This document discusses retailers' tablet investments and challenges in 2012. It finds that the average planned investment in tablets for fiscal year 2012 was $206,932, up from $55,114 in 2011. The top internal challenges for mobile initiatives were unclear business objectives and lack of mobile experience. A mobile-optimized website was the most common investment made by retailers in 2012 in preparation for the holiday season.

1. Report from Holiday 2012: Tablet
Shopping
…With a Glimpse of What’s Ahead in 2013
Fiona S. Swerdlow
Head of Research, Shop.org
The National Retail Federation
1
Confidential & Proprietary

2. HOW RETAILERS INVESTED IN
TABLETS BEFORE THE 2012
HOLIDAY SEASON
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Confidential & Proprietary

3. Mobile takes perseverance: retailer CIOs grapple with
business objectives, staffing, consumer behavior, budget
Q. What are your company’s greatest (top 5) internal challenges to successfully deploying and managing
smart phone and tablet device initiatives?
Business objectives for mobile initiatives are unclear 60%
Lack of experience in other areas, e.g. design for a smart phone vs. a… 40%
Staying up to date on market / customer needs and uses for mobile 36%
Working with third parties – e.g. vendors – on mobile initiatives is difficult 36%
Obtaining adequate budget for mobile initiatives, including staff 36%
Staying up to date on mobile development innovations 31%
Finding and hiring IT staff with strong mobile expertise and experience 31%
Tight timeframes for development, deployment and ongoing updates 31%
Unclear prioritization for enhancements and updates requested by other… 29%
Frequency of platform upgrades requiring app and mobile site… 24%
Requirements for app store approval and compliance 10%
None of the above 2%
Base: 55 retail IT executives
Source: The State of Retailing Online 2012 – Investments in Mobile & Tablet
Commerce. By Shop.org & Forrester Research. (SeptemberConfidential & Proprietary
2012)
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4. Fiscal Year 2012 retailer investments in mobile
Q. Please tell us how much your company plans to invest **this year (Fiscal Year 2012)** in mobile and tablet initiatives
(total). **Please include costs for total invested across hardware and software - including planned investment in devices
issued to employees; please don't include salaries or consulting fees.
23%
20%20%
14% 14% 14% 14%14%
11%
9% 9% 9% 9%
7%
5% 5%
2% 2%
0% 0%
No Less than $10,000 to $50,000 to $100,000 to $250,000 to $500,000 to $750,000 to $1 Don't know
investment $10,000 less than less than less than less than less than less than million or / prefer not
made in $50,000 $100,000 $250,000 $500,000 $750,000 $1 million more to answer
Fiscal Year
2012 Smartphones Tablets
Base: 44 retail IT executives
Source: The State of Retailing Online 2012 – Investments in Mobile & Tablet
Commerce. By Shop.org & Forrester Research. (SeptemberConfidential & Proprietary
2012)
4

5. Fiscal Year 2012 retailer investments in mobile
Q. Please tell us how much your company plans to invest **this year (Fiscal Year 2012)** in mobile and tablet initiatives
(total). **Please include costs for total invested across hardware and software - including planned investment in
devices issued to employees; please don't include salaries or consulting fees.
23%
20%20%
14% 14% 14% 14%14%
11%
9% 9% 9% 9%
7%
5% 5%
2% 2%
0% 0%
No Less than $10,000 to $50,000 to $100,000 to $250,000 to $500,000 to $750,000 to $1 Don't know
investment $10,000 less than less than less than less than less than less than million or / prefer not
made in $50,000 $100,000 $250,000 $500,000 $750,000 $1 million more to answer
Fiscal Year
2012 Smartphones Tablets
Base: 44 retail IT executives
Source: The State of Retailing Online 2012 – Investments in Mobile & Tablet
Commerce. By Shop.org & Forrester Research. (SeptemberConfidential & Proprietary
2012)
5

6. Fiscal Year 2012 retailer investments in mobile
Q. Please tell us how much your company plans to invest **this year (Fiscal Year 2012)** in mobile and tablet initiatives
(total). **Please include costs for total invested across hardware and software - including planned investment in
devices issued to employees; please don't include salaries or consulting fees.
Average FY 2012 investment
23% in tablet: $206,932
20%20% vs. FY 2011 average of
$55,114
14% 14% 14% 14%14%
11%
9% 9% 9% 9%
7%
5% 5%
2% 2%
0% 0%
No Less than $10,000 to $50,000 to $100,000 to $250,000 to $500,000 to $750,000 to $1 Don't know
investment $10,000 less than less than less than less than less than less than million or / prefer not
made in $50,000 $100,000 $250,000 $500,000 $750,000 $1 million more to answer
Fiscal Year
2012 Smartphones Tablets
Base: 44 retail IT executives
Source: The State of Retailing Online 2012 – Investments in Mobile & Tablet
Commerce. By Shop.org & Forrester Research. (SeptemberConfidential & Proprietary
2012)
6

7. “Mobile-optimized web site” topped the list of
investments leading up to Holiday 2012…
Q: Of the following sites and service features, which have you invested in most significantly in 2012 in advance of the
Holiday '12 season? Please choose all that apply for each group of features.
Top 2012 Investments – All Categories
Mobile optimized Web site 54.7%
Facebook page 52.8%
Cross-selling on product page 49.1%
Site search 47.2%
Pinterest "board(s)" 43.4%
Customer ratings and reviews on site 41.5%
Cross-selling on cart page 41.5%
Load testing for the site 39.6%
Clearance sale page 39.6%
Bestsellers list 35.8%
Gift card / gift certificate purchase on site 35.8%
Dynamically customized / personalized emails 35.8%
Video of product 34.0%
Shipping deadlines calendar 34.0%
Gift card / gift certificate redemption on site 32.1%
0% 10% 20% 30% 40% 50% 60%
Source: BIGinsight™/Shop.org 2012 Pre-Holiday Retailer Merchandising Social Media Gift Cards 7
Study, July 10 to 24, 2012 ( N= 53) Confidential & Proprietary

8. …But tablet-specific investments were also on
retailer minds
Q: Of the following sites and service features, which have you invested in most significantly in 2012 in advance of the
Holiday '12 season? Please choose all that apply for each group of features.
Top 2012 Investments for Holiday – Social Media, Mobile, Marketing & Promotions
Mobile optimized Web site 54.7% Twitter campaign / feed 18.9%
Facebook page 52.8% Smartphone experience 18.9%
Pinterest "board(s)" 43.4% QR codes in offline… 17.0%
Dynamically customized / Blogs on other sites 15.1%
personalized emails
35.8%
Free standard shipping Tablet device app 13.2%
promotion -- some hurdle
32.1%
Free standard shipping Mobile text (SMS)… 9.4%
promotion -- no hurdle
32.1%
Geo-fencing technology 5.7%
Blog on our own retail site 32.1%
Group buying offers (e.g.… 3.8%
Tablet experience 30.2%
3.8%
Mobile commerce
28.3%
applications ("apps") Location based services… 0.0%
Loyalty program 28.3% Other 3.80%
0% 20% 40% 60% 0% 20% 40% 60%
Source: BIGinsight™/Shop.org 2012 Pre-Holiday Retailer
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Study, July 10 to 24, 2012 ( N= 53) Confidential & Proprietary

9. HOW CONSUMERS USED
TABLETS FOR HOLIDAY
SHOPPING
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Confidential & Proprietary

10. Smartphone, tablet ownership is pervasive
among all customer segments
Q: Do you own either of the following devices? (Check all that apply)
80%
69.9%
55.8% 56.0%
60%
50.6% 51.8%
45.8%
41.2%
40%
31.6%
20%
0%
Adults 18+ Men Women 18 - 34 35 to 54 55+ Years HH <$50K HH
Years Years >$50K+
Smartphone Tablet Device I don't own either of these devices
Source: BIGinsight™/Shop.org Post-Holiday Consumer
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Study, Dec. 27, 2012 to Jan. 9, 2013 (N= 1,919) Confidential & Proprietary

11. Smartphone, tablet ownership is pervasive
among all customer segments
Q: Do you own either of the following devices? (Check all that apply)
80%
69.9%
55.8% 56.0%
60%
50.6% 51.8%
45.8%
41.2%
34.4% 38.2% 38.1%
40%
31.8% 32.6% 31.6%
29.3%
25.1% 24.6%
20%
0%
Adults 18+ Men Women 18 - 34 35 to 54 55+ Years HH <$50K HH
Years Years >$50K+
Smartphone Tablet Device I don't own either of these devices
Source: BIGinsight™/Shop.org Post-Holiday Consumer
11
Study, Dec. 27, 2012 to Jan. 9, 2013 (N= 1,919) Confidential & Proprietary

12. Smartphone, tablet ownership is pervasive
among all customer segments
Q: Do you own either of the following devices? (Check all that apply)
80%
69.9%
55.8% 56.0%
60% 56.5%
50.6% 51.8%
47.9%
45.8%
42.4% 41.2%
38.3% 34.4% 38.2% 37.6% 38.1%
40% 34.1%
31.8% 32.6% 31.6% 33.0%
29.3%
25.1% 24.6%
19.4%
20%
0%
Adults 18+ Men Women 18 - 34 35 to 54 55+ Years HH <$50K HH
Years Years >$50K+
Smartphone Tablet Device I don't own either of these devices
Source: BIGinsight™/Shop.org Post-Holiday Consumer
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Study, Dec. 27, 2012 to Jan. 9, 2013 (N= 1,919) Confidential & Proprietary

13. Tablets enabled consumers to find retailer
info, compare prices, read reviews – and buy
Q: How did you use your Tablet Device for any part of your 2012 holiday shopping? (Tablet device owners)
80%
60%
50.8%
40%
19.3%
20% 16.8%
13.4% 12.2%
10.2% 9.8%
7.6%
0%
ot use my tablet device to research or make holidayPurchased products etc.) for an for coupons or discounts find a physical store forshopping cart to retrieve
Looked up retailer information (location, store hours, directions, prices
purchases Compared Searched item the store locatorPut aup customer reviews
Used Looked product in my ONLINE an item
to
Adults 18+ Men Women 18-34 35-54 55+
Source: BIGinsight™/Shop.org Post-Holiday Consumer
13
Study, Dec. 27, 2012 to Jan. 9, 2013 (N= 1,919) Confidential & Proprietary

14. Tablets enabled consumers to find retailer
info, compare prices, read reviews – and buy
Q: How did you use your Tablet Device for any part of your 2012 holiday shopping? (Tablet device owners)
80%
60%
50.8%
40%
19.3%
20% 16.8%
13.4% 12.2%
10.2% 9.8%
7.6%
0%
ot use my tablet device to research or make holidayPurchased products etc.) for an for coupons or discounts find a physical store forshopping cart to retrieve
Looked up retailer information (location, store hours, directions, prices
purchases Compared Searched item the store locatorPut aup customer reviews
Used Looked product in my ONLINE an item
to
Adults 18+ Men Women 18-34 35-54 55+
Source: BIGinsight™/Shop.org Post-Holiday Consumer
14
Study, Dec. 27, 2012 to Jan. 9, 2013 (N= 1,919) Confidential & Proprietary

15. Tablets enabled consumers to find retailer
info, compare prices, read reviews – and buy
Q: How did you use your Tablet Device for any part of your 2012 holiday shopping? (Tablet device owners)
80%
60%
50.8%
40%
31.0%
22.6% 23.6% 22.7%
19.3%
20% 16.8% 16.3%
13.4% 12.2% 13.6% 13.5%
10.2% 9.8%10.9%
7.6%
0%
ot use my tablet device to research or make holidayPurchased products etc.) for an for coupons or discounts find a physical store forshopping cart to retrieve
Looked up retailer information (location, store hours, directions, prices
purchases Compared Searched item the store locatorPut aup customer reviews
Used Looked product in my ONLINE an item
to
Adults 18+ Men Women 18-34 35-54 55+
Source: BIGinsight™/Shop.org Post-Holiday Consumer
15
Study, Dec. 27, 2012 to Jan. 9, 2013 (N= 1,919) Confidential & Proprietary

16. Millennials led in tapping tablets for coupons, using /
buying gift cards, watching product videos
Q: How did you use your Tablet Device for any part of your 2012 holiday shopping? (Tablet device owners) (cont.) [For additional
answers, please see Appendix Slide 70.]
80%
60%
40%
20% 17.6%
14.9%
10.5% 8.3% 8.6%
6.7% 6.3% 5.6% 5.2% 7.2%
4.5% 3.7% 5.0% 3.5%
0%
Searched for Redeemed Redeemed a gift Looked up a gift Bought a gift card Used apps to Watched a
coupons or coupons card registry or wish list research or product video
discounts purchase products
specifically when I
was in the store
Adults 18+ Men Women 18-34 35-54 55+
Source: BIGinsight™/Shop.org Post-Holiday Consumer
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Study, Dec. 27, 2012 to Jan. 9, 2013 (N= 1,919) Confidential & Proprietary

17. TABLET SHOPPING IN 2013
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Confidential & Proprietary

18. Outlook for tablets in 2013: growing quickly – with
more choices, better prices for consumers
“World-Wide Tablet Shipments “And Now Apple is Losing Its Lead In
Up 75% in 4th Quarter – IDC” Tablets, Too…”
- The Wall Street Journal, January - Henry Blodget, CEO & Editor in Chief, Business
31, 2013 Insider
BusinessInsider.com, February 1, 2013
“the greatest impact that i see on
online consumer spending this
“Samsung Doubles Tablet PC
year: income and jobs aside, it
Market Share Amid Apple’s
has to be consumer use of
Lead”
tablets.”
-BloombergBusinessweek,
- Jack Kleinhenz, Chief Economist, NRF
February 3, 2013
Shop.org Blog, February 1, 2013
blog.shop.org
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Confidential & Proprietary

19. All things mobile figure prominently on retailer
lists to prepare for Holiday 2013…
Q. Based on your experience this past Q. Looking ahead, what ONE thing will you
holiday season, what ONE thing will you do differently for Holiday 2013?
invest in this year for Holiday 2013?
• “Mobile” (multiple mentions) • “More mobile marketing
• “Mobile check out” investment”
• “Mobile optimization”
• “Responsive web design”
• “Tablet” (multiple mentions)
• “SMS”
Source: BIGinsight™/Shop.org Post-Holiday Retailer Study, Jan. 2 to
19
Jan. 10, 2013 (N= 48) Confidential & Proprietary

20. …and are a focus for 2013 overall: 2 out of 5 retailers
include “mobile and tablet” in their Top 3 initiatives
Top Digital Initiatives for 2013 Examples/Definitions
Checkout optimization, alternative payments,
Site conversion 51% user experience, testing, analytics
investments, product detail page enhancement
Mobile and tablet 43% Mobile-optimized sites, mobile analytics,
mobile traffic and conversion growth
Site redesign 27% Core site “look and feel” overhaul, responsive
design changes
International growth 27% Shipments abroad
Cross-channel analytics, ship from store,
Multichannel efforts 25% endless aisle
Base: 58 online retailers
(multiple responses accepted)
Source: The State of Retailing Online 2013 – Key Metrics & Initiatives. By
Shop.org & Forrester Research. (January 2013)
20
Confidential & Proprietary

21. The good news: retailers are thinking about the
whole customer experience
Top Digital Initiatives for 2013 Examples/Definitions
Checkout optimization, alternative payments,
Site conversion 51% user experience, testing, analytics
investments, product detail page enhancement
Mobile and tablet 43% Mobile-optimized sites, mobile analytics,
mobile traffic and conversion growth
Site redesign 27% Core site “look and feel” overhaul, responsive
design changes
International growth 27% Shipments abroad
Cross-channel analytics, ship from store,
Multichannel efforts 25% endless aisle
Base: 58 online retailers
(multiple responses accepted)
Source: The State of Retailing Online 2013 – Key Metrics & Initiatives. By
Shop.org & Forrester Research. (January 2013)
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Confidential & Proprietary

22. Thank you.
Fiona S. Swerdlow
Head of Research, Shop.org
SwerdlowF@Shop.org
22
Confidential & Proprietary