ComCap is an investment bank focused on the digital retail ecosystem. The document discusses ComCap's perspectives on in-store retail technologies and how they can help retailers compete with Amazon. These technologies include analytics, signage, fintech, loyalty programs, marketing, and store management solutions. While retailers have been slow to adopt such technologies, the current environment demands change in order to improve the customer experience and store operations. ComCap works with both financial and strategic investors globally to facilitate understanding of investment opportunities in this area.

1. CONFIDENTIAL
1

2. CONFIDENTIAL
ComCap Perspectives on Retail
In-Store Technologies
August 2017

3. CONFIDENTIAL
We are pleased to present our retail in-store technology
perspectives
§ In the following slides we have synthesized our views on the current state of the retail in-store technologies which
hold the promise of rebalancing the retail playing field in the ”Age of Amazon”
§ With wide ranging applications throughout “offline” retail, in-store technologies serve to “shine a light” on the current
information and customer experience “dark space” represented by the retail store environment. These technologies
have the capability to significantly improve retail store investment ROI, the in-store customer experience and retail
store management, but domestic retailers have been slow to adopt…the current environment demands this to
change
§ ComCap is a premier boutique investment bank focused on the digital retail ecosystem, with key subsectors
including B2C ecommerce, B2B SaaS, B2B services for retail (IT and marketing services, fulfillment and logistics,
and call center), payments, marketplaces and digitally native brands
§ Headquartered in San Francisco with offices in Singapore and Europe, our firm works with large multi-national
public companies on buyside initiatives, and with public and private growth companies on equity financings
and strategic M&A
§ In addition to being the only boutique focused exclusively on disruptive commerce models, we differentiate by
bringing bulge bracket techniques to emerging business models, a strong and uncommon buyside/strategy practice,
deep understanding of industry drivers and synergy analyses, deep relationships across the sector and worldwide
coverage with closed transactions in the United States, Japan, China, the ASEAN region, Western and Eastern
Europe and Latin America
§ If you'd like to connect with us over the phone and/or meet in person to discuss your strategic initiatives, please
contact either Aron, Steve, Fermin or Collin
Aron Bohlig
Managing Partner
M: 415-235-8270
E: aron@comcapllc.com
Steve Terry
Managing Director
M: 415-971-3794
E: steve@comcapllc.com
Fermin Caro
Director
M: 650-743-7825
E: fermin@comcapllc.com
3
Collin Rice
Associate
M: 612-578-7512
E: collin@comcapllc.com

4. CONFIDENTIAL
CONFIDENTIAL
10
Select retail in-store disruptors can help retailers compete in
an amazon world
`
Analytics Display and
signage
Fintech Loyalty Marketing Store Mgmt OtherMobile
TotalCapitalRaised
$50m
$10m
$25m
$75m
$100m+
$5m
Source: PitchBook, CrunchBase
CONFIDENTIAL
26
ComCap’s strategic partner landscape
Software and
Service Leaders
Payments
& Fintech
Email Service
Providers / Other
Marketing
Global Logistics
Leaders
Agencies and
Systems
Integrators
Retailers
Corporate
VC’s
eCommerce
leaders
CONFIDENTIAL
ComCap: Retail Market Overview
June 2017
ComCap’s perspectives on retail in-store technology is
shared with 250+ financial and 100+ strategic investors
§ ComCap’s perspectives on various industries, including retail in-store technology trends, is being shared with our
large network of strategic and financial investors globally
§ This facilitates a better understanding of sweet spots for these investors; and ultimately helps to better position a
mandated client with selected players
§ Unique disruptors are gaining additional global coverage via ComCap’s reach
CONFIDENTIAL
Note: Based on SF / Bay-area store visits Feb 2017. 9
Physical stores slowly adopting in-store tech (con’t)
Select Broadline / Specialty Retailers
Digital Capabilities
Beacon technology
Click & collect
Cross channel inventory view
Digital signage / price tags
E-Receipts
Free in-store Wifi
Online reviews / pins in store
Unique digital payment (Samsung, Apple Pay)
Mobile Integration:
§ Associate Mobile App
(selling tool / check-out)
§ Customer mobile app integration
§ Mobile deals
ComCap proprietary analysis
4

5. CONFIDENTIAL
Retail in-store technologies – key themes for 2017-2018
Offline retail accounts for roughly 90% of retail purchases and represents a multi-trillion dollar market, yet
ecommerce penetration is steadily increasing and driving the need for improved customer experience and
efficiency in-store
Store productivity declining as ecommerce grows
Physical stores still not digitized
Technological advancement is needed to keep brick and mortar competitive
Retail in-store technology disruptors can help retailers compete in an Amazon world
Customer experience is still king
Analytics focused on retail and risk management have attracted significant capital
IoT applications present unique solutions for retailers
5
4
8
7
1
2
3
6
5

6. CONFIDENTIAL
Offline retail remains a multi-trillion dollar market, yet
ecommerce penetration is steadily increasing and driving
the need for improved customer experience and efficiency
in-store
Source: eMarketer
Total retail sales worldwide, 2015-20 Retail ecommerce sales worldwide, 2015-20
US$ trillions and percent change US$ trillions, percent change, and
percent of total retail sales
Note: Excludes travel and event tickets Note: Includes products or services ordered using the Internet via any device,
regardless of the method of payment of fulfillment, excludes travel and
event tickets
$20.795
$22.049
$23.445
$24.855
$26.287
$27.726
5.8% 6.0% 6.3% 6.0% 5.8% 5.5%
2015 2016 2017 2018 2019 2020
Total retail sales % change
$1.548
$1.915
$2.352
$2.860
$3.415
$4.058
25.5% 23.7% 22.9% 21.6%
19.5% 18.7%
7.4% 8.7% 10.0% 11.5% 13.0% 14.6%
2015 2016 2017 2018 2019 2020
Total retail sales % change
% of total retail sales
6
1

7. CONFIDENTIAL
Amazon is taking one third of total commerce growth…
Estimated Amazon North America GMV growth vs US retail GMV growth1 and Amazon prime membership2
$8
$19 $14 $17 $19
$39 $41
$79
$131
$108
$91
$127
$120
$128
25
40
54
70
2010 2011 2012 2013 2014 2015 2016
($billions)
Y/Y change in Amazon GMV
Y/Y change in US Retail GMV excluding non-Amazon categories
Prime members (in millions)
Source: Channel Advisor, Census.gov, ComCap LLC estimates2
Note: (1) US Retail GMW Growth = US Retail (ex-Autos & Food Services) + Automotive Parts / Tires – Fuel Dealers – Gasoline
(2) Recode
10% 33%15% 32%15%13% 19%
AMZN % of US Retail Sales Growth
Growth has doubled over the past 2 years and prime now penetrates nearly half of US
households
7
1

8. CONFIDENTIAL
Recognizing the value of online, Amazon bags the elephant,
acquires Whole Foods Market
1.4%
1.7%
1.7%
2.1%
4.2%
5.2%
5.3%
6.9%
7.2%
16.6%
United States
The Netherlands
Spain
Czech Republic
China
Taiwan
France
UK
Japan
South Korea
Online grocery sales have yet to take off in the US
FMCG: Fast-Moving Consumer Goods
Figures for the 12-month period ending June 2016
Source: Kantar Worldpanel
US online food and drink sales (excl. sales tax, $bn)
Source: Whole Foods, Amazon.com, Statista
4.8
7.6
12.2
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
2010
2011
2012
2013
2014
2015
2016E
2017E
2018E
2019E
2020E
Will the whole foods deal boost Amazon fresh
availability?
Alaska
Hawaii
Whole Foods currently operates
444 stores in 43 U.S. States
20+
10-19
3-9
1-3
0
üSeattle
üSacramento
üSan Francisco
üDenver
üLos Angeles
üSan Diego
üDallas
üChicago
üNew York City
üPhiladelphia
üBaltimore
üBoston
Washington
DC
ü Amazon Fresh is currently available in selected cities including but not limited to
§ Amazon acquires Whole Foods Market for $13.7bn
- Whole Foods Market could turbo charge Amazon Fresh,
which has a limited reach given its $14.99 / month fee for
Prime members
- Amazon gets access to 400+ Whole Foods stores across 43
states
- 62% of Whole Foods customers have Amazon Prime
accounts, enabling Amazon to observe consumer shopping
tendencies both online and in store
- Whole Foods brings expertise in category and SKU in food
and healthy living
- The overall grocery spend in US is around $1.5t of out which
just $17bn is online (1.4% of total sales)
§ Whole Foods’ typical customer earns $100k-$125k+ annually,
which Amazon hopes to target
§ Whole Foods has underinvested in ecommerce technology, and
stands to benefit from Amazon's ecommerce and logistics
expertise, and will bring to bear its own last mile connectivity
capabilities
8
Number of Whole Foods stores in the US (as of June 2017)
Top 10 markets with the highest e-commerce share of FMCG sales
1

9. CONFIDENTIAL
Prime wardrobe could decrease footfall to legacy retailers
§ Amazon’s launch of Prime Wardrobe curates clothing and accessories,
delivers them to Prime members to “try before they buy”
- Customers have seven days to choose products they’d like to keep,
and get 10% and 20% discount if they keep more than two or four
items, respectively
- Amazon's logistics network enables efficient and convenient delivery
and returns for consumers vs. traditional retailers
§ Prime Wardrobe service is combined with Prime membership fee
- Prime Wardrobe service is expected to further boost Amazon’s online
apparel segment, which contributed 12% of sales growth last year
§ Amazon launched seven private-label clothing lines in 2016, excluding
Zappos and Shop Bop
- Amazon also acquired a on-demand clothes manufacturing patent to
shorten lead times and minimize inventories
- Amazon’s Style Check feature and Echo Look and data on items kept
will drive improved personalization of curated items for consumers
$56.9
$63.3
$69.6
$78.9
$83.8
$90.3
$96.4
2015 2016 2017 2018 2019 2020 2021
Amazon can accelerate penetration of a leading
ecommerce segment
Source: Satistica
$7 $8 $8
$13
$10$10$11
$17
$13$13$13
$20
$15$16$17
$20$20$21$22
$32
$23
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
Prime wardrobe can contributed to Amazon’s expanding
share of global retail revenue ($bn)
Source: BI Intelligence
Amazon’s private clothing labels
SOCIETY NEW YORK
Apparel, footwear and accessories retail e-commerce
revenue in the United States from 2015 to 2021 ($bn)
9
1

10. CONFIDENTIAL
Google has previously integrated partner technologies into
its product offerings with great success
10
DescriptionPartnership
§ DigitalGlobe is a key player in the global commercial satellite-
imagery industry
§ Much of Google Earth and Google Maps’ high resolution-
imagery is provided by DigitalGlobe
§ Google acquired ITA Software in July 2010 for $700mn
§ Google’s acquisition of ITA Software aimed to create a new,
easier way for users to find better flight information online,
turbocharging online purchases of flight tickets
§ The acquisition was projected to benefit passengers, airlines
and online travel agencies by making it easier for users to
comparison shop for flights and airfares and by driving more
potential customers to airlines’ and online travel agencies’
websites
§ Integrated ComScore’s validated Campaign Essentials (vCE)
for US Google DoubleClick customers to help improved digital
advertising’s problems such as viewability
§ Developed audience delivery metrics such as Gross Rating
Point (GRP) measurements for digital media
§ In Feb 2016, it was forecasted that ComScore vCE will deliver
$100m in 2017 revenue to ComScore, largely attributable to
DoubleClick
Source: Press releases and articles
1

11. CONFIDENTIAL
Store productivity declining with ecommerce growth…
§ Online sales have hampered brick and mortar stores’ ability to increase productivity. Digital sales have grown double digits annually
- The U.S. Census Bureau estimated that total e-commerce sales for 2016 were $395 billion, an increase of 15.1% over 2015
§ Productivity rankings for the 2016 for leading U.S. retailers, as compiled by E-Marketer show large format and specialty retailers are
among the most productive
§ Returns create further headwinds for retailers – The National Retail Federation says that returns have increased 52% from $171
billion in 2007 to $260 billion in 2015
§ Free delivery is often an incentive to buy online, forcing traditional retailers to make up the losses on returned items through higher
productivity
§ Lower productivity retailers need innovation urgently to drive foot traffic back to brick-and-mortar locations
The Amazon effect – US eCommerce sales growth, year over year
$0
$200
$400
$600
$800
$1,000
$1,200
Sales per square foot
Source: Forbes.
Note: Some companies do include their online sales in their productivity figures since they fulfill their omnichannel sales in their stores. While
department stores have benefitted from online sales, they have not included them in their productivity statistics. 11
2

12. CONFIDENTIAL
Select broadline / specialty retailers
Digital Capabilities
Beacon technology
Click & collect
Cross channel inventory view
Digital signage / price tags
E-Receipts
Free in-store Wifi
Online reviews / pins in store
Unique digital payment (Samsung,
Apple Pay)
Mobile Integration:
§ Associate Mobile App
(selling tool / check-out)
§ Customer mobile app integration
§ Mobile deals
Note: Based on SF / Bay-area store visits Feb 2017
…Creating a huge opportunity for adaptive retailers
(yet many are slow to do so)
ComCap proprietary analysis
12
3

13. CONFIDENTIAL
Select broadline / specialty retailers
Digital Capabilities
Beacon technology
Click & collect
Cross channel inventory view
Digital signage / price tags
E-Receipts
Free in-store Wifi
Online reviews / pins in store
Unique digital payment (Samsung,
Apple Pay)
Mobile Integration:
§ Associate Mobile App
(selling tool / check-out)
§ Customer mobile app integration
§ Mobile deals
Note: Based on SF / Bay-area store visits Feb 2017.
Physical stores slowly adopting in-store technology (con’t)
ComCap proprietary analysis
13
3

14. CONFIDENTIAL
Customer experience is still king…
Increasing dependence on CX to generate higher revenue, better customer loyalty, a bigger market share, and even
higher stock prices
§ Shopping is no longer treated as a
need-based activity, but has become an
experience, providing a unique
opportunity for retailers to develop
strategies for delivering the experience
customers desire and boost their
business
§ Consumers still prefer to shop in-store to
touch, feel, and receive advice about the
product in-store; waiting for the product
remains a pain point
§ The retail industry is continuously
changing as consumers are utilizing
various channels to make their
purchases
§ Now more than ever it is essential for
retailers to offer an experience to their
customers that they couldn’t receive via
mobile or online
ü With the advent of digital marketing,
in addition to the abundance of in-
store advertising, creating lasting
impressions on customers is
becoming a significant challenge
ü Fierce competition, has been
exacerbated by the rise of
ecommerce, making the need for
retailers to differentiate both
themselves and the in-store
experience all the more urgent
Source: ForeSee’s 2016 Experience Index, press releases.
Priority map
§ 56 cents of every dollar spent in a
store is influenced by a digital
interaction (Deloitte, 2016)
§ 75% shoppers now prefer to browse
online then buy in store (PWC, 2015)
§ In the apparel sector, over half of
shoppers who browse online still
prefer to go in store to complete the
purchase (PWC, 2016)
§ 76% of Millennials use their mobile
phone while in store (ForeSee, 2016)
82
7879 79
76
80
2011 2016
Store Web Mobile
Changes in channel CX
Despite clear evidence that CX drives customers,
store CX it has dropped four points since 2011
according to ForSee’s experience index.
Indicates and assist organizations in visualize priorities and are available for every touchpoint in
the customer journey. Store atmosphere is the most priority element
Outcomes of a great store CX
Monitor Top priority
ImproveStatus quo
Low Impact High Impact
Checkout
Price
Merchandise
Service
Store atmosphere
Elements Top priority elements
14
4

15. CONFIDENTIAL
… Yet retailers struggle to understand consumers’ multi-channel
journey due to poor integration of online/offline data
Source: A commissioned study conducted by Forrester Consulting on behalf of RetailNext, November 2015
Consumers turn to different channels at different stages of the
buyer journey
Retail stores struggle to integrate online and offline data
15%
14%
57%
51%
24%
32%
33%
60%
10%
Purchase products
Interact with customer
service
agent or store associate
Research products
Mostly or exclusively in -store Online and in -store equally
Mostly or exclusively online
But when it comes to making
purchases, 51% of consumers do
so online and in-store equally
followed by the 33% who prefer
to make purchase in-store
60% prefer to
interact with sales
associate in-store
Most Consumers
(57%) prefer to
research products
online
20%
17%
23%
13%
19%
14%
17%
23%
18%
21%
25%
28%
27%
45%
41%
46%
44%
39%
47%
45%
41%
39%
36%
27%
25%
31%
31%
31%
25%
24%
13%
15%
14%
12%
13%
9%
7%
6%
8%
9%
1%
1%
1%
1%
1%
Able to understand online touchpoints
and the
interplay with in-store behavio
Can take orders in-aisle via mPOS
Know what tasks are the highest priority
Know what amount of interaction is the
right amount to influence positive CX and
buying decisions
Place orders for items that are located in
another store or DC
Offer ongoing training based on their
performance
Able to understand past customer
behavior and make personalized product
recommendations
Access to rich content and information in
order to help engage shoppers
Access to robust reporting that helps
them understand store and associate
performance
See inventory in all store and distribution
center locations
Strongly agree Agree
Neither agree or diagree Disagree
Strongly disagree
15
4

16. CONFIDENTIAL
Creating a unique experience differentiates retailers and drives
repeat foot traffic
ü Emergence of robots in retail enhances customer experience
ü Rise of sensor technology streamlines the experience
ü New in-store technologies including analytics, intelligent
merchandising, associate augmentation, way-finding, personalized
virtual experiences, and augmented reality experiences are being
offered by innovative disruptors
ü Services to drive online customers to the store such as buy online &
pick up in store, interactive kiosks, create digital GIF booth, virtual
rails, interactive dressing room, digital fitting room and others create
a differentiated experienced
Retail in-store technology disruptors can help retailers
compete in an Amazon world…
Source: CB Insights
Technology
provider
Technology overview
§ Offers a centralised SaaS platform, that automatically collects shopper behaviour data
§ Improves attribution of online to offline campaigns with comprehensive in-store analytics
§ The analytics software and retail expertise assist in increasing same-store sales, reducing theft and eliminating
unnecessary costs
§ One Door provides SaaS based retail solutions for merchandising campaign planning, communication, and in-store
execution
§ Offers solutions including Visual Merchandising Manager, a retail communication platform and a point of purchase
manager that automates production quantity calculations based on individual store attributes
§ SES-imagotag offers retailers with an all-in-one solution to connect their stores: electronic shelf labels, jeggy
software and MultiCom infrastructure
§ Shelfbucks is an in-store smart shelf and smart display platform
§ The company allows CPG's and retailers to measure, manage and improve the effectiveness of in-store product
merchandising programs
A robotic selling machine installed in a
Best Buy store in Manhattan
Rebecca Minkoff established a digitally
connected store collaboration with
eBay, optimizing the use of space
Virtual rail mounted by M&S in its store
allows customers to browse life-sized
imagery of merchandise, simulate a real
life clothing rail
16
5

17. CONFIDENTIAL
… and transform brick-and-mortar retail
Selected in-store innovators
§ Recent advancements
include robotics,
personal recognition,
digital wallets, artificial
intelligence, consumer
analytics and other tech
driven initiatives in order
to make shopping
easier instore and
online
§ Instore operations have
been transformed by
new developments such
as interactive kiosks,
mobile payments, BLE
technology, RFID
tagged products and
smart shopping carts
§ Innovations such as
virtual mirrors and
interactive kiosks can
also refuel customers’
desire to shop instore
§ A range of ancillary
services are popping up
for instore, such as POS
financing, guest wifi,
and POS interviews
Source: CB Insights 17
5

18. CONFIDENTIAL
Select retail in-store disruptors
`
Analytics Display and
signage
Fintech Loyalty Marketing Store Mgmt OtherMobile
TotalCapitalRaised
$50m
$10m
$25m
$75m
$100m+
$5m
Source: PitchBook, CrunchBase 18
5

19. CONFIDENTIAL
Technological advancement is needed to keep brick and
mortar competitive…
Strategies Description
Personalized
online
shopping
§ Personalised shopping experience has given a rise to personalised pages, personalised search results,
personalised product recommendations, and personalised offers
─ Personalized pages: It can be the landing page as well as the product page. By tracking the user’s
past activities on the website, the company can analyse and predict the likes and dislikes of the user
─ Personalized product recommendations: After understanding the behaviour of the consumer, the
company can make recommendations on potential purchases
Virtual reality
§ Through VR, the user can visit various stores, view their entire catalogue, and look for all the latest
collections from their favourite brands or designers
§ VR store is very well arranged to locate the category of the products and helps the consumer find what
they are looking for
Video analytics
§ Provide useful insights on how much time a user spent on each product, who is taking the product
from the shelf and without putting it to the cart keeping it back on the self
§ This information assists in analysing the offers to be given and to increase the footfall in the physical
stores
Augmented
reality
§ Various brands / retailers can promote their product using AR. The consumer can launch a user
manual in a short video while hovering the camera over the logo on the packaging
§ For example: For home decor, the user can scan the barcode of the item they likes and after returning
home can see the product in the real world with the camera positioned in the space where they want to
keep the product
Offline stores
Assist in improving the buying experience at physical stores:
§ Kiosk implementation: Shares the image of a particular product either through Bluetooth/ Wi-Fi and the
kiosk pops up with the exact product / similar products present in the store
§ Virtual trial mirror: If a client stands in the front of mirror, he can have a view of the entire catalogue in
the front of the mirror. The customer can view different products on themselves, change the background,
the colour of the product, take a selfie, match the product with complementary products and see the entire
collection without actually wearing it
19
6

20. CONFIDENTIAL
… fueling the demand for in-store technology which continues to
attract venture capital
$45
$67
$103
$184
$134
$114
$183
$297
$59
$314
$275
$137
$238
$229
$275
$137
$190
$229
18
22
30
46
36
30
34
41
28
46
40
35
47
56
40
35
45
32
0
10
20
30
40
50
60
$-
$50
$100
$150
$200
$250
$300
$350
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17
Disclosed funding ($m) Deals
Source: CB Insights 20

21. CONFIDENTIAL
IoT applications present unique solutions for retailers
§ According to Juniper
Research, the number of
IoT-connected devices will
reach 38.5 billion in 2020,
a 285% increase from
13.4 billion in 2015
§ The devices include
smartphones, tablets,
smart signage and
wearables. Using data
from a smartwatch,
retailers will be able to
gain insight into how long
a customer stands near a
product, or the speed at
which they wander down
the aisle
§ To make in-store digital
signage even more
interactive, avant-garde
retailers are integrating
beacon technology to
detect users with
Bluetooth-enabled smart
devices as they approach
the digital displays. For
example: Zatar and
Samsung are creating an
engaging customer
experience by affixing
RFID tags within labels on
wine bottles
The start-ups in this market map have raised $900m in aggregate to bring
IoT into retail
Source: CB Insights 21
7