical stores are not designed for
packing and holding.
• Retailers must find room for packing
tables, materials, etc.
• Software is needed to assign orders,
print packing labels, and receipts
10© Pulse Commerce 2017 - All rights reserved

Resolving Challenges – Successful retailers earmark store
space and associates to create a seamless pickup experience
Stellar In-Store Experience
• Dedicated store space
• Pickup location
• Packing station and structured storage
• Store associates trained and “on board”
• Customer Focus
• Great signage
• Orderly Pickup
11© Pulse Commerce 2017 - All rights reserved

Enterprise-wide Inventory & Order Visibility
• Gain real-time inventory visibility and control across
the entire enterprise
• Ecommerce integration
• Inventory Management, WMS integration
• POS Integration
• Streamline fulfillment with order prioritization,
packing slips and labels
• Deliver real-time, thorough communications
Order updates, store hours, pickup times and location
• Track Status and KPIs
• Product arrival
• Issues (customer refusal, damages, missing items)
• Returns
12
It takes 12 positive customer
experiences to negate the
poor impression left behind
from one unresolved, bad
experience.
“The Customer Service Report for
Ecommerce,” Nancee Halpin,March 2016.
Poor Experience
© Pulse Commerce 2017 - All rights reserved
Resolving Challenges – An Order & Inventory Platform
generates the real-time insight required to succeed

Pulse Commerce Order & Inventory Platform enables a real-
time view of orders & inventory required for Click & Collect
13
Pulse Commerce Order and Inventory Platform is the central nervous system of
your omnichannel commerce operations, providing unprecedented real-time,
enterprise-wide visibility and control of all orders, inventory and customers.
© Pulse Commerce 2017 - All rights reserved

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