The document summarizes the key points from an upcoming web conference on predictions for 2009 from the GRI Research Team. It includes 10 predictions for 2009, such as retailers reinventing themselves to deal with new economic realities, advancing precision retailing, raising expectations for PLM software functionality, and varying regional responses to retail challenges. The document also outlines strategies for retail IT investment and essential guidance, including ways to reduce costs with IT and untouchable projects.

1. WELCOME
 Our Web Conference will begin
at 1:30 PM EST, please stand by.
 Slides are available for immediate
Top Ten download. The recording will be
Predictions for available within 24 hours.
2009  Questions may be asked during
GRI Research Team the event using your console.
 There is no separate dial-in line.
Please adjust the volume on your
computer accordingly.
 For assistance, please use the Help
button on the console.

2. Top Ten Predictions for 2009
GRI Research Team

3. Today’s Webcast…
 GRI Participants
– Bob Parker
 VP, Research & General Manager
– Ivano Ortis
 EMEA Research Director
– Leslie Hand
 Research Director – Supply Chain & Merchandising
 Why Predictions?
– Goal: Identify trends that impact business and Information
Technology decisions. Preview the Insights research agenda.
– Process: Drawn from IDC and Insights studies, industry contacts,
and our own industry experience.
– Bias: We focus on the transformation of major business processes
and how IT enables that transformation.
– Time Frame: Predictions are focused on 2008, but will have a long
range impact
© Global Retail Insights, an IDC company Page 3

4. Agenda
 A challenging Economic Environment
 The Impact On IT
 Predictions
 Essential Guidance
© Global Retail Insights, an IDC company Page 4

5. Why Predictions?
 Goal: Identify trends that impact retail business and
Information Technology decisions. Preview the GRI research
agenda.
 Process: Drawn from IDC and Global Retail Insights studies,
industry contacts, and our own industry experience.
 Bias: We focus on the transformation of major retail
processes and how IT enables that transformation.
 Time Frame: Predictions are focused on 2009, but will
have a long range impact
© Global Retail Insights, an IDC company Page 5

6. A Challenging Economic
Environment
 Stock Indices as of 11/20/08
▼ Global Dow –56%
▼ Consumer Discretionary –54%
▼ Consumer Staples –32%
▼ Global Technology –52%
 Credit Default Redemptions, Foreclosures, Oil Prices
 US Consumer Credit ($2.6T) and the Financial Crisis
© Global Retail Insights, an IDC company Page 6

7. Pessimistic Projections
2007 2008 2009
Personal Consumption GDP (% growth) 2.2 -0.5 1.3
Residential Investment (% change) -19.0 -20.3 -5.5
Civilian Unemployment Rate (%) 4.6 5.6 7.1
Housing Starts (Mil) 1.34 .95 .76
Consumer Price Index (% change) 2.9 4.2 1.8
Store Closings (Thousands) 4.5 6.1 14.0
Source: T. Rowe Price Economic Projections, October 2008 and GRI Analysis
© Global Retail Insights, an IDC company Page 7

8. Other Key Points
 The Recession is Truly Global
 And will be with us into 2010
 Retailers Should Brace for a False Start to 2009
 Government Stimulus Efforts are Unlikely to Spark Consumer
Activity
 Senior Citizens Face Lower Net Worth
 A Disappointing Holiday Season
 The Emergence of Consumer Thrift
 Serving the “700’s”
© Global Retail Insights, an IDC company Page 8

9. The Impact on IT Spending
 High Impact
– Apparel and Accessory Stores
– Automotive Dealers and Gasoline Service Stations
– Building Materials, Hardware, and Garden Supplies
– Eating and Drinking Establishments
– Home Furnishings and Equipment Stores
 Moderate/Low Impact
– Catalog and Mail Order Houses
– Drug Stores
– Food Stores
– General Merchandise
– Miscellaneous Retail
© Global Retail Insights, an IDC company Page 9

10. Follow the Leaders
 #1 Retail Leaders Will Reinvent Themselves to Deal with
New and Rapidly Changing Socio-economic and
Technological Realities
– Consumer Option Overload – Products, Stores, Channels
– A near term draconian response
– A long term “re-boot” of the industry
 #2 Retailers will advance Precision Retailing discipline to
strengthen their brand promise and respond to new
consumer realities.
– Multi-Channel Version 2.0 – Mobility and Digital Marketing Dominate
– Unified information + In-Depth Profiling = Precise Consumer
Experiences
© Global Retail Insights, an IDC company Page 10

11. Application Priorities
 #3 Buyers will raise the bar on functionality for PLM software.
– Retail specialists stay ahead of ERP and mainstream PLM
– Design for Price Worthiness
– The Importance of Sourcing
 #4 Supply Chain Management Modernization and
Fundamentals Support Reducing Costs or Balancing
Supplier/Retailer Costs.
– Priorities include transportation, inventory, and distribution
optimization tools and collaboration.
– Modern Data Acquisition, Standardized Data, Collaborative Decision
Making
– Renewed Interest in Payment Systems and Reverse Logisitics
© Global Retail Insights, an IDC company Page 11

12. Shopping Experience Priorities
 #5 Retailers will strive for ways to enhance the total shopping
experience: the rise of Omni-Social-Shopping.
– Mobility and Digital Marketing
– Reinventing the Detail of Retail
– Self Service Expands
 #6 Organizations will move beyond thinking demand
intelligence alone will solve out of stocks at retail.
– Retailers will reach beyond their enterprise for customer segment,
lifestyle and market data, synthesizing all inputs for use in pricing,
promotions, allocations and space planning activities.
– Rising Inventory and Out-of-Stocks? What’s Wrong?
– Demand Intelligence to Support End to End Processes
© Global Retail Insights, an IDC company Page 12

13. IT Investment Strategies
 #7 Retail IT Integration investments will be among the top-3
priorities for retailers of all kinds and size.
– Reshaping the CIO Role – The New Change Agent
– Hardware: Flexible Standardization
– Software: Common Information and Analytic Models
– Services: Creating a Corporate Catalog
© Global Retail Insights, an IDC company Page 13

14. Regional Challenges and
Outsourcing Trends
 #8 Regional responses to retail challenges will vary
considerably.
– North America: Invest for Efficiencies and Experience
– Europe: Aligning Unique Needs with Technology
– Asia/Pacific: Getting the Infrastructure Right
 #9 Retail IT outsourcing will escalate on data center,
infrastructure and applications development outsourcing.
SaaS and managed services for retail-specific applications
will hit the market.
– Cost Reduction Trumps Consulting Expertise Again
– But Retail Considerations Make Their Way into Offerings
– IT Strategy: Move the Mundane, Manage the Change
© Global Retail Insights, an IDC company Page 14

15. Sustainability Survives
 #10 Cost cutting green initiatives continue to dominate, but
sustainability and being green will be embedded in the fabric
of leading retailer strategies and tactics.
– Retail Was Serious About Sustainability in 08
– Sustainability Immersed in All Activity
– Be Ready to Measure This Year
© Global Retail Insights, an IDC company Page 15

16. Essential Guidance – Buckle Up, It’s
Going to Be Rough
 4 Ways to Take Cost Out of IT
– Virtualization
– Unified Communications
– Consolidation
– Open Source
 4 Ways to Save Business Costs with IT
– Energy Management
– Health Insurance
– E-Government
– Risk Management
 4 Untouchable Projects
– Product Management and Sourcing
– Modernizing Operations and the Supply Chains
– Gain Omni-Channel Precision with Demand Intelligence
– Build Sustainability into Applications
© Global Retail Insights, an IDC company Page 16

17. Thank you!
info@globalretail-insights.com
© Global Retail Insights, an IDC company Page 17