1. 1
Retailer Seminar: Optimize Your Profit and
Productivity in the Shopping Center Environment
October 23 – 24, 2014 University of Florida, Orlando Campus
DEBORAH WEINSWIG
Executive Director-Head, Global Retail Research and Intelligence
Fung Business Intelligence Centre
deborahweinswig@fung1937.com 646.839.7017
www.deborahweinswigresearch.com

2. 2
The Issues
• Foot traffic:
-3.6% YoY in U.S. (Sept.)
• U.S. Q2 e-commerce sales:
+15.7% YoY (June, estimates)
• Thinking about Holiday 2014,
just remember Holiday traffic
in 2013 was -14.6% YoY
• Worldwide smartphone sales is
expected to grow 11.5% CAGR
from 2014 – 2018
• M-commerce exploding: 1/3 of
Holiday 2013 on mobile, up
from 20% in 2012; but social
commerce did NOT as it was
flat in 2013 at 2%

3. 3
Physical Store Traffic is Falling
Sales Traffic Trans. Conv. %Return ATV SPS
(% points) (% points)
September -2.4% -3.6% -3.6% 0.4% -1.1% 1.4% 1.5%
August -4.0% -7.9% -5.9% 0.4% -1.0% 2.0% 4.2%
July -4.5% -7.8% -9.5% -0.05% -1.1% 6.7% 3.5%
June -5.8% -10.8% -12.0% -0.1% -0.8% 7.6% 5.5%
May -5.7% -8.0% -11.6% -0.2% -0.6% 7.1% 2.6%
Source: RetailNext, Comprehensive In-Store Analytics

4. 4
Conquering the Omni-channel Arena
• Retailers want a "single customer
interaction platform" but have
almost no idea how to get there
• Creating a single brand identity
across channels is the most
important goals for retailers
• Retailers should designate a
single owner of the customer
experience journey

5. 5
The Future of Retail
• Digital information is influencing more than 50% of our
purchases
• Retailers can create value by integrating retail channels
with social media, online, and mobile channels
• Omni-channel shoppers spend 50% more than single
channel shoppers
• O2O online driving offline transactions

6. 6
Big Trends Changing Retail
Marketing Today
• Human connections are the only real metric for building
institutional trust
• Better storytelling is the secret weapon for when products
are easily replicated
• The best value from digital tactics comes by educating
instead of trying to have a "dialogue"

7. 7
The Future of Retail Marketing
• 77% of consumers prefer email for permission-based
promotional messaging
• 39% of retailers used in-store signage to convert
customers to digital
• 44% of retailers do email acquisition at point-of-purchase

8. 8
Recasting the Retail Store in Today's
Omni-channel World
• The majority of consumer shopping time is still spent
in store at 61% per AT Kearney
• Consumers spend more money when shopping in
brick-and-mortar stores
• There are multiple ways to research, verify, and
purchase products

9. 9
Physical Stores Maintain Their Importance

10. 10
Converting Online Browsers to Buyers

11. 11
What is Cyber Crime?
• Crime committed using a
computer and the internet to
steal a person’s identity or
illegal imports or malicious
programs
• Cybercrime is nothing but
where the computer used as
an object or subject of crime

12. 12
Types of Cyber Crime
Types of Cyber attacks, by percentage (source- FBI)
•Financial fraud: 11%
•Sabotage of data/networks: 17%
•Theft of proprietary information: 20%
•System penetration from the outside: 25%
•Denial of service: 27%
•Unauthorized access by insiders: 71%
•Employee abuse of internet privileges: 79%
•Viruses: 85%

13. 13
Cyber Security
• Cyber security will defend us
from critical attacks
• It helps us to browse the safe
website
• Internet security process all the
incoming and outgoing data on
our computer

14. 14
How Do Retailers Compete
US Customer Satisfaction Index 2013
1.0%
9.2%
9.9%
5.6%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Amazon Kohl's Macy's Walmart
COMPANY SCORE
Amazon 88
Nordstrom 83
Kohl’s 81
Dollar Central 80
JC Penney 79
Target 77
Macy’s 76
Walmart 71
FY 13 (ended January 2014) EBIT Margins
FY14 P/E 122.0X 13.6X 13.0X 15.2X
FY15 P/E 67.3X 12.3X 11.3X 14.3X
As of Oct. 22, 2004
Source: SPCapitalIQ

15. 15
Communication App
• Personalization Engine
• Making Shopping Fun Again
• Driving Traffic to the Stores
• Ability to offer Inspiration
• Forming a Community
• Inexpensive Marketing and Communication Tool

16. 16
Q & A
DEBORAH WEINSWIG
Executive Director-Head, Global Retail Research and Intelligence
Fung Business Intelligence Centre
deborahweinswig@fung1937.com 646.839.7017
www.deborahweinswigresearch.com