Christian Bourque Executive Vice-President and Senior Partner Leger Jacques Nantel, Ph.D Professor, HEC Montreal Academic Associate & Executive Vice-President Leger

1. Le e-québécois
The transformation of retail in Quebec

2. Always “a little bit”
behind…

3. 3
The “lag” in Quebec
15.7
Source: BBM Analytics, RTS Study, July 11, 2014
Total Francophones
18 17.9
19.7
12.6
14 14.5
16.1
2010 2011 2012 2013
Average hours
per week online
in Quebec
18% less among
Francophones

4. 4
Where Quebec lags behind
SOURCES: Nielsen, “Ecommerce: Evolution or Revolution in the Fast-Moving Consumer Goods World” (September 2014)
eMarketer, April 2014
34% 43% 56%
47% 47% 47%
60% 51% 45%
65% 50% 41%
42% 34% 34%
22% 17% 14%
12% 8% 5%
8% 4% 4%
32% 25% N.D.
24% 17% N.D.
Percentage of internet
users who made
purchases online
(last 12 months)

5. Online sales that hurt
traditional retail

6. 6
Whatever the source…the conclusion is the same
2012 2013 2014 2015 2016 2017 2018
Sources
Euromonitor, July 2013
6.5%
J.P. Morgan, January 2014 (1)
9.4% 10.6% 11.8% 12.9%
RBC, February 2014 (2)
6.% 7.% 7.% 8.% 9.%
Jefferies, November 2013 (3)
5.2% 5.8% 6.3%
Centre for Retail Research, March 2014 (4)
9.7% 10.6% 11.6%
Forrester Research, May 2014 (5)
8.% 9.% 11.%
Javelin Strategy & Research, May 2014
7.4% 8.% 8.5% 9.% 9.5% 9.9%
eMarketer, September 2014 (6)
5.2% 5.8% 6.5% 7.1% 7.7% 8.3% 8.9%

7. 7
But…
Given that sales associated with cars and
food count for 50% of household spending,
online sales for other products amount to
roughly 20% of total sales.

8. 8
Percentage of sales online
48%
44%
34%
30%
23%
11%
14%
16%
17%
11%
20%
0 10 20 30 40 50 60
Food and beauty products
Source: Comscore March 2014
Toys
Clothing
Televisions
Shoes
Fashion accessories
Books
Cameras and photo devices
Printers and accessories
Computers
Music

9. 9
Stores in Quebec pay a double penalty
Sales lost by local retailers
But also sales that are exported

10. 10
Percentage of
Canadian
purchases online,
by retailer location
Lost business: sales online
8%
3%
33%
55%
ASIA EUROPE USA CANADA

11. 11
Source: CEFRIO, 2013
Countries where Quebecers buy online
Autres
66% 6% 16% 12%
39% 11% 40% 10%
34% 12% 36% 18%
23% 6% 53% 18%
8% 6% 70% 17%
2% 29% 57% 12%
Buying practices
depend on the
category

12. A definite impact on
commercial infrastructure

13. 13
A slow and steady tsunami downward
2008 2013 Variance
Sales in stores $443 billion $475 billion + 7%
Number of stores 203,000 195,000 -3.5%
Total surface 1.3 billion sq. ft. 1.07 billion sq. ft. -3%
Population 33,049,761 34,940,975 +6%
Average sales per person $13,412 $13,594 1%
Number of square feet per consumer 34. 2 sq. ft. 31.4 sq. ft. -8%
Source: Statistics Canada, CANSIM Table 080-0023. Annual retail store survey, financial estimates by North American Industry Classification System (NAICS)
and store type, annual

14. The next bigchallenge: integrate
in-store, online and total customer
satisfaction…the omni-channel
www.leger360.com
1st
2014 Customer Experience Index

15. Le e-québécois
The transformation of retail in Quebec