The document discusses the rapidly growing retail market in Romania. It notes that many international retailers are entering the Romanian market and establishing stores across the country. However, local retailers still dominate some sectors like grocery, pharmacies, and furniture. The document predicts that within 5 years, Romania will experience 20 years' worth of retail revolution as international chains expand their presence and competition increases. It advises retailers to innovate and adapt international concepts to local needs to succeed in this changing marketplace.

1. RETAIL 2.0 – A DIFFERENT PERSPECTIVE FUTURE LAB

2. IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT FUTURE LAB MIX & MATCH CONSUMERS

3. IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT FUTURE LAB MULTI-CHANNEL RETAILING

4. POP Systems Online I MIGHT EVEN TALK ABOUT FUTURE LAB IF I WAS IN A TRADITIONAL RETAIL MARKET …

5. BUT NOT IN ROMANIA FUTURE LAB

6. RETAIL IN EMERGING MARKETS COPY MODIFY CREATE Introduce global formats that already exist Modify existing concepts to better match local needs Develop new concepts, targeting specific local segments and needs DEGREE OF INNOVATION FUTURE LAB

7. DRIVING IN FROM THE AIRPORT FUTURE LAB Baneasa Shopping City Metro Cash & Carry – Selgros – Cora – Plus Discount – Auchan – Real – Spar – BauMax Tekzen – Brithaus – Hornbach – Inditex (Zara, Massimo Dutti )

8. BUT THIS IS JUST THE BEGINNING FUTURE LAB

9. MONEY, MONEY, MONEY Turnover of Retail Trade in Romania 2001-2007, 2010 (€ billions) FUTURE LAB Sources: PMR Publications, « Retail in Romania 2008 », 2008 Estimate Market Potential: Futurelab Extrapolation of Belgian Retail Trade Turnover on Romanian Population The Good News

10. THE RETAIL MACHINES ARE COMING FUTURE LAB The Bad News

11. THOSE PRESENT WILL ROLL-OUT BEYOND BUCHAREST FUTURE LAB The Bucharest Carrefour is currently the third most visited in the world 2008 - New stores in Oradea, Arad, Pitesti, Suceava, Iasi and Bucharest

12. DECLARED ENTRANTS 2008-2009 DECLARED ENTRANTS 2008 FUTURE LAB

13. By 2010 it is expected that there will be an additional ten commercial centres (malls) built in Bucharest alone, but also throughout Romania in cities > 100,000 inhabitants Source: Euromonitor, March 2008 AND THE REST WILL FOLLOW FAST FUTURE LAB

14. IN WHICH OUTLET OPERATORS CAN’T BE FAR BEHIND FUTURE LAB

15. FUTURE LAB In some retail sectors, mostly grocery, such as hypermarkets, supermarkets and discounters, leaders are multinational players. In durable goods, pharmacies and furniture retail local players currently hold the lion’s share. In very fragmented segments, such as clothing and footwear retail or leisure and personal goods, there is no clear cut leader. However, this situation is likely to change in the future, as a large amount of foreign investment is expected to come. Source: Euromonitor, Retailing in Romania, 2008 IN 5 YEARS ROMANIA WILL EXPERIENCE 20 YEARS OF RETAIL REVOLUTION

16. FIRST, ACCEPT THAT RESISTANCE “IS” FUTILE

17. THEN, GO TO WORK FUTURE LAB

18. BRANDS Be the first to become friendly with your new customers Help your existing distribution to « make the jump » Pro-actively say goodbye to those who can’t or won’t innovate. RETAILERS/INVESTORS Be first to bring a (modified) format into the market Come with something « unique » which internationals can’t offer Get out of the way and sell as expensive as possible. FUTURE LAB THEN, GO TO WORK

19. FUTURE LAB RETAIL STRATEGIC POSITIONING FRAMEWORK Source: IBM Business Consulting Services – The Retail Divide, 2004 Products Solutions Basic Needs Self Expression Needs Alignment THE RETAILERS THAT WILL MAKE IT… Selling proposition Opportunist Basis of competition Product appeal, in-store experience, organisational agility The Shopper says: “ It’s exciting to shop here” “ Great product” “ It’s cool, it’s me” Lifestyle Basis of competition Prestige, superior service, customer intimacy, enthusiasm The Shopper says: “ They know what I want” “ They help me to be me” Mass value Basis of competition Price, selection, convenience, scale, operating efficiency The Shopper says: “ I’m getting a good deal” “ I can get everything I need” “ It’s quick and convenient” Solver Basis of competition Relevant solutions, partner network, reliable delivery The Shopper says: “ I trust them” “ They solve my problems” “ I can’t do it anywhere else”

20. THOSE WHO CAN’T MAKE UP THEIR MIND “WILL DIE” FUTURE LAB

21. YOUR 4 STEP ACTION PLAN FUTURE LAB

22. 1. GET ON A PLANE TO LEARN AND NETWORK FUTURE LAB

23. 2. IMPORT – SKILLS, IDEAS, FORMATS FUTURE LAB

24. 3. SECURE AND TRAIN THE BEST PEOPLE

25. 4. INNOVATE LIKE ONLY ROMANIANS CAN COPY MODIFY CREATE Introduce global formats that already exist Modify existing concepts to better match local needs Develop new concepts, targeting specific local segments and needs DEGREE OF INNOVATION FUTURE LAB

26. POP Systems Online SO YES, THIS PM WE WILL HAVE SOME THOUGHTS ON FUTURE LAB

27. FUTURE LAB Source: IBM Business Consulting Services – The Retail Divide, 2004 BUT WE WILL START WITH INNOVATION FROM A STRATEGIC PERSPECTIVE And to be more precise: « customer centric retail innovation »

28. FUTURE LAB COPY MODIFY CREATE DEGREE OF INNOVATION Turnover of Retail Trade in Romania 2001-2007, 2010 (€ billions) ROMANIA IS ON THE VERGE OF SOMETHING BIG

29. FUTURE LAB THOSE WHO INNOVATE WIN

30. FUTURE LAB THE CHOICE IS YOURS

31. FUTURE LAB