Today's retail environment is changing at a speed in which most legacy retailers are unable to keep up with. Topics include innovative tech like virtual reality/augmented reality that have yet to make a dent to massive marketplaces such as Alibaba, Amazon and Airbnb.

1. - Digital Disruption -
Intrigue, Immediacy and
Frictionless
@ryanmcraver

2. @ryanmcraver

3. @ryanmcraver

4. @ryanmcraver
Innovators 2.5%
Early Adaptors
13.5%
Early Majority
13.5%
Late Majority
13.5%
Laggards
16%
Where is VR/AR in the tech adoption curve?
VR/AR Smartphones

5. Global brand owner and licensee for apparel
brands focused within active wear, intimates
and hosiery.
Brand portfolio includes:
Children’s Wear brand operating
since 1921.
Sold nationally with following retailers:
Brand Leadership Digital Leadership Startup Junkie
How I spend my time
Commerce Canal
@ryanmcraver

6. Tech sits in the center of the retail ecosystem.
@ryanmcraver
MOBILE
BEACONS
IoT
DISPLAY
VIRAL
VIDEO
NATIVE
PPC
EMAIL
AFFILIATES
RETARGETING
SEARCH
SOCIAL
LIVE CHAT
CALL CENTER
STORE
SUPPORT
TV
PRINT
RADIO
OUTDOOR
PR BOPUS
DIRECT MAIL
CATALOG
PROMOS
POS EVENTS
BRAND
SALES
STORES
DIGITAL
LEAD
GENERATION
ADVERTISING

7. @ryanmcraver

8. @ryanmcraver

9. - STRICTLY CONFIDENTIAL AND FOR INTERNAL USE ONLY -
CONNECTIVITY DISTRIBUTIONSCALABILITY
Infinite computing
power and storage
on an inexpensive,
pay-as-you-go basis
By the year 2020, 80% of
the adults on earth will
have a smartphone;
majority of US
population uses >3
connected devices per
day
Limitless customer
touch points and
borderless commerce
at your fingertips
a16z, How Google Works, @ryanmcraver
1099
ON-DEMAND
Flexible workforces
fueled by 1099 economy
providing services for
physical goods
Factors driving this change?
@ryanmcraver

10. Tech has made today’s customer high maintenance
@ryanmcraver
Research Online,
Purchase In-Store1
Webrooming
69%
Research In-Store, Purchase
Online1
Showrooming
53%
Research Online, Pick-Up
At Store1
Pick-Up
43%
1 Deloitte Holiday Survey, September 2015. n=4,011

11. 0%
5%
10%
15%
20%
25%
30%
$-
$100
$200
$300
$400
$500
$600
$700
2012 2013 2014 2015 2016 2017 2018
TotalSales(billions)
mCommerceas%ofRetaileCommerceSales
Traditional mCommerce
eMarketer. Note: Includes products or services ordered using internet via mobile devices, regardless of the method of payment or fulfilment; excludes travel and event tickets; includes
sales on tablets.
All retailers are dealing with the shift to ecommerce and mcommerce
@ryanmcraver

12. RISE
Brand
interaction
through
email, social
or casual
browsing via
mobile
COMMUTE
Brand
interaction
through
geolocation
push
notifications
via mobile
WORK
Casual work
browsing via
corporate
desktop or
laptop
VISIT
Webrooming
or casual
browsing
through a
brick &
mortar visit
LOUNGE
Late night
browsing and
shopping via
tablet
Today’s customer cycle
@ryanmcraver

13. Tech has changed what retailers focus on.
@ryanmcraver
Foot traffic
POS conversion
engagements
Comps
hold time
# of impressions
reachcredit
bounce rate
Dwell time
visual
email
loyalty
basket
Customer acquisition rate
retweets
Internet of things
Reg/promo price
marketing
digital
clicks
turns
open rate
mobile
$ per transaction
likes
CPC
digital photography
Abandon rate
bluetooth
wifiBLE
legacy

14. “We do not believe there is a
material impact on the bulk of
our markets or with our core
business and leisure
customers”
Christopher Nassetta, CEO
@ryanmcraver

15. Airbnb now lists close to 3x room nights of largest competitor and will
average 1 million rooms booked per night in 2016.
2,000,000
758,000
@ryanmcraver

16. Sheryl Sandberg, COO
“One in every five minutes on
a smartphone in the US is
spent on Facebook”
@ryanmcraver

17. 1.6 billion users monthly active users or 23% of the world’s population
access Facebook each month.
202 204 206 208 210 213 217 219 222
289 292 296 301 307 311 315 323 333
390 410 426 449 471 496 522 540 566
395 411 423 436 453
471
492 509
533
Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
US & Canada Europe Asia-Pacific Rest of World
1.6 billion
1.2 billion
@ryanmcraver

18. 66% of those monthly users access the site daily with Facebook surpassing
1.1 billion daily active users.
150 152 155 157 161
64
167 169 173
203 206 212 217 225
228
233 240 249
216 228 242 253 270
285
300 309 329
233 244
256 263
280
292
308 319
340
Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
US & Canada Europe Asia-Pacific Rest of World
1.1 billion
800 million
@ryanmcraver

19. “Our whole goal is to drive the
cost of taking an Uber BELOW
the cost of owning a car.”
Travis Kalanick, Co-Founder & CEO
@ryanmcraver

20. @ryanmcraver

21. @ryanmcraver
Q1'14 Q3'14 Q1'15 Q3'15 Q1'16
Car Rental Ride Sharing Taxi
Business travel expenses for ride sharing now exceed taxi’s and car rentals

22. “I hope 15 years later people
forget about ecommerce -
because they think it’s like
electricity”
Jack Ma, Co-Founder & CEO
@ryanmcraver

23. 2013 2014 2015 2016
Alibaba is expected to surpass Walmart in retail platform size with >$500b
in GMV in 2016.
@ryanmcraver

24. @ryanmcraver
“In the old world, you devoted
30% of your time to building a
great service and 70% of your
time shouting about it. In the
new world, that inverts.”
Jeff Bezos, Founder & CEO

25. @ryanmcraver

26. @ryanmcraver
Year 1994: Number of US States within 1-2 days of an Amazon Distribution Center: 1

27. @ryanmcraver
Year 2014: Number of US States within 1-2 days of an Amazon Distribution Center: 40

28. @ryanmcraver
Year 2016: Number of US States within 1-2 days of an Amazon Distribution Center: 48

29. @ryanmcraver
Year 2017: Number of US States within 1 day of an Amazon Distribution Center: 48

30. @ryanmcraver
Amazon’s latest victim is clothing
2011 2013 2015 2017
Column1 Column2 Column3 Column4
$28B
$5B

31. @ryanmcraver
0 2 4 6 8 10 12 14 16 18
Supervalu
Wegmans
BJ's
Amazon
Hy-Vee Food Stores
Southeastern Grocers
Trader Joe's
Aldi
Meijer
Target
Delhaize
ShopRite
Whole Foods
H.E.B.
Ahold
Sam's Club
Publix
Costco
Albertsons/Safeway
Kroger
Walmart
Amazon has yet to made a dent in the grocery category

32. There seems to be no end to declining foot traffic.
@ryanmcraver
2010 2011 2012 2013 2014 2015
-50%
1 ShopperTrak: Collected from 60,000 traffic-tracking devices installed at malls & large retailers courtesy of Wall Street Journal.

33. 2013 2014
0%
2%
4%
6%
2015
1 US Census Bureau and Statistics Canada
Sales have remained positive...
Canada United States

34. 18%
19%
18%
18%
18%
18%
17%
17%
15%
14%
14%
13%
9%
9%
9%
8%
8%
8%
8%
8%
8%
8%
9%
10%
8%
8%
8%
8%
7%
7%
7%
7%
8%
8%
7%
6%
6%
6%
6%
6%
6%
7%
3%
3%
4%
4%
5%
5%
0% 20% 40% 60% 80% 100%
2013
2010
2005
2000
1995
1990
Housing and utilities Health care
Other services Food and beverages purchased for off-premises consumption
Other nondurable goods Financial services and insurance
Food services and accommodations Clothing and footwear
Motor vehicles and parts Furnishings and durable household equipment
Recreational goods and vehicles Gasoline and other energy goods
1 US Census Bureau and Statistics Canada
Spend patterns by category have changed with Health earning the most
growth
@ryanmcraver

35. 9%
9%
9%
8%
8%
8%
8%
8%
8%
8%
9%
10%
8%
8%
8%
8%
7%
7%
7%
7%
8%
8%
7%
6%
6%
6%
6%
6%
6%
7%
3%
3%
4%
4%
5%
5%
4%
3%
5%
5%
5%
5%
2%
2%
3%
3%
3%
3%
0% 20% 40% 60%
2013
2010
2005
2000
1995
1990
Other services Food and beverages purchased for off-premises consumption
Other nondurable goods Financial services and insurance
Food services and accommodations Clothing and footwear
Motor vehicles and parts Furnishings and durable household equipment
Recreational goods and vehicles Gasoline and other energy goods
Transportation services Recreation services
1 US Census Bureau and Statistics Canada
Excluding Housing and Health further illustrates a decline in grocery,
clothing and furnishings
@ryanmcraver

36. Retail sales has winners and losers
@ryanmcraver
Vehicles&Parts
GeneralMerch
Food&Beverage
(Grocery)
Restaurants&Bars
Gasolinestations
OtherGeneral
(Warehouse)
InternetRetailers
Building&Garden
Health(Pharmacy)
Clothing
Department&
Discount
Misc
Electronics&
Appliance
Furniture&
Furnishings
Sporting,Books&
Hobby
OfficeSupplies&Gift
1 US Census Bureau and Statistics Canada
2012 Sales
2014-2015 Sales Growth Above
Average
2014-2015 Sales Growth Below
Average
+5%+4%
+16%
+10% -3%
+7%
+13%
+13% +10% +4%
-5%
+5% +3% +7% +1%
-3%

37. Criteo using $160 billion in annual sales, 1.4 billion transactions across both desktop and mobile sites.
0% 10% 20% 30% 40% 50% 60%
Japan
UK
South Korea
Netherlands
Germany
US
Spain
Mobile commerce is just getting started when comparing to other countries
Early 2015 Late 2015
@ryanmcraver

38. Traditional media is down, digital is up
@ryanmcraver
33%41%
47%35% 12%
13% 6%
3%
7% 7% 53%
54%
Other
38%
2011
% Share
+/- Minutes Spent
2015
% Share
14%
6%

39. Mobile is driving the growth
@ryanmcraver
2011
% Share
+/- Minutes Spent
2015
% Share
Other
33%
47%
7%
54% 256%
70% 22% 8%
42% 7%51%
39%

40. Discovery Trial Purchase Pickup
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Return
Apparel &
Accessories
Computer &
Electronics
Fine Jewelry
Health & Beauty & Furniture
Furniture
Computer &
Electronics
Furniture
Health &
Beauty
Furniture
Health &
Beauty
Highest In-Store Preference Average In-Store Preference Lowest In-Store Preference
1 A.T. Kearney Omnichannel Shopping Preferences Study. n=2,504 respondents and r=8,518 journeys
Preference for in-store varies by classification and purchase step
@ryanmcraver

41. Discovery Trial Purchase Pickup
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Return
Seniors
Millennials
Millennials
Seniors
Seniors
Millennials
Millennials
Seniors
Gen X
Seniors
Seniors <1950 Boomers 1950-1964 Gen X 1965-1979 Millennials 1980-1994 Teens 1995-2001
1 A.T. Kearney Omnichannel Shopping Preferences Study. n=2,504 respondents and r=8,518 journeys
Preference for in-store varies by age group and purchase step
@ryanmcraver

42. Feel
Self sufficiency
Personalized experience
User generated Reviews
comfort
Trial
Breadth of product
Endless aisle
Leisure activity
Visual interaction
Instant gratification24/7/365
curation
familiar
Quickly canvas
Human interaction Environment
Meeting point Workspace
High touch
Seamless price comparisons
Free shipping, free returns
Leisure activity
Instant gratification
DigitalBrick
@ryanmcraver
Channels bring similar and different feelings and advantages

43. IDC Digital Universe, data as of 5/14. Reference from @KPCB Internet Trends.
Note: 1 petabyte = 1mm gigabytes, 1 zetabyte = 1 mm petabytes.
0
2
4
6
8
10
12
2005 2016
ZetabytesofData
Creating intrigue in a sea of content is difficult…
@ryanmcraver
IDC Digital Universe, data as of 5/14. Reference from @KPCB Internet Trends.
Note: 1 petabyte = 1mm gigabytes, 1 zetabyte = 1 mm petabytes.

44. @ryanmcraver

45. @ryanmcraver

46. @ryanmcraver

47. @ryanmcraver

48. GfK and Interactive Advertising Bureau. n-5,000 adults ages 18-64.
Other
Blogs
Other Ent
Online games
Search
Online Video
Email
Social Neworks
0 10 20 30 40
Mobile Desktop
98%
2%
92%
8%
86%
14
%
80%
20%
100%
0%
99%
1%
Minutes Spent Online Social Is Mobile
Online time has become playtime…
@ryanmcraver

49. Customer Service
Commerce
PersonalSharing
News
Key social networks shifting to more news and commerce means even more
time spent on social networks
@ryanmcraver

50. Customer Service
Commerce
PersonalSharing
News
Key social networks shifting to more news and commerce means even more
time spent on social networks
@ryanmcraver

51. @ryanmcraver

52. - STRICTLY CONFIDENTIAL AND FOR INTERNAL USE ONLY -
Mizuho Securities, mix of Android and iOS smartphones. n = 1,000
Google Search 34%
Safari Search 27%
Chrome Search 19%
Map Search 9%
Voice Search 7%
45%
16%
19%
9%
7%
1%
Smartphone Searches – General Information Smartphone Searches – Shopping
Intrigue begins with where the eyes start…
@ryanmcraver

53. Flurry Analytics & ComScore and NetMarketShare.
Forrester’s US Consumer Technographics Behavioral Study, n=1,721
80%
86%
20%
14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015
Others
News
Other…
YouTube
Entertain…
Producti…
Chrome
Safari
Utilities
Messaging
Facebook
Gaming
0% 10% 20% 30% 40%
Apps Mobile Sites
Other
28%
Major
category
leader
24%
Facebook
13%
Google
12%
Enterprise
8%
Native App
4%
Amazon
3%
Apple
3%
Yahoo
2%
Microsoft
1%
eBay
1%
Percentage of Time Spent Top Mobile Activities Top Properties
@ryanmcraver
…intrigue on mobile continues where the eyes spend their time…

54. GEO PUSH PERSONALIZEBRICK TECH
Engage customers
through beacons based
on progression through
store or restaurant
Geo-locate customers
based on proximity to
store or restaurant
Engage customers
through personalized
offers using browsing /
clipping / purchase
behavior
BANNERS
Promote offering or
coupon through banner
ads or associated
search results
Mixed with context including location…
@ryanmcraver

55. @ryanmcraver

56. 97% 91%
81% 69%
Gen Y
(18-29)
Gen X
(30-43)
Young Boomers
(44-53)
Older Boomers
& Seniors
(54+)
Gen Y (18-29) Gen X (30-43)
Young Boomers (44-53) Older Boomers (54+)
65% 62%
45% 37%
Thrive Analytics & Local Search Association, n=1,058
Customers of All Ages Use
Smartphones In-Store
Customers Are Willing to Go
Elsewhere
Don’t fight the empowered customer…
@ryanmcraver

57. Full Menu
Browse
Payment Profile
Build
Email Receipt
Reminder
No Hassle
Pickup
…further empower the empowered customer
@ryanmcraver

58. Order Selection
& Checkout
Bluetooth
Reminder
Alert that Order
Will be Made
When Close
Push
Notification of
Ready Order
…the less hassle the better...
@ryanmcraver

59. Several Options
at Checkout
Local Inventory
Availability In-
Ad
Automated
Pickup Option
Multiple
Shipping
Options
…the more options the better...
@ryanmcraver

60. Platforms have evolved from simple lead
generation to payments and full service providers.
Platforms Associated Brand Advantages
reach
low cart abandonment
audience
pre-populated billing &
shipping
loyaltyconversion
impressions
awareness
Positive Brand
Experiences
Frictionless always wins.
@ryanmcraver

61.  We are only in the beginning stages of tech, mobile and location’s lead impact on
research, browsing, transacting and experiences
 Further connectivity, tech and platform uptake will drive your next level of brand
experiences
 Creating intrigue, delivering immediacy and unapologetically pursuing frictionless
experiences will separate those from the haves and have nots
In conclusion
@ryanmcraver