On April 22, 2016 Demac's CEO and co-founder, Matt Bertulli, joined the team at Loblaw Digital for a Lunch and Learn to discuss the changing digital landscape and the biggest challenges facing retailers. Loblaw Digital is the team of responsible for building and operating the digital channels for Canada's largest and most successful retailer.

1. |APRIL2016

2. MATT
BERTULLI
CEO, Demac Media
Taking retailers from
“How do we do that?”
to “What’s Next?”

3. WE ARE A
COMMERCE AGENCY
(sort of)

4. 8+
RESULTS
Years independently
owned & operated
80+
Retailers
served
80
Team
members
#29
on the Profit 2015
Top 500 List
MONTREAL TORONTO MIAMI

5. GROWTH THROUGH
PARTNERSHIPS
WHO ARE WE?
First Agency Partner First Agency Partner
Gold Partner, Magento 2
Certified, Spirit of Excellence
2015 & 2016, “Best
Omnichallenge Experience”
Award Finalist

6. PROUDLY EMPOWERING
CATEGORY-LEADING RETAILERS
EXPERIENCE
From a Variety of Industries:
SPORTING GOODS FASHION MASS MERCHANT TOYS & HOBBIES CONSUMER ELECTRONICS

7. LET’S DIG IN
BUT NONE OF THAT IS WHY WE’RE HERE IS IT?
z

8. A FEW
THINGS TO
DISCUSS
TODAY
DIGITAL RETAIL IN CANADA
INSIGHTS FROM Q1 2016
THE PEOPLE PROBLEM
- Technology Democratization
- “Channels”
DISCUSSION
1
2
3
4

9. THE FUTURE STATE
OF COMMERCE
|APRIL2016
Our Collective “People” Problem

10. 17%
37%
ontario
36%
quebec
23%
saskatchewan
23%
manitoba
27%
new brunswick
29%
nova scotia
18%
newfoundland &
labrador
30%
prince edward
island
13%
alberta
21%
british columbia
26%
northern territories, yukon, nunaut
ECOMMERCE IN CANADA
EXPERIENCE
15%
Overall Growth Rate in
Canada 2014-2015
$34.04B
2016 Canadian
eCommerce Sales Forecast

11. ECOMMERCE IN CANADA
E-COMMERCE AS PERCENTAGE OF TOTAL RETAIL SALES
IN CANADA FROM 2013 TO 2019
PERCENTAGEOFE-COMMERCESALES
SOURCE: E M A R K E T E R © S TAT I S TA 2 0 1 5
ADDITIONAL INFORMATION: C A N A D A , E M A R K E T E R 2 0 1 3 T O 2 0 1 4
4.5%
5%
5.7%
6.4%
7.2%
8%
8.8%
4%
5%
6%
7%
8%
9%
10%
2013 2014 2015* 2016* 2017* 2018* 2019*

12. CONVERSION
○ mobile ○ tablet ○ desktop
COUNT
0
5
10
15
20
25
30
35
40
45
50
0-1% 1-2% 3-4% 4-5% 5-6% 6-7% 7-8%
DISTRIBUTION OF CONVERSION RATE BY DEVICE TYPE

13. CONVERSION
AVERAGE ORDER VALUE, BY DEVICE CATEGORY
AND AVERAGE REVENUE PER SESSION
AVERAGEORDERVALUE($)
AVERAGEREVENUEPERSESSION($)
○ average order value ○ average revenue per session
$127.49
$114.09
$104.57
$1.57
$0.92
$0.51
$0
$0.20
$0.40
$0.60
$0.80
$1
$1.20
$1.40
$1.60
$1.80
$0
$105
$110
$115
$120
$125
$130
desktop tablet mobile

14. LET’S START WITH
TECHNOLOGY
NOW THAT WE HAVE SOME CONTEXT
z

15. DEMOCRATIZATION OF TECHNOLOGY
AND A FUTURE OF SAMENESS
z

16. Where is the next generation of digital-First retail “worker” going to come from?
What skills will they need?
How specialized is each person going to be? Or are we going to all be generalists?
We need to focus less on the latest
technology and more on differentiation
through our people…

17. THE NEW “CHANNELS”
…WILL THEY EVEN WORK?

18. THE NEW “CHANNELS”
% OF SESSIONS BY SOCIAL PLATFORM
66%
17%
3%
3%
2%
9%
○ facebook
○ pinterest
○ twitter
○ instagram
○ sina weibo
○ other

19. THE NEW “CHANNELS”
AVERAGE ORDER BY SOCIAL PLATFORM
$361
$209
$197
$104 $98 $96
$78 $76
$64 $64
$0
$50
$100
$150
$200
$250
$300
$350
$400
youtube sina weibo linkedin polyvore tumblr facebook yelp twitter pinterest reddit

20. EVERY CHANNEL
NEEDS A PERSONAL TOUCH
SCALE THE HUMAN SIDE TO
YOUR BUSINESS!
THE NEW “CHANNELS”

21. DISCUSS?
Q&A?
Q & A

22. MONTREAL
hello@demacmedia.com
1-888-860-0364
www.demacmedia.com
TORONTO FLORIDA